CONCENTRATIONS OF REVENUES AND CREDIT RISK
|12 Months Ended|
Dec. 31, 2020
|Risks and Uncertainties [Abstract]|
|CONCENTRATIONS OF REVENUES AND CREDIT RISK||CONCENTRATIONS OF REVENUES AND CREDIT RISK
We sell our products and services to companies in the chemical, plastics, and petroleum industries. We perform periodic credit evaluations of our customers and generally do not require collateral from our customers. For the years ended December 31, 2020, 2019, and 2018, one customer accounted for 15.4%, 15.0%, and 13.5%, respectively, of consolidated revenue. The associated accounts receivable balances for this customer, ExxonMobil and their affiliates, were approximately $4.1 million and $4.9 million at December 31, 2020 and 2019, respectively.
We market our products in many foreign jurisdictions. For the years ended December 31, 2020, 2019, and 2018, revenue in foreign jurisdictions accounted for approximately 24.0%, 21.9%, and 25.5% of consolidated revenue, respectively.
SHR utilizes one major supplier to purchase all our feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. At December 31, 2020, and 2019, we owed the supplier approximately $9.2 million and $12.4 million, respectively, for feedstock purchases.
We hold our cash with various financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000. At times during the year, cash balances may exceed this limit. We have not experienced any losses in such accounts and do not believe we are exposed to any significant risk of loss related to cash.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef