CONCENTRATIONS OF REVENUES AND CREDIT RISK
|12 Months Ended|
Dec. 31, 2016
|CONCENTRATIONS OF REVENUES AND CREDIT RISK [Abstract]|
|CONCENTRATIONS OF REVENUES AND CREDIT RISK||
NOTE 4 - 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 year ended December 31, 2016, one customer accounted for 20.1% of petrochemical product revenue. For the year ended December 31, 2015, one customer accounted for 20.1% of petrochemical product revenue. For the year ended December 31, 2014, two customers accounted for 23.2% and 10.5% of total revenue. The associated accounts receivable balances for those customers were approximately $5.1 million at December 31, 2016, $7.6 million at December 31, 2015, and $9.5 million and $1.6 million as of December 31, 2014. The carrying amount of accounts receivable approximates fair value at December 31, 2016.
Accounts receivable serves as collateral for our amended and restated loan agreement (see Note 13).
We market our products in many foreign jurisdictions. For the years ended December 31, 2016, 2015 and 2014, petrochemical product sales revenue in foreign jurisdictions accounted for approximately 23.5%, 26.0%, and 30.5% of total product sales revenue, respectively.
SHR utilizes one major supplier for its feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. The percentage of feedstock purchased from the supplier during 2016, 2015, and 2014 was 99.4% 100% and 100%, respectively. At December 31, 2016, and 2015, we owed the supplier approximately $3.7 million and $2.5 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://www.xbrl.org/2003/role/presentationRef