Annual report pursuant to Section 13 and 15(d)

BUSINESS AND OPERATIONS OF THE COMPANY

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BUSINESS AND OPERATIONS OF THE COMPANY
12 Months Ended
Dec. 31, 2017
BUSINESS AND OPERATIONS OF THE COMPANY [Abstract]  
BUSINESS AND OPERATIONS OF THE COMPANY
NOTE 1 - BUSINESS AND OPERATIONS OF THE COMPANY

Trecora Resources, formerly Arabian American Development Company, (the "Company") was organized as a Delaware corporation in 1967.  The Company's principal business activities are the manufacturing of various specialty petrochemical products, specialty waxes and providing custom processing services.  The Company owns 33% of a Saudi Arabian joint stock company, Al Masane Al Kobra Mining Company ("AMAK") (see Note 11) and approximately 55% of the capital stock of a Nevada mining company, Pioche Ely Valley Mines, Inc. ("PEVM"), which does not conduct any substantial business activity but owns undeveloped properties in the United States.

The Company's petrochemical operations are primarily conducted through a wholly-owned subsidiary, Texas Oil and Chemical Co. II, Inc. ("TOCCO").  TOCCO owns all of the capital stock of South Hampton Resources, Inc. ("SHR") and Trecora Chemical, Inc. ("TC").  SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc. ("GSPL").  SHR owns and operates a specialty petrochemical product facility near Silsbee, Texas which manufactures high purity hydrocarbons used primarily in polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, Canadian tar sands, and in the catalyst support industry.  TC owns and operates a facility located in Pasadena, Texas which manufactures specialty waxes and provides custom processing services.  These specialty waxes are used in the production of coatings, hot melt adhesives and lubricants.  GSPL owns and operates pipelines that connect the SHR facility to a natural gas line, to SHR's truck and rail loading terminal and to a major petroleum pipeline owned by an unaffiliated third party.

We attribute revenues to countries based upon the origination of the transaction.  All of our revenues for the years ended December 31, 2017, 2016, and 2015, originated in the United States.  In addition, all of our long-lived assets are in the United States.

For convenience in this report, the terms "Company", "our", "us" or "we" may be used to refer to Trecora Resources and its subsidiaries.

Certain reclassifications have been made to the Consolidated Balance Sheet for the year ended December 31, 2016, related to our adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2015-17 as noted below and in Note 2.

The impact of the adoption ASU 2015-17 on the Company's previously issued December 31, 2016, balance sheet is as follows:

   
As Originally
Reported
   
As Retrospectively
Adjusted
 
   
(in thousands)
 
Deferred income tax asset, current
 
$
1,615
   
$
-
 
Total current assets
   
57,562
     
55,947
 
Total assets
   
292,099
     
290,484
 
Deferred income tax liability, noncurrent
   
24,698
     
23,083
 
Total liabilities
   
127,723
     
126,108
 
Total liabilities and equity
   
292,099
     
290,484