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Note 13 - Concentrations of Credit Risk
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

13.      Concentrations of Credit Risk

 

Customer Concentration: Accounts receivable potentially exposes the Company to concentrations of credit risk. The Company monitors the amount of credit it allows each of its customers, using the customer’s prior payment history to determine how much credit to allow or whether any credit should be given at all. It is the Company’s policy to discontinue shipments to any customer that is substantially past due on its payments. The Company sometimes requires payment in advance from customers whose payment record is questionable. As a result of its monitoring of the outstanding credit allowed for each customer, as well as the fact that the majority of the Company’s sales are to customers whose satisfactory credit and payment record has been established over a long period of time, the Company believes that its credit risk from accounts receivable is low.

 

During the three months ended June 30, 2022, one of the Company’s cosmetic ingredient marketing partners, along with three of its pharmaceutical distributors, together were responsible for 69% of the Company’s sales, and accounted for 68% of its outstanding accounts receivable at June 30, 2022. During the three months ended June 30, 2021, the same marketing partner and three distributors together were responsible for 75% of the Company’s sales, and accounted for 73% of its outstanding accounts receivable at June 30, 2021.

 

During the six months ended June 30, 2022, one of the Company’s cosmetic ingredient marketing partners, along with three of its pharmaceutical distributors, together were responsible for 74% of the Company’s sales, and accounted for 68% of its outstanding accounts receivable at June 30, 2022. During the six-month period ended June 30, 2021, the same marketing partner and three distributors together were responsible for 76% of the Company’s sales, and accounted for 73% of its outstanding accounts receivable at June 30, 2021.