Note 16 - Concentration of Credit Risk

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

16. 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 has been reduced.

During the three months ended June 30, 2025, the Company’s largest cosmetic ingredient distributors and three of its pharmaceutical distributors accounted for 79% of the Company’s gross sales, and 86% of its outstanding accounts receivable at June 30, 2025. During the three months ended June 30, 2024, the same cosmetic ingredient distributor and three pharmaceutical distributors accounted for 82% of the Company’s gross sales and 83% of its outstanding accounts receivable at June 30, 2024.

During the six months ended June 30, 2025, the Company’s largest cosmetic ingredient distributors, along with three of its pharmaceutical distributors, accounted for 73% of the Company’s gross sales and 86% of its outstanding accounts receivable at June 30, 2025. During the six-month period ended June 30, 2024, the same cosmetic ingredient distributor and three pharmaceutical distributors accounted for 82% of the Company’s gross sales and 83% of its outstanding accounts receivable at June 30, 2024.