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4. Revenue Recognition

3 Months Ended

Mar. 31, 2018

Our products consist of the following:

●	Antimony: includes antimony oxide, sodium antimonate, and antimony metal

●	Zeolite: includes course and fine zeolite crushed in various sizes.

●	Precious Metals: includes refined gold and silver

For our antimony and zeolite products, revenue is recognized upon the completion of the performance obligation which is met when the transaction price can be reasonably estimated and revenue is recognized generally at the time when risk is transferred. We have determined the performance obligation is met and title is transferred either upon shipment from our warehouse locations or upon receipt by the customer as specified in individual sales orders. The performance obligation is met because at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the product and obtained the ability to realize all of the benefits from the product, 3) the customer has the significant risks and rewards of ownership to it, 4) it is very unlikely product will be rejected by the customer upon physical receipt, and 5) we have the right to payment for the product. Shipping costs related to the sales of antimony and zeolite products are recorded to cost of sales as incurred. For zeolite products, royalty expense due a third party by the Company is also recorded to cost of sales upon sale in accordance with terms of underlying royalty agreements.

For sales of precious metals, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer. Refining and shipping costs related to sales of precious metals are recorded to cost of sales as incurred.

Sales of products for the thee-month periods ended March 31, 2018 and 2017 were as follows:

	Three Months Ended
	March 31,
	2018		2017
Antimony	$	1,681,812	$	1,986,507
Zeolite		690,707		612,012
Precious metals		60,410		20,811
	$	2,432,929	$	2,619,330

The following is sales information by geographic area based on the location of customers for the three-month periods ended March 31, 2018 and 2017:

	Three Months Ended
	March 31,
	2018		2017
United States	$	2,099,521	$	2,297,055
Canada		185,238		322,275
Mexico		148,170		-
	$	2,432,929	$	2,619,330

Sales of products to significant customers were as follows for the three-month periods ended March 31, 2018 and 2017:

Sales to Three	For the Period Ended
Largest Customers	March 31, 2018			March 31, 2017
Kohler Corporation	$	316,772		$	445,178
Ampacet Corporation		184,142			-
East Penn Manufacturing		-			148,643
Mexichem Speciality Compounds		728,578			786,425
	$	1,229,492		$	1,380,246
% of Total Revenues		50.50	%		52.70	%

Three Largest
Accounts Receivable	March 31, 2018			March 31, 2017
Kohler Corporation				$	149,124
Axens North America Inc.	$	38,404			-
Mexichem Speciality Compounds		148,170			135,680
Teck America		59,110			-
Nutreco Canada Inc.		-			28,139
	$	245,684		$	312,943
% of Total Receivables		59.50	%		56.50	%

Our trade accounts receivable balance related to contracts with customers was $412,546 at March 31, 2018 and $362,579 at December 31, 2017. Our products do not involve any warranty agreements and product returns are not typical.

We have determined our contracts do not include a significant financing component. For antimony and zeolite sales contracts, we may factor certain receivables and receive final payment within 30 days of the performance obligation being met. For antimony and zeolite receivables not factored, we typically receive payment within 10 days. For precious metals sales, a provisional payment of 75% is typically received within 45 days of the date the product is delivered to the customer. After an exchange of assays, a final payment is normally received within 90 days of product delivery.

We do not incur significant costs to obtain contracts, or costs to fulfill contracts which are not addressed by other standards. Therefore, we have not recognized an asset for such costs as of March 31, 2018 or December 31, 2017.