XML 22 R10.htm IDEA: XBRL DOCUMENT

4. Revenue Recognition

3 Months Ended

Mar. 31, 2019

Our products consist of the following:

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

●	Zeolite: includes coarse and fine zeolite crushed in various sizes

●	Precious Metals: includes unrefined and 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 three month periods ended March 31, 2019 and 2018, were as follows:

	Three Months Ended
	March 31,
	2019		2018
Antimony	$	1,705,823	$	1,681,812
Zeolite		726,015		690,707
Precious metals		24,527		60,410
	$	2,456,365	$	2,432,929

The following is sales information by geographic area based on the location of customers for the three month periods ended March 31, 2019 and 2018:

	Three Months Ended
	March 31,
	2019		2018
United States	$	2,108,569	$	2,247,691
Canada		187,257		185,238
Mexico		160,539		-
	$	2,456,365	$	2,432,929

Sales of products to significant customers were as follows for the three month periods ended March 31, 2019 and 2018:

Sales to Three	For the Period Ended
Largest Customers	March 31, 2019			March 31, 2018
Kohler Corporation	$	458,094		$	316,772
Ampacet Corporation		-			184,142
East Penn Manufacturing		157,328			-
Mexichem Speciality Compounds		684,011			728,578
	$	1,299,433		$	1,229,492
% of Total Revenues		52.90	%		50.50	%

Accounts receivable from largest customers were as follows at March 31, 2019 and December 31, 2018:

Three Largest
Accounts Receivable	March 31, 2019			December 31, 2018
DanaMart	$	-		$	143,890
Axens North America Inc.		64,500			34,912
Earth Innovations Inc.		-			35,967
Commerce Industrial Chemical		36,652			-
Nutreco Canada Inc.		27,736			-
	$	128,888		$	214,769
% of Total Receivables		38.50	%		49.00	%

Our trade accounts receivable balance related to contracts with customers was $335,186 at March 31, 2019 and $438,391 at December 31, 2018. 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.