Significant Market Segments And Customers

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Significant Market Segments And Customers

Significant Market Segments and Customers

We operate in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process.

One customer, DaVita, Inc. ("DaVita"), accounted for 49% of our sales in 2019 and 46% of our sales in 2018.  Our accounts receivable from this customer were $1,166,603 and $2,538,503 as of December 31, 2019 and 2018, respectively. 

In October 2014, we entered into the Distribution Agreement with Baxter, which was amended in June 2017, pursuant to which Baxter received exclusive distribution rights for our concentrate products in the United States.  Our domestic customer contracts for the supply of dialysis concentrate products that permitted assignment to Baxter without consent have been assigned to Baxter.  As a result, for 2019 and 2018, our direct sales to Baxter aggregated approximately 27% and 26% of sales, respectively, and we had a receivable from Baxter of $2,015,438 and $2,824,051 as of December 31, 2019 and 2018, respectively.

DaVita and Baxter and the accounts administered by Baxter are important to our business, financial condition and results of operations.  The loss of any significant accounts could have a material adverse effect on our business, financial condition and results of operations.  No other domestic customers accounted for more than 10% of our sales in any of the last two years.

The majority of our international sales in each of the last two years were sales to domestic distributors that were resold to end users outside the United States.  Our sales to foreign customers and distributors accounted for approximately 11% and 14% of our total sales in 2019 and 2018, respectively. One international customer, Nipro Medical Corporation, accounted for 9% and 10% of our sales for 2019 and 2018 respectively.