CONCENTRATIONS, SIGNIFICANT CUSTOMERS, COMMITMENTS AND CONTINGENCIES

At June 30, 2015 and 2014 and for each of the six months then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:



	Six Months Ended June 30, 2015		Six Months Ended June 30, 2014
	% of Revenues	% of Receivables	% of Revenues	% of Receivables
Customer 1	24%	—%	—%	—%
Customer 2	15%	17%	16%	3%
Customer 3	8%	25%	11%	9%
Customer 4	7%	18%	7%	9%
Customer 5	—%	—%	36%	19%
Customer 6	—%	—%	14%	25%

At June 30, 2015 and 2014 and for each of the six months then ended, the Company's segment revenues were comprised of the following customer concentrations:



	% of Revenue by Segment			% Revenue by Segment
	Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
	Black Oil	Refining	Recovery	Black Oil	Refining	Recovery
Customer 1	100%	—%	—%	—%	—%	—%
Customer 2	54%	46%	—%	22%	78%	—%
Customer 3	—%	100%	—%	—%	100%	—%
Customer 4	—%	100%	—%	—%	100%	—%
Customer 5	—%	—%	—%	100%	—%	—%
Customer 6	—%	—%	—%	100%	—%	—%

The Company purchases goods and services from one company that represented 18% of total purchases for the six months ended June 30, 2015 and one company that represented 10% of total purchases for the six months ended June 30, 2014.

The Company has had various debt facilities available for use, of which there was $29,167,664 and $42,496,913 outstanding as of June 30, 2015 and December 31, 2014, respectively. See Note 8 for further details.

In February 2013, Bank of America agreed to lease the Company up to $1,025,000 of equipment to enhance the TCEP operation, which went into effect in April 2013. Under the current terms of the lease agreement, there are 60 monthly payments due of approximately $13,328.

The Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for petroleum-based products. Historically, the energy markets have been very volatile, and there can be no assurance that these prices will not be subject to wide fluctuations in the future. A substantial or extended decline in such prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, and access to capital and on the quantities of petroleum-based products that the Company can economically produce.

The Company, in its normal course of business, is involved in various other claims and legal action. In the opinion of management, the outcome of these claims and actions will not have a material adverse impact upon the financial position of the Company.

For tax reporting purposes, we have NOLs of approximately $48.1 million as of June 30, 2015 that are available to reduce future taxable income. In determining the carrying value of our net deferred tax asset, the Company considered all negative and positive evidence. The Company has incurred a cumulative pre-tax loss of $14.7 million over a three year period ended June 30, 2015. As a result, we determined that a full valuation allowance for our deferred tax assets at June 30, 2015 of $5.3 million was appropriate.