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4. Revenue Recognition

6 Months Ended

Jun. 30, 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 three and six month periods ended June 30, 2018 and 2017 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Antimony	$	1,492,520	$	2,077,300	$	3,174,333	$	4,063,808
Zeolite		682,534		616,414		1,373,240		1,228,426
Precious metals		81,293		144,766		141,703		165,577
	$	2,256,347	$	2,838,480	$	4,689,276	$	5,457,811

The following is sales information by geographic area based on the location of customers for the three and six month periods ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	1,878,244	$	2,653,227	$	4,125,935	$	4,950,282
Canada		378,103		185,253		563,341		507,529
	$	2,256,347	$	2,838,480	$	4,689,276	$	5,457,811

Sales of products to significant customers were as follows for the three and six month periods ended June 30, 2018 and 2017:

	For the Three Months Ended						For the Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Mexichem Speciality Compounds	$	669,103		$	769,998		$	1,397,681		$	1,556,423
East Penn Manufacturing Inc.		-			363,979			-			512,621
Kohler Corporation		334,778			501,320			651,550			946,498
Ampacet Corporation		146,118			-			330,260			-
ZEO, Inc.		185,730			-			306,701			-
	$	1,335,729		$	1,635,297		$	2,686,192		$	3,015,542
% of Total Revenues		59.20	%		57.60	%		57.30	%		55.30	%

Accounts receivable from largest customers were as follows for June 30, 2018 and December 31, 2017:

	June 30, 2018			December 31, 2017
Nutreco Canada, Inc.	$	-		$	25,657
Ralco Mix Products		-			16,000
Mexichem Speciality Compounds		148,211			-
Axens North America, Inc.		38,404			-
Teck American, Inc.		82,733			241,627
	$	269,348		$	283,284
% of Total Receivables		58.40	%		78.10	%

Our trade accounts receivable balance related to contracts with customers was $461,291 at June 30, 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.