Note 13 - Concentration Risk

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements

Concentration Risk Disclosure [Text Block]

Note 13 – Concentration Risk

The Company provides platelets to the ARC pursuant to an agreement dated July 11, 2011, in which the Company sells to the ARC on an exclusive basis, a minimum of 7,000 and a maximum of 12,000 units of ISBT labeled single donor platelets per year during the term of the agreement. The Company also sells research and cellular therapy products to research and cellular therapy related organizations. We also provide therapeutic apheresis services as an outside service to hospitals, all of which are referred to as “customers” for purposes of identifying concentration risk in this note. During 2011, the ARC was the Company’s largest customer representing 12% of the Company’s total revenue. The next two largest customers accounted for approximately 11% and 5% of total revenue respectively. The Company’s ten largest customers accounted for 52% of total revenue.  Other than the lease of space at one customer’s facility for cellular therapy and research related draws, the Company’s only relationship with any of these customers is as a provider of blood products and services.

In addition, consolidations and affiliations within the hospital industry have changed the environment for the therapeutic services segment.  The newly consolidated or affiliated hospitals have started to negotiate with the Company as a group, and therefore exert greater pressure on the Company for price discounts.  This may force the Company to offer price discounts to retain sales volume that previously would not have been granted if the hospitals were not negotiating as a group.

During 2011, the Company received goods and services from two major vendors; the first of which is TerumoBCT (formerly CaridianBCT), which represented approximately 23.3% of the Company’s total operating costs. This vendor provided products that support the Company’s cell separation equipment used by both the blood products and therapeutic services segments.  The second largest vendor is Creative Testing Solutions, which represented approximately 10.4% of total operating costs from continuing operations. This vendor provided laboratory services. The Company has no relationship with either vendor other than as a consumer of the goods and services provided by each.