Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

(14) Contingencies 

In December 2019, a novel strain of coronavirus (SARS-CoV-2) emerged in Wuhan, Hubei Province, China, which was proclaimed by the World Health Organization to have been the cause of a global pandemic (COVID-19).   COVID-19 has been followed by a series of variants that have also impacted our operations, but to a lesser extent than the initial strain.. Some of the raw materials that are critical to the production of our products and parts that are critical to the operation of our equipment are sourced from single suppliers, suppliers from China and Korea, and in some cases, a single supplier from China. Although operations of our third-party suppliers were disrupted to a certain extent in 2020 from the pandemic, particularly related to receiving packaging for our Solésence products on a timely basis, we are currently seeing a more limited impact relating to COVID-19 on our suppliers. The biggest challenge in 2021 and during the beginning of 2022 related to the pandemic is now slowdowns in production and shipping due to capacity limitations which seems to be a function of company’s inability to keep up with renewed market demand. We typically maintain no less than one month’s supply of raw materials and parts that are sourced from sole suppliers and make efforts to identify additional suppliers who may be able to provide such raw materials or parts. During 2021, shortages of labor, which may have been related to COVID-19, created challenges to the Company as we navigated a rapidly growing business under these conditions.

The Company is aware that such changes in its business as a result of COVID-19-related changes to our economy could occur, but is uncertain of the impacts of those changes on its consolidated statements of position, operations, or cash flows. The Company’s management believes any resulting cessations, reductions, and disruptions in its customers’ and suppliers’ operations would probably be temporary; however, the Company’s management also believes the duration and, hence, the potential impact of such cessations, reductions, and disruptions is currently unknowable. As a result, we are unable to estimate the potential impact on our business as of the date of this filing.