CONCENTRATIONS, SIGNIFICANT CUSTOMERS, COMMITMENTS AND CONTINGENCIES

The Company has concentrated credit risk for cash by maintaining deposits in one bank. These balances are insured by the Federal Deposit Insurance Corporation up to $250,000. From time to time during the year ended December 31, 2014, the Company’s cash balances exceeded the federally insured limits. No losses have been incurred relating to this concentration.

At December 31, 2014, 2013, and 2012 and for the years then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:



	2014		2013		2012
	% of Revenues	% of Receivables	% of Revenues	% of Receivables	% of Revenues	% of Receivables
Customer 1	23%	7%	4%	23%	—%	—%
Customer 2	16%	16%	—%	—%	—%	—%
Customer 3	12%	10%	40%	21%	25%	54%
Customer 4	10%	10%	10%	—%	—%	—%
Customer 5	7%	9%	8%	20%	12%	15%
Customer 6	1%	—%	—%	—%	31%	—%
Customer 7	—%	—%	9%	—%	13%	—%

At December 31, 2014, 2013, and 2012 and the years then ended, the Company's segment revenues were comprised of the following customer concentrations:



	% of Revenue by Segment 2014						% of Revenue by Segment 2013						% of Revenue by Segment 2012
	Black Oil		Refining		Recovery		Black Oil		Refining		Recovery		Black Oil		Refining		Recovery
Customer 1	99	%	—	%	1	%	88	%	12	%	—	%	—	%	—	%	—	%
Customer 2	100	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Customer 3	11	%	89	%	—	%	31	%	69	%	—	%	36	%	64	%	—	%
Customer 4	—	%	100	%	—	%	—	%	100	%	—	%	—	%	—	%	—	%
Customer 5	—	%	100	%	—	%	—	%	100	%	—	%	—	%	100	%	—	%
Customer 6	100	%	—	%	—	%	—	%	—	%	—	%	—	%	100	%	—	%
Customer 7	—	%	—	%	—	%	63	%	37	%	—	%	1	%	99	%	—	%
Customer 8	—	%	—	%	—	%	—	%	100	%	—	%	—	%	100	%	—	%

The Company had no significant vendor concentrations for the years ended December 31, 2014 and 2013. The Company purchases goods and services from two companies that represented 11% and 10% of total purchases for the year ended December 31, 2012.

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.

We intend to take advantage of any potential tax benefits related to net operating losses (“NOLs”) acquired as part of the Company's April 2009 merger with World Waste Technologies, Inc. ("World Waste"). As a result of the merger we acquired approximately $41.2 million of net operating losses that may be used to offset taxable income generated by the Company in future periods.

It is possible that the Company may be unable to use these NOLs in their entirety. The extent to which the Company will be able to utilize these carry-forwards in future periods is subject to limitations based on a number of factors, including the number of shares issued within a three-year look-back period, whether the merger is deemed to be a change in control, whether there is deemed to be a continuity of World Waste’s historical business, and the extent of the Company’s subsequent income. As of December 31, 2013, the Company had utilized approximately $13.4 million of these NOLs leaving approximately $27.8 million of potential NOLs as of December 31, 2014. The estimated net operating loss for the year ended December 31, 2014 was $13.8 million. The accumulated NOL as of December 31, 2014 is approximately $41.6 million.

Leases

The Company has various leases for office facilities and vehicles which are classified as operating leases, and which expire at various times through 2032. Related party leases include office facilities. Total rent expense for all operating leases for 2014, 2013, and 2012 is summarized as follows:



	2014		2013		2012
Related party leases	$	45,000	$	10,500	$	629,904
Office leases	575,219		466,415		100,405
Plant Leases	3,142,400		—		—
Vehicle leases	425,026		375,646		33,012
	$	4,187,645	$	852,561	$	763,321

Minimum future lease commitments as of December 31, 2014, are summarized as follows:



Year ending December 31	Related Party		Office Facilities		Vehicles		Plant Leases		Total
2015	$	45,000	$	575,219	$	400,276	$	4,713,600	$	5,734,095
2016	60,000		453,154		454,301		4,713,600		5,681,055
2017	50,000		414,932		175,216		3,825,400		4,465,548
2018	50,000		312,466		57,710		1,132,000		1,552,176
2019	—		300,000		—		—		300,000
Thereafter	—		4,175,000		—		—		4,175,000
	$	205,000	$	6,230,771	$	1,087,503	$	14,384,600	$	21,907,874