NOTE RECEVIABLE - RELATED PARTY

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

NOTE RECEIVABLE - RELATED PARTY

RELATED PARTIES

As a result of the acquisition of E-Source (described below in Note 18), the Company had one related party transaction. E-Source subleased office and building space from BBP Landtex, which was the 49% minority owner of E-Source Holdings, LLC through January 2014, when we acquired an additional 19% of E-Source, and a 30% minority owner of E-Source through September 2014, when we acquired the remaining 30% interest in E-Source, at which time it became a wholly-owned subsidiary. Rental payments under the lease were $3,500 per month. In addition, they pay a monthly fee for miscellaneous services and 75% of the utilities.

Effective October 3, 2014, the Company entered into a consulting agreement with its director, Timothy C. Harvey, pursuant to which Mr. Harvey agreed to provide consulting services to the Company in connection with overseeing the Company’s trading and selling of finished products and assisting the Company with finding the best markets for products from the Company’s facilities for a term of one year.  In consideration for agreeing to provide services under the agreement, the Company agreed to pay Mr. Harvey $10,000 per month, and to grant him an option to purchase up to 75,000 shares of the Company's common stock at an exercise price of $6.615 per share, the mean between the highest and lowest quoted selling prices of the Company's common stock on October 2, 2014 (the day immediately preceding the approval by the Board of Directors of the agreement), which vest at the rate of 1/4th of such options per year, subject to Mr. Harvey’s continued consulting, employment or service as a director of the Company, which options were granted under the Company's 2013 Stock Incentive Plan.

NOTE RECEIVABLE - RELATED PARTY

The related party note receivable represents amounts due from Omega Holdings, LLC. The $8,308,000 due to Vertex is based on the purchase price allocated to the Nevada facility, which has not yet closed. The note is collateralized by assets at the Nevada facility and carries an interest rate of 9.5% per annum. No accrued interest is included in the account balance. The aggregate receivable balance has been classified as noncurrent because they are not expected to be collected within one year from the balance sheet date. Based on management's assessment, no valuation allowance was deemed necessary as of December 31, 2014.