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, 2015, the Company’s cash balances exceeded the federally insured limits. No losses have been incurred relating to this concentration.

For the years ended December 31, 2015 and 2014, the Company’s revenues and receivables were comprised of the following customer concentrations:



	2015		2014
	% of Revenues	% of Receivables	% of Revenues	% of Receivables
Customer 1	—%	—%	23%	7%
Customer 2	24%	11%	16%	16%
Customer 3	15%	2%	12%	10%
Customer 4	6%	—%	10%	10%
Customer 5	8%	16%	7%	9%
Customer 6	1%	16%	1%	—%

At December 31, 2015 and 2014, and the years then ended, the Company's segment revenues were comprised of the following customer concentrations:



	% of Revenue by Segment 2015						% of Revenue by Segment 2014
	Black Oil		Refining		Recovery		Black Oil		Refining		Recovery
Customer 1	—	%	—	%	1	%	99	%	—	%	1	%
Customer 2	100	%	—	%	—	%	100	%	—	%	—	%
Customer 3	60	%	40	%	—	%	11	%	89	%	—	%
Customer 4	—	%	100	%	—	%	—	%	100	%	—	%
Customer 5	—	%	100	%	—	%	—	%	100	%	—	%
Customer 6	—	%	—	%	100	%	100	%	—	%	—	%

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.

Litigation:

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 are currently party to the following material litigation proceedings:

Vertex Refining LA, LLC, the wholly-owned subsidiary of Vertex Operating, our wholly-owned subsidiary, and the Company were named as defendants in a lawsuit filed in the United States District Court For the Eastern District of Louisiana on June 11, 2015 by CHS Inc. regarding the construction of a barge dock on property leased by Vertex Refining LA from Plaqemines Holdings Company, LLC in Myrtle Grove, Louisiana. This litigation was settled and the complaint was dismissed with prejudice on or about September 30, 2015.

Vertex Refining, NV, LLC, the wholly-owned subsidiary of Vertex Operating, and the Company were named as defendants in a lawsuit filed on or about August 3, 2015, in the Tenth Judicial District Court in the State of Nevada, in and for the County of Churchill, case #15-10DC-0502, by Republic Bank N.A. alleging breach of contract and unjust enrichment with respect to the Asset Purchase Agreement dated May 2, 2014 between the defendants and Omega Refining, regarding the sale of refinery assets in Fallon, Nevada. This case has been settled and a stipulation for dismissal was filed on or about March 10, 2016.

Vertex Refining LA, LLC, the wholly-owned subsidiary of Vertex Operating, was named as a defendant, along with numerous other parties, in five lawsuits filed on or about February 12, 2016, in the Second Parish Court for the Parish of Jefferson, State of Louisiana, Case No. 121749, by Russell Doucet et. al., Case No. 121750, by Kendra Cannon et. al., Case No. 121751, by Lashawn Jones et. al., Case No. 121752, by Joan Strauss et. al. and Case No. 121753, by Donna Allen et. al. The suits relate to alleged noxious and harmful emissions from our facility located in Marrero, Louisiana. The suits seek damages for physical and emotional injuries, pain and suffering, medical expenses and deprivation of the use and enjoyment of plaintiffs’ homes. We intend to vigorously defend ourselves and oppose the relief sought in the complaints, provided that at this stage of the litigation, the Company has no basis for determining whether there is any likelihood of material loss associated with the claims and/or the potential and/or the outcome of the litigation.

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. Total rent expense for all operating leases for 2015 and 2014 is summarized as follows:



	2015		2014
Office leases	620,219		620,219
Plant Leases	3,996,000		3,142,000
Vehicle leases	326,476		425,026
	$	4,942,695	$	4,187,245

Minimum future lease commitments as of December 31, 2015, are summarized as follows:



Year ending December 31,	Office Facilities		Vehicles		Plant Leases		Total
2016	$	595,194	$	286,690	$	3,996,000	$	4,877,884
2017	530,328		233,171		2,514,000		3,277,499
2018	467,862		115,665		1,132,000		1,715,527
2019	467,862		57,956		—		525,818
2020	467,862		—		—		467,862
Thereafter	3,900,000		—		—		3,900,000
	$	6,429,108	$	693,482	$	7,642,000	$	14,764,590