XML 21 R10.htm IDEA: XBRL DOCUMENT v3.20.2
CONCENTRATIONS, SIGNIFICANT CUSTOMERS, COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2020
Concentrations, Significant Customers, Commitments And Contingencies Disclosure [Abstract]  
CONCENTRATIONS, SIGNIFICANT CUSTOMERS, COMMITMENTS AND CONTINGENCIES CONCENTRATIONS, SIGNIFICANT CUSTOMERS, COMMITMENTS AND CONTINGENCIES
 
At September 30, 2020 and 2019 and for each of the nine months then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:
 Nine Months Ended September 30, 2020Nine Months Ended
September 30, 2019
% of
Revenues		% of
Receivables		% of
Revenues		% of
Receivables
Customer 135%11%35%25%
Customer 211%13%8%15%
Customer 33%11%—%—%
Customer 4—%—%12%—%
For each of the nine months ended September 30, 2020 and 2019, the Company's segment revenues were comprised of the following customer concentrations:
% of Revenue by Segment% Revenue by Segment
Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
Black Oil RefiningRecoveryBlack Oil RefiningRecovery
Customer 154%—%—%41%—%—%
Customer 217%—%—%10%—%—%
Customer 3—%—%25%—%—%—%
Customer 4—%—%—%14%—%—%

The Company had one and no vendors that represented 10% of total purchases or payables for the nine months ended September 30, 2020 and 2019, respectively. The vendor represents 19% of total purchases for the nine months ended September 30, 2020 and 17% of accounts payable at September 30, 2020.

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, access to capital, and 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 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 ("Vertex Refining LA"), 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.

Related Parties
From time to time, the Company consults with a related party law firm. During the nine months ended September 30, 2020 and 2019, we paid $56,971 and $62,239, respectively, to such law firm for services rendered.