Notes to Consolidated Financial Statements
31
(1) S Summary of Significant Accounting Policies and Practices
(a) Description of Business
TyraTech, Inc., a corporation (the Company) is engaged in the development, manufacture, marketing and sale of proprietary insecticide and parasiticide products, through the utilization of a proprietary development platform that enables rapid characterization of potent blends of plant oil derived pesticides. TyraTech is focused on developing safer natural products with plant essential oils to be used in a wide variety of pesticidal and parasitic applications. These new synergistic formulations target specific receptors unique to invertebrates.
The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, development by its competitors of new technological innovations, dependence on key personnel, and its ability to protect proprietary technology.
(b) Basis of Presentation
The consolidated financial statements of the Company in U.S. dollars (US$) have been prepared in accordance with United States generally accepted accounting policies (U.S. GAAPAAPAAP). The consolidated financial statements include the accounts of TyraTech, Inc. and subsidiaries listed below.
Country of
Percentage
Company name
incorporation
holding
TyraTech Holdings India, LLCLLCLLC
USA
100%
TyraTech Sustainable Solutions, LLCLLCLLC
USA
100%
TyraTech India Pvt. Ltd.
India
100%
TyraTech International Ltd.
Bermuda
100%
TyraTech International LPLP
Cayman
100%
TyraTech International BV
Holland
100%
TyraTech International Coop
Holland
100%
All significant intercompany balances and transactions have been eliminated.
On May 23, 2007, the Company was recapitalized from a limited liability company to a corporation in preparation of an initial public offering (IPOPO) on the London Stock Exchange´s Alternative Investment Market (AIM). Member units of the limited liability company were exchanged for common shares of the corporation on the basis of 1 unit to 0.8606 common share. On June 1, 2007, the Company completed an IPOPO of its common stock under the symbol TYRYR and raised approximately US$43.7 million, net of cash offering costs of US$5.9 million. Employees, consultants, and investors of the Company own the balance of the common stock.
The consolidated financial statements of equity have been presented as if the recapitalization occurred on December 31, 2005.
In the opinion of the Company directors, the financial information for these periods presents fairly the financial position, results of operations and cash flows for the periods in conformity with U.S. GAAPAAPAAP.
(c) Cash and Cash Equivalents
The Company considered all highly liquid securities with maturities of three months or less when acquired to be cash equivalents.
(d) Accounts Receivable
Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company does not have any off-balance-sheet credit exposure related to its customers.
(e) Inventory
Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out method (FIFO).
(f) Property and Equipment
Purchased property and equipment is recorded at cost. Depreciation and amortization are provided on the straight line method over the estimated useful lives of the related assets as follows:
Leasehold improvements
3 years
Furniture, fixtures and equipment
4–7 years
Computer equipment and software
5 years
The Company accounts for long-lived assets in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used
TyraTech, Inc. Annual Report 2008
