P31
Notes to Consolidated Financial Statements
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES
(a) Description of Business
TyraTech, Inc., a Delaware corporation, (the Company or TyraTech) 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.
The Company's present product sales market is US insecticide sales through a distributor.
(b) Basis of Presentation
The accompanying consolidated financial statements of
the Company in U.S. Dollars (US$) have been prepared in accordance with United States generally accepted accounting policies (US GAAP) and include the accounts of TyraTech, Inc. and subsidiaries listed below. The Company considers Financial Accounting Standards Board (FASB) guidance which is now codified within ASC 810 Consolidation and ASC 323 Investments-Equity Method and Joint Venture with respect to non-majority owned subsidiaries.
Company Name
Country of Incorporation
Percentage Holding
TyraTech Holdings India, LLC
USA
100%
TyraTech Sustainable Solutions, LLC
USA
100%
TyraTech India Pvt. Ltd.
India
100%
TyraTech International Ltd.
Bermuda
100%
TyraTech International LP
Cayman
100%
TyraTech International BV
Holland
100%
TyraTech International Coop
Holland
100%
TyraChem LLC
USA
50%
All intercompany balances and transactions have been eliminated in consolidation.
In the opinion of the Company directors, the financial information presents fairly the financial position, results of operations and cash flows for the periods in conformity with US GAAP.
(c) Cash and Cash Equivalents
The Company considers all highly liquid securities with maturities of three months or less when acquired to be cash equivalents.
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash equivalents and accounts receivable. The Company maintains cash balances at financial institutions and invests in unsecured market funds. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. At times during the year, balances in these accounts exceeded the federally insured limits;
however, the Company has not experienced any losses in such accounts.
(d) Accounts Receivable
Accounts receivable are recorded at the invoiced amount and do not bear interest. A specific allowance is made when a receivable is not considered collectable and is written off when it becomes uncollectable. This determination results from an analysis of the specific debtor, the age of the receivable and past payment performance of the debtor. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the accompanying 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
Initial term of the lease or life of the improvement, whichever is shorter
Furniture, fixtures and
equipment
4-7 years
Computer equipment
and software
5 years
