Notes to Consolidated Financial Statements
(1) S ummary of Sig nifi cant Accounti ng Policies
and Practi ces
(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
life sciences industry including, but not limited to, development
by its competitors of new technological innovations,
dependence on key personnel, sourcing of capital resources
and its ability to protect proprietary technology.
The Company's present product sales market is insecticide
sales within the United States (US ) through a distributor.
(b) Principles of Consolidation
The accompanying consolidated financial statements of the
Company in US Dollars (US $) have been prepared in accordance
with accounting principles generally accepted in the
United States of America (US GAA P) and include the accounts
of TyraTech, Inc. and subsidiaries listed below. Non-controlling
interests are accounted for based upon the value or cost
attributed to their investment adjusted for the share of income
or loss that relates to their percentage ownership of the entity.
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's directors, the financial information
for the years ended December 31, 2010 and 2009
presents fairly the financial position, results of operations and
cash flows for the periods in conformity with US GAA P.
(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 money market funds. Accounts at these institutions
are insured by the Federal Deposit Insurance Corporation up
to US $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. This determination
results from an analysis of the specific creditor, the age of the
receivable and past payment performance of the creditor.
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
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