Notes to Consolidated Financial Statements
(CONTINUED)
TYRATECH, INC. • ANNUAL REPORT 2011 • PAGE 38
(l) Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents of accounts
receivable, accounts payable and accrued expenses
approximate to fair value because of the short term maturity
of these items.
(m) Segment Information
The Company previously considered itself to have two separate
strategic business units that offer different products. They
were managed separately because each business required
different knowledge, skills and marketing strategies. These two
business segments were (1) pesticides and insecticides and
(2) sustainable solutions. In the first half of 2010 the Company
decided to discontinue the business conducted in the sustainable
solutions segment. The effect of that decision is discussed
in the Discontinued Operations footnote. There were
no activities in 2011 from Discontinued Operations.
(2) ACCOUNTS RECEIVABLE
Accounts receivable as of December 31, 2011 and 2010 consist of:
2011 2010
Trade receivables, net of allowance of
US$0 (2010: US$0) $5,153 $776,989
Other receivables 6,663 14,434
$11,816 $791,423
(3) INVENTORIES
Inventories as of December 31, 2011 and 2010 consist of:
2011 2010
Raw materials $119,658 $81,399
Work in progress 48,239 260,015
$167,897 $341,414
The application of lower of cost or market to the 2011 and
2010 inventories resulted in no write-offs for the years ended
December 31, 2011 and 2010. Inventory classification is determined
by the stage of the manufacturing process the specific
inventory item represents.
(4) PROPERTY AND EQUIPMENT
Property and equipment as of December 31, 2011 and 2010
consist of:
2011 2010
Leasehold improvements $785,289 $819,863
Furniture, fixtures and equipment 538,816 697,760
Computer equipment and software 228,359 487,014
1,552,464 2,004,637
Less: Accumulated depreciation (1,172,079) (1,378,240)
$380,385 $626,397
Depreciation and amortization expense of US$246,934 (2010:
US$238,676) is reflected in general and administrative expense
in the accompanying consolidated statements of operations.
(5) ACCRUED LIABILITIES
Accrued liabilities as of December 31, 2011 and 2010 consist of:
2011 2010
Accrued compensation $197,090 $354,793
Professional fees 187,872 526,601
Other 63,790 2,705
$448,752 $884,099
(6) LEASES
On February 17, 2011, the Company signed a ten year lease
on an office and laboratory facility in Morrisville, North Carolina.
Future minimum lease payments under non-cancelable operating
leases (with initial or remaining lease terms in excess of
one year) as of December 31, 2011 are as follows:
