. The risk of fluctuations in the price of raw materials used in the production cost of algae production, processing and distribution of the Company accounted for the relatively high compared to the total production cost. If the price of the Company's use of algae to produce changes would affect the cost of operations of the Company, the Company has implemented various measures to reduce such risks. By entering into contracts to purchase raw materials to manufacturers and distributors of algae. This agreement will generally be about one year, the details of the agreement will specify the quantity and quality of algae producers and distributors must. Delivery to the Company Throughout the life of the contract, the price of algae in the higher market price stated in the contract, the company will benefit from the agreement, and the cost is significantly below other competitors to purchase algae in the market price at the time. On the other hand, if the market price of algae in less than the price stated in the contract, the company can negotiate. Manufacturers and distributors to have agreements in material prices. The Company Is the largest trading partner, with the volume of orders totaling more so with the authority to negotiate relatively high.
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