Related Party Transactions |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
15. Related Party Transactions:
The Company maintains certain policies and procedures for the review, approval and ratification of related party transactions to ensure that all transactions with selected parties are fair, reasonable and in the Company’s best interests. All significant relationships and transactions are separately identified by management if they meet the definition of a related party or a related party transaction. Related party transactions include transactions that occurred during the year, or are currently proposed, in which the Company was or will be a participant, and for which any related person had or will have a direct or indirect material interest. All related party transactions are reviewed, approved and documented by the appropriate level of the Company’s management in accordance with these policies and procedures.
Joint Venture Agreement
The Company entered into a joint venture agreement (the “ZI Partnership Agreement”) in 1988 with Shell Catalysts & Technologies, an affiliate of Royal Dutch Shell plc, to form Zeolyst International, a 50/50 joint venture partnership (the “Partnership”). Under the terms of the ZI Partnership Agreement, the Partnership leases certain land used in its Kansas City production facilities from Ecovyst. This lease, which has been recorded as an operating lease and with evergreen terms as long as the ZI Partnership Agreement is in place, provided for rental payments to the Company of $77 for the three months ended March 31, 2025 and 2024. These rental payments were included in cost of goods sold in the condensed consolidated statements of (loss) income. The Partnership had no sales to the Company for the three months ended March 31, 2025 and 2024.
The Partnership purchases certain raw materials from the Company and was charged for various manufacturing costs incurred at the Company’s Kansas City production facility. The amount of these costs charged to the Partnership were $4,616 and $4,034 for the three months ended March 31, 2025 and 2024, respectively and were included in cost of goods sold in the condensed consolidated statements of (loss) income. In addition, the Partnership was charged certain product demonstration costs of $226 and $357 for the three months ended March 31, 2025 and 2024, respectively, which were also included in cost of goods sold in the condensed consolidated statements of (loss) income.
Certain administrative, marketing, engineering, management-related and research and development services are provided to the Partnership by the Company. The Partnership was charged $4,122 and $4,300 for the three months ended March 31, 2025 and 2024, respectively and were included in selling, general and administrative expenses in the condensed consolidated statements of (loss) income.
The Company had an accounts receivable from the Partnership of $3,791 and $2,794 as of March 31, 2025 and December 31, 2024, respectively, which were included in prepaid and other current assets in the condensed consolidated balance sheet. There were no accounts payable with the Partnership as of March 31, 2025 and December 31, 2024.
|