SLSN · CIK 883107
What Solésence, Inc. told the SEC could break it.
Solésence is exposed at both ends of its sunscreen-ingredients business. Its revenue is concentrated in a few accounts — its three largest customers, two consumer-products brands plus BASF in personal-care ingredients, were about 29%, 16% and 10% of 2025 revenue (roughly 55% combined), and even the long-term BASF agreements can be terminated under certain circumstances. Its inputs are just as narrow: it needs very-high-purity zinc for its zinc-oxide sunscreen products (which has seen occasional shortages), and some critical raw materials and equipment parts come from single suppliers in China and Korea, with only about a month of sole-sourced stock on hand. Layered over both is regulation — FDA cGMP requirements for its OTC sunscreen actives, EU REACH chemical registration, and Chinese tariffs on materials it sources there.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- top three customers = ~29%, 16% and 10% (BASF) of revenuehigh
Solésence's three largest customers (two consumer-products brands and BASF in personal-care ingredients) were ~29%, 16% and 10% of 2025 revenue — ~55% combined — and its BASF agreements, though long-term, can be terminated by BASF under certain circumstances, so loss of a top customer would materially affect revenue.
“revenue from our three largest customers across all business areas included two of our consumer products customers and our largest customer in personal care ingredients (BASF), constituted approximately 29%, 16%, and 10%, respectively, of our 2025 total revenue.”
SEC filing →As of 2026
Commodity & input dependence
- dependence on very-high-purity zinc for personal-care (sunscreen) applicationsmedium
Solésence requires very-high-purity zinc for its personal-care (zinc-oxide sunscreen) applications, which has occasionally seen shortages in prior years — a commodity-input availability/price dependence central to its core products.
“However, we require very high purity zinc for our personal care applications that have occasionally seen shortages in prior years.”
SEC filing →As of 2026
Regulatory & policy
- FDA cGMP (APIs/OTC sunscreen) and EU REACH chemical regulation; China tariffs on materialsmedium
Solésence's zinc-oxide products are FDA-regulated APIs/OTC sunscreen actives requiring cGMP compliance and periodic inspections, its EU shipments are subject to REACH chemical registration, and it is monitoring Chinese tariffs on materials it sources from China.
“As a result, we are required to adhere to the cGMP requirements of the FDA and similar regulations that include testing, control and documentation requirements enforced by periodic inspections. We also comply with the European Chemical Agency's regulations issued to date pertaining to the chemicals we have registered under REACH.”
SEC filing →As of 2026
Supplier concentration
- critical raw materials/parts from single suppliers in China and Koreamedium
Some raw materials and equipment parts critical to Solésence's production are sourced from single suppliers, including suppliers in China and Korea; it keeps only ~one month of sole-sourced supply and is working to reduce singularly-sourced materials — a sharp supply-disruption risk.
“Some of the raw materials that are critical to the production of our products and parts that are critical to the operation of our equipment are sourced from single suppliers, suppliers from China and Korea.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
BASF SE
“revenue from our three largest customers across all business areas included two of our consumer products customers and our largest customer in personal care ingredients (BASF), constituted approximately 29%, 16%, and 10%, respectively, of our 2025 total revenue.”
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