TRADE CREDIT AGREEMENTS

12 Months Ended

Dec. 31, 2016

Trade Credit Agreements

Trade Credit Agreements

7.    TRADE CREDIT AGREEMENTS

At December 31, 2016 and 2015, we had security agreements with two financial institutions to facilitate the purchase of inventory from various suppliers under certain terms and conditions.  The agreements allow a collateralized first position in certain branded products in our inventory financed by the financial institutions up to an aggregated amount of $65,000.  The cost of such financing under these agreements is borne by the suppliers by discounting their invoices to the financial institutions.  We do not pay any interest or discount fees on such inventory.  At December 31, 2016 and 2015, accounts payable included $33,061 and $23,044, respectively, owed to these financial institutions.