Segment Reporting

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting

Note 13 - Segment reporting

We operate in the direct to consumer, retail, international third-party distributors, and airlines and Hong Kong retail segments which are engaged in selling of various consumer products primarily through direct marketing channels as well as selling our products through our international third-party distributor, and certain airlines. We evaluate performance and allocate resources based on several factors, of which the primary financial measure is operating income (loss) by the end customer, either direct to consumer sales, retail, international third-party distributor sales, or airlines and Hong Kong retail sales. Operating expenses are primarily prorated based on the relationship between segment sales to total sales.

Information with respect to our operating income (loss) by segment is as follows:

	For the three months ended June 30, 2018													For the three months ended June 30, 2017
	Direct to Consumer			Retail			International Third-Party Distributor		Airlines and Hong Kong Retail		Totals			Direct to Consumer			Retail			International Third-Party Distributor		Airlines and Hong Kong Retail		Totals
Net sales	$	3,915,091		$	1,757,629		$	580,929	$	758,407	$	7,012,056		$	5,729,838		$	436,714		$	1,040,250	$	743,274	$	7,950,076
Cost of sales		894,837			597,594			290,464		436,422		2,219,317			1,761,105			148,483			488,941		393,072		2,791,601
Gross profit		3,020,254			1,160,035			290,465		321,985		4,792,739			3,968,733			288,231			551,309		350,202		5,158,475
Operating expenses:
General and administrative		1,432,642			553,074			182,801		37,968		2,206,485			2,228,029			146,848			254,683		43,711		2,673,271
Selling and marketing		2,106,170			763,379			8,342		167,606		3,045,497			3,541,378			211,710			14,755		86,188		3,854,031
Total operating expense		3,538,812			1,316,453			191,143		205,574		5,251,982			5,769,407			358,558			269,438		129,899		6,527,302
Operating income (loss)	$	(518,558	)	$	(156,418	)	$	99,322	$	116,411	$	(459,243	)	$	(1,800,674	)	$	(70,327	)	$	281,871	$	220,303	$	(1,368,827	)

	For the six months ended June 30, 2018													For the six months ended June 30, 2017
	Direct to Consumer			Retail			International Third-Party Distributor		Airlines and Hong Kong Retail		Totals			Direct to Consumer			Retail			International Third-Party Distributor		Airlines and Hong Kong Retail		Totals
Net sales	$	8,922,145		$	4,425,575		$	1,472,389	$	1,162,753	$	15,982,862		$	12,259,372		$	848,431		$	1,520,731	$	968,661	$	15,597,195
Cost of sales		1,682,327			1,504,696			736,194		701,439		4,624,656			3,171,811			559,964			755,735		457,671		4,945,181
Gross profit		7,239,818			2,920,879			736,195		461,314		11,358,206			9,087,561			288,467			764,996		510,990		10,652,014
Operating expenses:
General and administrative		2,601,889			1,181,086			392,947		89,541		4,265,463			4,422,866			280,443			389,898		62,334		5,155,541
Selling and marketing		4,950,924			2,034,294			16,556		345,034		7,346,808			6,612,476			394,046			47,938		189,515		7,243,975
Total operating expense		7,552,813			3,215,381			409,503		434,574		11,612,271			11,035,342			674,489			437,836		251,849		12,399,516
Operating income (loss)	$	(312,995	)	$	(294,502	)		326,692	$	26,740	$	(254,065	)	$	(1,947,781	)	$	(386,022	)	$	327,160	$	259,141	$	(1,747,502	)

Selected balance sheet information by segment is presented in the following table as of:

	June 30, 2018		December 31, 2017
Direct to Consumer	$	10,440,573	$	11,135,146
Retail		1,090,457		1,696,601
International Third-Party Distributors		239,019		75,854
Airlines and Hong Kong Retail		1,090,722		862,656
	$	12,860,771	$	13,770,257

Total assets by geographical region as of:

	June 30, 2018		December 31, 2017
United States	$	8,314,938	$	8,333,129
Hong Kong		653,621		862,656
United Kingdom		2,993,904		3,476,560
Israel		898,308		1,097,912
Total Assets	$	12,860,771	$	13,770,257

Net sales by geographical region for the three months ended:

	June 30, 2018		June 30, 2017
United States	$	4,339,407	$	5,776,862
Hong Kong		758,407		639,439
United Kingdom		1,914,242		1,533,775
Israel		-		-
Total Net Sales	$	7,012,056	$	7,950,076

Net sales by geographical region for the six months ended:

	June 30, 2018		June 30, 2017
United States	$	10,233,552	$	13,094,759
Hong Kong		1,162,753		968,661
United Kingdom		4,586,557		1,533,775
Israel		-		-
Total Net Sales	$	15,982,862	$	15,597,195