REVENUE RECOGNITION	9 Months Ended
Sep. 30, 2011
REVENUE RECOGNITION	REVENUE RECOGNITION With respect to revenue from product sales, revenue is recognized only upon shipment of products to customers. The Company derives its revenues from the sale of proprietary pet products under the OurPet’s®, Pet Zone®, SmartScoop®, ecoPure Naturals®, Play-N-Squeak®, Durapet®, Go! Cat Go! ®, Flappy® , Eat®, Smarter Toys®, Clipnosis® and Cosmic Pet® labels. Net revenue is comprised of gross sales less discounts given to distributors and returns and allowances. For the three months ended September 30, 2011, 28.4% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $829,393 and $453,645, respectively which represents 18.4% and 10.0% of total revenue. For the three months ended September 30, 2010, 42.1% of the Company’s revenue was derived from three major customers. Revenue generated from each of these customers amounted to $719,199, $627,345 and $451,490, respectively which represents 16.8%, 14.7% and 10.6% of total revenue. For the nine months ended September 30, 2011, 30.3% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $2,678,986 and $1,710,660, respectively, which represents 18.5% and 11.8% of total revenue. For the nine months ended September 30, 2010, 34.8% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $2,221,805 and $2,101,225, respectively, which represents 17.9% and 16.9% of total revenue.

REVENUE RECOGNITION

With respect to revenue from product sales, revenue is recognized only upon shipment of products to customers. The Company derives its revenues from the sale of proprietary pet products under the OurPet’s®, Pet Zone®, SmartScoop®, ecoPure Naturals®, Play-N-Squeak®, Durapet®, Go! Cat Go! ®, Flappy® , Eat®, Smarter Toys®, Clipnosis® and Cosmic Pet® labels. Net revenue is comprised of gross sales less discounts given to distributors and returns and allowances.

For the three months ended September 30, 2011, 28.4% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $829,393 and $453,645, respectively which represents 18.4% and 10.0% of total revenue.

For the three months ended September 30, 2010, 42.1% of the Company’s revenue was derived from three major customers. Revenue generated from each of these customers amounted to $719,199, $627,345 and $451,490, respectively which represents 16.8%, 14.7% and 10.6% of total revenue.

For the nine months ended September 30, 2011, 30.3% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $2,678,986 and $1,710,660, respectively, which represents 18.5% and 11.8% of total revenue.

For the nine months ended September 30, 2010, 34.8% of the Company’s revenue was derived from two major customers. Revenue generated from each of these customers amounted to $2,221,805 and $2,101,225, respectively, which represents 17.9% and 16.9% of total revenue.