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REVENUE RECOGNITION
9 Months Ended
Sep. 30, 2013
REVENUE RECOGNITION [Abstract]  
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, 2013, 33.5% of the Company's revenue was derived from two major customers. Revenue generated from each of these customers amounted to $1,175,490 and $748,114 respectively, which represents approximately 20.5% and 13.0% of total revenue.

 

For the three months ended September 30, 2012, 30.8% of the Company's revenue was derived from two major customers. Revenue generated from each of these customers amounted to $879,131 and $435,951 respectively, which represents 20.6% and 10.2% of total revenue.

 

For the nine months ended September 30, 2013, approximately 23.8% of the Company's revenue was derived from one major customer. Revenue generated from this customer amounted to $3,691,343.

 

For the nine months ended September 30, 2012, 19.2% of the Company's revenue was derived from one major customer. Revenue generated from this customer amounted to $2,733,362.