CONCENTRATIONS OF CREDIT RISK

9 Months Ended

Feb. 28, 2017

Risks and Uncertainties [Abstract]

CONCENTRATIONS OF CREDIT RISK

10. CONCENTRATIONS OF CREDIT RISK

Cash

The Company maintains principally all cash balances in two financial institutions which, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. The exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company has not incurred any losses on these accounts. 

Net Sales

One customer accounted for 88% of net sales for the three months ended February 28, 2017 and three customers accounted for 90% of net sales for the three months ended February 29, 2016, as set forth below:

	Three months ended February 28 / 29,
	2017			2016
Customer 1		88	%		42	%
Customer 2					29	%
Customer 3					19	%

Three customers accounted for 87% and 69% of net sales for the nine months ended February 28, 2017 and February 29, 2016 respectively, as set forth below:

	Nine months ended February 28 / 29,
	2017			2016
Customer 1		22	%		36	%
Customer 2		46	%		20	%
Customer 3		19	%		13	%

Accounts Receivable

Two customers accounted for 100% of the accounts receivable as of February 28, 2017, as set forth below:

	February 28, 2017			May 31, 2016
	(Unaudited)
Customer 1		94	%		83	%
Customer 2		6	%		11	%