CUSTOMER CREDIT CONCENTRATIONS

9 Months Ended

Sep. 30, 2013

Concentration Risk Disclosure [Text Block]

CUSTOMER CREDIT CONCENTRATIONS

The Company sells to three entities owned by the brother of Robert Carmichael, the Company’s Chief Executive officer as further discussed in Note 7 – RELATED PARTIES TRANSACTIONS. Combined sales to these entities for the three months ended September 30, 2013 and 2012, represented 23.40% and 19.22%, respectively, of total net revenues. Combined sales to these entities for the nine months ended September 30, 2013 and 2012, represented 30.06% and 23.47%, respectively, of total net revenues. Sales to one unrelated party during the three and nine months ended September 30, 2013, and 2012, represented 20.39% and 9.98% of total net revenues. For the three months ended September 30, 2012, sales to one unrelated customer represented 14.64% of total net revenues. Sales to no other customers represented greater than 10% of net revenues for three and nine months ended September 30, 2013, and 2012.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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