CUSTOMER CREDIT CONCENTRATIONS

9 Months Ended

Sep. 30, 2014

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, and two Company’s owned by the Chief Executive Officer as further discussed in Note 7. RELATED PARTIES TRANSACTIONS. Combined sales to these five entities for three months ended September 30, 2014 and 2013, represented 27.48% and 23.40%, respectively, of total net revenues. Combined sales to these five entities for nine months ended September 30, 2014 and 2013, represented 39.55% and 30.06%, respectively, of total net revenues. Sales to one non-related customer for the three months ended September 30, 2014, represented 19.86%. Sales to no other customers for the three and nine months ended September 30, 2014, or 2013 represented greater than 10% of net revenues for the respective periods.

- 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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