Concentration of Credit Risk

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Concentration of Credit Risk

9 - CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Companies to concentrations of credit risk consist principally of accounts receivable.  Receivables are stated at the amounts management expects to collect from outstanding balances.  Generally, the Company does not require collateral or other security to support contract receivables.

The Company had major customers in each of the reporting periods presented.  A major customer is defined as one that purchases ten-percent or more in a reporting period.  Net sales for the three and nine months ended September 30, 2011 include sales to major customers as follows:

	Three months ended	Nine months ended
Customer	September 30, 2011	September 30, 2010
Customer A	11%	2%
Customer B	10%	2%

The Company had major suppliers in each of the reporting periods presented.  A major supplier is defined as one that provides ten-percent or more of total cost-of-sales in a particular reporting period or has an outstanding account payable balance of ten-percent or more as of the reporting period.

	Three months ended  September 30, 2011		Nine months ended September 30, 2011
	Purchases During Period	Account Payable Percentage at end of Period		Purchases During Period	Account Payable Percentage at end of period
Eminence Speaker LLC	88%	34%		56%	34%
Vendor B	0%	28%		33%	28%