Risks and Uncertainties

3 Months Ended

Jun. 30, 2011

Risks and Uncertainties

Concentration Risk Disclosure [Text Block]

NOTE 9 – CONCENTRATION OF CREDIT RISK

A material part of the Company’s account receivables is outstanding with five customers.  The amount owed by these customers at June 30, 2011 was $291,270, approximately 89% of the Company’s receivables.  Sales to the top five customers represented 77% of total sales.  The amount owed by these customers at September 30, 2010 was $518,092, approximately 78% of the Company’s receivables.  Sales to the top five customers represented 84% of total sales for the quarter ended June 30, 2010.  Sales are concentrated in the western United States.

For the three months ended June 30, 2011 and 2010, the Company purchased approximately $264,000 and $238,000, respectively, of raw material from five suppliers, representing 73% and 69%, respectively, of the Company’s total purchases. As of June 30, 2011 and September 30, 2010, amounts owed to these five suppliers were approximately $82,412 and $186,000 representing 81% and 41%, respectively, of the total accounts payable.