SUPPLEMENTAL INFORMATION

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL INFORMATION

Foreign Sales

The Company generated $9,556 and $9,554 of foreign sales during the three months ended September 30, 2015 and 2014, respectively. The Company generated $28,084 and $19,602 of foreign sales during the nine months ended September 30, 2015 and 2014, respectively.

Major Suppliers

The Company purchases the majority of its inventories from two suppliers that are located in foreign countries. If the Company no longer had access to these suppliers, managements believes the Company could locate alternative suppliers. However, there could be temporary shortages of inventories during a transition to new suppliers.

Foreign Currency and Accumulated Other Comprehensive Loss

Comprehensive loss is defined as the change in equity of a company during the period resulting from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. The primary difference between the Company’s net loss and comprehensive loss results from foreign currency translation adjustments in consolidating the Company’s UK subsidiaries’ financial statements. The financial position of foreign subsidiaries is generally translated using the exchange rates in effect at the end of the reporting period, while income and expense items are generally translated at average rates of exchange during the reporting period.

Foreign exchange gains and losses reported in the Company’s statements of operations are immaterial for all periods presented.

Financial Instruments

The carrying amounts of cash, accounts receivable, and accounts payable approximate fair value as of September 30, 2015 and December 31, 2014, because of the relatively short maturities of these instruments. Substantially all of the Company’s debt financings were entered into or amended during the nine months ended September 30, 2015. Accordingly, management believes the related fair values are approximately equal to the outstanding principal balances as of September 30, 2015. The estimated fair values for financial instruments presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values.

Other Information

Presented below are certain expenses included in the accompanying statements of operations:

	Three Months Ended				Nine Months Ended
	September 30:				September 30:
Description of Expense	2015		2014		2015		2014
Professional fees and administrative:
Bad debts	$	32	$	2,062	$	182	$	2,119
Repairs and maintenance		24		38		62		75
Rent		332		47		443		129
Marketing and selling:
Advertising		1,760		700		4,874		1,676
Rent		921		-		2,332		-