XML 44 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
CUSTOMER RISK
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
CUSTOMER RISK

During the three months ended September 30, 2015 the Company has sales through two distributors which operate regionally and respectively in the New York City and the Knoxville, Tennessee markets.  Nearly all of the Company's current revenue is being derived from two distributor relationships. The total sales to distributors in the nine and three months ended September 30, 2015 was for $69,345 and $63,345 respectively.  For the nine and three months ended September 30, 2015 the Company had associated cost of goods sold of $62,637 and $55,580, respectively.  For the three months ended September 30, 2015 the Company recognized its first online sales through its website with gross sales of $873 and associated cost of goods sold of $367.  The Company will continue to develop the distributor and online sales channels as well as the wholesale channel.  Being that there was only sales to two distributors and very minimal online transaction made being and that the Company is in the initial phase of business development there is a very strong risk that the Company will not be able to gain sufficient market penetration to generate enough revenue to support continuing operations.  Management believes that through strategic partnership and marketing alliances it will be able to successfully gain market share. The Company's failure to maintain these relationship in the future would materially and adversely impact future operating results. In the third fiscal quarter of 2015, although management continues to add new distribution relationships and points of sales, there is no guaranty that these efforts will be successful and if the current distributor becomes dissatisfied with the Company's performance or its products, operating results would be negatively and materially impacted.