CONCENTRATION OF RISK

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

CONCENTRATION OF RISK

Any customer or vendor representing greater than 10% of that total sales or cost of sales is considered a major customer or major vendor.

During the year ended December 31, 2015 the Company had 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 were derived from two distributor relationships. The total sales to distributors in the year ended December 31, 2015 was $74,669.  For the year ended December 31, 2015 the Company had associated cost of goods sold of $69,694.  For the year ended December 31, 2015 the Company recognized its first online sales through its website with gross sales of $1,325 with associated cost of goods of $557.  Being that nearly all sales were only sales to two distributors with 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 would not be able to gain sufficient market penetration to generate enough revenue to support continuing operations.  The Company's failure to maintain these relationships in the future would materially and adversely impact future operating results.

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, as follows:

	Years Ended December 31,
	2015			2014
Customer A		66	%		n/a
Customer B		33			n/a
Customer C		*			n/a
Customer D		*			n/a
*      Less than 10% of total revenue

The Company had certain vendors whose billings individually represented 10% or more of the Company’s total outstanding payables, as follows:

	Years Ended December 31,
	2015			2014
Customer A		21	%		*
Customer B		11			*
Customer C		*			76%
Customer D		*			*
*      Less than 10% of total payables

The Company had two major vendors as of December 31, 2015. The Company does not see this as a significant risk because neither of these vendors would be considered suppliers to the ongoing operation.

As of March 30, 2016, pursuant to a settlement agreement under trademark litigation with plaintiff, Breathe LLC (a Florida organization), the Company has ceased its continuing operations in the eCigarette business (the effective date of the discontinuance of operations in that industry).