Note 16 – Concentrations:

Concentration of Credit Risk — The Company maintains its cash balances in financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000 each. At times, such balances may be in excess of the FDIC insurance limit.

Major Customers — In 2015, 2014, and 2013, net sales to one of our distributors which sells directly to three of our customers, accounted for 22%, 22%, and 28% of our net sales, respectively. In 2015, one customer accounted for more than 10% of our net sales, while for the same period in 2014, no customer accounted for more than 10% of our net sales. In 2013, one customer accounted for 11% of our net sales.

Major Suppliers — The Company purchased approximately 34% of its raw materials from two vendors during 2015, approximately 54% of its raw materials from three vendors during 2014, and approximately 56% of its raw materials from three vendors during 2013.

The Company also purchased approximately 90% of its treats finished goods from three vendors in 2015, approximately 96% from three vendors in 2014, and approximately 78% from three vendors in 2013.

The Company purchased approximately 64% of its packaging material from three vendors during 2015, 74% of its packaging material from three vendors during 2014, and approximately 67% of its packaging material from three vendors during 2013.

Net Sales by Class of Retail – The following table sets forth net sales by class of retail.

	Year ended December 31,
	2015		2014		2013
Grocery, Mass and Club	$	89,131,925	$	65,212,966	$	49,731,873
Pet Specialty, Natural and Other (1)		27,054,447		21,551,146		13,418,903
Net Sales	$	116,186,372	$	86,764,112	$	63,150,776

(1)	Other sales represent less than 1% of net sales