Note 10 – Concentrations:

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

Major Customers—For the three months ended September 30, 2016 and 2015, net sales to one of our distributors, which sells directly to three of our customers, accounted for 25% and 21% of our net sales, respectively. For the three months ended September 30, 2016, no customer accounted for more than 10% of our net sales, while for the same period in 2015, one customer accounted for more than 10% of our net sales.

For the nine months ended September 30, 2016 and 2015, net sales to one of our distributors, which sells directly to three of our customers, accounted for 23% and 21% of our net sales, respectively. For the nine months ended September 30, 2016, no customer accounted for more than 10% of our net sales, while for the same period in 2015, one customer accounted for more than 10% of our net sales.

Major Suppliers—The Company purchased approximately 22% of its raw materials from one vendor during both the three and nine months ended September 30, 2016, and approximately 24% and 40% from three vendors during the three and nine months ended September 30, 2015, respectively. Each of the respective vendors was over 10% of our purchased raw materials during the respective period.

The Company purchased approximately 89% and 82% of its packaging material from three vendors during the three and nine months ended September 30, 2016, respectively and 69% and 70% of its packaging material from three vendors during the three and nine months ended September 30, 2015, respectively. Each of the respective vendors was over 10% of our purchased packaging material during the respective period.

The Company also purchased approximately 90% and 88% of its treats finished goods from four vendors for the three and nine months ended September 30, 2016, respectively and approximately 86% and 92% from three vendors for the three and nine months ended September 30, 2015, respectively. Each of the respective vendors was over 10% of our purchased treats finished goods during the respective period.

Net Sales By Class of Retailer – The following table sets forth net sales by class of retailer:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Grocery, Mass and Club	$	27,550,612	$	23,540,110	$	77,583,710	$	65,654,024
Pet Specialty, Natural and Other		6,985,539		7,030,396		21,408,350		20,330,559
Net Sales	$	34,536,151	$	30,570,506	$	98,992,060	$	85,984,583