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Concentration Risk
6 Months Ended
Sep. 30, 2018
Risks And Uncertainties [Abstract]  
Concentration Risk

NOTE 8 — CONCENTRATION RISK

Customer Concentration

For the three and six months ended September 30, 2018, the Company’s four largest customers accounted for approximately 88% and 87%, respectively, of the Company’s net revenues. For the three and six months ended September 30, 2017, the Company’s four largest customers accounted for approximately 90% and 85%, respectively, of the Company’s net revenues. A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation.

Product Concentration

For the three and six ended September 30, 2018, the Company’s gross product sales were comprised of two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 40% and 45%, respectively, of the Company’s gross product sales. Audio products generated approximately 56% and 50%, respectively, of the Company’s gross product sales.

For the three and six months ended September 30, 2017, the Company’s gross product sales were comprised of the same two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 62% and 66%, respectively, of the Company’s gross product sales. Audio products generated approximately 29% and 25%, respectively, of the Company’s gross product sales.

Concentrations of Credit Risk

As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top 2 customers accounted for 46% and 33% as of September 30, 2018, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top 2 customers accounted for 64% and 21% as of March 31, 2018, respectively. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations.

Supplier Concentration

During the three and six months ended September 30, 2018, the Company procured approximately 87% and 85% of its products for resale from its two largest factory suppliers, of which 67% and 61%, respectively, was supplied by its largest supplier. During the three and six months ended September 30, 2017, the Company procured approximately 81% and 91% of its products for resale from its two largest factory suppliers, of which 47% and 61%, respectively, was supplied by its largest supplier.