CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

12 Months Ended

Dec. 31, 2013

CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

NOTE 2 - CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE (continued)

Accounts Receivable

The Company grants credit to its customers, substantially all of whom are retail establishments located throughout the United States.  The Company typically does not require collateral from customers.  Credit risk is limited due to the financial strength of the customers comprising the Company’s customer base and their dispersion across different geographical regions.  The Company monitors exposure of credit losses and maintains allowances for anticipated losses considered necessary under the circumstances.

Major Customers

The Company had three customers who comprised at least six percent (6%) of gross revenue during the fiscal years ended December 31, 2013 and 2012.  The loss of these customers would adversely impact the business of the Company.  The percentage of gross revenue and the accounts receivable from each of these customers is as follows:

	Gross Revenue %			Accounts Receivable
	2013	2012		2013		2012
Customer A	62%	60%	$	6,418,071	$	2,208,495
Customer B	22%	10%		70,974		464,601
Customer C	6%	12%		336,432		35,435
	90%	82%	$	6,825,477	$	2,708,531

Major Vendors

The Company had two vendors from which it purchased at least five percent (5%) of merchandise during the fiscal year ended December 31, 2013 and December 31, 2012. The loss of these suppliers would adversely impact the business of the Company.  The percentage of purchases, and the related accounts payable from each of these vendors is as follows:

	Purchases %			Accounts Payable
	2013	2012		2013		2012
Vendor A	93 %	81%	$	1,320,945	$	818,883
Vendor B	5%	13%		112,952		28,834
	98 %	94%	$	1,433,897	$	847,717