Concentration Of Credit Risk And Economic Dependence

9 Months Ended

Sep. 30, 2017

Risks and Uncertainties [Abstract]

Concentration of Credit Risk and Economic Dependence

NOTE 2 - CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents and accounts receivable.

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents, to the extent the funds are not being held for investment purposes.

The Company at times has cash and cash equivalents with its financial institution in excess of Federal Deposit Insurance Corporation ("FIDC") insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions which minimize these risks.

Accounts Receivable

The Company grants credit to its customers, substantially all of whom are retail establishments located throughout the United States and their international locations. 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 geographicalregions.  The Company monitors exposure of credit losses and maintains allowances for anticipated losses considered necessary under the circumstances.

Major Customers

The Company had two customers who comprised 55.5% and 43.7% of net revenue during the nine-month period ended September 30, 2017, and 62.8% and 35.8% of net revenue during the nine-month period ended September 30, 2016.  The loss of these customers would adversely impact the business of the Company.

Approximately 4.3% and 8.1% of the Company's net revenue for the nine-month periods ended September 30, 2017 and 2016, was from international sales.

	Revenue %						Gross Accounts Receivable
	9 Month Periods Ended September 30,						As of September 30,		As of December 31,
	2017			2016			2017		2016
Customer A		55.5	%		62.8	%	$	3,563,515	$	3,760,755
Customer B		43.7	%		35.8	%		1,447,171		1,823,785
		99.2	%		98.6	%	$	5,010,686	$	5,558,540

Major Vendors

The Company had one vendor from which it purchased 90.8% of merchandise sold during the nine-month period ended September 30, 2017, and 89.5% of merchandise sold during the nine-month period ended September 30, 2016. The loss of this supplier could adversely impact the business of the Company.

	Purchases %							Accounts Payable
	9 Month Periods Ended September 30,							As of September 30,			As of December 31,
		2017			2016				2017			2016
Vendor A			90.8	%		89.5	%		$	1,172,314		$	1,507,671