Concentration Of Credit Risk And Economic Dependence

3 Months Ended

Mar. 31, 2018

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 geographical regions.  The Company monitors exposure of credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. These various anticipated allowances are accrued for but would be deducted from open invoices by the customer.

Major Customers

The Company had two customers who comprised 71% and 26% of net revenue during the three months ended March 31, 2018 and 51% and 48% of net revenue during the period ended March 31, 2017.  The loss of these customers would adversely impact the business of the Company.

For both the quarters ended March 31, 2018 and 2017, approximately 8% of the Company's net revenue resulted from international sales.

Major Customers

	Gross Revenue %						Gross Accounts Receivable
	As of March 31,			As of March 31,			As of March 31,		As of December 31,
	2018			2017			2018		2017
Customer A		71	%		51	%	$	2,000,376	$	2,259,769
Customer B		26	%		48	%		851,905		2,268,426
Total		97	%		99	%	$	2,852,281	$	4,528,195

Major Vendors

The Company had two vendors from which it purchased 89% and 8% of merchandise sold during the period ended March 31, 2018, and

93% and 4% of merchandise sold during the period ended March 31, 2017. The loss of these suppliers could adversely impact the business of the Company.

As of March 31, 2018, and December 31, 2017, approximately 78% and 87%, respectively, of accounts payable were due to the two vendors.

	Purchases %						Accounts Payable
	As of March 31,			As of March 31,			As of March 31,		As of December 31,
	2018			2017			2018		2017
Vendor A		89	%		93	%	$	1,089,800	$	922,310
Vendor B		8	%		4	%		—		768,164
Total		97	%		97	%	$	1,089,800	$	1,690,474