Concentration Of Credit Risk And Economic Dependence

9 Months Ended

Sep. 30, 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 61.1 % and 36.0% of net revenue during the nine months ended September 30, 2018 and 55.5% and 43.7 % of net revenue during the nine months ended September 30, 2017.  The loss of these customers would adversely impact the business of the Company.

For the nine months ended September 30, 2018 and 2017, approximately 4.6% and 4.3%, respectively, of the Company's net revenue resulted from international sales.

	Net Revenue %					Net Accounts Receivable
	For the Nine Months ended					As of		As of
	September 30,					September 30,		December 31,
		2018		2017			2018		2017
Customer A		61.1	%	55.5	%	$	1,895,862	$	2,259,769
Customer B		36.0	%	43.7	%		839,808		2,268,426
Total		97.1	%	99.2	%	$	2,735,670	$	4,528,195

Major Vendors

The Company had two vendors from which it purchased 77.5% and 98.1% of merchandise sold during the nine months ended September 30, 2018 and 2017, respectively. The loss of these suppliers could adversely impact the business of the Company.

As of September 30, 2018 approximately 18.8% of accounts payable was due to two vendors. As of December 31, 2017 approximately 79.3% was due to two vendors.

	Purchases %					Accounts Payable
	For the Nine Months ended					As of		As of
	September 30,					September 30,		December 31,
		2018		2017			2018		2017
Vendor A		59.8	%	90.8	%	$	140,677	$	922,310
Vendor B		17.6	%	7.3	%		112,825		768,164
Total		77.4	%	98.1	%	$	253,202	$	1,690,474