Concentrations Of Credit Risk And Economic Dependence

6 Months Ended

Jun. 30, 2019

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 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

The Company at times has cash with its financial institution in excess of Federal Deposit Insurance Corporation ("FIDC") insurance limits. The Company places its cash 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.

Major Customers

The Company had one customer who comprised 95% of net revenue during the six months ended June 30, 2019 and two customers who comprised of 52% and 45% of net revenue during the six months ended June 30, 2018.  The loss of these customers would adversely impact the business of the Company.

For the six months ended June 30, 2019 and 2018, approximately 6% and 8%, respectively, of the Company's net revenue resulted from international sales.

	Net Revenue %						Gross Accounts Receivable
	For the Six Months ended June 30,						As of June 30,		As of December 31,
	2019			2018			2019		2018
Customer A		95	%		45	%	$	2,741,944	$	402,294
Customer B		3	%		52	%		201,096		—
Total		98	%		97	%	$	2,943,040	$	402,294

Major Vendors

The Company had one vendor from which it purchased 98% and 92% of merchandise sold during the period ended June 30, 2019 and 2018, respectively. The loss of this vendor could adversely impact the business of the Company.

	Purchases %						Accounts Payable
	For the Six Months ended June 30,						As of June 30,		As of December 31,
	2019			2018			2019		2018
Vendor A		98	%		92	%	$	719,711	$	63,594
Total		98	%		92	%	$	719,711	$	63,594