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 two customers who comprised 83% and 15% of net revenue during the year ended December 31, 2019, and 36% and 60% of net revenue during the year ended December 31, 2018, respectively. The loss of these customers would adversely impact the business of the Company.

For the years ended December 31, 2019 and 2018, approximately 10% and 10% respectively, of the Company’s net revenue resulted from international sales.

Major Customers

	Net Revenue %						Net Accounts Receivable
	Year Ended December 31,						Year Ended December 31,			Year Ended December 31,
	2019			2018			2019			2018
Customer A		83	%		36	%		$	13,459		$	38,090
Customer B		15	%		60	%			-			-
Total		98	%		96	%		$	13,459		$	38,090

Major Vendors

The Company had one vendor from which it purchased 97% of merchandise sold during the year ended December 31, 2019, and two vendors from which it purchased 60% and 16% of merchandise sold during the year ended December 31, 2018. The loss of this supplier could adversely impact the business of the Company.

As of December 31, 2019 and 2018, approximately 37% and 29%, respectively, of accounts payable were due to one vendor.

	Purchases %						Accounts Payable
	Year Ended December 31,						Year Ended December 31			Year Ended December 31,
	2019			2018			2019			2018
Vendor A		97	%		60	%		$	100,705		$	63,594
Vendor B		-	%		16	%			-			-
Total		97	%		76	%		$	100,705		$	63,594