CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

CONCENTRATIONS 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 the risk of loss. To date, the Company has not experienced any such losses. As of December 31, 2021, the Company has approximately $471.6 thousand in excess of FIDC insurance limits.

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. As the Company’s ecommerce revenue starts to increase the makeup of the accounts receivable change significantly. Stripe is the company that processes online payments for our website, we should receive payment from them within 3 days of the product shipment. If the product is shipped through Amazon it could take between 20 and 30 days for collection.

Major Customers

The Company had two customers who comprised 50% and 37% of net revenue during the year ended December 31, 2021, and 63% and 26% of net revenue during the year ended December 31, 2020, respectively. The loss of these customers would adversely impact the business of the Company.

For the years ended December 31, 2021 and 2020, approximately 50% and 25% respectively, of the Company’s net revenue resulted from international sales.

As of December 31, 2021, and 2020, approximately $0 and approximately $120.1 thousand of accounts receivable, respectively, was

from one customer.

As the Company increases its ecommerce business, rather than have hundreds of individual consumer customers we will have those companies that we have selected to process our orders such as Stripe, Amazon or Wayfair.

Major Customers

	Net Revenue %						Net Accounts Receivable
	Year Ended December 31,						Year Ended December 31,
	2021			2020			2021		2020
Customer A		50	%		63	%	$	—	$	—
Customer B		37	%		26	%		—		120,064
Total		87	%		89	%	$	—		120,064

Major Vendors

The Company had two vendors from which it purchased 59%, and 23% , respectively, of merchandise sold during the year ended December 31, 2021, and 68%, and 23%, respectively of merchandise sold during the year ended December 31, 2020. The loss of this supplier could adversely impact the business of the Company.

As of December 31, 2021, and 2020 , approximately 73% and 47%, respectively, of accounts payable were due to one vendor.

	Purchases %						Accounts Payable
	Year Ended December 31,						Year Ended December 31,
	2021			2020			2021		2020
Vendor A		59	%		68	%	$	92,761	$	—
Vendor B		23	%		23	%		—		114,870
Total		82	%		91	%	$	92,761	$	114,870