CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE	3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021, the Company had approximately $0 and $471.5 thousand , respectively, 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. 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. Major Customers The Company had two customers who comprised 77% and 17%, respectively, of net revenue during the three months ended March 31, 2022, and two customers who comprised 47% and 32%, respectively, of net revenue during the three months ended March 31, 2021. The loss of these customers would adversely impact the business of the Company. March 31, 2022, and 2021, approximately 17% and 68%, respectively, of the Company’s net revenue resulted from international sales. As of March 31, 2022, approximately $145 thousand or 100% of accounts receivable was from two customers. As of December 31, 2021, approximately $1 thousand or 100% of accounts receivable was from two customers. As the Company increases its ecommerce business, rather than having 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 Vendors The Company had two vendors from which it purchased 72% and 23%, respectively, of merchandise during the three months ended March 31, 2022, and two vendors from which it purchased 47% and 31% of merchandise during the three months ended March 31, 2021. The loss of these suppliers could adversely impact the business of the Company. As of March 31, 2022, approximately $176 thousand or 45% of accounts payable was due to two vendors. As of December 31, 2021, approximately $92 thousand or 73% of accounts payable was due to one vendor.

CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021, the Company had approximately $0 and $471.5 thousand , respectively, 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.

contracts, options contracts or other foreign hedging arrangements.

Major Customers

The Company had two customers who comprised 77% and 17%, respectively, of net revenue during the three months ended March 31, 2022, and two customers who comprised 47% and 32%, respectively, of net revenue during the three months ended March 31, 2021. The loss of these customers would adversely impact the business of the Company. March 31, 2022, and 2021, approximately 17% and 68%, respectively, of the Company’s net revenue resulted from international sales.

As of March 31, 2022, approximately $145 thousand or 100% of accounts receivable was from two customers. As of December 31, 2021, approximately $1 thousand or 100% of accounts receivable was from two customers.

As the Company increases its ecommerce business, rather than having 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 Vendors

The Company had two vendors from which it purchased 72% and 23%, respectively, of merchandise during the three months ended March 31, 2022, and two vendors from which it purchased 47% and 31% of merchandise during the three months ended March 31, 2021. The loss of these suppliers could adversely impact the business of the Company.

As of March 31, 2022, approximately $176 thousand or 45% of accounts payable was due to two vendors. As of December 31, 2021, approximately $92 thousand or 73% of accounts payable was due to one vendor.