CONCENTRATIONS OF CREDIT RISK AND ECONOMIC DEPENDENCE	9 Months Ended
Sep. 30, 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 September 30, 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, located throughout the United States and their international locations. The Company typically does not require collateral from national retail 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 will change significantly. Stripe is the company that processes online payments for our e-commerce website. We should receive payment from them within 3 days of the product shipment. If the product is shipped through Amazon online platform 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 With the availability of the new Smart Mirror inventory, the Company has started to expand its business into the on-line market for the Smart Mirror program. The Company had two customers who comprised 63% and 14%, respectively, of net revenue during the nine months ended September 30, 2022, and two customers who comprised 52% and 29%, respectively, of revenue during the nine months ended September 30, 2021. As of September 30, 2022, approximately $26.4 thousand or 100% of accounts receivable was from one retail customer. 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 as customers 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 73% and 22%, respectively, of merchandise during the nine months ended September 30, 2022, and two vendors from which it purchased 48% and 26% of merchandise during the nine months ended September 30, 2021. The loss of these suppliers could adversely impact the business of the Company. As of September 30, 2022, approximately $6.6 thousand or 11% of accounts payable was due to one vendor. 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

9 Months Ended

Sep. 30, 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 September 30, 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, located throughout the United States and their international locations. The Company typically does not require collateral from national retail 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 will change significantly. Stripe is the company that processes online payments for our e-commerce website. We should receive payment from them within 3 days of the product shipment. If the product is shipped through Amazon online platform 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

With the availability of the new Smart Mirror inventory, the Company has started to expand its business into the on-line market for the Smart Mirror program. The Company had two customers who comprised 63% and 14%, respectively, of net revenue during the nine months ended September 30, 2022, and two customers who comprised 52% and 29%, respectively, of revenue during the nine months ended September 30, 2021.

As of September 30, 2022, approximately $26.4 thousand or 100% of accounts receivable was from one retail customer. 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 as customers 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 73% and 22%, respectively, of merchandise during the nine months ended September 30, 2022, and two vendors from which it purchased 48% and 26% of merchandise during the nine months ended September 30, 2021. The loss of these suppliers could adversely impact the business of the Company. As of September 30, 2022, approximately $6.6 thousand or 11% of accounts payable was due to one vendor. As of December 31, 2021, approximately $92 thousand or 73% of accounts payable was due to one vendor.