Concentrations

9 Months Ended

Sep. 30, 2016

Risks and Uncertainties [Abstract]

Concentrations

NOTE 7 – CONCENTRATIONS

Concentrations of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash deposits and investments in cash equivalent instruments.

Lender concentration

The Company relies primarily on one lender under a $1,500,000 Revolving Note.

Customer concentrations

Customer concentrations for the three and nine months ended September 30, 2016 and 2015 are as follows:

	Revenues
	For the three months ended September 30,						For the nine months ended September 30,
	2016			2015			2016			2015
Customer A		38	%		34	%		32	%		27	%
Customer B		13	%		17	%		14	%		13	%
Total		51	%		51	%		46	%		40	%

	Accounts Receivable
	As of September 30, 2016			As of December 31, 2015
Customer A		38	%		31	%
Customer B		20	%		14	%
Total		58	%		45	%

A reduction in sales from or loss of such customers would have a material adverse effect on our consolidated results of operations and financial condition.

Geographic concentrations of sales

For the three and nine months ended September 30, 2016, sales in the United States represent 91% and 91%, respectively, of total consolidated revenues and, for the same periods in 2015, 74% and 92% of total consolidated revenues, respectively. No other geographical area accounts for more than 10% of total sales during the three and nine months ended September 30, 2016 and 2015.

Vendor concentrations

Vendor concentrations for the three and nine months ended September 30, 2016 and September 30, 2015 are as follows:

	Inventory Purchases
	For the three months ended September 30,						For the nine months ended September 30,
	2016			2015			2016			2015
Vendor A		36	%		38	%		31	%		32	%
Vendor B		12	%		12	%		11	%		12	%
Vendor C		*			*			*			11	%
Total		48	%		50	%		42	%		55	%

* Less than 10%