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12. CONCENTRATION AND RISK
12 Months Ended
Dec. 31, 2013
Risks and Uncertainties [Abstract]  
12. CONCENTRATION AND RISK

NOTE 12. CONCENTRATION AND RISK

 

Major Customers

 

The Company had two customers for the year ended December 31, 2013 from which the Company generated 99% of its revenues. For the year ended December 31, 2012 the company had one customer which generated 99% of the company’s revenues.

 

Credit risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company performs ongoing credit evaluations of its customers' financial condition, but does not require collateral to support such receivables.

 

As of December 31, 2013 and 2012, substantially all of the Company’s cash and cash equivalents were held by financial institutions located in Brazil, which the Company’s management believes are of high credit quality.

 

The Company’s operations are carried out in Brazil. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in Brazil and by the general state of the local economy. The Company’s operations in Brazil are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. 

 

In addition, the Company is subject to risks common to companies in its industry, including, but not limited to, litigation, development of new technological innovations and dependence on key personnel.