CONCENTRATION OF CREDIT RISK

NOTE 19. CONCENTRATION OF CREDIT RISK

As of September 30, 2014 and December 31, 2013, all of the Company’s cash balances in banks were maintained within the PRC where no rule or regulation currently in place to provide obligatory insurance for bank deposits in the event of bank failure. However, the Company has not experienced any losses in such accounts and believes it is not exposed to such risks on its cash balances in banks.

For the nine months ended September 30, 2014 and 2013, the sales generated from overseas countries were $3, 633, 391 and $0, respectively. Accounts receivable as of September 30, 2014 and December 31, 2013 that were due from customers located outside of China were $285, 915 and $0, respectively.

For the nine months ended September 30, 2014, sales revenue generated from Deyufang Innovation Food (Beijing) Co., Ltd. accounted for 23.0% of the Company's consolidated gross revenue, while there was no single customer that accounted for greater than 10% of the Company's consolidated gross revenue for the nine months ended September 30 2013. As of September 30, 2014 the account receivable due from Deyufang Innovation Food (Beijing) Co., Ltd. accounted for 11.9% of the Company’s consolidated accounts receivable, while no single customer accounted for greater than 10% of the Company’s consolidated accounts receivable as of December 31, 2013.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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