CONCENTRATION OF CREDIT RISK

NOTE 17. CONCENTRATION OF CREDIT RISK

As of March 31, 2015 and December 31, 2014 , 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 three months ended March 31, 2015 and 2014, the sales generated from overseas countries were $831,463 and $0, respectively. Accounts receivable as of March 31, 2015 and December 31, 2014 that were due from customers located outside of China were $552,997 and $0, respectively.

For the three months ended March 31, 2015, sales revenue generated from Deyufang Innovation Food (Beijing) Co., Ltd. accounted for 11.9% 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 three months ended March 31 2014. As of March 31, 2015 and 2014, no single customer accounted for greater than 10% of the Company’s consolidated accounts receivable.

- 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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