|
NOTE 13 – CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash.
At December 31, 2011, there were receivable balances outstanding from three customers comprising 64% of the total receivables balance. The following table sets forth information as to accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of:
|
|
|
December 31, 2011 |
|
March 31, 2011 |
|
|
Customer |
|
Dollars |
|
Percent |
|
Dollars |
|
Percent |
|
|
A |
|
$ |
1,836,500 |
|
33 |
% |
$ |
3,554,574 |
|
64 |
% |
|
B |
|
$ |
1,109,959 |
|
20 |
% |
$ |
— |
|
— |
% |
|
C |
|
$ |
613,368 |
|
11 |
% |
$ |
— |
|
— |
% |
|
D |
|
$ |
— |
|
— |
% |
$ |
624,765 |
|
11 |
% |
|
E |
|
$ |
— |
|
— |
% |
$ |
455,337 |
|
8 |
% |
The Company has been dependent in each year on a small number of customers who generate a significant portion of our business, and these customers change from year to year. The following table sets forth information as to net sales from customers who accounted for more than 10% of our revenue in the nine months ended:
|
|
|
December 31, 2011 |
|
December 31, 2010 |
|
|
Customer |
|
Dollars |
|
Percent |
|
Dollars |
|
Percent |
|
|
A |
|
$ |
10,046,139 |
|
37 |
% |
$ |
13,451,393 |
|
60 |
% |
|
B |
|
$ |
2,777,631 |
|
10 |
% |
$ |
— |
|
— |
% |
|
C |
|
$ |
— |
|
— |
% |
$ |
4,211,343 |
|
17 |
% |
|