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Concentrations
9 Months Ended
Feb. 28, 2018
Risks and Uncertainties [Abstract]  
Concentrations

Note 9 – Concentrations

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade accounts receivable and cash deposits, investments and cash equivalents instruments. The Company maintains its cash in bank deposits accounts. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At February 28, 2018 the Company held cash in excess of federally insured limits by approximately $14,000. The Company has not experienced any losses in such accounts through February 28, 2018.

 

Concentration of Revenue, Product Line, and Supplier

 

During the nine months ended February 28, 2018 sales to three customers represented approximately 54% of the Company’s net sales at 21%, 19% and 14%. During the nine months ended February 28, 2017 sales to three customer represented approximately 43% of the Company’s net sales at 13%, 15%, and 15%.

 

During the nine months ended February 28, 2018 sales to customers outside the United States represented approximately 36% which consisted of 27% from Canada and 9% from Italy and for the nine months ended February 28, 2017, sales to customers outside the United States represented approximately 23% from Canada.

 

During the nine months ended February 28, 2018, sales by product line which each represented over 10% of sales consisted of approximately 29% from sales of hair shampoo, 24% from sales of hair shampoo and conditioner, 21% from sale of hair treatment spray and repair products and 24% from sale of introductory kit (shampoo, conditioner and treatment spray). During the nine months ended February 28, 2017, sales by product line which each represented over 10% of sales consisted of approximately 22% from sales of hair shampoo, 18% from sales of hair shampoo and conditioner, 20% from sale of hair treatment and repair products and 38% from sale of introductory kit (shampoo, conditioner and treatment spray).

 

As of February 28, 2018 and May 31, 2017, accounts receivable from three customers represented approximately 81% at 28%, 27% and 26% and four customers represented approximately 89% at 18%, 30%, 10% and 31% of the accounts receivable, respectively.

 

The Company purchased inventories and products from three vendors totaling approximately $283,000 (82% of the purchases at 18%, 14%, and 50%) and one vendor totaling $142,000 (71% of the purchases) during the nine months ended February 28, 2018 and 2017, respectively.