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Concentration of Credit Risk

6 Months Ended

Jun. 30, 2017

Note 6 – Concentration of Credit Risk

Cash and cash equivalents

The Company maintains its cash and cash equivalents in banks insured by the Federal Deposit Insurance Corporation (FDIC) in accounts that at times may be in excess of the federally insured limit of $250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions. At June 30, 2017 and December 31, 2016, the uninsured balances amounted to $577,157 and $2,038,985, respectively.

Accounts receivable

As of June 30, 2017, five customers accounted for 89% of the Company’s accounts receivable. As of December 31, 2016, three customers accounted for 91% of the Company’s accounts receivable.

Major customers

For the six months ended June 30, 2017, three customers accounted for approximately 35% of the Company’s net revenue. For the three months ended June 30, 2017, three customers accounted for approximately 32% of the Company’s net revenue. For the six months ended June 30, 2016, four customers accounted for approximately 25% of the Company’s net revenue. For the three months ended June 30, 2016, three customers accounted for approximately 25% of the Company’s net revenue. For the year ended December 31, 2016, three customers accounted for approximately 34% of the Company’s net revenues. Substantially all of the Company’s business is with companies in the United States.

Major suppliers

For the three and six months ended June 30, 2017 and the year ended December 31, 2016, our products were made by the following suppliers:

FOCUSfactor	Atrium Innovations - Pittsburgh, PA	Vit-Best Nutrition, Inc. - Tustin, CA
Flat Tummy Tea	Caraway Tea Company, LLC - Highland, NY	-
Neuragen	C-Care, LLC - Linthicum Heights, MD	-
UrgentRx	Capstone Nutrition - Ogden, UT	-
Hand MD	HealthSpecialty - Santa Fe Springs, CA
Sneaky Vaunt	Dongguan Jingrui - China

It is the opinion of management that the products can be produced by other manufacturers and the choice to utilize these suppliers is not a significant concentration.