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BUSINESS CONCENTRATIONS
 9 Months Ended
Sep. 30, 2016
Risks and Uncertainties [Abstract]  
BUSINESS CONCENTRATIONS

NOTE 14 - BUSINESS CONCENTRATIONS

 

We purchase our products from several suppliers with approximately 97% and 54% of our purchases supplied from one vendor for the nine months ended September 30, 2016 and 2015, respectively.

 

We sell our prescription prenatal vitamin products to wholesale distributors, specialty pharmacies, specialty distributors, and chain drug stores that generally sell products to retail pharmacies, hospitals, and other institutional customers. Revenue generated from major customers accounted for approximately 60% of our recognized revenue for the nine months ended September 30, 2016 and revenue generated from major customers accounted for approximately 90% of our recognized revenue for the nine months ended September 30, 2015. Customers that generated more than 10% of our sales are designated as customers “A”, “B”, “C” and “D”. During the nine months ended September 30, 2016, four customers each generated more than 10% of our total revenues and during the nine months ended September 30, 2015, two customers each generated more than 10% of our total revenues. During the nine months ended September 30, 2016, customers A, B, C and D generated approximately $2,247,000, $1,890,000, $2,683,000 and $2,113,000, in revenues, respectively. During the nine months ended September 30, 2015, customers A and B generated approximately $6,930,000 and $3,005,000, in revenues, respectively. During the three months ended September 30, 2016, we centralized our distribution channel for both our retail pharmacies and wholesale partners. We also wrote off accounts receivable balances of approximately $2,200,000 related to two former customers mentioned above due to our inability to collect the outstanding balances.