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CONCENTRATIONS
 6 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 4. CONCENTRATIONS

 

Cash and Cash Equivalents

 

The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash is concentrated in one large financial institution, which is in excess of FDIC coverage.

 

The Company has not experienced any losses in such accounts. The Company did not have any cash equivalents as of June 30, 2025 and December 31, 2024.

 

A summary of the financial institution that had cash in excess of FDIC limits of $250,000 on June 30, 2025 and December 31, 2024 is presented below:

 

   June 30, 2025   December 31, 2024 
Total cash in excess of FDIC limits of $250,000  $3,659,384   $715,852 

 

The Company continually monitors its positions with, and the credit quality of the financial institutions with which it invests, as deposits are held in excess of federally insured limits. The Company has not experienced any losses in such accounts.

 

The following table provides a reconciliation of cash and cash equivalents to amounts shown in the unaudited condensed consolidated statements of cash flow:

 

   June 30, 2025   December 31, 2024 
Cash  $4,690,026   $2,056,472 

 

Sourcing and Vendors

 

We source from approximately 1,000 suppliers and offer well over 4,000 brands. These suppliers range from small independent businesses to multi-national conglomerates. We purchased approximately 74% of the goods we sell from our top 20 suppliers for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, approximately 32% of our total purchases were from KeHe, and 19% of our total purchases were from Four Seasons Produce. For the three months ended June 30, 2024, approximately 36% of our total purchases were from UNFI and 20% from Four Seasons Produce. We purchased approximately 72% and 74% of the goods we sell from our top 20 suppliers for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, approximately 29% of our total purchases were from KeHe, 17% from Four Seasons Produce, and 11% of our total purchases were from UNFI. For the six months ended June 30, 2024, approximately 36% of our total purchases were from UNFI and 18% of our total purchases were from Four Seasons Produce. No other supplier exceeded 10% of total purchases in either periods. We maintain good relations with all our suppliers and believe we have adequate alternative supply methods, including self-distribution.

 

As mentioned, KeHe replaced UNFI and becomes our primary supplier of dry grocery and frozen food products starting from January 2025. Our customer distribution agreement with KeHe commenced from March 1, 2024 and has an initial term through February 28, 2027. Either party may terminate the agreement for defaults by the other party of certain provisions of the agreement. We are obligated to purchase a minimum annual volume of products from KeHe, except in certain defined circumstances when such purchasing obligation is excused. Pricing under our agreement with KeHe is on a “cost plus” basis. We believe KeHe has sufficient warehouse capacity and distribution technology to service our existing stores’ distribution needs for natural foods and products. Unlike certain other key suppliers, our relationship with Four Seasons Produce is not governed by a long-term contractual agreement, and purchases are made on a purchase-order basis.

 

We have longstanding relationships with our suppliers, and we require disclosure from them regarding quality, freshness, potency and safety data information. Our bulk food private label products are packaged by us in pre-packed sealed bags to help prevent contamination while in transit and in our stores. Unlike most of our competitors, most of our private label nuts, trail mix, and flours are refrigerated in our warehouse and stores to maintain freshness.