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CONCENTRATIONS
 12 Months Ended
Dec. 31, 2025
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 4. CONCENTRATIONS

 

Cash and Cash Equivalents

 

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

 

   December 31, 2025   December 31, 2024 
Total cash in excess of FDIC limits of $250,000  $-   $715,852 

 

A summary of the financial institution that had cash in excess of SIPC limits of $500,000 on December 31, 2025 and 2024 is presented below:

 

   December 31, 2025   December 31, 2024 
Total cash equivalents in excess of SIPC limits of $500,000  $1,529,972   $- 

 

Our investments in money market funds are recorded at fair value, and funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The following table summarizes cash equivalents that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

 

Level 1  December 31, 2025   December 31, 2024 
Money market funds  $2,029,972   $- 

 

The following table provides a reconciliation of cash and cash equivalents to amounts shown in the audited consolidated statements of cash flows:

 

   December 31, 2025   December 31, 2024 
Cash  $989,646   $2,056,472 
Cash equivalents   2,029,972    - 
Total cash and cash equivalents  $3,019,618   $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% and 70% of the goods we sell from our top 20 suppliers for the years ended December 31, 2025 and 2024, respectively. For the year ended December 31, 2025, approximately 31% of our total purchases were from KeHe, 17% from Four Seasons Produce, and 10% of our total purchases were from UNFI. For the year ended December 31, 2024, approximately 25% of our total purchases were from UNFI, 17% of our total purchases were from Four Seasons Produce, and 12% of our total purchases were from KeHe. 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.