SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK

6 Months Ended

Jun. 30, 2014

Risks and Uncertainties [Abstract]

SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK

NOTE 5 – SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK

CASH

Financial   instruments   that   potentially   subject   the   Company to concentrations of credit risk consist principally of cash. The Company maintains cash balances at one financial institution, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC insured institution insures up to $250,000 on account balances. As of June 30, 2014, the Company’s cash balance exceeded the insured amount by $59,802. The company maintains its’ cash balance at a large financial institution and has not experienced any losses in such accounts.

SALES

For the three and six months ended June 30, 2013 and 2014, three (3) customers each accounted for more than 10% of our business, respectively, as follows:

		2013						2014
Customer		Sales % Three Months Ended June 30,			Sales % Six Months Ended June 30,			Sales % Three Months Ended June 30,			Sales % Six Months Ended June 30,			Accounts Receivable Balance as of June 30, 2014
	A		—			58	%		—			—		$	—
	B		40	%		17	%		—			—		$	—
	C		27	%		11	%		—			—		$	—
	D		23	%		—			—			—		$	—
	E		—			—			46	%		42	%	$	230
	F		—			—			25	%		18	%	$	1,000
	G		—			—			19	%		—		$	450
	H		—			—			—			18	%	$	4,701

PURCHASES

For the three and six months ended June 30, 2014, 100% of the Company’s purchases were from one vendor related to the purchase of our tobacco product line. The balance due this vendor was $4,494 as of June 30, 2014.

For the three and six months ended June 30, 2013, 100% of the Company’s purchases were from one vendor related to the purchase of Chillo and C+Swiss drinks.