Note 13 - Business and Credit Concentrations

12 Months Ended

Dec. 31, 2011

Concentration Risk Disclosure [Text Block]

(13)   Business and Credit Concentrations

We are currently dependent on three customers, which collectively comprised approximately 29.7% of net revenues for the year ended December 31, 2011.  Of these customers, two customers individually represented greater than 5% but less than 10% of net sales, and one customer individually represented greater than 10% but less than 20% of net sales, while no customer represented greater than 20% of net sales for the year ended December 31, 2011. For the year ended December 31, 2010, three customers collectively comprised approximately 28.9% of net sales, of which two customer individually represented greater than 5% but less than 10% of net sales, and one customer individually represented greater than 10% but less than 20% of net sales while no customer represented greater than 20% of net sales.   Additionally, we have no customers with an outstanding accounts receivable balance that is greater than 15% of total accounts receivable at December 31, 2011.  The loss of an individual or a combination of these customers or a significant impairment or reduction in such customers' business would have a material adverse effect on net sales, results of operations, financial condition and competitive market position of the Company.   Additionally, as of December 31, 2011 we have a $3.0 million receivable due from our Canadian agent for receivables collected but not yet remitted to the Company.

A significant portion of our inventory purchases are from one supplier in China.  We purchased approximately 19% and 27% of our total inventory purchased for the years ended December 31, 2011 and 2010, respectively, from this one Chinese supplier.  Substantially all of our fairway wood, driver, iron, i-wood, wedge and putter component parts are manufactured in China and Taiwan.  We could, in the future, experience shortages of components for reasons including, without limitation, the supplier’s production capacity or materials shortages, or periods of increased price pressures, or bankruptcy or similar material adverse effect on the supplier’s operations and business, which could have a material adverse effect on our business, results of operations, financial position and liquidity.