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Supplier and Customer Concentration
3 Months Ended
Mar. 31, 2022
Risks and Uncertainties [Abstract]  
SUPPLIER AND CUSTOMER CONCENTRATION
9.SUPPLIER AND CUSTOMER CONCENTRATION

 

The Company has an agreement with an unrelated party for various wine making activities, including production, bottling, labeling, and packaging. The Company purchases finished goods through blanket sales orders that require a 20% deposit. In addition to the purchases of finished goods, the Company pays certain storage, administrative fees and taxes related to the purchased goods. There is no specified term of the agreement but continues as additional blanket sales orders are issued. For the three month period ended March 31, 2022, 100% of the Company’s inventory purchases were from this supplier.

 

The Company also engages with other suppliers for the purchase of a select varietal of wine to be offered in limited quantities. There are no formal agreements due to the infrequency of activity with these suppliers.

 

A significant portion of the Company’s wholesale revenue comes from a single customer that operates in several markets. For the three month period ended March 31, 2022, 50% of the Company’s wholesale revenue came from this customer. At March 31, 2022, this customer accounted for 56% of accounts receivable.