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Concentration Risk
3 Months Ended
Jun. 30, 2019
Risks And Uncertainties [Abstract]  
Concentration Risk

NOTE 8 — CONCENTRATION RISK

Customer Concentration

For the three months ended June 30, 2019, the Company’s three largest customers accounted for approximately 73% of the Company’s net revenues, of which Walmart accounted for 39%, Amazon accounted for 23% and Fred Meyer accounted for 11%.                    

For the three months ended June 30, 2018, the Company’s three largest customers accounted for approximately 80% of the Company’s net revenues, of which Walmart accounted for 51%, Fred Meyer accounted for 18% and Amazon accounted for 11%.                      

A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation.

Product Concentration

For the three months ended June 30, 2019, the Company’s gross product sales were comprised of two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 49% of the Company’s gross product sales. Audio products generated approximately 49% of the Company’s gross product sales.

For the three months ended June 30, 2018, the Company’s gross product sales were comprised of the same two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 51% of the Company’s gross product sales. Audio products generated approximately 44% of the Company’s gross product sales.

Concentrations of Credit Risk

As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top two customers accounted for 37% and 37% as of June 30, 2019, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top two customers accounted for 47% and 29% as of March 31, 2019, respectively. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations.

Supplier Concentration

During the three months ended June 30, 2019, the Company procured approximately 77% of its products for resale from its two largest factory suppliers, of which 42% was supplied by its largest supplier. During the three months ended June 30, 2018, the Company procured approximately 84% of its products for resale from its two largest factory suppliers, of which 56% was supplied by its largest supplier.