Note 5 - Major Customer and Vendor

3 Months Ended

Jun. 30, 2016

Notes

Note 5 - Major Customer and Vendor

NOTE 5 - MAJOR CUSTOMER AND VENDOR

The Company sold products through ten distributors during the three months ended June 30, 2016 and 2015. Sales to three distributors represented 23%, 16%, and 14% of total sales for the three months ended June 30, 2016. Sales to three distributors represented 32%, 25%, and 12% of total sales for the three months ended June 30, 2015.

The Company sold 6 and 11 products during the three months ended June 30, 2016 and 2015, respectively. Sales of three products represented 53%, 15% and 14% of total sales for the three months ended June 30, 2016.  Sales of one product represented 69% of total sales for the three months ended June 30, 2015.

The Company purchases its products from Shandong Yong Chun Tang (“Shandong YCT”) according to the contract renewed on February 26, 2015 between the Company and Shandong YCT. Pursuant to the renewed two year contracts, for the period from February 26, 2015 to February 25, 2017, the Company can purchase 10 products from Shandong YCT on fixed prices. On June 25, 2015, the Company made an amendment to the renewed Purchase and Sale Contract with Shandong YCT. Pursuant to the amended agreement, the Company no longer purchases and sells the 10 products included in the contract renewed on February 26, 2015 and agreed to purchase and sell four new products without changes in other terms of the previous contract. The Company can purchase these four new products from Shandong YCT at fixed prices. Total purchases from Shandong YCT represented 33% and 25% of our total purchases during the three months ended June 30, 2016 and 2015, respectively.  The purchases from three other vendors represented 23%, 18%, and 14% of the Company’s total purchases for the three months ended June 30, 2016. The purchases from two other vendors represented 39% and 23% of the Company’s total purchases for the three months ended June 30, 2015.