XML 61 R18.htm IDEA: XBRL DOCUMENT

Concentrations and Credit Risk	12 Months Ended
Dec. 31, 2013
Risks and Uncertainties [Abstract]
Concentrations and Credit Risk	12. Concentrations and Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company’s cash and cash equivalents are deposited with commercial banks that have minimal credit risk, in the US and the UK. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $211,100 in cash deposits and $2,607,000 of accounts receivable due from customers located in the UK as of December 31, 2013. The Company could experience labor disputes, work stoppages or other disruptions in production that could adversely affect it. As of December 31, 2013, a union represented approximately 18% of the Company’s US-based workforce. On that date, the Company had approximately fourteen employees at its California (“CA”) facility who were working under a collective bargaining agreement. The agreement covering the CA facility expired on July 31, 2013 and the Company and the union are negotiating a new agreement. Gross sales to the top five customers totaled $7,575,900 and $9,245,700 for the years ended December 31, 2013 and 2012, which represents 21% and 23% of sales for the years ended December 31, 2013 and 2012, respectively. Gross sales to Shepherd Neame for the years ended December 31, 2013 and 2012 was $2,373,400 and $3,527,000, which represented 7% and 9% of sales for those years respectively. No other customer individually represented greater than 5% of revenue.

Concentrations and Credit Risk

12 Months Ended

Dec. 31, 2013

12. Concentrations and Credit Risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company’s cash and cash equivalents are deposited with commercial banks that have minimal credit risk, in the US and the UK. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $211,100 in cash deposits and $2,607,000 of accounts receivable due from customers located in the UK as of December 31, 2013.

The Company could experience labor disputes, work stoppages or other disruptions in production that could adversely affect it. As of December 31, 2013, a union represented approximately 18% of the Company’s US-based workforce. On that date, the Company had approximately fourteen employees at its California (“CA”) facility who were working under a collective bargaining agreement. The agreement covering the CA facility expired on July 31, 2013 and the Company and the union are negotiating a new agreement.

Gross sales to the top five customers totaled $7,575,900 and $9,245,700 for the years ended December 31, 2013 and 2012, which represents 21% and 23% of sales for the years ended December 31, 2013 and 2012, respectively. Gross sales to Shepherd Neame for the years ended December 31, 2013 and 2012 was $2,373,400 and $3,527,000, which represented 7% and 9% of sales for those years respectively. No other customer individually represented greater than 5% of revenue.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References+ Details