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Concentrations and Credit Risk
12 Months Ended
Dec. 31, 2014
Risks and Uncertainties [Abstract]  
Concentrations and Credit Risk

14. 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 $83,600 in cash deposits and $3,019,500 of accounts receivable due from customers located in the UK as of December 31, 2014.

 

The Company could experience labor disputes, work stoppages or other disruptions in production that could adversely affect it. As of December 31, 2014, a union represented approximately 22% 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 expires on July 31, 2018.

 

Gross sales to the top five customers totaled $5,466,700 and $7,575,900 for the years ended December 31, 2014 and 2013, which represents 16% and 21% of sales for the years ended December 31, 2014 and 2013, respectively. No individual customer accounted for more than 5% of our total sales during 2014. Sales to Shepherd Neame represented approximately 7% of our total sales during 2013. No other individual customer accounted for more than 5% of our total sales during 2013.