Concentration

12 Months Ended

Jun. 30, 2015

Risks and Uncertainties [Abstract]

Concentration

3. Concentration

Customers

For the year ended June 30, 2015, our Company earned net revenues of $2.91 million. The vast majority of these revenues were derived from a large number of customers. No customers accounted for over 10% of the Company’s total revenues for the year ended June 30, 2015.

For the year ended June 30, 2014, our Company had earned net revenues of $70,751. A significant portion of our Company’s revenue was derived from a small number of customers. For the year ended June 30, 2014, sales to one of our Company’s customers accounted for 50% of net sales. The revenues only reflected prior to the acquisition of SWC, and were revenues from Sugarmade, Inc.

Suppliers

For the year ended June 30, 2015, we purchased products for sale by CarryOutSupplies from several contract manufacturers located in Asia. A substantial portion of the Company’s inventory was purchased from one supplier that functioned as an independent foreign procurement agent. Two suppliers accounted for 62% and 15% of the Company’s total inventory purchase in the year ended June 30, 2015, respectively.

For the year ended June 30, 2014, all of our tree free paper products were purchased from Sugarcane Paper Company (SCPC) and their contract manufacturers. SCPC is a company controlled by the Company’s former CEO, Clifton Leung. Mr. Leung was also a former director of the Company. We were presently diversifying our manufacturing and process management options to include other third party contract manufacturers for current and future production needs.