Concentration

3 Months Ended

Sep. 30, 2016

Risks and Uncertainties [Abstract]

Concentration

3. Concentration

Customers

For the three months ended September 30, 2016 and September 30, 2015, our Company earned net revenues of $1,127,554 and $1,402,911 respectively. The vast majority of these revenues for the period ending September 30, 2016 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending September 30, 2015 were derived from a limited number of customers. No customers accounted for over 10% of the Company’s total revenues for the year ended September 30, 2016. The revenues for the period ending September 30, 2015, only reflect prior to the acquisition of SWC, and were revenues from Sugarmade, Inc.

Suppliers

For the three months end September 30, 2016, we purchased products for sale by CarryOutSupplies from several contract manufacturers located in Asia. A substantial portion of the Company’s inventory is purchased from one supplier that functions as an independent foreign procurement agent. One supplier accounted for 65%   and two suppliers each accounted for 8% of the Company’s total inventory purchase in the three months ended September 30, 2016 and September 30, 2015 respectively.