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Concentrations of Credit and Sales Risk
6 Months Ended
Sep. 30, 2020
Risks and Uncertainties [Abstract]  
Concentrations of Credit and Sales Risk

NOTE 13 - CONCENTRATIONS OF CREDIT AND SALES RISK

 

The Company derives a majority of its revenues from retailers of products in the United States. The Company’s allowance for doubtful accounts is based upon management’s estimates and historical experience and reflects the fact that accounts receivable are concentrated with several large customers. At September 30, 2020, 93% of accounts receivable were due from four customers in North America that individually owed over 10% of total accounts receivable. At March 31, 2020, 82% of accounts receivable were due from three customers in North America that individually owed over 10% of total accounts receivable.

  

The Company generates most of its revenue from retailers of products in the United States with a significant amount of sales concentrated with several large customers the loss of which could have an adverse impact on the financial position of the Company. For the three months ended September 30, 2020, there were three customers who individually accounted for 10% or more of the Company’s gross sales. Revenue derived from these customers as a percentage of gross sales were 44%, 21%, and 12% respectively. For the three months ended September 30, 2019, there were three customers who individually accounted for 10% or more of the Company’s gross sales. Revenue derived from these customers as a percentage of gross sales were 36%, 13% and 11%, respectively.

 

For the six months ended September 30, 2020, there were three customers who individually accounted for 10% or more of the Company’s gross sales. Revenue derived from this customer as a percentage of gross sales were 40%, 20% and 15%, respectively. For the six months ended September 30, 2019, there were two customers who individually accounted for 10% or more of the Company’s gross sales. Revenue derived from these customers as a percentage of gross sales were 43% and 10%, respectively.