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CONCENTRATIONS OF CREDIT RISK AND REVENUE
3 Months Ended
Mar. 31, 2024
Risks and Uncertainties [Abstract]  
CONCENTRATIONS OF CREDIT RISK AND REVENUE

NOTE 12 - CONCENTRATIONS OF CREDIT RISK AND REVENUE

 

The Company derives a majority of its revenues from retailers of products in the United States. The Company’s allowance for credit losses is based upon management’s estimates and historical experience and reflects the fact that accounts receivable is concentrated with several large customers. At March 31, 2024, 69% of accounts receivable were due from three customers in North America that individually owed over 10% of total accounts receivable. On December 31, 2023, 82% of accounts receivable were due from four customers in North America that individually owed over 10% of total accounts receivable.

 

Revenues derived from our top three customers for the three months ended March 31, 2024, and 2023, were 84% and 89% of total revenue, respectively. Revenues from customers representing greater than 10% of total net sales derived from our top two customers as a percentage of net sales for the three months ended March 31, 2024, were 60% and 14%. The loss of any of these customers could have an adverse impact on the Company.