Concentrations and Risks

3 Months Ended

Mar. 31, 2012

Concentrations and Risks [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 10 CONCENTRATIONS AND RISKS

The Company extends unsecured credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. Based on management’s assessment of the amount of probable credit losses, if any, in existing accounts receivable, management has concluded that no allowance for doubtful accounts is necessary at March 31, 2012 and December 31, 2011. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the credit worthiness of the customer, the economic conditions in the customer’s industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts.  If judgments regarding the collectability of accounts receivables are incorrect, adjustments to the allowance may be required, which would reduce profitability. 

For the three-month period ended March 31, 2012, the Company had two wholesale customers that represented approximately 15% and 13% of the Company’s revenues. For the three-month period ended March 31, 2011, the Company had two wholesale customers that represented approximately 19% and 16% of the Company’s revenues. 

For the wholesale business, the Company did not rely on any one raw material supplier during the three months ended March 31, 2012 and 2011.

For the retail business, the Company relied on two raw materials suppliers that represented approximately 24% and 11% of raw material purchases during the three months ended March 31, 2012. The Company relied on two raw materials suppliers that represented approximately 11% each of raw materials purchases during the three months ended March 31, 2011.

For the wholesale business, during the three months ended March 31, 2012, the Company relied on three manufacturers for 15%, 12% and 11% of purchased finished goods, and during the three months ended March 31, 2011, the Company relied on one manufacturer for 11% of purchased finished goods.

For the retail business, the Company did not rely on any one supplier of purchased finished goods during the three months ended March 31, 2012, and during the three months ended March 31, 2011 the Company relied on one supplier for approximately 11% of purchased finished goods.

The Company’s revenues for the three months ended March 31, 2012 and 2011 were earned in the following geographic areas:

	2012		2011
The People’s Republic of China	$	30,508,481	$	25,819,468
Germany		5,464,693		8,740,575
Europe-Other		7,929,592		7,585,136
Japan		6,107,149		5,952,088
United States		3,216,258		5,110,970
Total	$	53,226,173	$	53,208,237