Concentrations and Risks

6 Months Ended

Jun. 30, 2015

Concentrations and Risks [Abstract]

CONCENTRATIONS AND RISKS

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. The allowance for doubtful accounts at June 30, 2015 and December 31, 2014 was $1,651,961 and $1,787,282, respectively. 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 six-month period ended June 30, 2015, the Company had two wholesale customers that represented approximately 13% and 11% of the Company’s revenues, respectively. For the three-month period ended June 30, 2015, the Company had one wholesale customer that represented approximately 10% of the Company’s revenues. For the six-month period ended June 30, 2014, the Company had one wholesale customer that represented approximately 14% of the Company’s revenues. For the three-month period ended June 30, 2014, the Company had one wholesale customer that represented approximately 15% of the Company’s revenues.

For the Company’s wholesale business during the three and six months ended June 30, 2015 and 2014, no supplier represented more than 10% of the total raw materials purchased.

For the Company’s retail business, the Company had no supplier that represented more than 10% of raw materials purchases during the three and six months ended June 30, 2015 and 2014.

For the wholesale business, during the six months ended June 30, 2015, the Company relied on two manufacturers for 23% and 12% of purchased finished goods, respectively. For the wholesale business, during the six months ended June 30, 2014, the Company relied on two manufacturers for 16% and 10% of purchased finished goods, respectively. During the three months ended June 30, 2015, the Company relied on two manufacturers for 35% and 13% of purchased finished goods, respectively. During the three months ended June 30, 2014, the Company relied on two manufacturers for 15% and 14% of purchased finished goods, respectively.

For the retail business, the Company had no supplier that represented more than 10% of finished goods purchases during the three and six months ended June 30, 2015. The Company had no supplier that represented more than 10% of finished goods purchases during the six months ended June 30, 2014. The Company purchased 11% of its finished goods from one supplier during the three months ended June 30, 2014.

The Company’s revenues for the three and six months ended June 30, 2015 and 2014 were earned in the following geographic areas:

	Three months ended  June 30,				Six months ended  June 30,
	2015		2014		2015		2014
The People’s Republic of China	$	9,373,554	$	12,929,219	$	28,307,488	$	27,527,244
Germany		2,780,201		5,525,792		7,267,170		11,823,952
United Kingdom		3,828,237		9,018,214		6,980,716		11,642,361
Europe-Other		6,897,024		2,061,398		8,698,730		8,517,320
Japan		2,933,661		2,431,821		5,863,864		8,674,713
United States		3,979,362		4,428,137		5,947,997		7,650,480
Total wholesale business		29,792,039		36,394,581		63,065,965		75,836,070
Retail business		45,934,959		49,273,199		110,563,995		115,846,879
Total	$	75,726,998	$	85,667,780	$	173,629,960	$	191,682,949