Concentrations and Risks

9 Months Ended

Sep. 30, 2016

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 September 30, 2016 and December 31, 2015 was $3.1 million and $2.2 million, 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 nine-month period ended September 30, 2016, the Company had no wholesale customer that represented more than 10% of the Company’s revenues. For the three-month period ended September 30, 2016, the Company had one wholesale customer that represented approximately 12% of the Company’s revenues. For the nine-month period ended September 30, 2015, the Company had one wholesale customer that represented approximately 11% of the Company’s revenues. For the three-month period ended September 30, 2015, the Company had one wholesale customer that represented approximately 16% of the Company’s revenues.

For the Company’s wholesale business during the three and nine months ended September 30, 2016 and 2015, no supplier represented more than 10% of the total raw materials purchased.

For the Company’s retail business, the Company had one supplier that represented approximately 23% of raw materials purchases during the three months ended September 30, 2016. The Company had no supplier that represented more than 10% of raw materials purchases during the three months ended September 30, 2015. The Company had no supplier that represented more than 10% of raw materials purchases during the nine months ended September 30, 2016 and 2015.

For the wholesale business, during the nine months ended September 30, 2016, the Company relied on two manufacturers for 26.6% and 11.6% of purchased finished goods. For the wholesale business, during the nine months ended September 30, 2015, the Company relied on one manufacturer for 19.5% of purchased finished goods. During the three months ended September 30, 2016, the Company relied on one manufacturer for 29.2% of purchased finished goods. During the three months ended September 30, 2015, the Company relied on one manufacturer for 15% of purchased finished goods. 

For the retail business, the Company had no supplier that represented more than 10% of finished goods purchases during the three and nine months ended September 30, 2016 and 2015.

The Company’s revenues for the three and nine months ended September 30, 2016 and 2015 were earned in the following geographic areas:

	Three months ended  September 30,				Nine months ended  September 30,
	2016		2015		2016		2015
	(In thousands of U.S. Dollars)
Mainland China	$	22,860	$	25,225	$	36,854	$	42,670
Hong Kong, China		10,245		8,173		22,314		19,035
Germany		3,517		3,147		5,760		10,414
United Kingdom		6,149		6,811		12,568		13,792
Europe-Other		14,724		14,044		32,999		22,743
Japan		2,562		5,425		9,181		11,289
United States		8,816		8,495		19,554		14,443
Total wholesale business		68,873		71,320		139,230		134,386
Retail business		41,053		47,281		143,065		157,845
Total	$	109,926	$	118,601	$	282,295	$	292,231