Concentrations and Risks

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016 was $3.9 million and $4.1 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 three-month period ended March 31, 2017, the Company had two wholesale customers that represented approximately 12% and 11% of the Company’s revenues. For the three-month period ended March 31, 2016, the Company had one wholesale customer that represented approximately 11% of the Company’s revenues.

For the wholesale business, the Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2017 and 2016.

For the retail business, the Company relied on two raw material suppliers that represented approximately 27% and 16% of raw material purchases during the three months ended March 31, 2017. The Company relied on one raw material supplier that represented approximately 13% of raw material purchases during the three months ended March 31, 2016.

For the wholesale business, during the three months ended March 31, 2017, the Company relied on one manufacturer that represented 12% of finished goods purchases, and during the three months ended March 31, 2016, the Company relied on three manufacturers that represented 18%, 16% and 11% of finished goods purchases.

For the retail business, the Company did not rely on any one supplier that represented more than 10% of the total finished goods purchases during the three months ended March 31, 2017 and 2016.

The Company’s revenues for the three months ended March 31, 2017 and 2016 were earned in the following geographic areas:

	2017		2016
	(In thousands of U.S. Dollars)
Mainland China	$	6,591	$	8,293
Hong Kong China		5,422		6,505
Germany		2,892		1,453
United Kingdom		3,288		2,588
Europe-Other		5,749		5,454
Japan		1,445		4,813
United States		2,918		3,444
Total wholesale business		28,305		32,550
Retail business		56,815		59,143
Total	$	85,120	$	91,693