Concentrations and Risks

6 Months Ended

Jun. 30, 2019

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND RISKS

NOTE 11 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, 2019 and December 31, 2018 was $5.1 million and $5.9 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 of 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 months ended June 30, 2019, the Company had two wholesale customers that represented approximately 16% and 10% of the Company's revenues. For the three months ended June 30, 2019, the Company had two wholesale customers that represented approximately 8% and 14% of the Company's revenues. For the six months ended June 30, 2018, the Company had one wholesale customer that represented approximately 8.97% of the Company's revenues. For the three months ended June 30, 2018, the Company had two wholesale customers that represented approximately 9.68% and 6.60% of the Company's revenues.

For the wholesale business, the Company did not rely on any raw material supplier that represented more than 10% of the total raw material purchases during the three and six months ended June 30, 2019 and 2018.

For the retail business, the Company relied on three raw material suppliers that represented approximately 32%, 31% and 21% of raw material purchases during the six months ended June 30, 2019. For the Company's retail business, the Company had two suppliers that represented 31.4% and 31.2% of raw materials purchases during the three and six months ended June 30, 2018.

For the wholesale business, the Company did not rely on any finished goods supplier that represented more than 10% of the total raw material purchases during the three and six months ended June 30, 2019 and 2018.

For the retail business, the Company did not rely on any supplier that represented more than 10% of the total finished goods purchases during the three and six months ended June 30, 2019 and 2018.

The Company's revenues for the three and six months ended June 30, 2019 and 2018 were earned in the following geographic areas:

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
	(In thousands of U.S. Dollars)
The People's Republic of China	$	6,491	$	9,131	$	17,246	$	13,342
Hong Kong China		6,463		7,418		7,717		12,556
Germany		877		899		1,726		2,765
United Kingdom		2,038		2,881		2,838		5,099
Europe-Other		4,224		5,833		9,453		10,285
Japan		1,311		1,881		6,248		4,318
United States		15,847		10,771		20,125		15,705
Total wholesale business		37,251		38,814		65,353		64,070
Retail business		40,065		49,727		99,919		117,256
Total	$	77,316	$	88,541	$	165,272	$	181,326