Annual report pursuant to Section 13 and 15(d)

SIGNIFICANT CUSTOMERS

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SIGNIFICANT CUSTOMERS
12 Months Ended
Dec. 31, 2013
Significant Customers [Abstract]  
Significant Customers [Text Block]
NOTE 11 – SIGNIFICANT CUSTOMERS
 
Our products are distributed through national chain, regional, specialty and local retail stores throughout the United States.  Revenues for Fiscal 2013, 2012 and 2011 were $25.0 million, $22.4 million and $17.5 million, respectively. Walgreen Company (“Walgreens”), Wal-Mart Stores Inc (“Wal-Mart”) and CVS Caremark Corporation (“CVS”) accounted for approximately 20.4%, 14.3% and 11.6%, respectively, of our Fiscal 2013 revenues. Walgreens, Wal-Mart and CVS accounted for approximately 19.3%, 13.8% and 13.4%, respectively, of our Fiscal 2012 revenues.  Walgreens, Wal-Mart, CVS and Rite-Aid Corp (“Rite Aid”) accounted for approximately 17%, 14%, 13% and 12%, respectively, of our Fiscal 2011 revenues.  The loss of sales to any one or more of these large retail customers could have a material adverse effect on our business operations and financial condition.
 
We are subject to account receivable credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers.  These concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us.  Customers comprising the five largest accounts receivable balances represented 68% and 65% of total trade receivable balances at December 31, 2013 and 2012, respectively.  Management believes that the provision for possible losses on uncollectible accounts receivable is adequate for our credit loss exposure.  The allowance for doubtful accounts was zero for both December 31, 2013 and 2012.