CONCENTRATION OF REVENUE AND SUPPLIER
|3 Months Ended|
Mar. 31, 2020
|Risks and Uncertainties [Abstract]|
|CONCENTRATION OF REVENUE AND SUPPLIER||
During the three months ended March 31, 2020, total sale of CBD products and hemp flowers to two customers represented approximately 89% (51%, and 38% - related party) of the Company’s net sales. During the three months ended March 31, 2019, total sale of CBD products to one customer represented approximately 100% of the Company’s net sales.
As of March 31, 2020, total accounts receivable from two customers represented approximately 85% (60%, and 25% - related party) of total accounts receivable. As of December 31, 2019, total accounts receivable, net from two customers and one related party customer represented approximately 82% (18%, 38%, and 26% - related party) of total accounts receivable.
As of March 31, 2020, total accounts payable from two vendors represented approximately 38% (23% and 15%-related party) of total accounts payable. As of December 31, 2019, total accounts payable from two vendors and one affiliated company represented approximately 60% (12%, 30% and 18% -related party) of total accounts payable. The affiliated company is owned by three members of EOW.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef