Quarterly report pursuant to Section 13 or 15(d)

CONCENTRATION OF REVENUE AND SUPPLIER

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CONCENTRATION OF REVENUE AND SUPPLIER
6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
CONCENTRATION OF REVENUE AND SUPPLIER

During the six months ended June 30, 2020, total sale of CBD products and hemp flowers to two customers represented approximately 83% (60%, and 23% - related party) of the Company’s net sales. During the six months ended June 30, 2019, total sale of CBD products to five customers represented approximately 90% (19%, 26% - related party, 24%, 11% and 10%) of the Company’s net sales.

 

As of June 30, 2020, total accounts receivable from two customers represented approximately 86% (23% and 63% - 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 June 30, 2020, total accounts payable from two vendors represented approximately 37% (23% and 14%-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. 

 

During the six months ended June 30, 2020, the Company purchased finished products from one vendor totaling approximately $846,320 (98% of the purchases). During the six months ended June 30, 2019, the Company purchased finished products from C2M (see Note 11) totaling approximately $197,117 (100% of the purchases).