CONCENTRATIONS OF RISK
|6 Months Ended|
Feb. 29, 2020
|CONCENTRATIONS OF RISK|
|CONCENTRATIONS OF RISK||
NOTE 2 - CONCENTRATIONS OF RISK
The Company purchases inventory from various suppliers and manufacturers. For the six months ended February 29, 2020 and February 28, 2019, the Company had one vendor which accounted for approximately 33% and 37%, respectively, of total inventory purchases. As of February 29, 2020, there were two vendors in the aggregate that represented approximately 26% of accounts payable. As of February 28, 2019, there was one vendor that represented approximately 10% of accounts payable.
During the six months ended February 29, 2020, no customer represented over 10% of the Company’s revenue. For the six months ended February 28, 2019, the Company had one customer that represented approximately 10% of the Company’s revenues. As of February 29, 2020, there were four customers in the aggregate that represented approximately 70% of accounts receivable. As of February 28, 2019, there was one customer that represented 21% of accounts receivable.
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