Factor Receivables, Letters of Credit Payable and Loan Payable
|9 Months Ended|
Sep. 30, 2018
|Debt Disclosure [Abstract]|
|Factor Receivables, Letters of Credit Payable and Loan Payable||
NOTE 3: FACTOR RECEIVABLES, LETTERS OF CREDIT PAYABLE AND LOAN PAYABLE
In April 2013, the Company entered into a financing arrangement with a third-party purchase order financing company (the “Factor”), whereby the Company assigned to the Factor selected sales orders from its customers in exchange for opening a letter of credit (“LC”) with its vendors to manufacture its products. The Company paid an initial fixed fee of 5% of the cost of products it purchased from the vendor upon opening the LC, and 1% each 30 days thereafter, after the LC is funded by the Factor until such time as the Factor receives the payment from the Company’s customers. The factoring agreement provides for full recourse against the Company for factored accounts receivable that are not collected by the Factor for any reason, and the collection of such accounts receivable is fully secured by substantially all the receivables of the Company. The factoring advances for the LCs at September 30, 2018 and December 31, 2017 have been treated as a loan payable to third party in the accompanying balance sheets and were $916,230 and $1,078,941, respectively. The total sales factored, net of allowances for sales returns, discounts and rebates, for the three months ended September 30, 2018 and 2017 were $1,670,177 and $1,603,813, respectively, and for nine months ended September 30, 2018 and 2017, were $5,834,507 and $5,930,922, respectively. The factor fees incurred for the three months ended September 30, 2018 and 2017 were $82,450 and $112,639, respectively, and for nine months ended September 30, 2018 and 2017, were $309,311 and $497,497, respectively. Total outstanding accounts receivable factored, net of allowance for sales returns, discounts and rebates of $13,000, as of September 30, 2018 and December 31, 2017 were $1,226,006 and $1,663,398, respectively.
Factor Receivables, Letters Of Credit Payable and Loan Payable [Text Block]
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