|
CONCENTRATIONS
|
6 Months Ended | |
|---|---|---|
|
Dec. 31, 2013
|
||
| Risks and Uncertainties [Abstract] | ||
| CONCENTRATIONS | NOTE 10 CONCENTRATIONS
Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments. The Company maintains cash balances at a financial institution in San Diego, California. The Company’s cash balance at this institution is secured by the Federal Deposit Insurance Corporation up to $250,000. As of December 31, 2013, cash totaled approximately $4,000, which consists of funds held in a non-interest bearing bank deposit account. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk with respect to its cash.
Customer Concentrations
During the three and six months ended December 31, 2013, the Company had three customers that represented more than 10% of its revenues on an individual basis and approximately 94% and 73%, respectively, in the aggregate. During the three and six months ended December 31, 2012, the Company had one major customer that represented more than 10% of its revenues on an individual basis and approximately $480,000 and 81%, in the aggregate. Suppliers/Vendor Concentrations We obtain components and supplies included in our products from a small group of suppliers. During the three and six months ended December 31, 2013, we had three and four suppliers, respectively, who accounted for more than 10% of our total inventory purchases on an individual basis and approximately 82% and 67%, respectively, in the aggregate. During the three and six months ended December 31, 2012, we did not have a major supplier that accounted for more than 10% of our total purchases on an individual basis. In the past, we have sourced Lithium batteries from a number of suppliers. We are realigning our battery sourcing to improve consistency, responsiveness, and quality. As a result, we have signed a non-exclusive supply agreement with Henan Huanyu New Energy Technology Ltd, a Chinese company for a term of five (5) years ending August 30, 2017. |