As of December 31, 2006, we had over 120 active customers in Hong Kong and Southern China.
Pricing for the Samsung memory products ranges from approximately $0.17 to $750 depending on the product specifications. We also sell our products in Hong Kong and Southern China and do not anticipate selling our products outside of these regions in the foreseeable future.
For the years ended December 31, 2006, 2005, and 2004, the largest 5 customers accounted for 41%, 43% and 48% of our net sales, respectively. As of December 31, 2006, we had a working capital of $71,388 and accumulated deficit of $1,969,269. We generated net sales of $105,642,123 for the year ended December 31, 2006 and recorded a net income of $555,404. In addition, during the year ended December 31, 2006, net cash used for operating activities amounted to $6,842,530.
We are in the mature stage of operations and, as a result, the relationships between revenue, cost of revenue, and operating expenses reflected in the financial information included in this document to a large extent represent future expected financial relationships. Much of the cost of sales and operating expenses reflected in our consolidated financial statements are recurring costs in nature.
