Risk: Customer Concentration • Two retail customers together with their suppliers accounted for more than 10% of CHUB’s revenue each in 2016. • The 3rd largest customer (most likely QVC) together with its suppliers accounts for ~7% • Top 4 – 6 customers account for 5%+ each. • At the very least top 6 customers account for 42% of revenue. • Loss of any of them would be very detrimental. Caro-Kann Capital LLC 73