NOTE L – BUSINESS CONCENTRATION

For the nine months ended September 30, 2019, three customers represented 16%, 16%, and 12% of total net revenues. For the nine months ended September 30, 2018, no single customer represented 10% or more of total net revenues. As of September 30, 2019, two customers represented 28% and 14% of the Company’s net accounts receivable. As of December 31, 2018, two customers represented 29% and 11% of the Company’s net accounts receivable.

Purchases from one supplier approximated $2,522,000, or 84%, of purchases for the nine months ended September 30, 2019 and $3,261,000, or 90%, of purchases for the nine months ended September 30, 2018. The amount due to this supplier, net of deposits paid, was approximately $353,000 as of September 30, 2019. Deposits paid to this supplier exceeded the total due by approximately $320,000 as of December 31, 2018.