NOTE L – BUSINESS CONCENTRATION

For the three months ended March 31, 2019, two customers represented approximately 31% of total net revenues. For the three months ended March 31, 2018, one customer represented approximately 14% of total net revenues.

As of March 31, 2019, three customers accounted for approximately 51% of the Company’s net accounts receivable. As of December 31, 2018, three customers accounted for approximately 47% of the Company’s net accounts receivable.

Purchases from one supplier approximated $775,000, or 76%, of inventory purchases for the three months ended March 31, 2019 and $760,000, or 82%, of purchases for the three months ended March 31, 2018. Deposits paid to this vendor were in excess of total accounts payable due to this supplier in the amount of $697,405 as of March 31, 2019, and $320,352 as of December 31, 2018.