NOTE J – BUSINESS CONCENTRATION

For the nine months ended September 30, 2020, two customers represented approximately 33% of total net revenues. For the nine months ended September 30, 2019, three customers represented approximately 44% of total net revenues.

As of September 30, 2020, two customers accounted for approximately 55% of the Company’s net accounts receivable. As of December 31, 2019, two customers represented 36% of the Company’s net accounts receivable.

Purchases from one supplier approximated $1,973,000, or 90%, of total purchases for the nine months ended September 30, 2020 and approximately $2,522,000, or 84%, of total purchases for the nine months ended September 30, 2019. The amount due to this supplier, net of deposits paid, was approximately $716,000 and $579,000 as of September 30, 2020 and December 31, 2019, respectively.