NOTE J – BUSINESS CONCENTRATION

For the six months ended June 30, 2021, one customer represented approximately 20% of total net revenues. For the six months ended June 30, 2020, one customer represented approximately 14% of total net revenues.

As of June 30, 2021, three customers accounted for approximately 63% of the Company’s net accounts receivable. As of December 31, 2020, one customer represented 21% of the Company’s net accounts receivable.

Purchases from one supplier approximated $735,000, or 86%, of total purchases for the six months ended June 30, 2021 and approximately $838,000, or 85%, of total purchases for the six months ended June 30, 2020. Deposits paid to this vendor were in excess of total accounts payable due to this supplier in the amount of $144,000 as of June 30, 2021 and the amount due to this supplier, net of deposits paid, was approximately $470,000 and December 31, 2020, respectively.