NOTE L – BUSINESS CONCENTRATION

For the three months ended March 31, 2022, three customers, each representing over 10% of total net revenues, accounted for approximately 50% of total net revenues. For the three months ended March 31, 2021, two customers, accounted for approximately 25% of total net revenues.

As of March 31, 2022, there were three customers, each representing over 10% of the Company’s net accounts receivable, accounting for 52% of the Company’s net accounts receivable. As of December 31, 2021, there were five customers, each representing over 10% of the Company’s net accounts receivable, accounting for 64% of the Company’s net accounts receivable.

For the three months ended March 31, 2022, purchases from two suppliers, accounted for approximately $892,000, or 95%, of total purchases and approximately $62,000, or 63%, of total purchases for the three months ended March 31, 2021. The amount due to one supplier, net of deposits paid, was approximately $694,000 and $651,000 as of March 31, 2022 and December 31, 2021, respectively.