NOTE N – BUSINESS CONCENTRATION

For the year December 31, 2022, two customers, each representing over 15% of total net revenues, accounted for approximately 37% of total net revenues. For the year ended December 31, 2021, one customer represented approximately 18% of total net revenues.

As of December 31, 2022, one customer accounted for approximately 35% 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.

Purchases from two suppliers accounted for $3,919,435, or 95%, of total purchases for the year ended December 31, 2022 and one vendor accounted for $1,878,803, or 82%, of total purchases for the year ended December 31, 2021.

The amount due to one supplier, net of deposits paid, was approximately $487,000 and $134,000 as of December 31, 2022 and 2021, respectively.