NOTE L – BUSINESS CONCENTRATION

For the six months ended June 30, 2022, two customers, each representing over 20% of total net revenues, accounted for approximately 42% of total net revenues. For the six months ended June 30, 2021, one customer accounted for approximately 20% of total net revenues.

As of June 30, 2022, these two customers, accounted for approximately 33% 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 six months ended June 30, 2022, purchases from two suppliers, accounted for approximately 95% of total purchases. Deposits paid to the largest supplier were in excess of their total accounts payable balance by the amount of $323,133. The amount due to this supplier net of deposits paid, was approximately $134,000 as of December 31, 2021.