NOTE L – BUSINESS CONCENTRATION

For the nine months ended September 30, 2022, two customers, each representing over 15% of total net revenues, accounted for approximately 36% of total net revenues. For the nine months ended September 30, 2021, one customer accounted for approximately 21% of total net revenues.

As of September 30, 2022, one customer accounted for approximately 30% 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 nine months ended September 30, 2022, purchases from two suppliers, accounted for approximately 95% of total purchases.

The amount due to one supplier, net of deposits paid, was approximately $46,000 and $134,000 as of September 30, 2022 and December 31, 2021, respectively.