NOTE 9 – CONCENTRATIONS

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash deposits. The Company’s cash is held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) limit. On June 30, 2021, the Company had approximately $34,000 of cash in excess of FDIC limits of $250,000. There were no balances in excess of FDIC insured levels as of December 31, 2020. The Company has not experienced any losses in such accounts through June 30, 2021.

Geographic Concentrations of Sales

For the six months ended June 30, 2021 and 2020, all sales were in the United States.

Customer Concentrations

For the six months ended June 30, 2021, three customers accounted for approximately 54.4% of total sales (10.1%, 17.1%, and 27.2%, respectively). For the six months ended June 30, 2020, four customers accounted for approximately 51.5% of total sales (10.2%, 13.3%, 15.0% and 13.0%, respectively). On June 30, 2021, three customers accounted for 39.8% (13.4%, 13.3% and 13.1%, respectively) of the net accounts receivable balance. A reduction in sales from or loss of such customers would have a material adverse effect on the Company’s consolidated results of operations and financial condition.

Vendor Concentrations

Generally, the Company purchases substantially all of its inventory from three suppliers. The loss of these suppliers may have a material adverse effect on the Company’s consolidated results of operations and financial condition. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations.