Quarterly report pursuant to Section 13 or 15(d)

Concentrations

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Concentrations
3 Months Ended
Mar. 31, 2023
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 11 – 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 places its cash in banks at levels that, at times, may exceed federally insured limits. On March 31, 2023, the Company did not have any cash in excess of FDIC limits of $250,000. The Company has not experienced any losses in such accounts through March 31, 2023.

 

Geographic Concentrations of Sales

 

During the three months ended March 31, 2023 and 2022, all sales were in the United States.

 

Customer Concentrations

 

For the three months ended March 31, 2023, two customers accounted for approximately 36.0% of total sales (25.8% and 10.2%, respectively). For the three months ended March 31, 2022, three customers accounted for approximately 40.2% of total sales (14.6%, 15.1%, and 10.5%, respectively). On March 31, 2023, one customer accounted for 66.9% of the total accounts receivable balance. On December 31, 2022, three customers accounted for 41.1% (10.3%, 19.3% and 11.5%, respectively) of the total accounts receivable balance.

 

Vendor concentrations

 

Generally, the Company purchases substantially all of its inventory from five 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.