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. There were no balances in excess of FDIC insured levels as of June 30, 2020 and December 31, 2019. The Company has not experienced any losses in such accounts through June30, 2020.

Geographic concentrations of sales

For the six months ended June 30, 2020 and 2019, all sales were in the United States. No other geographical area accounted for any sales during the six months ended June 30, 2020 and 2019.

Customer concentrations

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). For the six months ended June 30, 2019, one customer accounted for approximately 34.1% of total sales. 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. At June 30, 2020, one customer accounted for 89.0% of the total accounts receivable balance.

Vendor concentrations

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