|6 Months Ended|
Jun. 30, 2020
|Risks and Uncertainties [Abstract]|
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.
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.
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.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef