|3 Months Ended|
Mar. 31, 2019
|Risks and Uncertainties [Abstract]|
NOTE 10 – 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 March 31, 2019 and December 31, 2018. The Company has not experienced any losses in such accounts through March 31, 2019.
Geographic concentrations of sales
For the three months ended March 31, 2019 and 2018, all sales were in the United States. No other geographical area accounting for more than 10% of total sales during the three months ended March 31, 2019 and 2018.
For the three months ended March 31, 2019, four customers accounted for approximately 74.9% of total sales (37.1%, 10.8%, 14.4% and 12.6%, respectively). For the three months ended March 31, 2018, three customers accounted for approximately 54.5% of total sales (24.0%, 19.7%, and 10.8%, respectively). 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 March 31, 2019, two customers accounted for 78.6% (61.3% and 17.3%, respectively) 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