Note 16 – Concentrations

Major suppliers

The Company sourced approximately 74% of its inventory purchases from three vendors for the nine months ended September 30, 2023. The Company sourced approximately 70% of its inventory purchases from three vendors for the nine months ended September 30, 2022.

Major customers

Accounts receivable from three customers represented 88% of accounts receivable as of September 30, 2023. Accounts receivable from three customers represented 89% of accounts receivable as of December 31, 2022. Three customers represented 63% of gross sales for the nine months ended September 30, 2023. Four customers represented 70% of gross sales for the nine months ended September 30, 2022.

Credit risk

As of September 30, 2023 and December 31, 2022, the Company’s cash and cash equivalents were deposited in accounts at several financial institutions and may maintain some balances in excess of federally insured limits. The Company maintains its cash and cash equivalents with high-quality, accredited financial institutions and, accordingly, such funds are subject to minimal credit risk. The Company has not experienced any losses historically in these accounts and believes it is not exposed to significant credit risk in its cash and cash equivalents.