Note 19 – Concentrations

Major suppliers

The Company sourced approximately 79% of its inventory purchases from three vendors for the year ended December 31, 2024. The Company sourced approximately 64% of its inventory purchases from two vendors for the year ended December 31, 2023. There were $1.0 million and $5.0 million of inventory purchases from major suppliers in accounts payable on the Consolidated Balance Sheets, as of December 31, 2024 and 2023, respectively.

Major customers

Accounts receivable from two customers represented 86% of accounts receivable as of December 31, 2024. Accounts receivable from two customers represented 79% of accounts receivable as of December 31, 2023. Three customers represented 78% and 62% of gross sales for the year ended December 31, 2024 and 2023, respectively.

Credit risk

As of December 31, 2024 and 2023, 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.