Customer and Supplier Concentration

6 Months Ended

12 Months Ended

Jun. 30, 2018

Dec. 31, 2017

Risks and Uncertainties [Abstract]

Customer and Supplier Concentration

NOTE 15 – CUSTOMER AND SUPPLIER CONCENTRATION

Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.

The Company’s revenues were concentrated among few customers for the six months ended June 30, 2018:

Customer	Total revenues from the customer to total revenues for the six months ended June 30, 2018			Deferred revenue from the customer as of June 30, 2018 (rounded to 000’s)
1		29	%	$	1,017,000

The loss of the significant customer or the failure to attract new customers could have a material adverse effect on our business, results of operations and financial condition.

The Company’s purchases were concentrated among a few vendors for the six months ended June 30, 2018:

Vendor	Total purchases from the vendor to total purchases for the six months ended June 30, 2018			Accounts payable (prepayment) to the vendor as of June 30, 2018 (rounded to 000’s)
1		40	%	$	(343,000	)
2*		28	%	$	4,871,000
3		16	%	$	(888,000	)

* EDI, a related party. See note 13.

The Company believes there are other suppliers that could be substituted should the supplier become unavailable or non-competitive.

NOTE 17 – CUSTOMER AND SUPPLIER CONCENTRATION

Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.

The Company’s revenues were concentrated among few customers for the years ended December 31, 2017 and 2016:

Customer	Total revenues from the customer to total revenues for the year ended December 31, 2017			Accounts receivable from the customer as of December 31, 2017 (rounded to 000)		Total revenues from the customer to total revenues for the year ended December 31, 2016			Accounts receivable from the customer as of December 31, 2016 (rounded to 000)
1		12	%	$	372,000		13	%	$	11,917
2		11	%	$	634,000		1	%	$	162,300

The loss of the significant customer or the failure to attract new customers could have a material adverse effect on our business, results of operations and financial condition.

The Company’s purchases were concentrated among few vendors for the years ended December 31, 2017 and 2016:

Vendor	Total purchases from the vendor to total purchases for the year ended December 31, 2017			Accounts payable (prepayment) to the vendor as of December 31, 2017 (rounded to 000)			Total purchases from the vendor to total purchases for the year ended December 31, 2016			Accounts payable (prepayment) to the vendor as of December 31, 2016 (rounded to 000)
1		37	%	$	(61,000	)		2	%	$	(229,000	)
2*		34	%	$	4,325,000			32	%	$	3,618,000

* EDI, a related party. See note 15.

The Company believes there are numerous other suppliers that could be substituted should the supplier become unavailable or non-competitive.