CUSTOMER AND SUPPLIER CONCENTRATION

12 Months Ended

Dec. 31, 2021

CUSTOMER AND SUPPLIER CONCENTRATION

CUSTOMER AND SUPPLIER CONCENTRATION

NOTE 16 – 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 with a few customers for the years ended December 31, 2021 and 2020:

	Total revenues				Total revenues from the		Accounts
	from the customer		Accounts		customer		receivable from
	as a percentage of		receivable from		as a percentage		the customer as
	total revenues		this customer as of		of total revenues		of
	for the year ended		December 31,		for the year		December 31,
	December 31,		2021 (in		ended December		2020 (in
Customer	2021		thousands)		31, 2020		thousands)
1	11	%	$	3,245	13	%	$	3,536
2	4	%	$	1,223	9	%	$	2,598

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 years ended December 31, 2021 and 2020:

	Total purchases				Total purchases
	from the vendor		Accounts payable		from the vendor		Accounts payable
	as a percentage of		(prepayment) to		as a percentage		(prepayment) to
	total cost of		the		of total cost of		the
	sales for		vendor as of		revenues for		vendor as of
	the year ended		December 31,		the year ended		December 31,
	December 31,		2021		December 31,		2020
Vendor	2021		(in thousands)		2020		(in thousands)
1	16	%	$	(1,185)	35	%	$	5,749
2	11	%	$	15,330	13	%		2,013
3	4	%	$	(805)	11	%		(22)

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