Note 11. Concentrations and Credit Risk

For the years ended December 31, 2019 and 2018, a significant portion of the Company’s gross product sales reported were through three customers, and a significant portion of the Company’s accounts receivable as of December 31, 2019 and 2018 were due from these customers as well. The following table sets forth the percentage of the Company’s gross sales and accounts receivable attributable to these customers for the periods indicated:


	Gross Product Sales
	Year Ended
	December 31,
	2019		2018
Amerisource Bergen	12	%	7	%
Cardinal Health	47	%	55	%
McKesson	38	%	34	%
Combined Total	97	%	96	%


	Gross Account
	Receivables
	December 31,		December 31,
	2019		2018
Amerisource Bergen	21	%	6	%
Cardinal Health	22	%	61	%
McKesson	51	%	29	%
Combined Total	94	%	96	%

Purchasing

For the year ended December 31, 2019, three suppliers accounted for more than 92% of the Company’s purchases of raw materials for products that are manufactured by the Company.

Four suppliers accounted for more than 96% of the Company’s purchases of raw materials manufactured by the Company for the year ended December 31, 2018.

The Company purchases various API of finished products at contractual minimum levels through agreements with third parties. Individually, none of these agreements are material to the Company, therefore, the Company does not believe at this time that any of the purchase obligations represent levels above the normal course of business.

Sales by Product

For the years ended December 31, 2019 and 2018, one product accounted for 57% and 66%, respectively, of the Company's total gross product sales.

Royalty Sales

The following tables set forth the percentage of the revenues and accounts receivable recognized in connection with Company's royalty contracts for the years ended December 31, 2019 and 2018, respectively:


	Year Ended
	December 31, 2019
	Gross		Gross Royalty
	Royalty Revenue		Accounts Receivable
Customer 4	75	%	93	%
Customer 5	3	%	NM	%
Combined Total	78	%	93	%

NM-Not Meaningful


	Year ended
	December 31, 2018
	Gross		Gross Royalty
	Royalty Revenue		Accounts Receivable
Customer 4	36	%	43	%
Customer 5	31	%	30	%
Combined Total	67	%	73	%