(12) CONCENTRATIONS

The Company’s is exposed to concentration of credit risk related primarily to its cash balances. The Company maintains its cash at major financial institutions. The Company has not experienced any realized losses in such accounts and believes it is not exposed to any significant credit risk related to its cash.

The Company has one major vendor that sourced for approximately 45% of supplies and components for its electrotherapy products for the year ended December 31, 2017. Two significant vendors sourced approximately 51% (37% and 14%) of supplies and components for the year ended December 31, 2016. Management believes that its relationships with its suppliers are good; however, the Company has delayed and extended payments to many of its vendors for cash flow reasons in prior years, which has caused many of its vendors to require pre-payment for products or services. If the relationships were to be replaced, there may be a short-term disruption to operations, a period of time in which products may not be available and additional expenses may be incurred.

The Company had gross receivables from a private health insurance carrier at December 31, 2017 and 2016 that made up approximately 24% and 10%, respectively, of the net accounts receivable balance.