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CONCENTRATIONS

For the three months ended June 30, 2018, the Company sourced approximately 68% of the components for its electrotherapy products from two significant vendors (defined as supplying at least 10%). For the six months ended June 30, 2018 the company sourced approximately 79% of components from the same suppliers.

For the three months ended June 30, 2017, the Company sourced approximately 65% from four significant vendors. For the six months ended June 30, 2017, the Company sourced 45% of its components from two significant vendors.

Management believes that its relationships with suppliers are good; however, 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 receivables from a private health insurance carrier at June 30, 2018 and December 31, 2017, that made up approximately 23% and 24%, respectively, of the net accounts receivable balance.