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Risks and Uncertainties
3 Months Ended
Mar. 31, 2021
Risks and Uncertainties [Abstract]  
Risks and Uncertainties

NOTE 10 – RISKS AND UNCERTAINTIES

 

Concentration Risk

 

During the three months ended March 31, 2021 and 2020, one client represented 31% and another client represented 26% of total revenue, respectively. At March 31, 2021 one client represented 18% and another represented 16% of total outstanding accounts receivable. At December 31, 2020, one client represented 23% and another represented 17% of total outstanding accounts receivable.

 

During the three months ended March 31, 2021, 18% of the Company’s total purchases were from one vendor. During the three months ended March 31, 2020, one vendor composed 21% and another vendor composed 15% of the Company’s total purchases.

 

Coronavirus Pandemic

 

The outbreak of COVID-19, a novel strain of coronavirus first identified in China, which has spread across the globe including the U.S., has had an adverse impact on our operations and financial condition. The response to this coronavirus by federal, state and local governments in the U.S. has resulted in significant market and business disruptions across many industries and affecting businesses of all sizes. This pandemic has also caused significant stock market volatility and further tightened capital access for most businesses. Given that the COVID-19 pandemic and its disruptions are of an unknown duration, they could have an adverse effect on our liquidity and profitability.

 

The ultimate magnitude of COVID-19, including the extent of its impact on our financial and operational results, which could be material, will depend on the length of time that the pandemic continues, its effect on the demand for our products and our supply chain, the effect of governmental regulations imposed in response to the pandemic, as well as uncertainty regarding all of the foregoing. We cannot at this time predict the full impact of the COVID-19 pandemic, but it could have a larger material adverse effect on our business, financial condition, results of operations and cash flows beyond what is discussed within this Report.