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RISKS AND UNCERTAINTIES
6 Months Ended
Jun. 30, 2021
Risks and Uncertainties [Abstract]  
RISKS AND UNCERTAINTIES

NOTE 10 – RISKS AND UNCERTAINTIES

 

Concentration Risk

 

During the six months ended June 30, 2021 one client represented 46% and another client represented 15% of total revenue, compared to the six months ended June 30, 2020 where two other clients represented 17% each of total revenue. During the three months ended June 30, 2021, one client represented 60% and another client represented 11% of total revenue, compared to the three months ended June 30, 2020, when two other clients represented 25% and 11% of total revenue. At June 30, 2021 one client represented 75% and another client represented 15% of total outstanding accounts receivable. At December 31, 2020, one client represented 23% and another client represented 17% of total outstanding accounts receivable.

 

 

During the six months ended June 30, 2021, 16% of the Company’s total purchases were from one vendor compared to 15% from another vendor for the six months ended June 30, 2020. During the three months ended June 30, 2021, one vendor represented 25% of the Company’s total purchases, compared to the three months ended June 30, 2020, where a separate vendor consisted of 15% of the Company’s total purchases. At June 30, 2021, one vendor represented 35% of total accounts payable. At December 31, 2020, a separate vendor represented 25% of total accounts payable.

 

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.