NOTE 11 — CONCENTRATIONS

During the six months ended June 30, 2016, the Company recorded revenue from individual sales or services rendered of $325,000 (13%), which is in excess of 10% from one customer of the Company’s total consolidated sales. During the three months ended June 30, 2016, the Company recorded revenue from individual sales or services rendered of $200,000 (12%) and $189,000 (11%), in excess of 10% of the Company’s total consolidated sales.

During the six months ended June 30, 2015, the Company recorded revenue from individual sales or services rendered of $427,000 (45%), $194,000 (20%) and $122,000 (13%) in excess of 10% of the Company’s total sales. During the three months ended June 30, 2015, the Company recorded revenue from individual sales or services of $193,000 (51%), $95,000 (25%) and $55,000 (15%)in excess of 10% of the Company’s total sales

At June 30, 2016, approximately 57% of net accounts receivable was due from four customers, respectively, as follows: $232,000 (20%), $189,000 (16%) due from unrelated parties and $117,000 (10%), and $115,000 (10%) due from a related party. At December 31, 2015, approximately 100% of net accounts receivable was due from three customers broken down individually as follows: $272,000 (43%) and $231,000 (36%) due from unrelated parties, and $138,000 (21%) due from a related party.

During the three and six months ended June 30, 2016, approximately 33% and 32%, respectively of the Company’s inventory purchases were derived from two vendors.

During the six months ended June 30, 2015, approximately 100% of the Company’s inventory purchases were derived from seven vendors. During the three months ended June 30, 2015, approximately 100% of the Company’s inventory purchases were derived from four vendors.