Concentration

9 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

Concentration

3. Concentration

Customers

For the three months ended March 31, 2022 and 2021, our Company earned net revenues of $1,285,300 and $404,843 respectively. The vast majority of these revenues for the periods ended March 31, 2022 and March 31, 2021 were derived from a large number of customers.

For the nine months ended March 31, 2022 and 2021, our Company earned net revenues of $3,689,906 and $2,851,822 respectively. The vast majority of these revenues for the periods ended March 31, 2022 and March 31, 2021 were derived from a large number of customers.

Suppliers

For the three months ended March 31, 2022, we purchased products for sale by SWC, the Company’s wholly owned subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 68.8% and 23.75%, respectively, of the Company’s total inventory purchase for the three months ended March 31, 2022.

For the nine months ended March 31, 2022, we purchased products for sale by SWC, the Company’s wholly owned subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 74.03% and 19.89%, respectively, of the Company’s total inventory purchase for the nine months ended March 31, 2022.

Sugarmade, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

March 31, 2022