Quarterly report pursuant to Section 13 or 15(d)

Concentrations

v3.21.1
Concentrations
9 Months Ended
Mar. 31, 2021
Risks and Uncertainties [Abstract]  
Concentrations

NOTE 7 - CONCENTRATIONS

 

Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and unsecured trade accounts receivable. The Company maintains its cash in checking and savings accounts at federally insured financial institutions in excess of federally insured limits. As of March 31, 2021, the Company’s cash balance was approximately $2,432,000. Management believes that the Company is not exposed to any significant credit risk with respect to its cash.

 

Customer Concentrations

 

During the three months ended March 31, 2021, the Company had four (4) major customers that each represented 10% or more of its total revenues on an individual basis, and together represented approximately $5,352,000 or 77% of total revenues. During the nine months ended March 31, 2021, the Company had three (3) major customers that each represented more than 10% of its total revenues on an individual basis, and together represented approximately $10,594,000 or 59% of total revenues.

 

During the three months ended March 31, 2020, the Company had two (2) major customers that each represented 10% or more of its total revenues on an individual basis, and together represented approximately $3,373,000 or 67% of total revenues. During the nine months ended March 31, 2020, the Company had three (3) major customers that each represented more than 10% of its total revenues on an individual basis, and together represented approximately $7,991,000 or 76% of total revenues.

 

Suppliers/Vendor Concentrations

 

The Company obtains a limited number of components and supplies included in its products from a small group of suppliers. During the three months ended March 31, 2021, the Company had two (2) suppliers who accounted for 10% or more of total component and supply purchases on an individual basis, and together represented approximately $2,252,000 or 26% of total component and supply purchases. During the nine months ended March 31, 2021 the Company had two (2) suppliers that represented more than 10% of total component and supply purchases on an individual basis, and together represented approximately $6,229,000 or 27% of total component and supply purchases.

 

During the three months ended March 31, 2020, the Company had two (2) suppliers who accounted for 10% or more of total component and supply purchases on an individual basis, and together represented approximately $2,581,000 or 39% of total component and supply purchases. During the nine months ended March 31, 2020 the Company had two (2) suppliers that each represented more than 10% of total component and supply purchases on an individual basis, and together represented approximately $4,802,000 or 37% of total component and supply purchases.