Note 8 – Business Concentration and Risks

Major customers

Four customers accounted for 56% of the total accounts receivable as of March 31, 2022 and one customer accounted for 48% of the total accounts receivable as of December 31, 2021, respectively. These four customers accounted for 67% of the total revenue for the three months ended March 31, 2022 and one customer accounted for 80% of total revenue for the three months ended March 31, 2021, respectively.

Major vendors

One vendor, Tianjin Guanglee, accounted for 0% and 0% of total accounts payable at March 31, 2022 and December 31, 2021, respectively. This same vendor, Tianjin Guanglee, accounted for 30% and 84% of the total purchases for the three months ended March 31, 2022 and 2021, respectively. Of subsequent note, Tianjin Guanglee was once owned by the Chief Executive Officer Desheng Wang, as fully disclosed in the annual report in 2017 and prior annual reports. In 2018, Dr. Wang transferred the ownership of the entity to an unrelated third party in a transaction not considered a related party transaction per the guidelines.