Note 8 – Business Concentration and Risks

Major customers

Three customers accounted for 34% of the total accounts receivable as of June 30, 2022 and one customer accounted for 48% of the total accounts receivable as of December 31, 2021, respectively. These three customers accounted for 54% of the total revenue for the six months ended June 30, 2022 and one customer accounted for 78% of total revenue for the six months ended June 30, 2021, respectively.

Major vendors

One vendor, Tianjin Guanglee, accounted for 0% and 0% of total accounts payable at June 30, 2022 and December 31, 2021, respectively. This same vendor, Tianjin Guanglee, accounted for 24% and 77% of the total purchases for the six months ended June 30, 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. 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.