Note 8 – Business Concentration and Risks

Major customers

Three customers accounted for 16% of the total accounts receivable as of September 30, 2022 and one customer accounted for 9% of the total accounts receivable as of December 31, 2021, respectively. These three customers accounted for 43% of the total revenue for the nine months ended September 30, 2022 and one customer accounted for 81% of total revenue for the nine months ended September 30, 2021, respectively.

Major vendors

One vendor, Tianjin Guanglee, accounted for 0% and 0% of total accounts payable at September 30, 2022 and December 31, 2021, respectively. This same vendor, Tianjin Guanglee, accounted for 24% and 83% of the total purchases for the nine months ended September 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.