Note 9 – Business Concentration and Risks

Major customers

Four customers accounted for 15% of the total accounts receivable as of March 31, 2023 and four customers accounted for 11% of the total accounts receivable as of December 31, 2022. These four customers accounted for 59% of the total revenue for the three months ended March 31, 2023 and four customers accounted for 67% of total revenue for the three months ended March 31, 2022.

Major vendors

No major vendor accounted more than 10% of total purchase during three months ended March 31, 2023. One vendor, Tianjin Guanglee, accounted for 0% of total accounts payable at March 31, 2022 and this vendor accounted 30% of total purchases during the three months ended March 31, 2022. 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.