Note 11 – Customer Concentration

One customer accounted for approximately 50% of the Company’s revenue for the year ended December 31, 2022 and three customers accounted for approximately 42% of the Company’s revenue for the year ended December 31, 2021. One customer accounted for approximately 87% of the Company’s accounts receivable balance as of December 31, 2022. Four customers accounted for approximately 68% of the Company’s accounts receivable balance as of December 31, 2021.

Note 12 – Subsequent Events

During the period from January 1, 2023 through March 1, 2023, the Company raised net proceeds of $2,674,683 (net of $68,651 in issuance costs) under its ATM Program. As of March 1, 2023, the Company had $3,526,605 remaining on the ATM Program.

On February 28, 2023, the Company committed to purchase products that will be produced by a contract manufacturer during the second and third quarters of 2023. The total amount of the committed orders is $510,000, and the products produced by the contract manufacturer will be held for future sales.

On March 24, 2023, the Company completed an underwritten offering of its securities (the “Offering”) pursuant to which it sold an aggregate of (i) 8,250,000 shares of its common stock and (ii) warrants to purchase up to 8,250,000 shares of common stock, for aggregate proceeds of approximately $2,689,000, net of commissions and professional fees of approximately $611,000. The warrants issued in the Offering were immediately exercisable and have a term of six years and a per share exercise price of $0.40.