NOTE 19 RISK OF CONCENTRATIONS
IN SALES AND PURCHASES
One major customer accounted for
approximately 12% for the Companys sales for the year ended December 31, 2011. Two major customers accounted for approximately
13% of the Companys sales for the year ended December 31, 2010. Total sales to these customers were $40,628 and $41,725,
for the years ended December 31, 2011 and 2010, respectively.
For the year ended December 31,
2011 and 2010, two major vendors accounted for approximately 26% and 67% of the Companys cost for purchases, respectively.
Total purchases from these vendors were $68,052 and $52,860 for the years ended December 31, 2011 and 2010, respectively.
Financial instruments which potentially
subject the Company to credit risk consist principally of cash on deposit with financial institutions. Management believes that
the financial institutions that hold the Companys cash and cash equivalents are financially sound and minimal credit risk
exists with respect to these investments.