NOTE 11—CONCENTRATIONS

Revenue from laser systems, the Company’s core product, which includes the iPlus, MD Turbo, and Epic, comprised 68% and 69% of total net revenues for the three and six months ended June 30, 2013, respectively, and 69% and 72% of total net revenue, respectively, for the same periods in 2012. Revenue from consumables and other comprised 11% and 11% of total revenue for the same periods in 2013, and 12% and 12% for the same periods in 2012, respectively. Revenue from imaging systems comprised 10% and 8% of total net revenue for the same periods in 2013, and 8% and 5% for the same periods in 2012, respectively. Revenue from services comprised 11% and 11% of total net revenue for the same periods in 2013, and 11% and 11% for the same periods in 2012, respectively. Revenue from license fees and royalties comprised 0% and 1% of total net revenue for the same periods in 2013, and 0% and 0% for the same periods in 2012, respectively.

No individual customer represented more than 10% of the Company’s revenue in the three and six months ended June 30, 2013 and 2012.

The Company maintains its cash and cash equivalent accounts with established commercial banks. Such cash deposits periodically exceed the Federal Deposit Insurance Corporation insured limit.

Accounts receivable concentrations from one international distributor totaled $1.2 million, or 11%, at June 30, 2013 and $607,000, or 5%, at December 31, 2012. No individual customer represented more than 10% of the Company’s accounts receivable at December 31, 2012.

The Company currently purchases certain key components of its products from single suppliers. Although there are a limited number of manufacturers of these key components, management believes that other suppliers could provide similar key components on comparable terms. A change in suppliers, however, could cause delays in manufacturing and a possible loss of sales, which could adversely affect the Company’s results of operations.