NOTE 10 — CONCENTRATIONS

Revenue from laser systems, the Company’s core product, which includes the iPlus, MDX, MD Turbo, and Epic, comprised 69%, 74%, and 79% of total net revenues for the years ended December 31, 2013, 2012, and 2011, respectively. Revenue from consumables and other, which are primarily related to laser systems, comprised 12%, 10%, and 11% of total revenue for the same periods. Revenue from imaging systems comprised 8%, 6%, and 0% of total net revenue for the same periods. Revenue from services, which are primarily related to laser systems, comprised 11%, 10%, and 9% of total net revenue for the same periods. Revenue from license fees and royalties comprised 0%, 0%, and 1% of total net revenue for the same periods.

Approximately 5%, 3%, and 19% of the Company’s revenue in 2013, 2012, and 2011, respectively, was generated through sales to HSIC worldwide.

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.

No individual customer represented more than 10% of the Company’s accounts receivable at December 31, 2013 and 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.