Note 7. Major Customer Concentration

For the three months ended June 30, 2021, Customers A and B comprised 18% and 12% of the Company’s net sales, respectively. For the nine months ended June 30, 2021, Customers A and B comprised 20% and 11% of the Company’s net sales, respectively. Both of these customers were distributors. For the three months ended June 30, 2020, Customer A comprised 20% and Customer B comprised 11% of the Company’s net sales. For the nine months ended June 30, 2020, Customers A and B comprised 20% and 11% of the Company’s net sales, respectively. Both of these customers are distributors. These major customers, like our other customers, purchase our products from time to time through purchase orders, and the Company does not have any agreements that obligate these major customers to purchase products from us in the future.

As of June 30, 2021, Customers A and B accounted for 13% and 14% of accounts receivable, respectively. Customer C accounted for 11% of accounts receivable. As of September 30, 2020, Customers A, B, and C accounted for 13%, 12%, and 0% of accounts receivable, respectively. Customers A and B are distributors and Customer C is a telecommunications service provider.