Note 7. Major Customer Concentration

For the three months ended December 31, 2021, Customers A, B, and C comprised 15%, 11%, and 10% of the Company’s net sales, respectively. Customers A and C are regional broadband service providers and Customer B is a distributor. For the three months ended December 31, 2020, Customer B comprised 19% and Customer D comprised 12% 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 December 31, 2021, Customer D comprised 11% of the Company’s accounts receivable. This customer is a distributor. As of September 30, 2021, Customers A was 17% of accounts receivable. Customer A is a regional broadband service provider.