Note 9 - Major Customer Concentration
|9 Months Ended|
Jun. 30, 2022
|Notes to Financial Statements|
|Concentration Risk Disclosure [Text Block]||
Note 9. Major Customer Concentration
For the three months ended June 30, 2022, Customers A, and B comprised 18% and 11% of the Company’s net sales, respectively. Customers A and B are distributors. For the nine months ended June 30, 2022, Customer A comprised 15% of the Company’s net sales. Customer A is a distributor. For the three months ended June 30, 2021, Customers A and C comprised 18% and 12% of the Company’s net sales, respectively. For the nine months ended June 30, 2021, Customers A and C comprised 20% and 11% of the Company’s net sales, respectively. Both of these customers were 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, 2022, Customers A and D comprised 13% and 11% of the Company’s accounts receivable. Customer D is a National Carrier. As of September 30, 2021, Customer E was 16% of accounts receivable. Customer E is a regional broadband service provider.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef