Note 9. Major Customer Concentration

For the three months ended June 30, 2023, Customer A, a distributor, comprised 17% of the Company’s net sales. For the nine months ended June 30, 2023, Customer A comprised 16% of the Company’s net sales.

For the three months ended June 30, 2022, Customers A and B, both distributors, comprised 18% and 11% of the Company’s net sales, respectively. For the nine months ended June 30, 2022, Customer A comprised 15% of the Company’s net sales. 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, 2023, Customer C, a distributor, comprised 16% of the Company’s accounts receivable. As of September 30, 2022, Customer D, a distributor, comprised 20% of accounts receivable.