NOTE 7 — MAJOR CUSTOMERS

For the years ended December 31, 2021 and December 31, 2020, approximately 41% and 51%, respectively, of the Company’s net product revenues were derived from one major customer.  As of December 31, 2021 and December 31, 2020, accounts receivable due from this customer was $1.4 million for each period.

The largest customer in both years is a domestic medical products and supplies distributor.  Although, a number of larger infusion customers have elected to consolidate their purchases through one or more distributors in recent years, we continue to maintain strong direct relationships with them.  We do not believe that their continued purchase of FREEDOM System products and related supplies is contingent upon the distributor.