NOTE 7 — MAJOR CUSTOMERS

For the years ended December 31, 2022 and December 31, 2021, approximately 64% and 64%, respectively, of the Company’s net product revenues were derived from three major customers that are distributors.  As of December 31, 2022 and December 31, 2021, accounts receivable due from the three major customers was $2.2 million and $2.1 million, respectively.

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.