USANA HEALTH SCIENCES INC

We sell product to independent Associates, Preferred Customers, and retail customers. No single Associate, Preferred Customer, or retail customer accounted for 10% or more of net sales in any of the last three fiscal years. Notwithstanding the foregoing, the nature of our business model results in a significant amount of sales to several different Associate leaders and their sales organizations. Although no single Associate accounted for 10% or more of our annual net sales, the loss of a key Associate leader or that Associate’s sales organization could adversely affect our net sales and our overall operating results. See“Item 1A. Risk Factors.”