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Concentrations of credit risk	9 Months Ended
	Jul. 31, 2019
Concentrations of credit risk
Concentrations of credit risk	Note 9 - Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. At July 31, 2019, the Company had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $11.8 million. Two customers, a distributor (“Distributor A”) and an equipment manufacturer, accounted for approximately 23% and 19%,  respectively, of the Company’s net sales for the nine-month period ended July 31, 2019. The equipment manufacturer’s accounts receivable balance accounted for 47% of the total net accounts receivable balance at July 31, 2019, while a different distributor (“Distributor B”) had an accounts receivable balance that accounted for 11% of the total net accounts receivable balance at July 31, 2019. For the three-month period ended July 31, 2019, Distributor B and the equipment manufacturer accounted for approximately 11% and 35%,  respectively, of the Company’s net sales. For the nine-month period ended July 31, 2018, one customer who is a distributor, accounted for approximately 65% of the Company’s net sales. This same customer accounted for approximately 59% of the Company’s net sales for the three-month period ended July 31, 2018. At July 31, 2018, this customer’s accounts receivable balance accounted for approximately 61% of the total net accounts receivable balance. Although these customers have been on-going major customers of the Company, the written agreements with these customers do not have any minimum purchase obligations and they could stop buying the Company’s products at any time and for any reason. A reduction, delay or cancellation of orders from these customers or the loss of these customers could significantly reduce the Company’s future revenues and profits.

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- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-URI http://asc.fasb.org/topic&trid=2134479

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- References

No definition available.

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