Note 3 - Inventories and Major Vendors

9 Months Ended

Jul. 31, 2020

Note

–

Inventories and major vendors

Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or net realizable value. Cost has been determined using the weighted average cost method. Inventories consist of the following (in thousands):

	July 31, 2020		October 31, 2019

Raw materials and supplies	$	4,495	$	3,576
Work in process		352		791
Finished goods		4,400		3,878

Totals	$	9,247	$	8,245

For the

three

months ended

July 31, 2020,

two

vendors accounted for

12%

and

10%

of inventory purchases.

vendors accounted for more than

10%

of inventory purchases for the

nine

months ended

July 31, 2020.

For the

three

months ended

July 31, 2019,

two

vendors accounted for

23%

and

14%

of inventory purchases. These same

two

vendors accounted for

17%

and

14%

of inventory purchases, respectively, for the

nine

months ended

July 31, 2019.

We have arrangements with these vendors to purchase products based on purchase orders that we periodically issue.