XML 26 R15.htm IDEA: XBRL DOCUMENT v3.20.4
Note 8 - Concentrations of Credit Risk
 3 Months Ended
Jan. 31, 2021
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
Note
8
–
Concentrations of credit risk
 
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At
January 31, 2021,
we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately
$14.3
million.
 
For the
three
months ending
January 31, 2021,
two
customers, both distributors, accounted for approximately
16%
and
12%
of net sales and had accounts receivable balances that accounted for
15%
and
19%,
respectively, of the total net accounts receivable balance at
January 31, 2021.
These same
two
distributors each accounted for
11%
of net sales for the
three
months ending
January 31, 2020,
while
one
other customer, a wireless carrier, accounted for
17%
of net sales for the
three
months ending
January 31, 2020.
The
two
distributors had accounts receivable balances that each accounted for
12%
of total net accounts receivable balance at
January 31, 2020.
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 our 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 our future revenues and profits.