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Note 8 - Concentrations of Credit Risk

9 Months Ended

Jul. 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 July 31, 2021, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $12.9 million.

Sales from each customer that were 10% or greater of net sales were as follows:

		Three Months Ended July 31,								Nine Months Ended July 31,
		2021				2020				2021				2020
Wireless provider			21	%			*				11	%			*
Distributor A			10	%			18	%			12	%			15	%
Distributor B			10	%			13	%			11	%			12	%

* Less than 10%

The wireless provider had an accounts receivable balance that accounted for 36% of the total net accounts receivable balance at July 31, 2021. Distributor A and Distributor B had accounts receivable balances that accounted for 21% and 14%, respectively, of the total net accounts receivable balance at July 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.