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Note 7 - Concentrations of Credit Risk

3 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 7 – 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, 2022, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $12.3 million.

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

		Three Months Ended January 31,
		2022				2021
Wireless provider			32	%			*
Distributor A			*				16	%
Distributor B			*				12	%

* Less than 10%

For the three months ended January 31, 2022, one wireless carrier customer accounted for 32% of net sales and 37% of total net accounts receivable balance. 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 for the three months ended January 31, 2021. 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.