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Note 2 - Concentrations of Credit Risk

9 Months Ended

Jul. 31, 2024

Concentration Risk Disclosure [Text Block]

Note 2 – 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, 2024, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $1.4 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,
	2024		2023		2024		2023
Wireless provider A		-		-		-		13%
Wireless provider B		11%		-		-		-
Distributor A		13%		-		-		-
Distributor B		-		12%		-		-

For the three months ended July 31, 2024, one wireless carrier and one distributor customer accounted for 11% and 13% or more of net sales, and accounted for 18% and 10% of total net accounts receivable balance, respectively. For the nine months ended July 31, 2024, no customer accounted for 10% or more of net sales, but the aforementioned wireless carrier and the same distributor customer accounted for 18% and 10% of total net accounts receivable balance, respectively. For the three months ended July 31, 2023, a distributor customer accounted for 12% of net sales and 12% of total net accounts receivable balance, while another distributor whose sales were less than 10% of total net sales, accounted for 11% of total net accounts receivable balance. For the nine months ended July 31, 2023, a wireless carrier accounted for 13% of net sales and less than 10% of total net accounts receivable balance. Although these customers have been significant customers of the Company, the written agreements with these customers do not have any minimum purchase obligations and these customers 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.