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Note 2 - Concentrations of Credit Risk
 9 Months Ended
Jul. 31, 2025
Notes to Financial Statements  
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, 2025, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $2.7 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,
 

2025

  

2024

  

2025

2024

Wireless provider A

   11%     11%     -   -

Distributor A

   15%     -     -   -

Distributor B

   -     13%     -   -

 

For the three months ended July 31, 2025, one wireless provider accounted for 11% of net sales and 17% of total net accounts receivable balance, and one distributor customer accounted for 15% of net sales and 22% of total net accounts receivable balance. For the nine months ended July 31, 2025, no customers accounted for 10% or more of net sales, and the same wireless provider and distributor accounted for 17% and 22% of total net accounts receivable balance, respectively. For the three months ended July 31, 2024, the same wireless provider accounted for 11% of net sales and 18% of total net accounts receivable balance, and a different distributor customer accounted for 13% of net sales and 10% of total net accounts receivable balance. For the nine months ended July 31, 2024, no customers accounted for 10% or more of net sales, and the wireless provider and one distributor customer accounted for 18% and 10% of total net accounts receivable balance, respectively. 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.