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12. ECONOMIC DEPENDENCY
 9 Months Ended
Jul. 31, 2016
Risks and Uncertainties [Abstract]  
12. ECONOMIC DEPENDENCY

Approximately 33% of the Company’s sales were derived from one customer during the nine months ended July 31, 2016. This customer also accounted for approximately $8,588,000 of the Company’s accounts receivable balance at July 31, 2016. Approximately 57% of the Company’s sales were derived from one customer during the nine months ended July 31, 2015. This customer also accounted for approximately $4,113,000 of the Company’s accounts receivable balance at October 31, 2015. Concentration of credit risk with respect to other trade receivables is limited due to the short payment terms generally extended by the Company, by ongoing credit evaluations of customers, and by maintaining an allowance for doubtful accounts that management believes will adequately provide for credit losses.

 

For the nine months ended July 31, 2016, approximately 51% of the Company’s purchases were from four vendors. These vendors accounted for approximately $520,000 of the Company’s accounts payable at July 31, 2016. For the nine months ended July 31, 2015, approximately 64% of the Company’s purchases were from four vendors. These vendors accounted for approximately $2,961,000 of the Company’s accounts payable at July 31, 2015. Management does not believe the loss of any one vendor would have a material adverse effect of the Company’s operations due to the availability of many alternate suppliers.

 

Approximately 23% of the Company’s sales were derived from one customer during the three months ended July 31, 2016. Approximately 48% of the Company’s sales were derived from one customer during the three months ended July 31, 2015.

For the three months ended July 31, 2016, approximately 42% of the Company’s purchases were from four vendors. For the three months ended July 31, 2015, approximately 60% of the Company’s purchases were from four vendors.