6.	Customer and Supplier Concentrations

Substantially all of the Company’s revenue was derived from a single customer, Lenovo, in fiscal 2014. As discussed in Note 2 above, in August 2013, Lenovo notified us of their intention to cease offering Comarco’s product to its customers. We shipped approximately 20,000 of our Constellation units to Lenovo and 11,000 field replacement units to Lenovo affiliates during our third quarter of fiscal 2014, and we have no further orders from Lenovo or their affiliates. The loss of Lenovo has had a material adverse impact on our revenues and results of operations.

The customers providing 10 percent or more of the Company’s revenue for any of the periods presented below are listed here:

	(in thousands, except percentages)
	Three Months Ended October 31,								Nine Months Ended October 31,
	2014				2013				2014				2013
Total revenue	$	-	0	%	$	1,508	100	%	$	-	0	%	$	4,429	100	%

Customer concentration:
Lenovo Information Products Co., Ltd.		-	0	%		1,465	97	%		-	0	%		4,319	98	%
	$	-	0	%	$	1,465	97	%	$	-	0	%	$	4,319	98	%

The suppliers comprising 10 percent or more of the Company’s gross accounts receivable due from suppliers at either October 31, 2014 or January 31, 2014 are listed below (in thousands, except percentages).

	As of October 31,				As of January 31,
	2014				2014
Total gross accounts receivable due from suppliers	$	122	100	%	$	128	100	%
Accounts receivable concentration:
Zheng Ge Electrical Co., Ltd.	$	122	100	%	$	122	95	%
	$	122	100	%	$	122	95	%

Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) was a tip supplier for the Bronx product, which was subject to a recall. We previously sourced some of the component parts that Zheng Ge used in the manufacture of the tips. We ceased paying Zheng Ge during the course of the product recall while we investigated the manufacturing defect which ultimately caused the recall and, likewise, Zheng Ge ceased paying us.

The companies comprising 10 percent or more of our gross accounts payable at either October 31, 2014 or January 31, 2014 are listed below (in thousands, except percentages).

	As of October 31,				As of January 31,
	2014				2014

Total gross accounts payable	$	746	100	%	$	4,363	100	%
Supplier concentration:
Chicony Power Technology, Co. Ltd.	$	-	0	%	$	1,100	25	%
Pillsbury Winthrop Shaw Pittman, LLP		432	58	%		1,953	45	%
	$	432	58	%	$	3,053	70	%

Chicony Power Technology, Co. Ltd., (“Chicony”) was the manufacturer of the Bronx product, which was subject to a recall. We had been in litigation with Chicony (see Note 10). Effective May 15, 2014, Chicony entered into a settlement agreement with us that dismissed all claims between the two parties arising from the litigation. Pursuant to the terms of the settlement agreement, Chicony agreed to pay us $7.6 million in cash in lieu of the previous jury net award of $9.7 million or any other related costs or fees. $4.0 million of the settlement amount was paid on May 16, 2014, with the balance of $3.6 million paid on May 30, 2014. As a result of the settlement agreement, $1.1 million of contract manufacturer obligations to Chicony have been legally dismissed and reversed as of July 31, 2014. The dismissed obligations are reflected in Cost of Revenues for the nine months ended October 31, 2014.

Pillsbury Winthrop Shaw Pittman, LLP (“Pillsbury”) was our former legal counsel for the Kensington litigation as well as other patent and intellectual property matters (see Note 10). On May 28, 2014, we entered into an agreement with Pillsbury in which we paid Pillsbury a lump sum of $1.5 million and the remaining balance of $0.4 million (“the Balance”) was modified and is to be paid, if at all, in the event Comarco obtains any monetary recovery, whether through settlement, judgment or otherwise, from or as a result of the Targus Lawsuit and/or any of the additional lawsuits. The amount payable shall be equal to the Balance plus 20% per annum, compounded annually from the Effective Date of May 28, 2014. In connection with this partial repayment, no gain was recognized.