v3.5.0.1
Note 6 - Supplier Concentration
3 Months Ended
Apr. 30, 2016
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
6.
Supplier Concentrations
 
The suppliers comprising 10 percent or more of the Company’s gross accounts receivable due from suppliers at either April 30, 2016 and January 31, 2016 are listed below (in thousands, except percentages).
 
 
 
As of April 30,
 
 
As of January 31,
 
 
 
2016
 
 
2016
 
Total gross accounts receivable due from suppliers   $ 122       100 %   $ 122       100 %
Supplier concentration:
                               
Zheng Ge Electrical Co., Ltd.   $ 122       100 %   $ 122       100 %
    $ 122       100 %   $ 122       100 %
 
Zheng Ge was a tip supplier for our 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. Likewise, Zheng Ge ceased paying us.
 
The companies comprising 10 percent or more of our gross accounts payable at either April 30, 2016 and January 31, 2016 are listed below (in thousands, except percentages).
 
 
 
As of April 30,
 
 
As of January 31,
 
 
 
2016
 
 
2016
 
                                 
Total gross accounts payable
  $ 379       100 %   $ 737       100 %
Supplier concentration:
                               
Pillsbury Winthrop Shaw Pittman, LLP     62       16 %     432       59 %
    $ 62       16 %   $ 432       59 %
 
Pillsbury was our former legal counsel for the Kensington litigation as well as other patent and intellectual property matters (see Note 9). On May 28, 2014, we entered into an agreement with Pillsbury in which we paid Pillsbury a lump sum of $1.5 million with the remaining balance of $0.4 million (the “Balance”) to be paid, if at all, in the event we obtain any monetary recovery, whether through settlement, judgment or otherwise, after May 28, 2014 from or as a result of any of our current or future lawsuits related to our intellectual property. The amount payable was to equal to the Balance plus 20% per annum, compounded annually from May 28, 2014. In connection with the $1.5 million lump-sum partial repayment, no gain was recognized. In April 2016, we paid Pillsbury approximately $0.4 million as a result of the settlement agreement with Targus. The remaining balance is approximately $0.1 million.