4. CUSTOMER CREDITS, NET

Customer credits, net, consists of the following:

	October 31,		October 31,
	2015		2014
Outstanding accounts receivable sold to factor	$	-	$	3,277
Less: customer allowances		-		(1,110)
Less: provision for price protection		-		(2,338)
Customer credits	$	-	$	(171)

In July 2015, the Company transferred assets and obligations related to its retail distribution activities to a company owned by its former chief executive officer. During the quarter ended July 31, 2015, the Company settled certain of its remaining outstanding customer allowances with retailers and distributors with cash payments. In addition, the Company eliminated its provisions for future price protection. See Note 19.

Outstanding accounts receivable sold to the factor as of October 31, 2015 and October 31, 2014 for which the Company retained credit risk amounted to $0 and $164, respectively. As of October 31, 2015 and October 31, 2014, there were no allowances for uncollectible accounts. Allowances include provisions for customer payments and incentives deductible in future periods. As of October 31, 2014, customer allowances and provisions for price protection exceeded outstanding accounts receivable sold to the Company’s factor. The excess is classified as a liability in the accompanying balance sheet.