Note 7 - Concentration

9 Months Ended

Jul. 31, 2020

Risks and Uncertainties [Abstract]

Concentration

Note 7 - Concentration  

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of purchases of inventories, accounts payable, accounts receivable, and revenue.

Concentration of Purchases and Accounts Payable

For the nine months ended July 31, 2020, 100% of the inventories of Products, primarily consisting of the “Bidi Stick,” were purchased from Bidi, a related party, in the amount of $47,771,211. It also accounted for 100% of the total accounts payable - related party as of July 31, 2020.

Concentration of Revenues and Accounts Receivable

For the three months ended July 31, 2020, approximately 56% of the revenue from the sale of Products, primarily consisting of the “Bidi Stick”, was generated from Favs Business, LLC (“Favs Business”) in the amount of $18,325,140.

For the nine months ended July 31, 2020, approximately 48% of the revenue from the sale of Products, primarily consisting of the “Bidi Stick,” was generated from Favs Business in the amount of $26,328,535.

Favs Business accounted for approximately 71% of the total accounts receivable as of July 31, 2020.