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Note 6 - Concentrations
3 Months Ended
Jan. 31, 2021
Risks and Uncertainties [Abstract]  
Concentrations

Note 6 - Concentrations  

 

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- Related Party

 

For the three months ended January 31, 2021, 100% of the inventories of products, primarily consisting of the “Bidi Stick,” were purchased from Bidi, a related party company that is also owned by Nirajkumar Patel, the Company’s Chief Executive Officer and Chief Financial Officer, in the amount of $32,479,100. It also accounted for 100% of the total accounts payable as of January 31, 2021.

 

Concentration of Revenues and Accounts Receivable

 

For the three months ended January 31, 2021, approximately 37% of the revenue from the sale of Products, primarily consisting of the “Bidi Stick,” was generated from Favs Business, LLC in the amount of $13,888,376, approximately 18% of the revenue from the sale of Products was generated from MMS Distro, Inc. in the amount of $6,708,752 and approximately 13% of the revenue from the sale of Products was generated from Lakshmi Distributer Inc., doing business as C Store Master (“C Store Master”), in the amount of $4,879,427.

 

Favs Business, LLC, with an outstanding balance of $8,601,200 and GPM Investment, LLC, with an outstanding balance of $1,262,985, accounted for approximately 68% and 10% of the total accounts receivable from customers, respectively, as of January 31, 2021.