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Concentrations
9 Months Ended
Jul. 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 nine months ended July 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, in the amount of $62,394,093. It also accounted for 100% of the total accounts payable-related party and 99.3% of the total accounts payable of the Company as of July 31, 2021. Products valued at $14,947,200 were held in inventory at July 31, 2021.

 

Concentration of Revenues and Accounts Receivable

 

For the nine months ended July 31, 2021, approximately 30%, or $18,435,648, of the revenue from the sale of Products, primarily consisting of the “BIDI® Stick,” was generated from Favs Business LLC (“Favs Business”), approximately 16%, or $9,598,426, of the revenue from the sale of Products was generated from MMS Distributing, LLC (“MMS Distro”), approximately 13%, or $7,663,490, of the revenue from the sale of Products was generated from C Store Master, and approximately 8%, or $4,648,659, of the revenue from the sale of Products was generated by GPM Investment, LLC (“GPM Investment”).

 

Favs Business, C Store Master, MMS Distro and GPM Investment had outstanding balances of $6,641,912, $545,879, $255,620 and $178,756, respectively, accounted for approximately 85%, 7%, 3% and 2%, respectively, of the total accounts receivable from customers as of July 31, 2021.