CONCENTRATION OF RISK

9 Months Ended

Nov. 30, 2016

Risks and Uncertainties [Abstract]

CONCENTRATION OF RISK

NOTE 12 - CONCENTRATION OF RISK

One Wireless DataCom customer in the heavy equipment industry accounted for 8% and 15% of consolidated accounts receivable at November 30, 2016 and February 29, 2016, respectively.

The Company has contract manufacturing arrangements with sole source suppliers for LoJack stolen vehicle recovery products and transmission towers. As of November 30, 2016, one such supplier accounted for 11% of the Company’s total inventory purchases in the nine months ended November 30, 2016, and 12% of the Company’s total accounts payable. Some of the Company’s other components, assemblies and electronic manufacturing services are also purchased from sole source suppliers. In addition, a substantial portion of the Company’s inventory is purchased from one supplier that functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 37% and 55% of the Company’s total inventory purchases in the nine months ended November 30, 2016 and 2015, respectively. As of November 30, 2016, this supplier accounted for 34% of the Company’s total accounts payable. Another supplier accounted for 13% and 16% of the Company’s total inventory purchases in the nine months ended November 30, 2016 and 2015, respectively, and 18% of the Company’s total accounts payable as of November 30, 2016.