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CONCENTRATION OF CUSTOMERS AND SUPPLIERS
12 Months Ended
Feb. 29, 2020
Risks And Uncertainties [Abstract]  
CONCENTRATION OF CUSTOMERS AND SUPPLIERS

NOTE 3 – CONCENTRATION OF CUSTOMERS AND SUPPLIERS

Significant Customers

We sell telematics products to large global enterprises in the industrial equipment, telecommunications and automotive market verticals. Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows:

 

 

Year Ended February 29/28,

 

 

2020

 

 

2019

 

 

2018

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Customer A

 

14

%

 

 

15

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 29/28,

 

 

2020

 

 

2019

 

 

2018

 

Accounts receivable:

 

 

 

 

 

 

 

 

 

 

 

Customer A

 

19

%

 

 

14

%

 

 

15

%

Customer B

 

8

%

 

 

3

%

 

 

13

%

 

Customer B represents customers that are affiliated under common control.

Significant Suppliers

We purchase a significant amount of our inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. These suppliers are located in Asia, including China. The inventory is purchased under standard supply agreements that outline the terms of the product delivery. The title and risk of loss of the product generally pass to us upon shipment from the manufacturers’ plant or warehouse. For the fiscal year ended February 29, 2020, four of our suppliers accounted for approximately 48% of our total inventory purchases and for the fiscal years ended February 28, 2019 and 2018, three of our suppliers accounted for approximately 57% and 58% of total inventory purchases, respectively. Some of these manufacturers accounted for more than 10% of accounts payable as follows:

 

 

 

As of February 29/28,

 

 

2020

 

 

2019

 

 

2018

 

Accounts Payable:

 

 

 

 

 

 

 

 

 

 

 

Supplier A

 

0

%

 

 

30

%

 

 

40

%

Supplier B

 

11

%

 

 

18

%

 

 

16

%

Supplier C

 

11

%

 

 

0

%

 

 

0

%

 

We are currently reliant upon these suppliers for products. Although we believe that we can obtain products from other sources, the loss of a significant supplier could have a material impact on our financial condition and results of operations as the products that are being purchased may not be available on the same terms from another supplier.