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CONCENTRATION OF RISK
3 Months Ended
May 31, 2020
Risks And Uncertainties [Abstract]  
CONCENTRATION OF RISK

NOTE 13 - CONCENTRATION OF RISK

Significant Customers

We sell telematics products and services to large global enterprises in the industrial equipment, transportation and automotive market verticals. One of our customers accounted for more than 10% of our total revenue and accounts receivable as follows (rounded):

 

 

Three Months Ended

May 31,

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

Customer A

 

14

%

 

 

14

%

 

 

May 31,

 

 

February 29,

 

 

2020

 

 

2020

 

Accounts receivable:

 

 

 

 

 

 

 

Customer A

 

15

%

 

 

19

%

 

 

 

 

 

 

 

 

 

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 three months ended May 31, 2020, four of our suppliers accounted for approximately 61% of our total inventory purchases and for the three months ended May 31, 2019, two of our suppliers accounted for approximately 47% of total inventory purchases. As identified below, some of these manufacturers accounted for more than 10% of our accounts payable as follows (rounded):

 

 

 

May 31,

 

 

February 29,

 

 

2020

 

 

2020

 

Accounts payable:

 

 

 

 

 

 

 

Supplier A

 

17

%

 

 

11

%

Supplier B

 

13

%

 

 

11

%

 

 

 

 

 

 

 

 

 

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 similar terms from another supplier.