Concentration of Risk

6 Months Ended

Jan. 31, 2014

8.	Concentration of Risk

One dealer, FreedomRoads, LLC (“FreedomRoads”), accounted for 16% of the Company’s continuing consolidated net sales for both the six months ended January 31, 2014 and the six months ended January 31, 2013. This dealer also accounted for 25% of the Company’s consolidated trade accounts receivable at January 31, 2014 and 24% at July 31, 2013. The loss of this dealer could have a significant effect on the Company’s business.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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