Inventories and major vendors

9 Months Ended

Jul. 31, 2017

Note 4 - Inventories and major vendors

Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market. Cost has been determined using the weighted average cost method. Inventory carrying value is net of inventory reserves of $792,000 and $500,000 at July 31, 2017 and October 31, 2016, respectively. Inventories consist of the following (in thousands):

	July 31, 2017		October 31, 2016

Raw materials and supplies	$	2,725	$	2,642
Work in process		417		279
Finished goods		3,340		3,101

Totals	$	6,482	$	6,022

Purchases of inventory from one major vendor for the three months ended July 31, 2017 represented 11% of inventory purchases. No vendor accounted for greater than 10% of inventory purchases for the nine months ended July 31, 2017. No vendor accounted for greater than 10% of inventory purchases for the three months ended July 31, 2016. Purchases of inventory from one major vendor during the nine months ended July 31, 2016 represented 10% of total inventory purchases. The Company has arrangements with its vendors to purchase product based on purchase orders periodically issued by the Company.