Note 2 - Concentrations of Credit Risk

6 Months Ended

Apr. 30, 2024

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 2 – Concentrations of credit risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At April 30, 2024, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $0.9 million.

Sales from each customer that were 10% or greater of net sales were as follows:

	Three Months Ended April 30,				Six Months Ended April 30,
	2024		2023		2024		2023
Wireless provider		-		20%		-		18%

For the three months ended April 30, 2024, no customers accounted for 10% or more of net sales, and one wireless carrier and one distributor, whose sales were both less than 10% of total net sales, accounted for 15% and 10% of total net accounts receivable balance, respectively. For the six months ended April 30, 2024, no customers accounted for 10% or more of net sales, and the same wireless carrier and the same distributor, whose sales were both less than 10% of total net sales, accounted for 15% and 10% of total net accounts receivable balance, respectively. For the three months ended April 30, 2023, a different wireless carrier customer accounted for 20% of net sales and 24% of total net accounts receivable balance; for the six months ended April 30, 2023, the same wireless carrier accounted for 18% of net sales and 24% of total net accounts receivable balance. Although these customers have been significant customers of the Company, the written agreements with these customers do not have any minimum purchase obligations and these customers could stop buying our products at any time and for any reason. A reduction, delay or cancellation of orders from these customers or the loss of these customers could significantly reduce our future revenues and profits.