Concentration of Risk

6 Months Ended

Oct. 31, 2024

Concentration of Risks

Financial instruments that potentially subject the Company to concentrations of risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with major financial institutions and such balances may, at times, exceed Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk with respect to cash.

Credit is extended to customers based on an evaluation of each customer's financial condition and generally collateral is not required. The Company's customers operate in the new home construction and home remodeling markets.

The Company maintains an allowance for expected credit losses based upon management's evaluation and judgment of potential net loss. The allowance is estimated based upon historical experience, the effects of current developments and economic conditions, and each customer's current and anticipated financial condition. Estimates and assumptions are periodically reviewed and updated. Any resulting adjustments to the allowance are reflected in current operating results.

As of October 31, 2024, the Company's two largest customers, Customers A and B, represented 33.8% and 16.2% of the Company's gross customer receivables, respectively. As of October 31, 2023, Customers A and B represented 32.3% and 18.4% of the Company's gross customer receivables, respectively.

The following table summarizes the percentage of net sales attributable to the Company's two largest customers for the three- and six-months ended October 31, 2024 and 2023:


	Three Months Ended		Six Months Ended
	October 31,		October 31,
	2024	2023	2024	2023
Customer A	28.0%	27.9%	27.4%	28.1%
Customer B	11.1%	13.0%	11.3%	13.5%