11. ECONOMIC DEPENDENCY

6 Months Ended

Apr. 30, 2016

Risks and Uncertainties [Abstract]

11. ECONOMIC DEPENDENCY

Approximately 37% of the Company’s sales were derived from one customer during the six months ended April 30, 2016.  This customer also accounted for approximately $5,118,000 of the Company’s accounts receivable balance at April 30, 2016.  Approximately 61% of the Company’s sales were derived from one customer during the six months ended April 30, 2015.  This customer also accounted for approximately $4,113,000 of the Company’s accounts receivable balance at October 31, 2015.  Concentration of credit risk with respect to other trade receivables is limited due to the short payment terms generally extended by the Company, by ongoing credit evaluations of customers, and by maintaining an allowance for doubtful accounts that management believes will adequately provide for credit losses.

For the six months ended April 30, 2016, approximately 56% of the Company’s purchases were from four vendors.  These vendors accounted for approximately $1,422,000 of the Company’s accounts payable at April 30, 2016.  For the six months ended April 30, 2015, approximately 64% of the Company’s purchases were from four vendors.  These vendors accounted for approximately $3,442,000 of the Company’s accounts payable at April 30, 2015. Management does not believe the loss of any one vendor would have a material adverse effect of the Company’s operations due to the availability of many alternate suppliers.

Approximately 37% of the Company’s sales were derived from one customer during the three months ended April 30, 2016.  Approximately 55% of the Company’s sales were derived from one customer during the three months ended April 30, 2015.

For the three months ended April 30, 2016, approximately 59% of the Company’s purchases were from four vendors.  For the three months ended April 30, 2015, approximately 65% of the Company’s purchases were from four vendors.