Note 4 - Supplier Concentration

12 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

4. Supplier Concentration

The suppliers comprising

10

 percent or more of our gross accounts receivable due from suppliers at either

January

 

31,

2017

or

2016

are listed below (except percentages).

	Years Ended January 31,
	2017				2016
Total gross accounts receivable due from suppliers	$	-	0	%	$	122	100	%
Supplier concentration:
Zheng Ge Electrical Co., Ltd.	$	-	0	%	$	122	100	%
	$	-	0	%	$	122	100	%

Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) was a tip supplier for the Bronx product, which was subject to a recall. We previously sourced some of the component parts that Zheng Ge used in the manufacture of the tips. We ceased paying Zheng Ge during the course of the product recall while we investigated the manufacturing defect which ultimately caused the recall and, likewise, Zheng Ge ceased paying us. During the year ended

January

31,

2017,

we performed a review of applicable laws underlying the related contracts with Zheng Ge. Based on this review, we determined that the statute of limitations on the Zheng Ge contracts had lapsed and we wrote off receivables of

$0.1

million from and liabilities of

$0.6

million to Zheng Ge to cost of sales in the accompanying consolidated statement of operations.    

The suppliers and other vendors comprising

10

 percent or more of our gross accounts payable at either

January

 

31,

2017

or

2016

are listed below (in thousands, except percentages).

	Years Ended January 31,
	2017				2016
Total gross accounts payable	$	39	100	%	$	883	100	%
Supplier concentration:
Pillsbury Winthrop Shaw Pittman, LLP		-	0	%		432	49	%
	$	-	0	%	$	432	49	%

Pillsbury was our former legal counsel for the Kensington litigation as well as other patent and intellectual property matters. On

May

28,

2014,

we entered into an agreement with Pillsbury in which we paid Pillsbury a lump sum of

$1.5

million with the remaining contingent balance of

$0.4

million (the “Contingent Balance”) to be paid, if at all, in the event we obtain any monetary recovery, whether through settlement, judgment or otherwise, after

May

28,

2014

from or as a result of any of our current or future lawsuits related to our intellectual property. The Contingent Balance accrued interest at

20%

per annum, compounded annual from

May

28,

2014.

In connection with the

$1.5

million lump-sum partial repayment, no gain was recognized. In

April

2016,

we paid Pillsbury approximately

$0.4

million as a result of the settlement agreement with Targus, resulting in a remaining Contingent Balance of approximately

$0.1

million. In

December

2016,

we paid the remaining

$0.1

million including any accrued interest in full satisfaction of our obligations to Pillsbury.