XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Risks and Uncertainties and Concentrations of Risk
9 Months Ended
Apr. 30, 2019
Risks and Uncertainties [Abstract]  
Risks and Uncertainties and Concentrations of Risk

9. RISKS AND UNCERTAINTIES AND CONCENTRATIONS OF RISK

 

Financial instruments that potentially subject the Company to risk consist principally of purchases and advances to contract manufacturer.

 

Purchases from and Advances to Contract Manufacturer. Substantially all of the Company’s current inventory has been acquired from Sing Lin pursuant to the now-terminated Agreement. The Company notified Sing Lin in June 2010 that it was terminating the agreement effective September 2010. If the Company is unable to establish a contract and obtain a sufficient alternative supply from Sing Lin or another supplier, it may not be able to procure additional inventory on a timely basis or in the quantities required. Sing Lin and its subcontractors currently maintain custody of the Company’s specialized tooling, which could adversely impact the Company’s ability to reallocate production to other vendors.