NOTE 12 - CONCENTRATION OF RISK

Significant Customers

We sell telematics products and services to large global enterprises in the industrial equipment, telecommunications and automotive market verticals. Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows (rounded):

	Three Months Ended August 31,						Six Months Ended August 31,
	2018			2017			2018			2017
Revenues:
Customer A		16	%		12	%		14	%		11	%

	August 31,			February 28,
	2018			2018
Accounts receivable:
Customer A		16	%		15	%
Customer B		7	%		13	%

Customer B represents certain of our customers, which are considered affiliates under common control and collectively represented approximately 13% of our accounts receivable at February 28, 2018. Throughout our history and presently we have dealt with separate purchasing departments for the individual customers and have at all times sold different products to each of them.

Significant Suppliers

We purchase a significant amount of our product inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. The inventory is purchased under standard supply agreements that outline the terms of the product delivery. The title and risk of loss of the product passes to us upon shipment from the manufacturers’ plant or warehouse. As identified below, some of these manufacturers accounted for more than 10% of our purchases and accounts payable as follows (rounded):

	Three Months Ended August 31,						Six Months Ended August 31,
	2018			2017			2018			2017
Inventory purchases:
Supplier A		29	%		32	%		29	%		31	%
Supplier B		21	%		14	%		21	%		16	%
Supplier C		6	%		13	%		7	%		11	%

	August 31,			February 28,
	2018			2018
Accounts payable:
Supplier A		32	%		40	%
Supplier B		19	%		16	%

We are currently reliant upon these suppliers for products. Although we believe that we can obtain products from other sources, the loss of a significant supplier could have a material impact on our financial condition and results of operations as the products that are being purchased may not be available on similar terms from another supplier.