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CONCENTRATION OF CUSTOMERS AND SUPPLIERS
12 Months Ended
Feb. 28, 2019
Risks And Uncertainties [Abstract]  
CONCENTRATION OF CUSTOMERS AND SUPPLIERS

NOTE 3 – CONCENTRATION OF CUSTOMERS AND SUPPLIERS

Significant Customers

We sell telematics products 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:

 

 

Year Ended February 28,

 

 

2019

 

 

2018

 

 

2017

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Customer A

 

15

%

 

 

12

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 28,

 

 

2019

 

 

2018

 

 

2017

 

Accounts receivable:

 

 

 

 

 

 

 

 

 

 

 

Customer A

 

14

%

 

 

15

%

 

 

12

%

Customer B

 

3

%

 

 

13

%

 

 

5

%

Customer B represents customers that are affiliated under common control.

Significant Suppliers

We purchase a significant amount of our 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 generally pass to us upon shipment from the manufacturers’ plant or warehouse. Some of these manufacturers accounted for more than 10% of our purchases and accounts payable as follows:

 

 

Year Ended February 28,

 

 

2019

 

 

2018

 

 

2017

 

Inventory purchases:

 

 

 

 

 

 

 

 

 

 

 

Supplier A

 

31

%

 

 

33

%

 

 

34

%

Supplier B

 

20

%

 

 

16

%

 

 

14

%

Supplier C

 

6

%

 

 

9

%

 

 

11

%

 

 

As of February 28,

 

 

2019

 

 

2018

 

 

2017

 

Accounts Payable:

 

 

 

 

 

 

 

 

 

 

 

Supplier A

 

30

%

 

 

40

%

 

 

33

%

Supplier B

 

18

%

 

 

16

%

 

 

18

%

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 the same terms from another supplier.