Note 3 - Concentrations of Credit Risk

12 Months Ended

Oct. 31, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

3

–

Concentrations of credit risk

Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At

October 31, 2020,

we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately

$14.2

million.

Two customers, both distributors, accounted for approximately

14%

and

12%

of net sales for the year ended

October 31, 2020.

These same

two

distributors had accounts receivable balances that accounted each for

12%

of the total net accounts receivable balance at

October 31, 2020.

For the year ended

October 31, 2019,

one

of these distributors and a wireless carrier accounted for approximately

19%

and

23%

of net sales. The wireless carrier's accounts receivable balance accounted for approximately

56%

of the total net accounts receivable balance at

October 31, 2019.

Although these customers have been on-going major customers of the Company, the written agreement with these customers do

not

have any minimum purchase obligations and they could stop buying our products at any time and for any reason. A reduction, delay or cancellation of orders from these customers or the loss of these customers could significantly reduce our future revenues and profits.