Concentrations

12 Months Ended

Apr. 30, 2017

Risks and Uncertainties [Abstract]

Concentrations

10. Concentrations

The Company maintains the majority of its cash balance in a financial institution in Kimball, Nebraska. Accounts at this institution are insured by the Federal Deposit Insurance Corporation for up to $250,000. For the years ended April 30, 2017 and 2016, the Company had uninsured balances of $5,642,000, and $4,279,000, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal. The Company also maintains cash balances in money market funds at the above-mentioned financial institution. Such balances are not insured.

Management also has cash funds with Wells Fargo Bank with uninsured balances of $386,000 and $1,363,000 for the years ending April 30, 2017 and 2016, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal.

The Company has sales to a security alarm distributor representing 38% of total sales for the year ended April 30, 2017 and 41% of total sales for the year ended April 30, 2016. This distributor accounted for 47% and 48% of accounts receivable at April 30, 2017 and 2016, respectively.

Security switch sales made up 81% of total sales for the fiscal year ended April 30, 2017 and 80% of total sales for the fiscal year ended April 30, 2016.