Note 3 - Accounts Receivable

9 Months Ended

Oct. 31, 2018

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note

3

- Accounts receivable

The majority of the Company's accounts receivable are due from geographically dispersed contractors and manufacturing companies. Credit is extended based on an evaluation of a customer's financial condition, including the availability of credit insurance. In the U.S., collateral is

not

generally required. In the U.A.E. and Saudi Arabia, letters of credit are usually obtained for significant orders. Accounts receivable are due within various time periods specified in the terms applicable to the specific customer and are stated at amounts due from customers net of an allowance for claims and doubtful accounts. The allowance for doubtful accounts is based on specifically identified amounts in customers' accounts, where future collectability is deemed uncertain. Management

may

exercise its judgment in adjusting the provision as a consequence of known items, such as current economic factors and credit trends. Past due trade accounts receivable balances are written off when the Company's collection efforts have been unsuccessful in collecting the amount due and the amount is deemed uncollectable. The write-off is recorded against the allowance for doubtful accounts.

One of the Company’s accounts receivable in the total amount of $

5.4

 million as of

January 31, 2018 (

inclusive of a retention receivable amount of $

3.7

 million, of which $

3.2

 million was included in the balance of other long-term assets as of

October 31, 2018

 and

January 

31,

 

2018

, due to the long-term nature of the receivables) has been outstanding for several years as of

October 31, 2018

. The Company completed all of its deliverables in

2015,

and has been engaged in ongoing active efforts to collect this amount. Since

January 31, 2018,

the Company has received payments of approximately

$0.5

million, which reduced the balance of this receivable. As a result, the Company did

not

reserve any allowance against this receivable as of

October 31, 2018

. The Company continues to engage with the customer to ensure full payment of open balances. However, if the Company’s efforts to collect on this account are

not

successful in fiscal

2018,

then the Company

may

recognize an allowance for all, or substantially all, of any such then uncollected amounts. As of

October 31, 2018

, this receivable balance, inclusive of a retention receivable amount, was $

4.9

 million. During

November 2018,

the Company received approximately

$0.1

million, thus reducing this receivable balance to

$4.8

million. 

For the

three

and

nine

month months ended

October 31, 2018

 and

2017

,

no

 individual customer accounted for

10%

 or more of the Company's consolidated net sales. 

At

October 31, 2018

,

one

 customer accounted for

18%

 of the Company's accounts receivable. At

January 31,

2018

,

three

 customers collectively accounted for

35%

 of the Company's accounts receivable.