Note 3 - Accounts Receivable

6 Months Ended

Jul. 31, 2019

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 United Arab Emirates 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 uncollectible. The write-off is recorded against the allowance for doubtful accounts. 

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

$4.7

 million

as of

January 31, 2019

has been outstanding for several years. Included in this balance is a retention receivable amount of

$3.7

million, of which, 

$3.5

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

as of

July 31, 2019

and

January 31, 2019

due to the long-term nature of the receivable. The Company completed all of its deliverables in

2015,

and has been engaged in ongoing active efforts to collect this outstanding amount. During fiscal year

2018

, the Company received payments of approximately

$0.7

million, and during the

first

six

months of fiscal

2019

the Company received a further

$0.3

 million, thus reducing this balance to

$4.4

 million

as of

July 31, 2019

. As a result, the Company did

not

reserve any allowance against this receivable

as of

July 31, 2019

. The Company continues to engage with the customer to ensure full payment of open balances, and has also received an updated acknowledgment of the outstanding balances and assurances of payment from the customer. However, if the Company’s efforts to collect on this account are

not

successful in fiscal

2019

, then the Company

may

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

For the

three

months ended

July 31, 2019

and

2018,

 

no

individual customer accounted for more than 

10%

 of the Company’s consolidated net sales and

one

customer accounted for

13%

of the Company's consolidated net sales. For the

six

months ended

July 31, 2019

and

2018,

 

no

 individual customer accounted for more than

10%

 of the Company’s consolidated net sales, and

two

customers accounted for approximately

23%

of the Company's consolidated net sales. 

At 

July 31, 2019

and

January 31, 2019

, 

three

customers collectively accounted for

29.3%

 and 

39.4%

of the Company's accounts receivable, respectively.