Concentration of Credit Risk - Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents, and accounts receivable.
We maintain our cash and cash equivalents in accounts with a major financial institution in the United States in the form of demand deposits. Deposits in these banks may exceed the amounts of insurance provided on such deposits. No such amounts were at risk as of October 31, 2012 and 2011.
Concentrations of credit risk with respect to trade accounts receivable are limited. We routinely assess the financial strength of customers and, based upon factors concerning credit risk, we establish an allowance for doubtful accounts. As of October 31, 2012 and 2011, based on this assessment, management has not established an allowance for doubtful accounts. Management believes that accounts receivable credit risk exposure is limited.