NOTE 2 – ACCOUNTS RECEIVABLE

We estimate credit loss reserves for accounts receivable on an individual receivable basis. A specific allowance is established based on expected future cash flows and the financial condition of the debtor. We charge off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due. We consider any balance unpaid after the contract payment period to be past due.

Fees are collected in arrears resulting in accounts receivable, net – unbilled and are recorded as accrued revenue at the end of each month. There are $43,818 and $32,526 in accounts receivable net of $1,116 and $887 allowances at April 30, 2026 and January 31, 2026, respectively.