Note 7 - Significant Risks and Uncertainties

6 Months Ended

Dec. 31, 2011

Concentration Risk Disclosure [Text Block]

Note 7. Significant Risks and Uncertainties

(a) Major Customers. For the three and six months ended December 31, 2011, approximately 81% and 80%, respectively, of total net sales were derived from one customer as compared to approximately 89% and 88% of total net sales derived from two customers in the three and six months ended December 31, 2010, respectively. Accounts receivable as of December 31, 2011 from the one customer represented approximately 54% of total accounts receivable. The loss of this customer would have an adverse affect on the Company’s operations.  Major customers are those customers who account for more than 10% of net sales.

(b) Other Business Risks. Approximately 57% the Company’s employees, located in its New Jersey facility, are covered by a union contract. The contract was renewed in August 2010 for an additional one year term, and was extended in August 2011 to December 31, 2011.  In December 2011, the union verbally agreed to continue operating under the terms of the existing contract until the Company completes the refinancing of its material debt (see Note 6. Debt).