Note 6 - Significant Risks and Uncertainties

3 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 6. Significant Risks and Uncertainties

(a) Major Customers.

For the three months ended September 30, 2015 and 2014, approximately 87% and 81%, respectively of consolidated net sales, were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represent approximately 47% each and 63% and 26% of this Segment’s net sales in the three months ended September 30, 2015 and 2014, respectively. A third customer in the Branded Nutraceutical Segment, while not a significant customer of the Company’s consolidated net sales, represented approximately 77% and 78% of net sales in the three months ended September 30, 2015 and 2014, respectively, of the Branded Nutraceutical Segment. Accounts receivable from these two major customers represented approximately 86% and 83% of total net accounts receivable as of September 30 and June 30, 2015, respectively. The loss of any of these customers could 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 62% of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed on September 1, 2015 and will expire on August 31, 2018.