Note 10 - Significant Risks and Uncertainties

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 1

0

. Significant Risks and Uncertainties

(a)

Concentrations of Credit Risk-Cash.

The Company maintains balances at several financial institutions. Deposits at each institution are insured by the Federal Deposit Insurance Corporation up to $250. As of June 30, 2016, the Company had $123 of uninsured deposits at these financial institutions.

(b) Concentrations of Credit Risk-Receivables.

The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowances is limited. The Company does not require collateral in relation to its trade accounts receivable credit risk.

(c) Major Customers.

For the fiscal years ended June 30, 2016 and 2015 approximately 90% and 84%, respectively of consolidated net sales, were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represent approximately 39% and 56% and 49% and 43% of this Segment’s net sales in the fiscal years ended June 30, 2016 and 2015, respectively. A third customer in the Branded Nutraceutical Segment, while not a significant customer of the Company’s consolidated net sales represented approximately 51% and 77% of net sales in the fiscal years ended June 30, 2016 and 2015, respectively of the Branded Nutraceutical Segment. Accounts receivable from these customers represented approximately 87% and 83% of total net accounts receivable as of June 30, 2016 and 2015, respectively. The loss of any of these major 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.

(d) Business Risks.

The Company insures its business and assets against insurable risks, to the extent that it deems appropriate, based upon an analysis of the relative risks and costs. The Company believes that the risk of loss from non-insurable events would not have a material adverse effect on the Company’s operations as a whole.

The raw materials used by the Company are primarily commodities and agricultural-based products. Raw materials used by the Company in the manufacture of its nutraceutical products are purchased from independent suppliers. Raw materials are available from numerous sources and the Company believes that it will continue to obtain adequate supplies.

Approximately

63% 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.