Note 5 - Significant Risks and Uncertainties

3 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

5. Significant Risks and Uncertainties

(

a

) Major Customers.

For the three months ended September 30, 2016 and 2015, approximately 91% and 87%, respectively of consolidated net sales, were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represent approximately 48% and 47% each of this Segment’s net sales in the three months ended September 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 67% and 77% of net sales in the three months ended September 30, 2016 and 2015, respectively, of the Branded Nutraceutical Segment. Accounts receivable from these two major customers represented approximately 87% of total net accounts receivable as of September 30 and June 30, 2016.  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 66% 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.