Note 5 - Significant Risks and Uncertainties

3 Months Ended

Sep. 30, 2017

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, 2017

and

2016,

approximately

91%

in each period of consolidated net sales, were derived from

two

customers. These

two

customers are in the Company’s Contract Manufacturing Segment and represent approximately

63%

and

32%

in the

three

months ended

September 30, 2017

and

48%

for each of these

two

major customers in the

three

months ended

September 30, 2016.

Accounts receivable from these

two

major customers represented approximately

88%

and

61%

of total net accounts receivable as of

September 30

and

June 30, 2017,

respectively. A

third

customer in the Branded Nutraceutical Segment, while

not

a significant customer of the Company

’s consolidated net sales, represented approximately

10%

and

67%

of net sales in the

three

months ended

September 30, 2017

and

2016,

respectively, of the Branded Nutraceutical Segment.

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.