Note 5 - Significant Risks and Uncertainties

6 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

5.

Significant Risks and Uncertainties

(a) Major Customers.

For the

three

months ended

December 31, 2017

and

2016,

approximately

91%

and

92%,

respectively, of consolidated net sales, were derived from

two

customers. These

two

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

79

% and

16

% and

60%

and

35%

of this Segment’s net sales in the

three

months ended

December 31, 2017

and

2016,

respectively.  Two other customers in the Branded Nutraceutical Segment, while

not

significant customers of the Company’s consolidated net sales, each represented approximately

34%

 of net sales in the

three

months ended December

31,

2017,

and

one

customer represented approximatley

53%

of net sales in the

three

months ended

December 31, 2016

, of the Branded Nutraceutical Segment.

For the

six

months ended

December 31, 2017

and

2016,

approximately

91%

and

92%,

respectively, of consolidated net sales, were derived from

two

customers. These

two

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

71

% and

23

% and

54%

and

42%

of this Segment’s net sales in the

six

months ended

December 31, 2017

and

2016,

respectively. 

Accounts receivable from these

two

major customers represented approximately

90%

and

61%

of total net accounts receivable as of

December 31

and

June 30, 2017,

respectively. 

Two other customers in the Branded Nutraceutical Segment, while

not

significant customers of the Company’s consolidated net sales, represented approximately

30%

and

29

% and

57%

and

none

of net sales of the Branded Nutraceutical Segment in the

six

months ended

December 31, 2017

and

2016,

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

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.