Note 5 - Significant Risks and Uncertainties

3 Months Ended

Sep. 30, 2018

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, 2018

and

2017,

approximately

89%

and

91%

of consolidated net sales, respectively, were derived from

two

customers. These

two

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

61%

and

29%

and

63%

and

32%

in the

three

months ended

September 30, 2018

and

2017,

respectively. Accounts receivable from these

two

major customers represented approximately

89%

and

87%

of total net accounts receivable as of

September 30

and

June 30, 2018,

respectively.  The loss of any of these customers could have an adverse effect on the Company’s operations. Major customers are those customers who account for more than

10%

of net sales.

(

b

) Other Business Risks.

Approximately

67%

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, 2018

and will expire on

August 31, 2021.