Note 5 - Significant Risks and Uncertainties

3 Months Ended

Sep. 30, 2019

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, 2019

and

2018,

approximately

91%

and

89%

of consolidated net sales, respectively, were derived from

two

customers. These

two

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

66%

and

29%

and

61%

and

29%

in the

three

months ended

September 30, 2019

and

2018,

respectively. Accounts receivable from these

two

major customers represented approximately

87%

and

88%

of total net accounts receivable as of

September 30

and

June 30, 2019,

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

72%

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.