Note 5 - Significant Risks and Uncertainties	9 Months Ended
Mar. 31, 2023
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	*Note 5. Significant Risks and Uncertainties* *(a) Major Customers.* In the three months ended March 31, 2023 and 2022, approximately 88% and 92%, respectively, of consolidated net sales were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represented approximately 68% and 23% and 70% and 24% in the three months ended March 31, 2023 and 2022, respectively of the Contract Manufacturing Segment net sales. In the nine months ended March 31, 2023 and 2022, approximately 88% and 91% of consolidated net sales, respectively, were derived from the same two customers and net sales to these two customers represented approximately 67% and 26% in the nine months ended March 31, 2023 and 69% and 24% of net sales in the nine months ended March 31, 2022, respectively of the Contract Manufacturing Segment net sales. Accounts receivable from these two major customers represented approximately 82% and 70% of total net accounts receivable as of March 31, 2023 and June 30, 2022, respectively. One other customer and a different second customer in the other Nutraceutical Segment, while not significant customers of the Company’s consolidated net sales, represented approximately 47% and 27% and 45% and 11%, respectively, of net sales of the Other Nutraceutical Segment in the three months ended March 31, 2023 and 2022, and 61% and 11% and 42%, and 28%, of net sales of the Other Nutraceutical Segment in the nine months ended March 31, 2023 and 2022, 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 73% of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed effective September 1, 2022 and will expire on August 31, 2026. While the Company hasn’t, to date, seen a significant negative impact in its margins resulting from the coronavirus outbreak, it is experiencing a negative impact on its margins due to inflation and tightened labor markets. The Company may not be able to timely increase its selling prices to its customer resulting from price increases from its suppliers due to various economic factors, including inflation, labor and shipping costs and its own increases in shipping, labor and other operating costs. The Company’s results of operations may also be affected by economic conditions, including inflationary pressures, that can impact consumer disposable income levels and spending habits, thereby reducing the orders it may receive from the Company’s significant customers. The Company continues to experience minimal supply chain disruptions relating to fuel refinery and transportation issues as it pertains to shipping. These issues first arose as result of the COVID-19 pandemic and other geo-political events. The significant outbreak of this contagious disease in the human population has resulted in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could affect demand for the Company’s products and impact the Company’s operating results. During the first quarter of calendar 2022, the war in Ukraine affected the Company’s customer’s business operations in Ukraine and Russia, resulting in the cancelation of some future orders. The war resulted in the imposition of sanctions by the United States, the United Kingdom, and the European Union, that affect the cross-border operations of businesses operating in Russia. In addition, many multinational companies ceased or suspended their operations in Russia. Therefore, the ability to continue operations in Russia by the Company’s customers is uncertain. Also, there may be a shortage of Sunflower Oil products in the near future and this may cause delays in production of certain raw materials and may require reformulation of products.

Note 5 - Significant Risks and Uncertainties

9 Months Ended

Mar. 31, 2023

Concentration Risk Disclosure [Text Block]

Note 5. Significant Risks and Uncertainties

(a) Major Customers. In the three months ended March 31, 2023 and 2022, approximately 88% and 92%, respectively, of consolidated net sales were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represented approximately 68% and 23% and 70% and 24% in the three months ended March 31, 2023 and 2022, respectively of the Contract Manufacturing Segment net sales. In the nine months ended March 31, 2023 and 2022, approximately 88% and 91% of consolidated net sales, respectively, were derived from the same two customers and net sales to these two customers represented approximately 67% and 26% in the nine months ended March 31, 2023 and 69% and 24% of net sales in the nine months ended March 31, 2022, respectively of the Contract Manufacturing Segment net sales. Accounts receivable from these two major customers represented approximately 82% and 70% of total net accounts receivable as of March 31, 2023 and June 30, 2022, respectively. One other customer and a different second customer in the other Nutraceutical Segment, while not significant customers of the Company’s consolidated net sales, represented approximately 47% and 27% and 45% and 11%, respectively, of net sales of the Other Nutraceutical Segment in the three months ended March 31, 2023 and 2022, and 61% and 11% and 42%, and 28%, of net sales of the Other Nutraceutical Segment in the nine months ended March 31, 2023 and 2022, 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 73% of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed effective September 1, 2022 and will expire on August 31, 2026.

While the Company hasn’t, to date, seen a significant negative impact in its margins resulting from the coronavirus outbreak, it is experiencing a negative impact on its margins due to inflation and tightened labor markets. The Company may not be able to timely increase its selling prices to its customer resulting from price increases from its suppliers due to various economic factors, including inflation, labor and shipping costs and its own increases in shipping, labor and other operating costs. The Company’s results of operations may also be affected by economic conditions, including inflationary pressures, that can impact consumer disposable income levels and spending habits, thereby reducing the orders it may receive from the Company’s significant customers.

The Company continues to experience minimal supply chain disruptions relating to fuel refinery and transportation issues as it pertains to shipping. These issues first arose as result of the COVID-19 pandemic and other geo-political events. The significant outbreak of this contagious disease in the human population has resulted in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could affect demand for the Company’s products and impact the Company’s operating results.

During the first quarter of calendar 2022, the war in Ukraine affected the Company’s customer’s business operations in Ukraine and Russia, resulting in the cancelation of some future orders. The war resulted in the imposition of sanctions by the United States, the United Kingdom, and the European Union, that affect the cross-border operations of businesses operating in Russia. In addition, many multinational companies ceased or suspended their operations in Russia. Therefore, the ability to continue operations in Russia by the Company’s customers is uncertain. Also, there may be a shortage of Sunflower Oil products in the near future and this may cause delays in production of certain raw materials and may require reformulation of products.