Note 5 - Significant Risks and Uncertainties	9 Months Ended
Mar. 31, 2024
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, 2024 and 2023, approximately 90% and 88%, respectively, of consolidated net sales were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represented approximately 72% and 20% and 68% and 23% in the three months ended March 31, 2024 and 2023, respectively of the Contract Manufacturing Segment net sales. In the nine months ended March 31, 2024 and 2023, approximately 90% and 88% of consolidated net sales, respectively, were derived from the same two customers and net sales to these two customers represented approximately 73% and 21% in the nine months ended March 31, 2024 and 67% and 26% of net sales in the nine months ended March 31, 2023, respectively of the Contract Manufacturing Segment net sales. Accounts receivable from these two major customers represented approximately 86% and 84% of total net accounts receivable as of March 31 2024 and June 30, 2023, respectively. Two other customers in the other Nutraceutical Segment, while not significant customers of the Company’s consolidated net sales, represented approximately 40% and 23% and 47% and 27% of net sales of the Other Nutraceutical Segment in the three months ended March 31, 2024 and 2023, and 40% and 18% and 61% and 11%, of net sales of the Other Nutraceutical Segment in the nine months ended March 31, 2024 and 2023, 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 77% 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. The Company has seen a negative impact in 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. Currently, the drought in Panama is slowing down shipping container traffic, contributing to continued shipping delays in the receipt of certain raw materials used in the Company’s manufacturing process. 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. Additionally, the current Israel-Hamas war in the Middle East could negatively impact the sales and margins of the Company. Certain customers sell into Israel and the Company sources certain raw materials from Israel. If the Israel-Hamas war carries on for a significant time frame, it could have a negative impact on the sales and margins of the Company if the Company is unable to replace these sales with other sales and/or obtain the same raw materials at substantially the same price as currently paid.

Note 5 - Significant Risks and Uncertainties

9 Months Ended

Mar. 31, 2024

Concentration Risk Disclosure [Text Block]

Note 5. Significant Risks and Uncertainties

(a) Major Customers. In the three months ended March 31, 2024 and 2023, approximately 90% and 88%, respectively, of consolidated net sales were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represented approximately 72% and 20% and 68% and 23% in the three months ended March 31, 2024 and 2023, respectively of the Contract Manufacturing Segment net sales. In the nine months ended March 31, 2024 and 2023, approximately 90% and 88% of consolidated net sales, respectively, were derived from the same two customers and net sales to these two customers represented approximately 73% and 21% in the nine months ended March 31, 2024 and 67% and 26% of net sales in the nine months ended March 31, 2023, respectively of the Contract Manufacturing Segment net sales. Accounts receivable from these two major customers represented approximately 86% and 84% of total net accounts receivable as of March 31 2024 and June 30, 2023, respectively. Two other customers in the other Nutraceutical Segment, while not significant customers of the Company’s consolidated net sales, represented approximately 40% and 23% and 47% and 27% of net sales of the Other Nutraceutical Segment in the three months ended March 31, 2024 and 2023, and 40% and 18% and 61% and 11%, of net sales of the Other Nutraceutical Segment in the nine months ended March 31, 2024 and 2023, 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 77% 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.

The Company has seen a negative impact in 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. Currently, the drought in Panama is slowing down shipping container traffic, contributing to continued shipping delays in the receipt of certain raw materials used in the Company’s manufacturing process.

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.

Additionally, the current Israel-Hamas war in the Middle East could negatively impact the sales and margins of the Company. Certain customers sell into Israel and the Company sources certain raw materials from Israel. If the Israel-Hamas war carries on for a significant time frame, it could have a negative impact on the sales and margins of the Company if the Company is unable to replace these sales with other sales and/or obtain the same raw materials at substantially the same price as currently paid.