Note 17 - Concentrations

12 Months Ended

Jun. 30, 2019

Concentration Risk Disclosure [Text Block]

17.	CONCENTRATIONS

The Company’s sales to its largest single customer, Wal-Mart, were approximately

18%

and

21%

of net sales in fiscal year

2019

and

2018

, respectively. The Company is dependent upon its ability to retain a base of retailers and distributors to sell the Company’s line of products. Loss of retailers and distributors means loss of product placement. The Company has broad distribution across many channels including specialty stores, mass merchants, and electronics stores. Management believes that any loss of revenues would be partially offset by a corresponding decrease, on a percentage basis, in expenses, thereby partially reducing the impact on the Company’s income from operations. The

five

largest customers of the Company (including Wal-Mart in both years) accounted for approximately

45%

and

47%

of net sales in fiscal years

2019

and

2018

, respectively. Accounts receivable from Wal-Mart as of

June 30,

2019

and

June

30,

2018

, represented approximately

33%

and

34%

of trade account receivables, respectively. The majority of international customers, outside of Canada, purchase products on a cash against documents or cash in advance basis. Approximately

10%

and

26%

of the Company's trade accounts receivable at

June 30,

2019

and

2018

, were foreign receivables denominated in U.S. dollars.

The Company uses contract manufacturing facilities in the People’s Republic of China. The majority of the contract manufacturing is done by

four

vendors with

one

vendor representing approximately

75%

of the manufacturing costs. The Company has a long-term relationship with this vendor. However, increased costs from the vendor or an interruption of supply from this vendor could have a material adverse effect on the Company's profit margins and profitability.