Business and Credit Concentrations

6 Months Ended

Dec. 31, 2019

Business and Credit Concentrations

Business and Credit Concentrations

NOTE 3 - Business and Credit Concentrations

An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 21% and 19% of the Company’s accounts receivable at December 31, 2019 and June 30, 2019, respectively. Sales to this customer comprised 8% and 10% of net sales in the three and six months ended December 31, 2019, respectively. Sales to this customer comprised 12% and 11% of net sales in the three and six months ended December 31, 2018, respectively. The Company had another customer with an accounts receivable balance that comprised 12% and 11% of the Company’s accounts receivable at December 31, 2019 and June 30, 2019, respectively. Sales to this customer did not exceed 10% of net sales in either of the three or six months ended December 31, 2019 or 2018.