Business and Credit Concentrations

9 Months Ended

Mar. 31, 2020

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 24% and 19% of the Company’s accounts receivable at March 31, 2020 and June 30, 2019, respectively. Sales to this customer comprised 12% and 14% of net sales in the three months ended March 31, 2020 and 2019, respectively. Sales to this customer comprised 11% and 12% of net sales in the nine months ended March 31, 2020 and 2019, respectively. The Company had another customer with an accounts receivable balance that comprised 13% of the Company’s accounts receivable balance at March 31, 2020. The customer’s accounts receivable balance did not exceed 10% at June 30, 2019. Sales to this customer comprised 12% of net sales during the three months ended March 31, 2020. Sales to this customer did not exceed 10% of net sales in either the three months ended March 31, 2019 or the nine months ended March 31, 2020 and 2019.