Note B - Inventories, Net

9 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

B. Inventories, net

Inventories, net consisted of the following (in thousands):

	March 3 1 , 20 20			June 30, 201 9
Raw materials	$	19,042		$	18,322
Work in progress		4,160			3,785
Finished goods		4,789			5,002
Reserve		(1,880	)		(1,106	)
	$	26,111		$	26,003

The inventory reserve as of

March 31, 2020

included a reserve of

$1.0

million related to

one

of our former customers, Kaged Muscle. We are working with this former customer to deliver the remaining products we completed, and to transition to a replacement manufacturer, including the transfer of inventory items we hold specific to this customer. However, due to the uncertainty regarding the future operations of this former customer, we recorded a reserve against inventory specific to this customer equal to the estimated net realizable value of those items. The inventory reserve as of

June 30, 2019,

included a reserve of

$686,000,

related to our

first

generation SR CarnoSyn® powder.