Note B - Inventories, Net

3 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

B. Inventories, net

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

	September 3 0 , 2020			June 30, 20 20
Raw materials	$	26,507		$	20,863
Work in progress		6,111			3,447
Finished goods		3,926			4,936
Reserve		(1,379	)		(1,274	)
	$	35,165		$	27,972

The inventory reserve includes

$0.8

million as of

September 30, 2020

and

$1.0

million as of

June 30, 2020

related to

one

of our former customers, Kaged Muscle. We are working with this former customer 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. During the

three

months ended

September 30, 2020

our inventory reserve related to this customer was reduced by

$0.2

million due to amounts purchased by the customer and their new contract manufacturer.