Note 1. Business

12 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1. Business

Integrated BioPharma, Inc., a Delaware corporation (together with its subsidiaries, the “Company”), is engaged primarily in manufacturing, distributing, marketing and sales of vitamins, nutritional supplements and herbal products.  The Company’s customers are located primarily in the United States, Luxembourg and Canada. The Company was previously known as Integrated Health Technologies, Inc. and, prior to that, as Chem International, Inc. The Company was reincorporated in its current form in Delaware in 1995. The Company continues to do business as Chem International, Inc. with certain of its customers and certain vendors.

The Company’s nutraceutical business includes: InB:Manhattan Drug Company, Inc. (“MDC”), which manufactures vitamins and nutritional supplements for sale to distributors, multilevel marketers and specialized health-care providers; AgroLabs, Inc. (“AgroLabs”), which distributes healthful nutritional products for sale through major mass market, grocery, drug and vitamin retailers,  under the following brands: Naturally Noni, Naturally Pomegranate, Pomegranate with ACAI and Reservatrol, Coconut Water, Naturally Aloe, Aloe Pure, Peaceful Sleep, Green Envy, ACAI Extra, ACAI Immune, ACAI Cleanse, and other products which are being introduced into the market (these are referred to as our branded proprietary nutraceutical business and/or products); and The Vitamin Factory (the “Vitamin Factory”), which sells private label MDC products, as well as our AgroLabs products, through the Internet.

The Company also distributes fine natural chemicals through its wholly-owned subsidiary IHT Health Products, Inc. (“IHT”) and is a distributor of certain raw materials for DSM Nutritional Products, Inc.

Liquidity

The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern. However, the Company has incurred recurring operating losses for six consecutive years including an operating loss of $506 and a net loss of $2.7 million for the year ended June 30, 2012.  Additionally, at June 30, 2011 and through the fourth quarter of the fiscal year ended June 30, 2012, the Notes Payable in the amount of $7.8 million, which matured on November 15, 2009, were in default and our Original CD Note of $4.5 million, which matured in February 2011, was also in default. (See Note 7. Notes Payable and Subordinated Convertible Note Payable – CD Financial, LLC).  These factors raised substantial doubt as to the Company’s ability to continue as a going concern at June 30, 2011 and through the third quarter of the fiscal year ended June 30, 2012.

On June 27, 2012, the Company’s outstanding defaulted debt was refinanced and restructured.  The Company refinanced its debt of $12,605 in the aggregate to (i) a five-year senior credit facility in the amount of $11,727 consisting of $3,677 term loan, a revolving credit facility of $8,000 ($2,696 outstanding as of June 30, 2012) that will mature in June 2017 and (ii) the issuance of the CD Convertible Note in the aggregate amount of $5,350 with a maturity date in July 2017 which replaced the Original CD Note and other promissory notes and other amounts due to CD Financial LLC (“CD Financial”).  (See Note 7. Notes Payable and Subordinated Convertible Note Payable – CD Financial, LLC and Note 8. Senior Credit Facility, Subordinated Convertible Note Payable, net - CD Financial, LLC and other Long Term Debt).  The refinanced debt provides for scheduled principal payments of $44 per month in the fiscal year ending June 30, 2013 and substantially reduces its interest expense through lower interest rates. The Company believes that these steps should allow its management to focus on its core businesses with an expectation that the Company will return to profitability.

As of June 30, 2012, we had cash of $145, funds available under the Company’s revolving credit facility of approximately $1,400 and a working capital deficit of $3,519. The Company’s working capital deficit includes (i) $2.7 million outstanding under the Company’s revolving line of credit which is not due until July 2017 but is classified as currently due as a result of a subjective acceleration clause that could cause the advances to become currently due and (ii) $1.0 million in long term debt which is also classified as current due to a prepayment provision which requires the company to sell its investment in iBio, Inc. common stock if the trading price per share falls below a certain level and use the proceeds to repay the term loan.  Furthermore, although the Company had a loss from operations of approximately $0.5 million in the fiscal year ended June 30, 2012, the company incurred approximately $1.1 million in professional and consulting fees related to the default on the Notes Payable, its efforts to sell Agrolabs under the previous Notes Payable forbearance arrangement and other refinancing efforts. After taking into consideration interim results and current projections, management believes that operations, together with the revolving credit facility, will support the Company’s working capital requirements for the fiscal year ending June 30, 2013.