Note 6 - Significant Risks and Uncertainties

6 Months Ended

Dec. 31, 2014

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 6. Significant Risks and Uncertainties

(a) Major Customers.

For the three months ended December 31, 2014 and 2013, approximately 86% and 70%, respectively of consolidated net sales, were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represent approximately 47% and 44% and 71% and 21% of this Segment’s net sales in the three months ended December 31, 2014 and 2013, respectively. A third customer in the Branded Nutraceutical Segment, while not a significant customer of the Company’s consolidated net sales, represented approximately 65% and 76% of net sales in the three months ended December 31, 2014 and 2013, respectively, of the Branded Nutraceutical Segment.

For the six months ended December 31, 2014 and 2013, approximately 83% and 77%, respectively of consolidated net sales, were derived from two customers. These two customers are in the Company’s Contract Manufacturing Segment and represent approximately 54% and 36% and 72% and 18% of this Segment’s net sales in the six months ended December 31, 2014 and 2013, respectively. A third customer in the Branded Nutraceutical Segment, while not a significant customer of the Company’s consolidated net sales, represented approximately 74% and 61% of net sales in the six months ended December 31, 2014 and 2013, respectively, of the Branded Nutraceutical Segment.

Accounts receivable from major customers represented approximately 85% and 74% of total net accounts receivable as of December 31 and June 30, 2014, respectively. The loss of any of these customers could have an adverse affect on the Company’s operations. Major customers are those customers who account for more than 10% of net sales.

(b) Other Business Risks.

Approximately 63% of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed in May 2012 and expires in August 2015.