Note 5 - Significant Risks and Uncertainties

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

5.

Significant Risks and Uncertainties

(

a

) Major Customers

.

For the

three

and

nine

months ended

March 31, 2019

and

2018,

approximately

92%

and

91%

of consolidated net sales, respectively, were derived from

two

customers. These

two

customers are in the Company’s Contract Manufacturing Segment and net sales to these

two

customers represented approximately

72%

and

22%

in the

three

months ended

March 31, 2019

and

74%

and

21%

of net sales in the

three

months ended

March 31, 2018,

respectively and approximately

71%

and

24%

in the

nine

months ended

March 31, 2019

and

72%

and

22%

of net sales in the

nine

months ended

March 31, 2018,

respectively. Accounts receivable from these

two

major customers represented approximately

92%

and

87%

of total net accounts receivable as of

March 31, 2019

and

June 30, 2018,

respectively. The loss of any of these customers could have an adverse effect on the Company’s operations. Major customers are those customers who account for more than

10%

of net sales.

(

b

) Other Business Risks.

Approximately

72%

of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed on

September 1, 2018

and will expire on

August 31, 2021.