Note 9 - Significant Risks and Uncertainties

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

9

. Significant Risks and Uncertainties

(a)

Concentrations of Credit Risk-Cash.

The Company maintains balances at several financial institutions. Deposits at each institution are insured by the Federal Deposit Insurance Corporation up to

$250.

As of

June 30, 2019,

the Company had

$166

in uninsured deposits at these financial institutions.

(b) Concentrations of Credit Risk-Receivables.

The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowances is limited. The Company does

not

require collateral in relation to its trade accounts receivable credit risk.

(c) Major Customers.

For each of the fiscal years ended

June 30, 2019

and

2018,

approximately

91%

of consolidated net sales, were derived from

two

customers. These

two

customers are in the Company’s Contract Manufacturing Segment and represent approximately

69%

and

26%

of this segment’s net sales in each of the fiscal years ended

June 30, 2019

and

2018.

Accounts receivable from these

two

major customers represented approximately

88%

and

87%

of total net accounts receivable as of

June 30, 2019

and

2018,

respectively. Two other customers in the Other Nutraceutical Segment, while

not

significant customers of the Company’s consolidated net sales, represented approximately

15%

and

12%

and

10%

and

5%

of net sales of the Other Nutraceutical Segment in the fiscal years ended

June 30, 2019

and

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.

(d) Business Risks.

The Company insures its business and assets against insurable risks, to the extent that it deems appropriate, based upon an analysis of the relative risks and costs. The Company believes that the risk of loss from non-insurable events would

not

have a material adverse effect on the Company’s operations as a whole.

The raw materials used by the Company are primarily commodities and agricultural-based products. Raw materials used by the Company in the manufacture of its nutraceutical products are purchased from independent suppliers. Raw materials are available from numerous sources and the Company believes that it will continue to obtain adequate supplies.

Approximately

71%

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

September 1, 2018

and will expire on

August 31, 2022.