Business Segments

9 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Business Segments

NOTE 16. BUSINESS SEGMENTS 

The Company’s management reviews the results of its operations by the following three business segments:

· Direct includes product sales through our four e-commerce sites and our single retail store;

· Wholesale includes branded products sold to retailers and distributors, and products purchased for resale sold to retailers and mass merchants. The Wholesale category also includes contract manufacturing services, which consists of specialty items that are manufactured in small quantities for certain customers, and which, to date, has not been a material part of our business; and

· Other consists principally of shipping and handling fees and costs derived from our Direct business and fulfillment service fees.

For the three and nine months ended March 31, 2020, sales to and through Amazon accounted for 39% and 36% of our net sales, respectively. The following is a summary of sales results for the Direct, Wholesale, and Other channels.

	Three Months Ended (unaudited)
	March 31, 2020			March 31, 2019
(in thousands)
Net Sales:
Direct	$	1,068		$	1,252
Wholesale		2,889			2,982
Other		75			75
Total Net Sales	$	4,032		$	4,309
Gross Profit:
Direct	$	482		$	625
Wholesale		775			864
Other		(189	)		(239	)
Total Gross Profit	$	1,068		$	1,250
	Nine Months Ended (unaudited)
	March 31, 2020			March 31, 2019
(in thousands)
Net Sales:
Direct	$	3,489		$	3,848
Wholesale		9,185			8,914
Other		232			240
Total Net Sales	$	12,906		$	13,002
Gross Profit:
Direct	$	1,684		$	1,796
Wholesale		2,596			2,448
Other		(556	)		(685	)
Total Gross Profit	$	3,724		$	3,559