COMMITMENT AND CONTINGENCIES

12 Months Ended

Jun. 30, 2018

During the year ended June 30, 2005, The Company entered into a sales and leaseback transaction with a related party. The Company sold various buildings at the corporate headquarters which house its manufacturing plants, executive offices and other buildings for $600,000 in cash. The Company simultaneously entered into a commercial lease agreement with the related party whereby the Company is committed to lease back these same properties for $6,800 per month over a ten-year term expiring December 31, 2014. On July 1, 2015 a new lease was entered into with the related party. This lease terms have a term of five years and the monthly rental is $5,500 in cash, in addition the company issued common stock as part of the transaction, this portion of the lease is covered in NOTE 9.

			Amortization of
	Payments in cash		Contra equity account
Fiscal year end June 30, 2019		66,000		312,000
Fiscal year end June 30,2020		66,000		312,000
Total commitments	$	132,000	$	624,000

At June 30, 2018 and 2017, the Company had the following customer concentrations:

	Sales					Accounts Receivable
	2018		2017			2018			2017
Customer A	*			14	%		*			14	%
Customer B	17	%		12	%		15	%		15	%
Customer C	*			*			13	%		16	%
Customer D	*			*			*			13	%

*Amounts to less than 10%