Note 16 - Concentrations

12 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

16. CONCENTRATIONS

The Company's sales to its largest single customer, Wal-Mart, were approximately

18%

 and

18%

 of net sales in fiscal year

2020

 and

2019

, respectively.  Amazon, the

second

largest single customer, was approximately 

11%

 and 

7%

 of net sales in fiscal year 

2020

 and 

2019

, respectively.   The

five

largest customers of the Company (including Wal-Mart and Amazon in both years) accounted for approximately

48%

 and

47%

 of net sales in fiscal years 

2020

 and

2019

, respectively.  Accounts receivable from Wal-

Mar

t as of 

June 30,

2020

 and

June 

30,

2019

, represented approximately

8%

 and

33%

 of trade account receivables, respectively. Amazon accounts receivable as of

June 30, 

2020

 and

June 30, 

2019

, were 

17%

 and 

17%

 of trade accounts receivables, respectively. The majority of international customers, outside of Canada, purchase products on a cash against documents or cash in advance basis. Approximately

11%

 and

10%

 of the Company's trade accounts receivable at 

June 30,

2020

 and

2019

, were foreign receivables denominated in U.S. dollars.

The Company uses contract manufacturing facilities in the People's Republic of China. The majority of the contract manufacturing is done by

four

vendors with

one

vendor representing approximately 

70%

 of the manufacturing costs.  The Company has a long-term relationship with this vendor.  However, increased costs from the vendor or an interruption of supply from this vendor could have a material adverse effect on the Company's profit margins and profitability.