Note 13 - Business Concentrations and Major Customers

9 Months Ended

Dec. 31, 2012

Concentration Risk Disclosure [Text Block]

Note 13.  Business Concentrations and Major Customers

The Company manufactures and distributes disposable medical products principally to medical product distributors and hospitals located throughout the United States. The Company performs credit evaluations of its customers’ financial condition and does not require collateral. Receivables are generally due within 30 – 90 days. Credit losses relating to customers have historically been minimal and within management’s expectations.

Sales to Owens & Minor, Inc. and Cardinal Health Inc., (the “Distributors”) accounted for approximately 41% and 23% of net sales, respectively for the nine months ended December 31, 2012. Although the Distributors may be deemed in a technical sense to be major purchasers of the Company’s products, they typically serve as a distributor under a purchase order or supply agreement between the end user and the Company and do not make significant purchases for their own account. The Company, therefore, does not believe it is appropriate to categorize the Distributors as customers for the purpose of evaluating concentrations.

A significant portion of the Company’s raw materials are purchased from China. All such purchases are transacted in U.S. dollars. The Company’s financial results, therefore, could be impacted by factors such as foreign currency exchange rates or weak economic conditions in foreign countries in the procurement of such raw materials.