Note B - Inventories, Net

9 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

B. Inventories, net

Inventories, net consisted of the following (in thousands):

	March 31, 2021			June 30, 2020
Raw materials	$	23,093		$	20,863
Work in progress		3,998			3,447
Finished goods		3,110			4,936
Reserve		(1,113	)		(1,274	)
	$	29,088		$	27,972

The inventory reserve includes

$0.5

million as of

March 31, 2021

and

$1.0

million as of

June 30, 2020

related to

one

of our former customers, Kaged Muscle. We continue working with this former customer and their replacement manufacturer, including the transfer of inventory items we hold specific to this customer. However, due to the uncertainty regarding the future operations of this former customer, we recorded a reserve against inventory specific to this customer equal to the estimated net realizable value of those items. Since establishing the reserve, we have reduced the reserve due to amounts purchased by the former customer and their new contract manufacturer. During the

three

months ended

March 31, 2021,

we reduced our inventory reserve related to this customer by

$50,000.

During the

nine

months ended

March 31, 2021,

we reduced our inventory reserve related to this customer by

$0.5

million.