CONCENTRATIONS |
12 Months Ended |
|---|---|
Jun. 30, 2026 | |
| CONCENTRATIONS [Abstract] | |
| CONCENTRATIONS | 18. CONCENTRATIONS
In the years ended June 30, 2026 and 2025, the Company’s largest concentration of sales came from DTC through the Amazon portal and were approximately 22% and 19% of net sales in fiscal year 2026 and 2025, respectively. The five largest customers of the Company accounted for approximately 49% of net sales in fiscal year 2026 and 50% in fiscal year 2025.
The two customers with individual accounts receivable balances greater than 10% as of June 30, 2026 were Amazon Vendor Central and Ingram Micro. As of June 30, 2026 and 2025, accounts receivable from Amazon Vendor Central represented 20% and 11% of total trade accounts receivable, respectively, while Ingram Micro accounts receivable represented 11% and 13%, respectively. Access Catalog accounts receivable as of June 30, 2026 and 2025 was less than 10% and 16%, respectively. The majority of international customers, outside of Canada, purchase products on a cash against documents or cash in advance basis. Approximately 2% and 5% of the Company's trade accounts receivable at June 30, 2026 and 2025, respectively, were foreign receivables denominated in U.S. dollars.
The Company uses contract manufacturing facilities in the People’s Republic of China and Taiwan. The majority of the contract manufacturing was done by two vendors with one vendor representing approximately 71% and 68% of the manufacturing costs in fiscal years 2026 and 2025, respectively. 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. |