Note 5 - Significant Risks and Uncertainties |
3 Months Ended |
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Sep. 30, 2026 | |
| Notes to Financial Statements | |
| Concentration Risk Disclosure [Text Block] |
Note 5. Significant Risks and Uncertainties
(a) Major Customers. For the three months ended September 30, 2026 and 2025, approximately 88% and 87% of consolidated net sales, respectively, were derived from customers. These customers are in the Company’s Contract Manufacturing Segment and represented approximately 65% and 26% and 71% and 20% in the three months ended September 30, 2026 and 2025, respectively. Accounts receivable from these major customers represented approximately 78% and 81% of total net accounts receivable as of September 30, 2026 and June 30, 2026, respectively. other different customers in the Other Business Lines Segment, while not significant customers of the Company’s consolidated net sales, represented approximately 36%, 19% and 14% and 26%, 24% and 14%, respectively, of net sales of the Other Business Lines Segment in the three months ended September 30, 2026 and 2025, respectively.
The loss of any of these customers could have an adverse effect on the Company’s operations. Major customers are those customers who account for more than 10% of net sales.
(b) Other Business Risks. As of September 30, 2026, approximately 77% of the Company’s employees are covered by a union contract and are employed in its New Jersey facilities. The contract was renewed effective September 1, 2022 and will expire on November 30, 2026, as extended on July 21, 2026 and September 29, 2026 from an original expiration date of August 31, 2026.
The Company has seen a negative impact in our margins due to inflation, tariffs and to a lesser extent, tightened labor markets as we strive to increase prices to our customers as our operating costs increase. We may not be able to timely increase our selling prices to our customers resulting from price increases from our suppliers due to various economic factors, including tariffs and other inflationary costs, labor and shipping costs and our own increases in shipping, labor and other operating costs. Our results of operations may also be affected by economic conditions, including tariffs and other inflationary pressures, that can impact consumer disposable income levels and spending habits, thereby reducing the orders we may receive from our significant customers.
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