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Note G - Economic Dependency | 9 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Concentration Risk Disclosure [Text Block] | G . Economic Dependency We had substantial net sales to certain customers during the periods shown in the following table. The loss of any of these customers, or a significant decline in (i) sales to these customers, (ii) the growth rate of sales to these customers, or (iii) these customers’ ability to make payments when due, each individually could have a material adverse impact on our net sales and net income. Net sales to any one customer representing 10% or more of the respective period's consolidated net sales were as follows (in thousands):
|  | Three Months Ended March 31, |  |  | Nine Months Ended March 31, |
|  | 20 20 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Customer 1 |  | $ | 9,271 |  |  | $ | 18,731 |  |  | $ | 36,047 |  |  | $ | 58,396 |
Customer 2 |  |  | 7,599 |  |  |  | 7,294 |  |  |  | 17,108 |  |  |  | 17,220 |
|  | $ | 16,870 |  |  | $ | 26,025 |  |  | $ | 53,155 |  |  | $ | 75,616 |
We buy certain products, including beta-alanine, from a limited number of raw material suppliers who meet our quality standards. The loss of any of these suppliers could have a material adverse impact on our net sales and net income. Raw material purchases from any one supplier representing 10% or more of the respective period’s total raw material purchases were as follows (dollars in thousands):
|  | Three Months Ended March 31, |  |  | Nine Months Ended March 31, |
|  | 20 20 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Supplier 1 |  | $ | 1,930 |  |  | (a) |  |  | (a) |  |  | (a) |
Supplier 2 |  | (a) |  |  | (a) |  |  | (a) |  |  |  | 6,312 |
|  | $ | 1,930 |  |  |  | — |  |  | $ | — |  |  |  | 6,312 |
(a) Purchases were less than 10% of the respective period’s total raw material purchases. Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with highly rated financial institutions. Credit risk with respect to receivables is concentrated with two of our largest customers, whose receivable balances collectively represented 65.5% of gross accounts receivable at March 31, 2020 and 59.4% at June 30, 2019. Additionally, amounts due related to our beta-alanine raw material sales were 8.6% of gross accounts receivable at March 31, 2020, and 8.0% of gross accounts receivable at June 30, 2019. As of March 31, 2020, we terminated our ongoing relationship with one customer, Kaged Muscle. We are working with this former customer to deliver the remaining products we completed, and to assist them with their obligations to us, transition to a replacement manufacturer, and the transfer of inventory items we hold specific to this customer. Due to uncertainty regarding the future operations of this former customer as of March 31, 2020, we reserved $3.3M, or 100% of their outstanding accounts receivable balance. Concentrations of credit risk related to the remaining accounts receivable balances are limited due to the number of customers comprising our remaining customer base.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 + Details
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