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BASIS OF FINANCIAL STATEMENT PRESENTATION
6 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 BASIS OF FINANCIAL STATEMENT PRESENTATION

 

The accompanying unaudited condensed financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. We believe the disclosures and information presented are adequate to make the information not misleading. These interim condensed financial statements should be read in conjunction with our most recent audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “2021 Annual Report”). Operating results for the fiscal quarter ended December 31, 2021 are not necessarily indicative of the results that may be expected for the current fiscal year ending June 30, 2022.

 

COVID-19 Update

 

Despite our revenue gains the past 2 quarters, the COVID-19 pandemic affected the Company’s overall financial results for the three and six months ended December 31, 2021. We continue to experience supply chain delays and increased costs from our raw material suppliers, many which are being attributed to COVID-19 effects in the marketplace. This has resulted in downward pressure on our Gross Profit margins. We continue to see strong demand for our products from our customers, and we continue to be diligent in minimizing COVID-19 exposure risk in our facility. We have implemented price increases on our tire products where possible to reduce the negative impact of increasing costs.