Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Concentrations

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Note 7 - Concentrations
 9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
7
- CONCENTRATIONS
 
Credit Risk
 
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and unsecured trade accounts receivable. The Company maintains cash balances at a financial institution in San Diego, California. Our cash balance at this institution is secured by the Federal Deposit Insurance Corporation up to
$250,000.
The Company has
not
experienced any losses in such accounts. Management believes that the Company is
not
exposed to any significant credit risk with respect to its cash.
 
Customer Concentrations
 
We had certain customers whose revenue individually represented
10%
or more of our total revenue, or whose accounts receivable balances individually represented
10%
or more of our total accounts receivable, as follows:
 
During the
three
and
nine
months ended
March 31, 2018,
two
customers accounted for
92%
and
85%
of revenue, respectively. As of
March 31, 2018
and
June 30, 2017,
two
customer accounted for
91%
and
five
customers accounted for
91%
of accounts receivable, respectively.
 
During the
three
months ended
March 31, 2017,
four
customers accounted for
69%
and
three
customers accounted for
58%
of revenue, respectively.
 
 
Suppliers/Vendor Concentrations
 
We obtain many of the components and supplies included in our products from a small group of suppliers. During the
three
and
nine
months ended
March 31, 2018
we had
four
suppliers who accounted for more than
10%
of our total inventory purchases on an individual basis or approximately
65%
and
57%,
respectively, in the aggregate.
 
During the
three
months ended
March 31, 2017
we had
two
suppliers who accounted for more than
10%
of our total inventory purchases on an individual basis or approximately
54%
in the aggregate. During the
nine
months ended
March 31, 2017
we had
three
suppliers who accounted for more than
10%
of our total inventory purchases on an individual basis or approximately
60%
in the aggregate.