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Business Segments
 3 Months Ended
Apr. 02, 2016
Business Segments  
Business Segments

The Company has following three reportable segments.

 

•Ingredients segment develops and commercializes proprietary-based ingredient technologies and supplies these ingredients to the manufacturers of consumer products in various industries including the nutritional supplement, food and beverage and animal health industries.

 

•Core standards, and contract services segment includes supply of phytochemical reference standards, which are small quantities of plant-based compounds typically used to research an array of potential attributes, reference materials, and related contract services.

 

•Scientific and regulatory consulting segment which consist of providing scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage potential health and regulatory risks.

 

The “Other” classification includes corporate items not allocated by the Company to each reportable segment. Further, there are no intersegment sales that require elimination. The Company evaluates performance and allocates resources based on reviewing gross margin by reportable segment.

 

Three months ended   Core Standards and Scientific and      
April 2, 2016 Ingredients Contract Services Regulatory      
  segment segment Consulting segment Other Total  
             
Net sales  $        4,600,626     $              2,583,666     $                  147,653     $                       -     $         7,331,945     
Cost of sales            2,099,162                     1,671,984                         109,380                              -                3,880,526     
             
Gross profit            2,501,464                        911,682                           38,273                              -                3,451,419     
             
Operating expenses:            
Sales and marketing               331,743                        209,379                             3,600                              -                   544,722     
Research and development               464,072                                    -                                    -                              -                   464,072     
General and administrative                           -                                    -                                    -               1,988,559                1,988,559     
Operating expenses               795,815                        209,379                             3,600               1,988,559                2,997,353     
             
Operating income (loss)  $        1,705,649     $                 702,303     $                    34,673     $      (1,988,559)    $            454,066     

 

Three months ended   Core Standards and Scientific and      
April 4, 2015 Ingredients Contract Services Regulatory      
  segment segment Consulting segment Other Total  
             
Net sales  $        2,680,341     $              2,300,043     $                  280,587     $                       -     $         5,260,971     
Cost of sales            1,603,176                     1,573,784                         156,387                              -                3,333,347     
             
Gross profit            1,077,165                        726,259                         124,200                              -                1,927,624     
             
Operating expenses:            
Sales and marketing               274,624                        310,944                                209                              -                   585,777     
Research and development               121,095                                    -                                    -                              -                   121,095     
General and administrative                           -                                    -                                    -               2,126,836                2,126,836     
Operating expenses               395,719                        310,944                                209               2,126,836                2,833,708     
             
Operating income (loss)  $           681,446     $                 415,315     $                  123,991     $      (2,126,836)    $          (906,084)    

 

    Core Standards and Scientific and      
At April 2, 2016 Ingredients Contract Services Regulatory      
  segment segment Consulting segment Other Total  
             
Total assets  $      9,566,763     $              3,268,647     $                   89,354     $       3,608,972     $     16,533,736     
             
    Core Standards and Scientific and      
At January 2, 2016 Ingredients Contract Services Regulatory      
  segment segment Consulting segment Other Total  
             
Total assets  $      9,105,502     $              3,306,624     $                 111,765     $       6,225,318     $     18,749,209     

  

Disclosure of major customers

 

During the three months ended April 2, 2016, Customer C in our ingredients segment accounted for 27.4% of the Company’s total sales. For the three months ended April 4, 2015, we did not have any customers who accounted for more than 10% of the Company’s total sales.