Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has the following three reportable segments:

•Consumer Products segment: provides finished dietary supplement products that contain the Company's proprietary ingredients directly to consumers as well as to distributors;

•Ingredients segment: develops and commercializes proprietary-based ingredient technologies and supplies these ingredients as raw materials to the manufacturers of consumer products; and,

•Analytical Reference Standards and Services segment: offers the supply of phytochemical reference standards and other research and development services.

The Company’s reportable segments are significant operating segments that offer differentiated services. This structure reflects the Company’s current operational and financial management and provides the best structure to maximize the Company's objectives and investment strategy, while maintaining financial discipline. The Company's Chief Executive Officer, who is its chief operating decision maker (CODM), reviews financial information for each operating segment to evaluate performance and allocate resources. The Company evaluates performance and allocates resources based on reviewing gross margin by reportable segment. The Company's CODM does not review assets by segment in his evaluation and therefore assets by segment are not disclosed below. There are no intersegment sales that require elimination. The “Corporate and other” classification includes corporate items not allocated by the Company to each reportable segment.

The following tables set forth financial information by segment:

Three months ended March 31, 2022	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	14,937	$	1,427	$	895	$	—	$	17,259
Cost of sales	5,252		722		753		—		6,727
Gross profit	9,685		705		142		—		10,532
Operating expenses:
Sales and marketing	8,074		24		139		—		8,237
Research and development	1,002		76		—		—		1,078
General and administrative	—		—		—		8,949		8,949
Operating expenses	9,076		100		139		8,949		18,264
Operating income (loss)	$	609	$	605	$	3	$	(8,949)	$	(7,732)

Three months ended March 31, 2021	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	12,437	$	1,315	$	931	$	—	$	14,683
Cost of sales	4,203		563		683		—		5,449
Gross profit	8,234		752		248		—		9,234
Operating expenses:
Sales and marketing	6,111		10		137		—		6,258
Research and development	718		69		—		—		787
General and administrative	—		—		—		9,551		9,551
Operating expenses	6,829		79		137		9,551		16,596
Operating income (loss)	$	1,405	$	673	$	111	$	(9,551)	$	(7,362)

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by type of goods or services for each of its segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Disaggregated revenues are as follows:

Three Months Ended March 31, 2022	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product	$	14,937	$	—	$	—	$	14,937
Niagen® Ingredient	—		1,131		—		1,131
Subtotal Niagen® Related	$	14,937	$	1,131	$	—	$	16,068
Other Ingredients	—		296		—		296
Reference Standards	—		—		883		883
Consulting and Other	—		—		12		12
Subtotal Other Goods and Services	$	—	$	296	$	895	$	1,191
Total Net Sales	$	14,937	$	1,427	$	895	$	17,259

Three Months Ended March 31, 2021	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product	$	12,437	$	—	$	—	$	12,437
Niagen® Ingredient	—		1,203		—		1,203
Subtotal Niagen® Related	$	12,437	$	1,203	$	—	$	13,640
Other Ingredients	—		112		—		112
Reference Standards	—		—		800		800
Consulting and Other	—		—		131		131
Subtotal Other Goods and Services	$	—	$	112	$	931	$	1,043
Total Net Sales	$	12,437	$	1,315	$	931	$	14,683

Disclosure of Major Customers

Major customers are defined as customers whose sales or trade receivables individually consist of more than ten percent of total sales or total trade receivables, respectively. Percentage of net sales from major customers of the Company’s consumer products segment for the periods indicated were as follows:

	Three Months Ended March 31,
Major Customers	2022		2021
A.S. Watson Group - Related Party	14.8	%	10.6	%

The percentage of the amounts due from major customers to total trade receivables, net for the periods indicated were as follows:

Major Customers	At Mar 31, 2022		At Dec 31, 2021
A.S. Watson Group - Related Party	36.5	%	39.6	%
Persona	10.1	%	10.3	%
Life Extension	*		22.1	%
Amazon Marketplaces	15.0	%	*

* Represents less than 10%