XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.2
Business Segments
 6 Months Ended
Jun. 30, 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 June 30, 2022Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$14,520 $1,464 $748 $— $16,732 
Cost of sales5,218 681 791 — 6,690 
Gross profit (loss) 9,302 783 (43)— 10,042 
Operating expenses:
Sales and marketing7,864 — 157 — 8,021 
Research and development1,113 132 — — 1,245 
General and administrative— — — 7,163 7,163 
Operating expenses8,977 132 157 7,163 16,429 
Operating income (loss)$325 $651 $(200)$(7,163)$(6,387)
Six Months Ended June 30, 2022Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$29,457 $2,891 $1,643 $— $33,991 
Cost of sales10,470 1,403 1,544 — 13,417 
Gross profit18,987 1,488 99 — 20,574 
Operating expenses:
Sales and marketing15,938 24 296 — 16,258 
Research and development2,115 208 — — 2,323 
General and administrative— — — 16,112 16,112 
Operating expenses18,053 232 296 16,112 34,693 
Operating income (loss)$934 $1,256 $(197)$(16,112)$(14,119)
Three months ended June 30, 2021Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$15,396 $1,504 $799 $— $17,699 
Cost of sales5,547 675 667 — 6,889 
Gross profit9,849 829 132 — 10,810 
Operating expenses:
Sales and marketing6,190 1 41 — 6,232 
Research and development926 78 — — 1,004 
General and administrative— — — 9,128 9,128 
Operating expenses7,116 79 41 9,128 16,364 
Operating income (loss)$2,733 $750 $91 $(9,128)$(5,554)
Six Months Ended June 30, 2021Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$27,833 $2,819 $1,730 $— $32,382 
Cost of sales9,750 1,238 1,350 — 12,338 
Gross profit18,083 1,581 380 — 20,044 
Operating expenses:
Sales and marketing12,301 11 178 — 12,490 
Research and development1,644 147 — — 1,791 
General and administrative— — — 18,679 18,679 
Operating expenses13,945 158 178 18,679 32,960 
Operating income (loss)$4,138 $1,423 $202 $(18,679)$(12,916)
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 June 30, 2022Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$14,520 $— $— $14,520 
Niagen® Ingredient
— 1,454 — 1,454 
Subtotal Niagen® Related$14,520 $1,454 $— $15,974 
Other Ingredients— 10 — 10 
Reference Standards— — 704 704 
Consulting and Other— — 44 44 
Subtotal Other Goods and Services$— $10 $748 $758 
Total Net Sales$14,520 $1,464 $748 $16,732 
Six Months Ended June 30, 2022Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$29,457 $— $— $29,457 
Niagen® Ingredient
— 2,585 — 2,585 
Subtotal Niagen® Related$29,457 $2,585 $— $32,042 
Other Ingredients— 306 — 306 
Reference Standards— — 1,587 1,587 
Consulting and Other— — 56 56 
Subtotal Other Goods and Services$— $306 $1,643 $1,949 
Total Net Sales$29,457 $2,891 $1,643 $33,991 
Three Months Ended June 30, 2021Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$15,396 $— $— $15,396 
Niagen® Ingredient
— 1,281 — 1,281 
Subtotal Niagen® Related$15,396 $1,281 $— $16,677 
Other Ingredients— 223 — 223 
Reference Standards— — 695 695 
Consulting and Other— — 104 104 
Subtotal Other Goods and Services$— $223 $799 $1,022 
Total Net Sales$15,396 $1,504 $799 $17,699 
Six Months Ended June 30, 2021Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$27,833 $— $— $27,833 
Niagen® Ingredient
— 2,484 — 2,484 
Subtotal Niagen® Related$27,833 $2,484 $— $30,317 
Other Ingredients— 335 — 335 
Reference Standards— — 1,495 1,495 
Consulting and Other— — 235 235 
Subtotal Other Goods and Services$— $335 $1,730 $2,065 
Total Net Sales$27,833 $2,819 $1,730 $32,382 
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 June 30,Six Months Ended June 30,
Major Customers2022202120222021
A.S. Watson Group - Related Party*16.5 %12.0 %13.8 %
* Represents less than 10%

The percentage of the amounts due from major customers to total trade receivables, net for the periods indicated were as follows:
Major CustomersAt Jun 30, 2022At Dec 31, 2021
A.S. Watson Group - Related Party34.2 %39.6 %
Life Extension14.1 %22.1 %
Amazon Marketplaces13.7 %*
Matakana Health11.5 %*
Persona
*10.3 %
* Represents less than 10%