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Business Segments
 3 Months Ended
Mar. 31, 2024
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 net sales, gross profit and operating income (loss) 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, 2024Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$17,351 $4,088 $714 $— $22,153 
Cost of sales6,154 1,837 706 — 8,697 
Gross profit 11,197 2,251 8 — 13,456 
Operating expenses:
Sales and marketing6,596 12 132 — 6,740 
Research and development1,695 400 — — 2,095 
General and administrative— — — 5,352 5,352 
Operating expenses8,291 412 132 5,352 14,187 
Operating income (loss)$2,906 $1,839 $(124)$(5,352)$(731)

Three Months Ended March 31, 2023Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$17,633 $4,124 $799 $— $22,556 
Cost of sales6,404 1,881 753 — 9,038 
Gross profit11,229 2,243 46 — 13,518 
Operating expenses:
Sales and marketing7,773 18 83 — 7,874 
Research and development967 226 — — 1,193 
General and administrative— — — 6,419 6,419 
Operating expenses8,740 244 83 6,419 15,486 
Operating income (loss)$2,489 $1,999 $(37)$(6,419)$(1,968)
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, 2024Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$17,351 $— $— $17,351 
Niagen® Ingredient
— 4,088 — 4,088 
Subtotal Niagen® Related17,351 4,088 — 21,439 
Other Ingredients— — — — 
Reference Standards— — 681 681 
Consulting and Other— — 33 33 
Subtotal Other Goods and Services— — 714 714 
Total Net Sales$17,351 $4,088 $714 $22,153 

Three Months Ended March 31, 2023Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$17,633 $— $— $17,633 
Niagen® Ingredient
— 3,898 — 3,898 
Subtotal Niagen® Related17,633 3,898 — 21,531 
Other Ingredients— 226 — 226 
Reference Standards— — 775 775 
Consulting and Other— — 24 24 
Subtotal Other Goods and Services— 226 799 1,025 
Total Net Sales$17,633 $4,124 $799 $22,556 
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 and ingredients segment for the periods indicated were as follows:
Three Months Ended March 31,
Major Customers20242023
A.S. Watson Group - Related Party13.4 %16.5 %
The percentage of the amounts due from major customers to total trade receivables, net for the periods indicated were as follows:
Percentage of the Company's Total Trade Receivables
Major CustomersAt March 31, 2024At December 31, 2023
A.S. Watson Group - Related Party41.6 %52.7 %
Amazon Marketplaces18.6 %12.2 %
Life Extension19.6 %16.1 %
As of March 31, 2024, concentration for the Company's outstanding trade receivables is significant, with approximately 80% of the total outstanding trade receivables aggregated among three customers. Whenever a significant concentration is present it poses a potential risk to the Company's financial performance and cash flows, as any adverse changes in the payment behavior or financial health of these major customers could impact the Company's cash flows and financial results.

The Company has determined that the current concentration is primarily due to the timing of purchases, and the Company does not consider the concentration of its trade receivables to be a significant risk. Nevertheless, to ensure prudence and safeguard against potential challenges arising from this concentration, the Company remains vigilant in monitoring the creditworthiness and payment behavior of these major customers. Furthermore, the Company continues to pursue new partnerships and business opportunities which helps to diversify its customer base and minimize the risk of an overreliance on any particular trade receivable. Despite the Company’s risk mitigation efforts, there is no assurance that the Company will not experience delays or defaults in payment from its customers, which could result in an increase in the Company's bad debt expense, a reduction in cash flows, and a negative impact on its financial performance.