XML 23 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Business Segments
 6 Months Ended
Jun. 30, 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 and distributors and offers NAD+ test kits exclusively to healthcare practitioners;
•Ingredients segment: develops and commercializes proprietary-based ingredient technologies, including food-grade Niagen® and pharmaceutical-grade Niagen®, and supplies these ingredients as raw materials to the manufacturers of consumer products and U.S. FDA-registered 503B outsourcing facilities, respectively; 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 June 30, 2024Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$18,647 $3,301 $791 $— $22,739 
Cost of sales6,785 1,545 716 — 9,046 
Gross profit 11,862 1,756 75 — 13,693 
Operating expenses:
Sales and marketing6,777 66 126 — 6,969 
Research and development1,135 181 — — 1,316 
General and administrative— — — 5,664 5,664 
Operating expenses7,912 247 126 5,664 13,949 
Operating income (loss)$3,950 $1,509 $(51)$(5,664)$(256)

Three months ended June 30, 2023Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$16,891 $2,704 $728 $— $20,323 
Cost of sales5,959 1,232 776 — 7,967 
Gross profit (loss)10,932 1,472 (48)— 12,356 
Operating expenses:
Sales and marketing5,892 19 98 — 6,009 
Research and development1,169 196 — — 1,365 
General and administrative— — — 7,298 7,298 
Operating expenses7,061 215 98 7,298 14,672 
Operating income (loss)$3,871 $1,257 $(146)$(7,298)$(2,316)

Six Months Ended June 30, 2024Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$35,998 $7,389 $1,505 $— $44,892 
Cost of sales12,939 3,382 1,422 — 17,743 
Gross profit 23,059 4,007 83 — 27,149 
Operating expenses:
Sales and marketing13,373 78 258 — 13,709 
Research and development2,830 581 — — 3,411 
General and administrative— — — 11,016 11,016 
Operating expenses16,203 659 258 11,016 28,136 
Operating income (loss)$6,856 $3,348 $(175)$(11,016)$(987)
Six Months Ended June 30, 2023Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$34,524 $6,828 $1,527 $— $42,879 
Cost of sales12,363 3,113 1,529 — 17,005 
Gross profit (loss)22,161 3,715 (2)— 25,874 
Operating expenses:
Sales and marketing13,665 37 181 — 13,883 
Research and development2,136 422 — — 2,558 
General and administrative— — — 13,717 13,717 
Operating expenses15,801 459 181 13,717 30,158 
Operating income (loss)$6,360 $3,256 $(183)$(13,717)$(4,284)
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, 2024Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$18,647 $— $— $18,647 
Niagen® Ingredient
— 3,144 — 3,144 
Subtotal Niagen® Related18,647 3,144 — 21,791 
Other Ingredients— 157 — 157 
Reference Standards— — 755 755 
Consulting and Other— — 36 36 
Subtotal Other Goods and Services— 157 791 948 
Total Net Sales$18,647 $3,301 $791 $22,739 
Three Months Ended June 30, 2023Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$16,891 $— $— $16,891 
Niagen® Ingredient
— 2,500 — 2,500 
Subtotal Niagen® Related16,891 2,500 — 19,391 
Other Ingredients— 204 — 204 
Reference Standards— — 693 693 
Consulting and Other— — 35 35 
Subtotal Other Goods and Services— 204 728 932 
Total Net Sales$16,891 $2,704 $728 $20,323 
Six Months Ended June 30, 2024Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$35,998 $— $— $35,998 
Niagen® Ingredient
— 7,232 — 7,232 
Subtotal Niagen® Related35,998 7,232 — 43,230 
Other Ingredients— 157 — 157 
Reference Standards— — 1,436 1,436 
Consulting and Other— — 69 69 
Subtotal Other Goods and Services— 157 1,505 1,662 
Total Net Sales$35,998 $7,389 $1,505 $44,892 

Six Months Ended June 30, 2023Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal
(In thousands)
Tru Niagen®, Consumer Product$34,524 $— $— $34,524 
Niagen® Ingredient
— 6,398 — 6,398 
Subtotal Niagen® Related34,524 6,398 — 40,922 
Other Ingredients— 430 — 430 
Reference Standards— — 1,468 1,468 
Consulting and Other— — 59 59 
Subtotal Other Goods and Services— 430 1,527 1,957 
Total Net Sales$34,524 $6,828 $1,527 $42,879 
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 June 30,Six Months Ended June 30,
Major Customers2024202320242023
A.S. Watson Group - Related Party16.4 %14.7 %14.9 %15.6 %
Life Extension*10.0 %11.4 %*
* 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:
Percentage of the Company's Total Trade Receivables
Major CustomersAt June 30, 2024At December 31, 2023
A.S. Watson Group - Related Party44.7 %52.7 %
Amazon Marketplaces*12.2 %
Life Extension16.6 %16.1 %
* Represents less than 10%

As of June 30, 2024, concentration for the Company's outstanding trade receivables is significant, with approximately 61% of the total outstanding trade receivables aggregated among two 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.