XML 35 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Business Segments and Concentrations
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments and Concentrations Business Segments and Concentrations
The Company has the following three reportable segments for the years ended December 31, 2024 and 2023:
•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 (loss) 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:
Year Ended December 31, 2024Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$76,772 $19,814 $3,011 $— $99,597 
Cost of sales27,478 7,808 2,725 — 38,011 
Gross profit49,294 12,006 286 — 61,586 
Operating expenses:
Sales and marketing:
Advertising 11,102 — — — 11,102 
Marketing 8,346 195 4 — 8,545 
Selling 9,285 40 497 — 9,822 
Research and development4,782 1,234 — — 6,016 
General and administrative— — — 18,375 18,375 
Operating expenses33,515 1,469 501 18,375 53,860 
Operating income (loss)$15,779 $10,537 $(215)$(18,375)$7,726 
Year Ended December 31, 2023Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentCorporate and otherTotal
(In thousands)
Net sales$69,528 $11,137 $2,905 $— $83,570 
Cost of sales24,755 4,980 3,055 — 32,790 
Gross profit (loss)44,773 6,157 (150)— 50,780 
Operating expenses:
Sales and marketing:
Advertising 10,259 — — — 10,259 
Marketing 7,354 — 10 — 7,364 
Selling 8,401 52 362 — 8,815 
Research and development4,273 685 — — 4,958 
General and administrative— — — 24,983 24,983 
Operating expenses30,287 737 372 24,983 56,379 
Operating income (loss)$14,486 $5,420 $(522)$(24,983)$(5,599)
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:
Year Ended December 31, 2024Consumer
Products
Segment		Ingredients
Segment		Analytical Reference
Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product$76,772 $— $— $76,772 
Food-grade Niagen®
— 17,540 — 17,540 
Pharmaceutical-grade Niagen®
— 1,700 — 1,700 
Subtotal Niagen® Related76,772 19,240 — 96,012 
Other Ingredients— 574 — 574 
Reference Standards— — 2,891 2,891 
Consulting and Other— — 120 120 
Subtotal Other Goods and Services— 574 3,011 3,585 
Total Net Sales$76,772 $19,814 $3,011 $99,597 

Year Ended December 31, 2023Consumer
Products
Segment		Ingredients
Segment		Analytical Reference
Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product$69,528 $— $— $69,528 
Food-grade Niagen®— 10,550 — 10,550 
Pharmaceutical-grade Niagen®— — — — 
Subtotal Niagen® Related69,528 10,550 — 80,078 
Other Ingredients— 587 — 587 
Reference Standards— — 2,804 2,804 
Consulting and Other— — 101 101 
Subtotal Other Goods and Services— 587 2,905 3,492 
Total Net Sales$69,528 $11,137 $2,905 $83,570 
Geographical Concentrations
Net sales from international sources
The Company's net sales are predominantly generated in the United States, however, international sources collectively represent more than 10% of both total net sales and net sales for each business segment. These international sources span across Europe, North America, South America, Asia, and Oceania. Net sales from international sources detailed by each business segment are as follows:
Year Ended December 31,
(In millions) 20242023
Consumer Products Segment$19.8 $21.3 
Ingredients Segment3.6 $2.7 
Analytical Reference Standards and Services Segment0.9 $1.0 
Total net sales from international sources $24.3 $25.0 
Long-lived assets
The Company’s long-lived assets are located within the United States.
Concentrations of Major Customers and Vendors
Disclosure of major customers
Major customers are defined as customers whose sales or accounts receivables individually consist of more than 10% of total sales or total trade receivables, respectively. Percentage of revenues from major customers of the Company’s consumer products segment for the years indicated were as follows:
Year Ended December 31,
Major Customers20242023
A.S. Watson Group (1)12.5 %15.4 %
Life Extension11.7 %*
* Represents less than 10%
(1) Customer was classified as a related party for part of the year. See Note 6, Related Party Transactions for further details.

The percentage of the amounts due from major customers to total accounts receivable, net as of the periods indicated were as follows:
As of December 31,
Major Customers20242023
A.S. Watson Group (1)47.6 %52.7 %
Life Extension*16.1 %
Amazon Marketplaces14.3 %12.2 %
Wells Pharma of Houston10.3 %*
* Represents less than 10%
(1) Customer was classified as a related party for part of the year. See Note 6, Related Party Transactions for further details.
During the year ended December 31, 2023, the Company recorded an allowance for credit loss of approximately $964,000. The higher provision was primarily a result of the Chapter 11 bankruptcy filing by iMedia Brands, Inc., which owns ShopHQ, a multiplatform interactive television network, which has been a sales channel for Tru Niagen®. As of December 31, 2023, the Company determined the balance to be uncollectible and wrote off the full provision.
For the year ended December 31, 2024, the Company recorded a recovery of credit losses of approximately $1.3 million, associated with a settlement in connection with litigation. See Note 16, Commitments and Contingencies — Legal Proceedings, 1. Elysium Health, LLC, (A) California Action for further information.
As of December 31, 2024, concentration for the Company's outstanding trade receivables is significant, with approximately 72% 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.
Disclosure of major vendor
The Company’s major vendor who accounted for more than 10% of the Company’s total accounts payable is as follows:
Major VendorAs of December 31,
20242023
Vendor A47.2 %64.3 %
Additionally, the Company has an exclusive manufacturer for the supply of food-grade NRC, W.R. Grace & Co. -Conn. (Grace). Effective January 1, 2025, the Company entered into a Tenth Amendment to the Manufacturing and Supply Agreement (the "Grace Manufacturing Agreement"), initially effective in January 2016. In January 2019, Grace was issued patents related to the crystalline form of NR chloride which limit the Company’s ability to find alternatives for supply (Grace Patents). Pursuant to the Tenth Amendment and the manufacturing and supply agreement with the aforementioned third party, the Company is committed to purchase approximately $4.8 million of total inventory between January 1, 2025 and March 31, 2025. The Grace Manufacturing Agreement is set to expire on March 31, 2025, subject to further renewal of the Agreement to be negotiated by the parties. Additionally, under the Tenth Amendment, the Company and Grace maintain a binding six-month rolling forecast, which is updated monthly. As of December 31, 2024, this forecast obligates the Company to purchase approximately $11.2 million of total inventory between January 1, 2025 and June 30, 2025. Any failure to extend the Grace Manufacturing Agreement on satisfactory terms could potentially have a material adverse impact on the Company’s financial results and strategic position, as outlined in Item 1A. Risk Factors of this Annual Report on Form 10-K, "We rely on a single supplier, W.R. Grace, for NRC and a limited number of third-party suppliers for the raw materials required to produce our products."