Business Segmentation and Geographical Distribution (Tables)

12 Months Ended

Dec. 31, 2016

Business Segmentation And Geographical Distribution Tables

Business Segmentation and Geographical Distribution

Year ended
December 31, 2016	Ingredients		Core Standards and Contract Services		Regulatory Consulting
	segment		segment		segment		Other			Total
Net sales	$	16,774,641	$	9,371,001	$	665,444	$	-		$	26,811,086
Cost of sales		7,920,516		6,504,005		465,433		-			14,889,954
Gross profit		8,854,125		2,866,996		200,011		-			11,921,132
Operating expenses:
Sales and marketing		1,196,711		1,042,878		11,000		-			2,250,589
Research and development		2,487,978		34,790		-		-			2,522,768
General and administrative		-		-		-		9,393,209			9,393,209
Operating expenses		3,684,689		1,077,668		11,000		9,393,209			14,166,566
Operating income (loss)	$	5,169,436	$	1,789,328	$	189,011	$	(9,393,209	)	$	(2,245,434	)

Year ended
January 2, 2016	Ingredients		Core Standards and Contract Services		Regulatory Consulting
	segment		segment		segment		Other			Total
Net sales	$	12,542,314	$	8,418,672	$	1,053,154	$	-		$	22,014,140
Cost of sales		6,664,164		6,346,903		522,065		-			13,533,132
Gross profit		5,878,150		2,071,769		531,089		-			8,481,008
Operating expenses:
Sales and marketing		1,111,993		1,201,455		13,340		-			2,326,788
Research and development		891,601		-		-		-			891,601
General and administrative		-		-		-		7,416,451			7,416,451
Operating expenses		2,003,594		1,201,455		13,340		7,416,451			10,634,840
Operating income (loss)	$	3,874,556	$	870,314	$	517,749	$	(7,416,451	)	$	(2,153,832	)

Year ended
January 3, 2015	Ingredients segment		Core Standards and Contract Services segment		Regulatory Consulting segment		Other			Total
Net sales	$	6,857,177	$	7,487,189	$	968,813	$	-		$	15,313,179
Cost of sales		4,257,347		5,141,667		588,500		-			9,987,514
Gross profit		2,599,830		2,345,522		380,313		-			5,325,665
Operating expenses:
Sales and marketing		1,081,209		975,800		79,575		-			2,136,584
Research and development		513,671		-		-		-			513,671
General and administrative		-		-		-		7,860,930			7,860,930
Loss from investment in affiliate		-		-		-		45,829			45,829
Operating expenses		1,594,880		975,800		79,575		7,906,759			10,557,014
Operating income (loss)	$	1,004,950	$	1,369,722	$	300,738	$	(7,906,759	)	$	(5,231,349	)

At December 31, 2016			Core Standards		Scientific and
	Ingredients		and Contract Services		Regulatory Consulting
	segment		segment		segment		Other		Total
Total assets	$	13,257,289	$	3,806,248	$	112,192	$	2,576,339	$	19,752,068

At January 2, 2016			Core Standards		Scientific and
	Ingredients		and Contract Services		Regulatory Consulting
	segment		segment		segment		Other		Total
Total assets	$	9,105,502	$	3,306,624	$	111,765	$	6,225,318	$	18,749,209

Major customers

Disclosure of major customers

Major customers who accounted for more than 10% of the Company’s total sales were as follows:

	Years Ended
Major Customers	2016			2015			2014
Customer C (Ingredients segment)		19.3	%		*			*
Customer B (Ingredients segment)		*			11.0	%		*
Customer A (Ingredients segment)		*			*			10.2	%
* Represents less than 10%.

Major customers who accounted for more than 10% of the Company's total trades receivable were as follows:

	Percentage of the Company's Total Trade Receivables
Major Customers	At December 31, 2016			At January 2, 2016
Customer D (Ingredients and Core segment)		10.2	%		22.8	%
Customer C (Ingredients segment)		45.8	%		*
Customer A (Ingredients segment)		*			14.7	%
* Represents less than 10%.

Disclosure of major vendors

Major vendors who accounted for more than 10% of the Company's total accounts payable were as follows:

	Percentage of the Company's Total Accounts Payable
Major Vendors	At December 31, 2016			At January 2, 2016
Vendor A (Ingredients segment)		39.5	%		78.7	%
Vendor B (Ingredients segment)		20.8	%		*