Note N - Segment Information

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

N. Segment Information

Our business consists of two segments for financial reporting purposes. The two segments are identified as (i) private-label contract manufacturing, which primarily relates to the provision of private-label contract manufacturing services to companies that market and distribute nutritional supplements and other health care products, and (ii) patent and trademark licensing, which primarily includes direct raw material sales and royalty income from our license and supply agreements associated with the sale and use of beta-alanine under our CarnoSyn® and SR CarnoSyn® trade names.

We evaluate performance based on a number of factors. The primary performance measures for each segment are net sales and income or loss from operations before corporate allocations. Operating income or loss for each segment does not include corporate general and administrative expenses, interest expense and other miscellaneous income and expense items. Corporate general and administrative expenses include, but are not limited to human resources, corporate legal, finance, information technology, and other corporate level related expenses, which are not allocated to any segment. Transfers of raw materials between segments are recorded at cost. The accounting policies of our segments are the same as those described in the summary of significant accounting policies in Note A.

Our operating results by business segment for the years ended June 30 were as follows (in thousands):

	2024		2023
Net Sales
Private-label contract manufacturing	$	105,358	$	145,294
Patent and trademark licensing		8,438		8,721
	$	113,796	$	154,015

	2024			2023
(Loss) Income from Operations
Private-label contract manufacturing	$	(3,466	)	$	9,488
Patent and trademark licensing		3,319			3,021
(Loss) income from operations of reportable segments		(147	)		12,509
Corporate expenses not allocated to segments		(8,387	)		(7,796	)
	$	(8,534	)	$	4,713

	2024		2023
Assets
Private-label contract manufacturing	$	127,786	$	102,495
Patent and trademark licensing		34,556		31,657
	$	162,342	$	134,152

Our private-label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Australia, New Zealand, Mexico and Asia. Our primary markets outside the U.S. are Europe and Asia. Our patent and trademark licensing activities are primarily based in the U.S.

Net sales by geographic region, based on the customers’ location, for the two years ended June 30 were as follows (in thousands):

	2024		2023
United States	$	73,512	$	109,277
Markets outside the United States		40,284		44,738
Total net sales	$	113,796	$	154,015

Products manufactured by NAIE accounted for 79% of consolidated net sales in markets outside the U.S. in fiscal 2024 and in fiscal 2023. No products manufactured by NAIE were sold in the U.S. during the fiscal years ended June 30, 2024 and 2023.

Long-lived assets by geographic region, based on the location of the company or subsidiary at which they were located or made, for the two years ended June 30 were as follows (in thousands):

	2024		2023
United States	$	78,146	$	53,536
Europe		17,602		20,674
Total Long-Lived Assets	$	95,748	$	74,210

Total assets by geographic region, based on the location of the company or subsidiary at which they were located or made, for the two years ended June 30 were as follows (in thousands):

	2024		2023
United States	$	118,878	$	89,167
Europe		43,464		44,985
Total Assets	$	162,342	$	134,152

Capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, for the two years ended June 30 were as follows (in thousands):

	2024		2023
United States	$	2,793	$	13,210
Europe		224		314
Total Capital Expenditures	$	3,017	$	13,524