Note H - Segment Information

6 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

H. 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® trademarks and our TriBysn™ tradename

We evaluate performance of these segments based on a number of factors. The primary performance measures for each segment are net sales and income or loss from operations before the allocation of certain corporate level expenses. 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 above and in the consolidated financial statements included in our 2024 Annual Report.

Our operating results by business segment were as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2024		2023		2024		2023
Net Sales
Private label contract manufacturing	$	32,315	$	23,050	$	62,945	$	55,239
Patent and trademark licensing		1,763		2,152		4,283		3,932
Total Net Sales	$	34,078	$	25,202	$	67,228	$	59,171

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
(Loss) Income from Operations
Private label contract manufacturing	$	(1,157	)	$	(2,368	)	$	(1,802	)	$	(1,360	)
Patent and trademark licensing		714			947		$	1,712			1,391
Income from operations of reportable segments		(443	)		(1,421	)		(90	)		31
Corporate expenses not allocated to segments		(2,337	)		(2,092	)	$	(4,526	)		(4,088	)
Total Loss from Operations	$	(2,780	)	$	(3,513	)	$	(4,616	)	$	(4,057	)

	December 31,		June 30,
	2024		2024
Total Assets
Private-label contract manufacturing	$	119,779	$	127,786
Patent and trademark licensing		36,349		34,556
	$	156,128	$	162,342

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, were as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2024		2023		2024		2023
United States	$	20,751	$	16,585	$	41,385	$	41,533
Markets outside of the United States		13,327		8,617		25,843		17,638
Total	$	34,078	$	25,202	$	67,228	$	59,171

Products manufactured by our Swiss subsidiary ("NAIE") accounted for 82% of net sales in markets outside the U.S. for the three months ended December 31, 2024, and 81% for the six months ended December 31, 2024. Products manufactured by NAIE accounted for 70% of net sales in markets outside the U.S. for the three months ended December 31, 2023, and 80% for the six months ended December 31, 2023

Long-lived assets by geographic region, based on the location of the company's facilities at which they were located or made, were as follows (in thousands):

	December 31, 2024		June 30, 2024
United States	$	76,684	$	78,146
Europe		16,558		17,602
Total Long-Lived Assets	$	93,242	$	95,748

Total assets by geographic region, based on the location of the company's facilities at which they were located or made, were as follows (in thousands):

	December 31, 2024		June 30, 2024
United States	$	115,777	$	118,878
Europe		40,351		43,464
Total Assets	$	156,128	$	162,342

Capital expenditures by geographic region, based on the location of the company's facilities at which they were located or made, were as follows (in thousands):

	Six Months Ended
	December 31,
	2024		2023
United States	$	1,238	$	1,617
Europe		119		90
Total Capital Expenditures	$	1,357	$	1,707