v3.26.1
Note H - Segment Information
 9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [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®, SR CarnoSyn®, and TriBsyn® trademarks.

 

The chief operating decision maker is the Company's Chief Executive Officer, who, in conjunction with senior management, evaluates segment 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 and in the consolidated financial statements included in our 2025 Annual Report.

 

Our operating results by business segment for the three months ended March 31, 2026 were as follows (in thousands):

 

              

Natural

 
          

Corporate

  

Alternatives

 
  

Private-label

  

Patent and

  

expenses

  

International

 
  

contract

  

trademark

  

not allocated

  

Inc.

 
  

manufacturing

  

licensing

  

to segments

  

Consolidated

 
                 

Net sales

 $33,809  $1,673  $-  $35,482 

Cost of goods sold

  34,619   480   -   35,099 

Gross profit

  (810)  1,193   -   383 

Selling, general and administrative expenses

  1,469   649   2,279   4,397 

(Loss) income from operations

  (2,279)  544   (2,279)  (4,014)
                 

Other (expense) income:

                

Interest expense

  (270)  -   -   (270)

Foreign exchange loss

  50   -   -   50 

Other, net

  (9)  -   -   (9)

Total other expense

  (229)  -   -   (229)
                 

(Loss) income before income taxes

  (2,508)  544   (2,279)  (4,243)

Provision for income taxes

              68 

Net loss

             $(4,311)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $128  $12  $-  $140 

Depreciation and amortization

  1,192   2   -   1,194 

Capital expenditures

  1,100   -   -   1,100 

 

Our operating results by business segment for the nine months ended March 31, 2026 were as follows (in thousands):

 

              

Natural

 
          

Corporate

  

Alternatives

 
  

Private-label

  

Patent and

  

expenses

  

International

 
  

contract

  

trademark

  

not allocated

  

Inc.

 
  

manufacturing

  

licensing

  

to segments

  

Consolidated

 
                 

Net sales

 $102,678  $5,329  $-  $108,007 

Cost of goods sold

  98,989   1,747   -   100,736 

Gross profit

  3,689   3,582   -   7,271 

Selling, general and administrative expenses

  4,341   1,757   6,750   12,848 

(Loss) income from operations

  (652)  1,825   (6,750)  (5,577)
                 

Other income (expense):

                

Interest income

  30   -   -   30 

Interest expense

  (720)  -   -   (720)

Foreign exchange loss

  (445)  -   -   (445)

Other, net

  (59)  -   -   (59)

Total other expense

  (1,194)  -   -   (1,194)
                 

(Loss) income before income taxes

  (1,846)  1,825   (6,750)  (6,771)

Provision for income taxes

              384 

Net loss

             $(7,155)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $452  $43  $-  $495 

Depreciation and amortization

  3,521   5   -   3,526 

Capital expenditures

  3,064   -   -   3,064 

 

Our operating results by business segment for the three months ended March 31, 2025 were as follows (in thousands):

   

              

Natural

 
          

Corporate

  

Alternatives

 
  

Private-label

  

Patent and

  

expenses

  

International

 
  

contract

  

trademark

  

not allocated

  

Inc.

 
  

manufacturing

  

licensing

  

to segments

  

Consolidated

 
                 

Net sales

 $27,075  $1,691  $-  $28,766 

Cost of goods sold

  26,415   525   -   26,940 

Gross profit

  660   1,166   -   1,826 

Selling, general and administrative expenses

  1,216   432   2,278   3,926 

(Loss) income from operations

  (556)  734   (2,278)  (2,100)
                 

Other income (expense):

                

Interest income

  51   -   -   51 

Interest expense

  (246)  -   -   (246)

Foreign exchange gain

  (339)  -   -   (339)

Other, net

  (8)  -   -   (8)

Total other expense

  (542)  -   -   (542)
                 

(Loss) income before income taxes

  (1,098)  734   (2,278)  (2,642)

Benefit for income taxes

              (456)

Net loss

             $(2,186)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $222  $23  $-  $245 

Depreciation and amortization

  1,137   2   -   1,139 

Capital expenditures

  802   -   -   802 

 

Our operating results by business segment for the nine months ended March 31, 2025 were as follows (in thousands):

 

              

Natural

 
          

Corporate

  

Alternatives

 
  

Private-label

  

Patent and

  

expenses

  

International

 
  

contract

  

trademark

  

not allocated

  

Inc.

 
  

manufacturing

  

licensing

  

to segments

  

Consolidated

 
                 

Net sales

 $90,021  $5,973  $-  $95,994 

Cost of goods sold

  88,332   1,908   -   90,240 

Gross profit

  1,689   4,065   -   5,754 

Selling, general and administrative expenses

  4,045   1,620   6,805   12,470 

(Loss) income from operations

  (2,356)  2,445   (6,805)  (6,716)
                 

Other income (expense):

                

Interest income

  125   -   -   125 

Interest expense

  (703)  -   -   (703)

Foreign exchange loss

  (616)  -   -   (616)

Other, net

  (11)  -   -   (11)

Total other expense

  (1,205)  -   -   (1,205)
                 

(Loss) income before income taxes

  (3,561)  2,445   (6,805)  (7,921)

Benefit for income taxes

              (1,562)

Net loss

             $(6,359)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $725  $73  $-  $798 

Depreciation and amortization

  3,395   5   -   3,400 

Capital expenditures

  2,159   -   -   2,159 

 

Total assets by segment were as follows (in thousands):

  

March 31, 2026

  

June 30, 2025

 

Private-label contract manufacturing

 $114,579  $113,843 

Patent and trademark licensing

  40,301   38,096 

Total Assets

 $154,880  $151,939