v3.26.1
Business Segments and Concentrations
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments and Concentrations Business Segments and Concentrations
For the periods presented, the Company’s four reportable segments are as follows:
•Consumer Products segment: provides finished consumer products incorporating the Company's proprietary ingredient, Niagen®, primarily dietary supplements, directly to consumers and distributors;
•Ingredients segment: develops and commercializes proprietary 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 supports clinician-directed telehealth access to prescription-based Niagen® offerings;
•Analytical Reference Standards and Services segment: offers the supply of phytochemical reference standards and other research and development services; and
•Pharmaceuticals segment: pursues the pharmaceutical development of our proprietary molecules for potential therapeutic applications in rare diseases, and currently conducts research and development activities, including pre-clinical and clinical studies and regulatory planning.
The Company’s reportable segments are significant operating segments that offer differentiated products and services. This segment structure reflects the Company’s current operational and financial management and provides the framework used by management to evaluate performance, allocate resources, and support the Company’s strategic objectives while maintaining financial discipline.
The Company’s Chief Operating Decision Maker (CODM) is a management group comprised of the Chief Executive Officer and Chief Financial Officer. The CODM reviews monthly and quarterly financial information for each operating segment, including net sales, gross profit (loss), operating income (loss), and spending by segment, to evaluate operating performance and allocate resources. The CODM does not review assets by operating segment in evaluating performance, and therefore assets by segment are not disclosed. There are no intersegment sales that require elimination. The “Corporate and other” classification includes corporate items that are not allocated to the Company’s reportable segments.
Divestiture of Analytical Reference Standards and Services Segment
During the year ended December 31, 2025, the Company committed to a plan to sell substantially all of the assets of its analytical reference standards and services operating segment to a third party. As of December 31, 2025, the assets associated with this operating segment met the criteria to be classified as held for sale and are presented as assets held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheets.
Prior to classification as held for sale, the Company evaluated the long-lived assets of the Analytical Reference Standards and Services operating segment for impairment and recorded any necessary adjustments to reflect the assets at the lower of carrying value or estimated fair value less costs to sell. Depreciation and amortization of long-lived assets ceased upon classification as held for sale. Assets classified as held for sale as of December 31, 2025 primarily consisted of $403,000 of inventory, certain long-lived assets of $138,000, customer relationships, contract-related assets, and a trade name.
On February 24, 2026, the Company entered into and completed a definitive asset purchase agreement with a third party for total cash consideration of approximately $6.0 million, subject to working capital adjustments of approximately $0.2 million. Under the terms of the agreement, the buyer assumed certain operating liabilities arising after the closing date, while the Company retained accounts receivable and accounts payable incurred prior to the closing date related to the sold assets. During the quarter ended March 31, 2026, the Company recognized a gain of $4.8 million on the sale of these assets, net of transaction costs of approximately $0.5 million, primarily consisting of legal, consulting, and other professional fees and sales taxes, which is included in gain on sale of operating segment in the Unaudited Condensed Consolidated Statements of Operations.
The results of operations of the Analytical Reference Standards and Services operating segment are included in continuing operations for all periods presented, as the divestiture does not represent a strategic shift that has (or will have) a major effect on the Company’s operations or financial results and therefore does not qualify for discontinued operations treatment.
In connection with the disposition, the Company entered into a transition services agreement (TSA) pursuant to which it provides certain operational and administrative services to the buyer for a period of up to six months following the closing date. The Company receives a service fee for these services, which is recognized as the services are performed. During the three and six months ended June 30, 2026, the Company recognized $236,000 and $310,000 of transition services revenue, respectively, which are included in net sales. The related net sales and costs of sales are reflected within “Corporate and other” for segment reporting purposes, as they represent corporate activities not allocated to the Company’s reportable segments. As of June 30, 2026, amounts due to and from the buyer totaled approximately $288,000 and $285,000, respectively, and are included within accounts payable and trade receivables in the accompanying Unaudited Condensed Consolidated Balance Sheet. These balances primarily relate to transition services provided under the TSA. The Company has not separately presented these amounts as they are immaterial to the consolidated financial statements.
The following tables set forth financial information by segment:
Three months ended June 30, 2026Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentPharmaceuticals segmentCorporate and other (1)Total
(In thousands)
Net sales$24,162 $5,387 $— $— $236 $29,785 
Cost of sales7,839 2,374 — — 258 10,471 
Gross profit (loss)16,323 3,013 — — (22)19,314 
Operating expenses:
Sales and marketing
Advertising3,166 — — — — 3,166 
Marketing3,712 180 — — — 3,892 
Selling3,032 40 — — — 3,072 
Research and development841 191 — 481 — 1,513 
General and administrative (2)— — — — 6,971 6,971 
Operating expenses10,751 411 — 481 6,971 18,614 
Operating income (loss)$5,572 $2,602 $— $(481)$(6,993)$700 
(1) Includes TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment, which is reflected in net sales, cost of sales and gross profit.
(2) General and administrative expenses within “Corporate and other” represent ongoing corporate overhead and are not directly attributable to TSA activities.

Three months ended June 30, 2025Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentPharmaceuticals segmentCorporate and otherTotal
(In thousands)
Net sales$22,699 $7,619 $799 $— $— $31,117 
Cost of sales7,453 2,808 630 — — 10,891 
Gross profit15,246 4,811 169 — — 20,226 
Operating expenses:
Sales and marketing
Advertising2,882 — — — — 2,882 
Marketing2,514 45 — — — 2,559 
Selling 2,678 7 81 — — 2,766 
Research and development891 304 — 372 — 1,567 
General and administrative— — — — 7,267 7,267 
Operating expenses8,965 356 81 372 7,267 17,041 
Operating income (loss)$6,281 $4,455 $88 $(372)$(7,267)$3,185 
Six Months Ended June 30, 2026Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentPharmaceuticals segmentCorporate and other (1)Total
(In thousands)
Net sales$46,575 $13,951 $423 $— $310 $61,259 
Cost of sales15,434 5,929 308 — 298 21,969 
Gross profit31,141 8,022 115 — 12 39,290 
Operating expenses:
Sales and marketing
Advertising6,458 — — — — 6,458 
Marketing7,134 276 — — — 7,410 
Selling5,759 134 44 — — 5,937 
Research and development1,574 471 — 949 — 2,994 
General and administrative (2)— — — — 14,215 14,215 
Operating expenses20,925 881 44 949 14,215 37,014 
Operating income (loss)$10,216 $7,141 $71 $(949)$(14,203)$2,276 
(1) Includes TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment, which is reflected in net sales, cost of sales and gross profit.
(2) General and administrative expenses within “Corporate and other” represent ongoing corporate overhead and are not directly attributable to TSA activities.
Six Months Ended June 30, 2025Consumer Products segmentIngredients segmentAnalytical Reference Standards and Services segmentPharmaceuticals segmentCorporate and otherTotal
(In thousands)
Net sales$44,200 $15,788 $1,610 $— $— $61,598 
Cost of sales14,860 5,909 1,272 — — 22,041 
Gross profit
29,340 9,879 338 — — 39,557 
Operating expenses:
Sales and marketing
Advertising5,858 — — — — 5,858 
Marketing4,967 70 — — — 5,037 
Selling5,185 56 188 — — 5,429 
Research and development1,536 549 — 740 — 2,825 
General and administrative— — — — 12,451 12,451 
Operating expenses17,546 675 188 740 12,451 31,600 
Operating income (loss)$11,794 $9,204 $150 $(740)$(12,451)$7,957 
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. The pharmaceuticals segment did not generate revenue during the periods presented. Disaggregated revenues are as follows:
Three Months Ended June 30, 2026Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentCorporate and Other (1)Total
(In thousands)
Tru Niagen®, Consumer Product$24,162 $— $— $— $24,162 
Food-grade Niagen®
— 4,928 — — 4,928 
Pharmaceutical-grade Niagen®
— 425 — — 425 
Subtotal Niagen® Related24,162 5,353 — — 29,515 
Other Ingredients— 25 — — 25 
Reference Standards— — — — — 
Services and Other— 9 — 236 245 
Subtotal Other Goods and Services— 34 — 236 270 
Total Net Sales$24,162 $5,387 $— $236 $29,785 
(1) Includes TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment.
Three Months Ended June 30, 2025Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal (1)
(In thousands)
Tru Niagen®, Consumer Product$22,699 $— $— $22,699 
Food-grade Niagen®
— 5,994 — 5,994 
Pharmaceutical-grade Niagen®— 1,390 — 1,390 
Subtotal Niagen® Related22,699 7,384 — 30,083 
Other Ingredients— 235 — 235 
Reference Standards— — 772 772 
Services and Other— — 27 27 
Subtotal Other Goods and Services— 235 799 1,034 
Total Net Sales$22,699 $7,619 $799 $31,117 
(1) Does not include TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment, which is only applicable during 2026 as no such similar activity occurred in 2025.
Six Months Ended June 30, 2026Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentCorporate and Other (1)Total
(In thousands)
Tru Niagen®, Consumer Product$46,575 $— $— $— $46,575 
Food-grade Niagen®
— 12,237 — — 12,237 
Pharmaceutical-grade Niagen®— 1,275 — — 1,275 
Subtotal Niagen® Related46,575 13,512 — — 60,087 
Other Ingredients— 430 — — 430 
Reference Standards— — 411 — 411 
Services and Other— 9 12 310 331 
Subtotal Other Goods and Services— 439 423 310 1,172 
Total Net Sales$46,575 $13,951 $423 $310 $61,259 
(1) Includes TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment.

Six Months Ended June 30, 2025Consumer Products SegmentIngredients SegmentAnalytical Reference Standards and Services SegmentTotal (1)
(In thousands)
Tru Niagen®, Consumer Product$44,200 $— $— $44,200 
Food-grade Niagen®
— 12,968 — 12,968 
Pharmaceutical-grade Niagen®— 2,390 — 2,390 
Subtotal Niagen® Related44,200 15,358 — 59,558 
Other Ingredients— 430 — 430 
Reference Standards— — 1,570 1,570 
Services and Other— — 40 40 
Subtotal Other Goods and Services— 430 1,610 2,040 
Total Net Sales$44,200 $15,788 $1,610 $61,598 
(1) Does not include TSA activity related to the disposition of the Analytical Reference Standards and Services operating segment, which is only applicable during 2026 as no such similar activity occurred in 2025.
Disclosure of Major Customers
Major customers are defined as customers whose sales or trade receivables individually consist of more than ten percent of total sales or total trade receivables, respectively. Percentage of net sales from major customers of the Company’s consumer products segment and ingredients segment for the periods indicated were as follows:
Three Months Ended June 30,Six Months Ended June 30,
Major Customers2026202520262025
Customer A*10.2 %*12.7 %
* Represents less than 10%
The percentage of the amounts due from major customers to total trade receivables, net for the periods indicated were as follows:
Percentage of the Company's Total Trade Receivables
Major CustomersAt June 30, 2026At December 31, 2025
Customer A11.1 %*
Customer B*23.0 %
Customer C26.1 %11.0 %
* Represents less than 10%
As of June 30, 2026, the Company had total outstanding trade receivables of $8.6 million, with approximately 37.2% of this total concentrated among two 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 help 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.