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Business Segments | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company has the following three reportable segments: •Consumer Products segment: provides finished dietary supplement products that contain the Company's proprietary ingredients directly to consumers as well as to distributors; •Ingredients segment: develops and commercializes proprietary-based ingredient technologies and supplies these ingredients as raw materials to the manufacturers of consumer products; and •Analytical Reference Standards and Services segment: offers the supply of phytochemical reference standards and other research and development services. The Company’s reportable segments are significant operating segments that offer differentiated services. This structure reflects the Company’s current operational and financial management and provides the best structure to maximize the Company's objectives and investment strategy, while maintaining financial discipline. The Company's Chief Executive Officer, who is its chief operating decision maker (CODM), reviews financial information for each operating segment to evaluate performance and allocate resources. The Company evaluates performance and allocates resources based on reviewing net sales, gross profit and operating income (loss) by reportable segment. The Company's CODM does not review assets by segment in his evaluation and therefore assets by segment are not disclosed below. There are no intersegment sales that require elimination. The “Corporate and other” classification includes corporate items not allocated by the Company to each reportable segment. The following tables set forth financial information by segment:
Three months ended June 30, 2023 |  | Consumer Products segment |  | Ingredients segment |  | Analytical Reference Standards and Services segment |  | Corporate and other |  | Total
(In thousands) |  |  |  |  |
Net sales |  | $ | 16,891 |  |  | $ | 2,704 |  |  | $ | 728 |  |  | $ | — |  |  | $ | 20,323 |
Cost of sales |  | 5,959 |  |  | 1,232 |  |  | 776 |  |  | — |  |  | 7,967 |
Gross profit (loss) |  | 10,932 |  |  | 1,472 |  |  | (48) |  |  | — |  |  | 12,356 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | 5,892 |  |  | 19 |  |  | 98 |  |  | — |  |  | 6,009 |
Research and development |  | 1,169 |  |  | 196 |  |  | — |  |  | — |  |  | 1,365 |
General and administrative |  | — |  |  | — |  |  | — |  |  | 7,298 |  |  | 7,298 |
Operating expenses |  | 7,061 |  |  | 215 |  |  | 98 |  |  | 7,298 |  |  | 14,672 |
Operating income (loss) |  | $ | 3,871 |  |  | $ | 1,257 |  |  | $ | (146) |  |  | $ | (7,298) |  |  | $ | (2,316) |
Six Months Ended June 30, 2023 |  | Consumer Products segment |  | Ingredients segment |  | Analytical Reference Standards and Services segment |  | Corporate and other |  | Total
(In thousands) |  |  |  |  |
Net sales |  | $ | 34,524 |  |  | $ | 6,828 |  |  | $ | 1,527 |  |  | $ | — |  |  | $ | 42,879 |
Cost of sales |  | 12,363 |  |  | 3,113 |  |  | 1,529 |  |  | — |  |  | 17,005 |
Gross profit (loss) |  | 22,161 |  |  | 3,715 |  |  | (2) |  |  | — |  |  | 25,874 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | 13,665 |  |  | 37 |  |  | 181 |  |  | — |  |  | 13,883 |
Research and development |  | 2,136 |  |  | 422 |  |  | — |  |  | — |  |  | 2,558 |
General and administrative |  | — |  |  | — |  |  | — |  |  | 13,717 |  |  | 13,717 |
Operating expenses |  | 15,801 |  |  | 459 |  |  | 181 |  |  | 13,717 |  |  | 30,158 |
Operating income (loss) |  | $ | 6,360 |  |  | $ | 3,256 |  |  | $ | (183) |  |  | $ | (13,717) |  |  | $ | (4,284) |
Three months ended June 30, 2022 |  | Consumer Products segment |  | Ingredients segment |  | Analytical Reference Standards and Services segment |  | Corporate and other |  | Total
(In thousands) |  |  |  |  |
Net sales |  | $ | 14,520 |  |  | $ | 1,464 |  |  | $ | 748 |  |  | $ | — |  |  | $ | 16,732 |
Cost of sales |  | 5,218 |  |  | 681 |  |  | 791 |  |  | — |  |  | 6,690 |
Gross profit (loss) |  | 9,302 |  |  | 783 |  |  | (43) |  |  | — |  |  | 10,042 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | 7,864 |  |  | — |  |  | 157 |  |  | — |  |  | 8,021 |
Research and development |  | 1,113 |  |  | 132 |  |  | — |  |  | — |  |  | 1,245 |
General and administrative |  | — |  |  | — |  |  | — |  |  | 7,163 |  |  | 7,163 |
Operating expenses |  | 8,977 |  |  | 132 |  |  | 157 |  |  | 7,163 |  |  | 16,429 |
Operating income (loss) |  | $ | 325 |  |  | $ | 651 |  |  | $ | (200) |  |  | $ | (7,163) |  |  | $ | (6,387) |
Six Months Ended June 30, 2022 |  | Consumer Products segment |  | Ingredients segment |  | Analytical Reference Standards and Services segment |  | Corporate and other |  | Total
(In thousands) |  |  |  |  |
Net sales |  | $ | 29,457 |  |  | $ | 2,891 |  |  | $ | 1,643 |  |  | $ | — |  |  | $ | 33,991 |
Cost of sales |  | 10,470 |  |  | 1,403 |  |  | 1,544 |  |  | — |  |  | 13,417 |
Gross profit |  | 18,987 |  |  | 1,488 |  |  | 99 |  |  | — |  |  | 20,574 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | 15,938 |  |  | 24 |  |  | 296 |  |  | — |  |  | 16,258 |
Research and development |  | 2,115 |  |  | 208 |  |  | — |  |  | — |  |  | 2,323 |
General and administrative |  | — |  |  | — |  |  | — |  |  | 16,112 |  |  | 16,112 |
Operating expenses |  | 18,053 |  |  | 232 |  |  | 296 |  |  | 16,112 |  |  | 34,693 |
Operating income (loss) |  | $ | 934 |  |  | $ | 1,256 |  |  | $ | (197) |  |  | $ | (16,112) |  |  | $ | (14,119) |
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. Disaggregated revenues are as follows:
Three Months Ended June 30, 2023 |  | Consumer Products Segment |  | Ingredients Segment |  | Analytical Reference Standards and Services Segment |  | Total
(In thousands) |  |  |  |
Tru Niagen®, Consumer Product |  | $ | 16,891 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,891 |
Niagen® Ingredient |  | — |  |  | 2,500 |  |  | — |  |  | 2,500 |
Subtotal Niagen® Related |  | 16,891 |  |  | 2,500 |  |  | — |  |  | 19,391 |
Other Ingredients |  | — |  |  | 204 |  |  | — |  |  | 204 |
Reference Standards |  | — |  |  | — |  |  | 693 |  |  | 693 |
Consulting and Other |  | — |  |  | — |  |  | 35 |  |  | 35 |
Subtotal Other Goods and Services |  | — |  |  | 204 |  |  | 728 |  |  | 932 |
Total Net Sales |  | $ | 16,891 |  |  | $ | 2,704 |  |  | $ | 728 |  |  | $ | 20,323 |
Six Months Ended June 30, 2023 |  | Consumer Products Segment |  | Ingredients Segment |  | Analytical Reference Standards and Services Segment |  | Total
(In thousands) |  |  |  |
Tru Niagen®, Consumer Product |  | $ | 34,524 |  |  | $ | — |  |  | $ | — |  |  | $ | 34,524 |
Niagen® Ingredient |  | — |  |  | 6,398 |  |  | — |  |  | 6,398 |
Subtotal Niagen® Related |  | 34,524 |  |  | 6,398 |  |  | — |  |  | 40,922 |
Other Ingredients |  | — |  |  | 430 |  |  | — |  |  | 430 |
Reference Standards |  | — |  |  | — |  |  | 1,468 |  |  | 1,468 |
Consulting and Other |  | — |  |  | — |  |  | 59 |  |  | 59 |
Subtotal Other Goods and Services |  | — |  |  | 430 |  |  | 1,527 |  |  | 1,957 |
Total Net Sales |  | $ | 34,524 |  |  | $ | 6,828 |  |  | $ | 1,527 |  |  | $ | 42,879 |
Three Months Ended June 30, 2022 |  | Consumer Products Segment |  | Ingredients Segment |  | Analytical Reference Standards and Services Segment |  | Total
(In thousands) |  |  |  |
Tru Niagen®, Consumer Product |  | $ | 14,520 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,520 |
Niagen® Ingredient |  | — |  |  | 1,454 |  |  | — |  |  | 1,454 |
Subtotal Niagen® Related |  | 14,520 |  |  | 1,454 |  |  | — |  |  | 15,974 |
Other Ingredients |  | — |  |  | 10 |  |  | — |  |  | 10 |
Reference Standards |  | — |  |  | — |  |  | 704 |  |  | 704 |
Consulting and Other |  | — |  |  | — |  |  | 44 |  |  | 44 |
Subtotal Other Goods and Services |  | — |  |  | 10 |  |  | 748 |  |  | 758 |
Total Net Sales |  | $ | 14,520 |  |  | $ | 1,464 |  |  | $ | 748 |  |  | $ | 16,732 |
Six Months Ended June 30, 2022 |  | Consumer Products Segment |  | Ingredients Segment |  | Analytical Reference Standards and Services Segment |  | Total
(In thousands) |  |  |  |
Tru Niagen®, Consumer Product |  | $ | 29,457 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,457 |
Niagen® Ingredient |  | — |  |  | 2,585 |  |  | — |  |  | 2,585 |
Subtotal Niagen® Related |  | 29,457 |  |  | 2,585 |  |  | — |  |  | 32,042 |
Other Ingredients |  | — |  |  | 306 |  |  | — |  |  | 306 |
Reference Standards |  | — |  |  | — |  |  | 1,587 |  |  | 1,587 |
Consulting and Other |  | — |  |  | — |  |  | 56 |  |  | 56 |
Subtotal Other Goods and Services |  | — |  |  | 306 |  |  | 1,643 |  |  | 1,949 |
Total Net Sales |  | $ | 29,457 |  |  | $ | 2,891 |  |  | $ | 1,643 |  |  | $ | 33,991 |
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 Customers |  | 2023 |  | 2022 |  | 2023 |  | 2022
A.S. Watson Group - Related Party |  | 14.7 | % |  | * |  | 15.6 | % |  | 12.0 | %
Life Extension |  | 10.0 | % |  | * |  | * |  | *
* 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:
Major Customers |  | At June 30, 2023 |  | At December 31, 2022
A.S. Watson Group - Related Party |  | 45.3 | % |  | 36.6 | %
Nestlé (NHSc) |  | * |  | 23.6 | %
Amazon Marketplaces |  | 11.2 | % |  | *
Life Extension |  | 22.8 | % |  | *
* Represents less than 10% During the three and six months ended June 30, 2023, the Company recorded provision for doubtful trade receivables of approximately $0.4 million and $0.8 million, respectively. Primarily, the higher provision was a result of the Chapter 11 bankruptcy filing by iMedia Brands, Inc., which owns ShopHQ, a multiplatform interactive television network, which has been a sales channel for Tru Niagen®. As of June 30, 2023, concentration for the Company's outstanding trade receivables is significant, with approximately 79% of the total outstanding trade receivables aggregated among three 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 helps 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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