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Note H - Segment Information | 9 Months Ended
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Mar. 31, 2015
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | H. Segment Information Our business consists of three segments for financial reporting purposes. The three 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 royalty income from our license and supply agreements associated with the sale and use of beta-alanine under our CarnoSyn® trade name, and (iii) branded products, which relates to the marketing and distribution of our branded nutritional supplements and consists primarily of the products previously sold under our Pathway to Healing® product line. Due to the steady decline in sales of our Pathway to Healing® product line over the prior several years, we decided to discontinue the product line. Pursuant to the License Agreements, Dr. Cherry and Cherry Ministries licensed to NAI the name, likeness, style, persona and other attributes of Dr. Cherry in connection with the sale of nutritional products that were marketed by NAI under its Pathway to Healing brand. Pursuant to the License Agreements, NAI was permitted to terminate the License Agreements by written notice at any time. We notified Dr. Cherry and Cherry Ministries of our decision to discontinue the product line and the termination of the related license agreement was effective as of September 15, 2014. All termination activities related to the Pathway to Healing® product line were substantially completed by December 31, 2014. We did not change the financial presentation in this report to reflect the branded products segment as “Discontinued Operations” as the wind down of this product line did not meet the criteria for discontinued operations presentation as prescribed by applicable accounting regulations (ASC 205-20). 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. The accounting policies of our segments are the same as those described in Note A above and in the consolidated financial statements included in our 2014 Annual Report. Our operating results by business segment were as follows (in thousands):
|  | Three Months Ended March 31, |  |  | Nine Months Ended March 31, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private label contract manufacturing |  | $ | 17,322 |  |  | $ | 17,692 |  |  | $ | 51,519 |  |  | $ | 48,056 |
Patent and trademark licensing |  |  | 2,290 |  |  |  | 1,141 |  |  |  | 4,709 |  |  |  | 3,812 |
Branded products |  |  | 1 |  |  |  | 294 |  |  |  | 698 |  |  |  | 889 |
|  | $ | 19,613 |  |  | $ | 19,127 |  |  | $ | 56,926 |  |  | $ | 52,757 |
|  | Three Months Ended March 31, |  |  | Nine Months Ended March 31, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Income from Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private label contract manufacturing |  | $ | 963 |  |  | $ | 1,717 |  |  | $ | 3,874 |  |  | $ | 3,434 |
Patent and trademark licensing |  |  | 1,355 |  |  |  | 570 |  |  |  | 2,720 |  |  |  | 1,500 |
Branded products |  |  | 4 |  |  |  | 46 |  |  |  | 248 |  |  |  | 61 |
Income from operations of reportable segments |  |  | 2,322 |  |  |  | 2,333 |  |  |  | 6,842 |  |  |  | 4,995 |
Corporate expenses not allocated to segments |  |  | (1,283 | ) |  |  | (1,165 | ) |  |  | (3,853 | ) |  |  | (3,473 | )
|  | $ | 1,039 |  |  | $ | 1,168 |  |  | $ | 2,989 |  |  | $ | 1,522 |
|  | March 31, 201 5 |  |  | June 30, 2014 |
Total Assets |  |  |  |  |  |  |  |
Private label contract manufacturing |  | $ | 51,029 |  |  | $ | 50,424 |
Patent and trademark licensing |  |  | 3,070 |  |  |  | 1,632 |
Branded products |  |  | — |  |  |  | 202 |
|  | $ | 54,099 |  |  | $ | 52,258 |
Our private label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Mexico, Australia and Asia. Our primary market outside the U.S. is Europe. Our patent and trademark licensing activities are primarily based in the U.S. and our branded products are only sold in the U.S. Net sales by geographic region, based on the customers’ location, were as follows (in thousands):
|  | Three Months Ended March 31, |  |  | Nine Months Ended March 31, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
United States |  | $ | 11,857 |  |  | $ | 8,992 |  |  | $ | 30,941 |  |  | $ | 26,695 |
Markets outside the United States |  |  | 7,756 |  |  |  | 10,135 |  |  |  | 25,985 |  |  |  | 26,062 |
Total net sales |  | $ | 19,613 |  |  | $ | 19,127 |  |  | $ | 56,926 |  |  | $ | 52,757 |
Products manufactured by NAIE accounted for approximately 74% of net sales in markets outside the U.S. for the three months ended March 31, 2015, and 61% for the three months ended March 31, 2014. NAIE accounted for 72% of net sales in markets outside the U.S. for the nine months ended March 31, 2015, and 55% for the nine months ended March 31, 2014. No products manufactured by NAIE were sold in the U.S. during the nine months ended March 31, 2015 and 2014. Assets and capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, were as follows (in thousands):
|  | Long-Lived Assets |  |  | Total Assets |  |  | Capital Expenditures |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Nine Months Ended |
|  | March 31, 2015 |  |  | June 30, 2014 |  |  | March 31, 2015 |  |  | June 30, 2014 |  |  | March 31, 2015 |  |  | March 31, 2014 |
United States |  | $ | 6,250 |  |  | $ | 6,648 |  |  | $ | 35,239 |  |  | $ | 36,618 |  |  | $ | 956 |  |  | $ | 1,869 |
Europe |  |  | 2,037 |  |  |  | 2,163 |  |  |  | 18,860 |  |  |  | 15,640 |  |  |  | 406 |  |  |  | 329 |
|  | $ | 8,287 |  |  | $ | 8,811 |  |  | $ | 54,099 |  |  | $ | 52,258 |  |  | $ | 1,362 |  |  | $ | 2,198 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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