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Note H - Segment Information
 3 Months Ended
Sep. 30, 2025
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®, 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 September 30, 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

 $36,065  $1,665  $-  $37,730 

Cost of goods sold

  32,909   424   -   33,333 

Gross profit

  3,156   1,241   -   4,397 

Selling, general and administrative expenses

  1,353   529   2,231   4,113 

Income (loss) from operations

  1,803   712   (2,231)  284 
                 

Other income (expense):

                

Interest income

  30   -   -   30 

Interest expense

  (226)  -   -   (226)

Foreign exchange loss

  (301)  -   -   (301)

Other, net

  14   -   -   14 

Total other expense

  (483)  -   -   (483)
                 

Income (loss) before income taxes

  1,320   712   (2,231)  (199)

Provision for income taxes

           92 

Net loss

          $(291)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $162  $15  $-  $177 

Depreciation and amortization

  1,164   2   -   1,166 

Capital expenditures

  1,030   -   -   1,030 

 

Our operating results by business segment for the three months ended September 30, 2024 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

 $30,630  $2,520  $-  $33,150 

Cost of goods sold

  30,001   890   -   30,891 

Gross profit

  629   1,630   -   2,259 

Selling, general and administrative expenses

  1,274   633   2,188   4,095 

(Loss) income from operations

  (645)  997   (2,188)  (1,836)
                 

Other income (expense):

                

Interest income

  33   -   -   33 

Interest expense

  (178)  -   -   (178)

Foreign exchange loss

  (431)  -   -   (431)

Other, net

  (1)  -   -   (1)

Total other expense

  (577)  -   -   (577)
                 

(Loss) income before income taxes

  (1,222)  997   (2,188)  (2,413)

Benefit for income taxes

           (431)

Net loss

          $(1,982)
                 
                 

Other supplemental information:

                

Stock-based compensation

 $251  $25  $—  $276 

Depreciation and amortization

  1,125   2   -   1,127 

Capital expenditures

  301   -   -   301 

 

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

  

September 30, 2025

  

June 30, 2025

 

Private-label contract manufacturing

 $118,144  $113,843 

Patent and trademark licensing

  38,801   38,096 

Total Assets

 $156,945  $151,939