Business Segmentation and Geographical Distribution

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business Segmentation and Geographical Distribution

Business Segments and Geographical Distribution

The Company has the following three reportable segments for the years ended December 31, 2021 and 2020:

•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.

•Analytical reference standards and services segment: includes supply of phytochemical reference standards and other research and development services.

The “Corporate and other” classification includes corporate items not allocated by the Company to each reportable segment. Additionally, there are no intersegment sales that require elimination. The Company’s three reportable segments are significant operating segments that offer differentiated services. This structure reflects its 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 gross margin 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.

The following tables set forth financial information by segment:

Year Ended December 31, 2021	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	56,705	$	7,407	$	3,337	$	—	$	67,449
Cost of sales	19,864		3,233		2,862		—		25,959
Gross profit	36,841		4,174		475		—		41,490
Operating expenses:
Sales and marketing	27,821		46		485		—		28,352
Research and development	3,427		405		—		—		3,832
General and administrative	—		—		—		36,379		36,379
Operating expenses	31,248		451		485		36,379		68,563
Operating income (loss)	$	5,593	$	3,723	$	(10)	$	(36,379)	$	(27,073)

Year Ended December 31, 2020	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	47,090	$	9,198	$	2,969	$	—	$	59,257
Cost of sales	17,541		3,593		2,849		—		23,983
Gross profit	29,549		5,605		120		—		35,274
Operating expenses:
Sales and marketing	20,323		41		584		—		20,948
Research and development	2,972		443		—		—		3,415
General and administrative	—		—		—		30,765		30,765
Operating expenses	23,295		484		584		30,765		55,128
Operating income (loss)	$	6,254	$	5,121	$	(464)	$	(30,765)	$	(19,854)

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 this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. See details in the tables below.

Year Ended December 31, 2021	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
TRU NIAGEN®, Consumer Product	$	56,705	$	—	$	—	$	56,705
NIAGEN® Ingredient	—		6,700		—		6,700
Subtotal NIAGEN® Related	56,705		6,700		—		63,405
Other Ingredients	—		707		—		707
Reference Standards	—		—		3,061		3,061
Consulting and Other	—		—		276		276
Subtotal Other Goods and Services	—		707		3,337		4,044
Total Net Sales	$	56,705	$	7,407	$	3,337	$	67,449

Year Ended December 31, 2020	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
TRU NIAGEN®, Consumer Product	$	47,090	$	—	$	—	$	47,090
NIAGEN® Ingredient	—		7,070		—		7,070
Subtotal NIAGEN® Related	47,090		7,070		—		54,160
Other Ingredients	—		2,128		—		2,128
Reference Standards	—		—		2,925		2,925
Consulting and Other	—		—		44		44
Subtotal Other Goods and Services	—		2,128		2,969		5,097
Total Net Sales	$	47,090	$	9,198	$	2,969	$	59,257

Net sales from international sources*

	Year Ended December 31,
(In millions)	2021		2020
Consumer Products Segment	$	18.0	$	16.9
Ingredients Segment	0.7		$	1.8
Analytical Reference Standards and Services Segment	1.1		$	1.3
Total net sales from international sources	$	19.8	$	20.0

*International sources include Europe, North America, South America, Asia and Oceania.

Long-lived assets

The Company’s long-lived assets are located within the United States.

Disclosure of major customers

Major customers are defined as customers whose sales or accounts receivables individually consist of more than 10% of total sales or total trade receivables, respectively. Percentage of revenues from major customers of the Company’s consumer products segment for the periods indicated were as follows:

	Year Ended December 31,
Major Customers	2021		2020
A.S. Watson Group - Related Party	13.8	%	13.0	%

The percentage of the amounts due from major customers to total accounts receivable, net for the periods indicated were as follows:

	At December 31,
Major Customers	2021		2020
A.S. Watson Group - Related Party	39.6	%	31.9	%
Life Extension	22.1	%	17.7	%
Persona	10.3	%	*
Amazon Marketplaces	*		12.0	%
Matakana Health	*		11.1	%

* Represents less than 10%

Disclosure of major vendor

The Company’s major vendor who accounted for more than 10% of the Company’s total accounts payable is as follows:

Major Vendor	At December 31,
	2021		2020
Vendor A	32.1	%	39.7	%