Business Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Financial Information

The following tables set forth financial information by segment:

Three Months Ended March 31, 2023	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	17,633	$	4,124	$	799	$	—	$	22,556
Cost of sales	6,404		1,881		753		—		9,038
Gross profit	11,229		2,243		46		—		13,518
Operating expenses:
Sales and marketing	7,773		18		83		—		7,874
Research and development	967		226		—		—		1,193
General and administrative	—		—		—		6,419		6,419
Operating expenses	8,740		244		83		6,419		15,486
Operating income (loss)	$	2,489	$	1,999	$	(37)	$	(6,419)	$	(1,968)

Three Months Ended March 31, 2022	Consumer Products segment		Ingredients segment		Analytical Reference Standards and Services segment		Corporate and other		Total
(In thousands)
Net sales	$	14,937	$	1,427	$	895	$	—	$	17,259
Cost of sales	5,252		722		753		—		6,727
Gross profit	9,685		705		142		—		10,532
Operating expenses:
Sales and marketing	8,074		24		139		—		8,237
Research and development	1,002		76		—		—		1,078
General and administrative	—		—		—		8,949		8,949
Operating expenses	9,076		100		139		8,949		18,264
Operating income (loss)	$	609	$	605	$	3	$	(8,949)	$	(7,732)

Schedule of Disaggregation of Revenue

Disaggregated revenues are as follows:

Three Months Ended March 31, 2023	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product	$	17,633	$	—	$	—	$	17,633
Niagen® Ingredient	—		3,898		—		3,898
Subtotal Niagen® Related	17,633		3,898		—		21,531
Other Ingredients	—		226		—		226
Reference Standards	—		—		775		775
Consulting and Other	—		—		24		24
Subtotal Other Goods and Services	—		226		799		1,025
Total Net Sales	$	17,633	$	4,124	$	799	$	22,556

Three Months Ended March 31, 2022	Consumer Products Segment		Ingredients Segment		Analytical Reference Standards and Services Segment		Total
(In thousands)
Tru Niagen®, Consumer Product	$	14,937	$	—	$	—	$	14,937
Niagen® Ingredient	—		1,131		—		1,131
Subtotal Niagen® Related	14,937		1,131		—		16,068
Other Ingredients	—		296		—		296
Reference Standards	—		—		883		883
Consulting and Other	—		—		12		12
Subtotal Other Goods and Services	—		296		895		1,191
Total Net Sales	$	14,937	$	1,427	$	895	$	17,259

Schedule of Major Customers

Percentage of net sales from major customers of the Company’s consumer products segment for the periods indicated were as follows:

	Three Months Ended March 31,
Major Customers	2023		2022
A.S. Watson Group - Related Party	16.5	%	14.8	%

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

Major Customers	At March 31, 2023		At December 31, 2022
A.S. Watson Group - Related Party	38.0	%	36.6	%
Nestlé (NHSc)	*		23.6	%
ProHealth	13.0	%	*
Amazon Marketplaces	12.5	%	*
Life Extension	11.7	%	*
ShopHQ	10.8	%	*

* Represents less than 10%

As of March 31, 2023, concentration for the Company's outstanding trade receivables is significant, with approximately 86% of the total outstanding trade receivables aggregated among five customers. This concentration presents 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 does not consider the concentration of its trade receivables to be a significant risk. However, to mitigate the risk associated with the concentration of trade receivables, the Company is actively monitoring the creditworthiness and payment behavior of these major customers. It has implemented credit risk management policies and procedures, including credit assessments, ongoing credit monitoring, and diligent collection efforts. Furthermore, the Company continues to pursue new partnerships and business opportunities which helps to broaden its customer base and minimize the risk of a significant concentration of trade receivables.

Despite these risk mitigation efforts, there is no assurance that the Company will not experience delays or defaults in payment from these major 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.