Note N - Segment Information

12 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

N. 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® and SR CarnoSyn® trade names.

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. 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.

Our operating results by business segment for the years ended

June 

30

were as follows (in thousands):

	2021		2020
Net Sales
Private-label contract manufacturing	$	164,310	$	106,291
Patent and trademark licensing		14,210		12,585
	$	178,520	$	118,876

	2021			2020
Income (Loss) from Operations
Private-label contract manufacturing	$	17,744		$	4,030
Patent and trademark licensing		4,442			2,508
Income from operations of reportable segments		22,186			6,538
Corporate expenses not allocated to segments		(8,514	)		(8,047	)
	$	13,672		$	(1,509	)

	2021		2020
Assets
Private-label contract manufacturing	$	95,324	$	100,094
Patent and trademark licensing		24,957		20,109
	$	120,281	$	120,203

Our private-label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Australia, New Zealand, Mexico and Asia. Our primary markets outside the U.S. are Europe and Asia. Our patent and trademark licensing activities are primarily based in the U.S.

Net sales by geographic region, based on the customers' location, for the

two

years ended

June 

30

were as follows (in thousands):

	2021		2020
United States	$	94,702	$	66,912
Markets outside the United States		83,818		51,964
Total net sales	$	178,520	$	118,876

Products manufactured by NAIE accounted for

77%

of consolidated net sales in markets outside the U.S. in fiscal

2021

and

89%

in fiscal

2020.

No

products manufactured by NAIE were sold in the U.S. during the fiscal years ended

June 

30,

2021

and

2020.

Long-lived assets by geographic region, based on the location of the company or subsidiary at which they were located or made, for the

two

years ended

June 

30

were as follows (in thousands):

	2021		2020
United States	$	21,109	$	21,769
Europe		17,039		18,108
Total Long-Lived Assets	$	38,148	$	39,877

Total assets by geographic region, based on the location of the company or subsidiary at which they were located or made, for the

two

years ended

June 

30

were as follows (in thousands):

	2021		2020
United States	$	67,307	$	66,489
Europe		52,974		53,714
Total Assets	$	120,281	$	120,203

Capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, for the

two

years ended

June 

30

were as follows (in thousands):

	2021		2020
United States	$	2,336	$	1,530
Europe		2,771		3,011
Total Capital Expenditures	$	5,107	$	4,541