Niagen Bioscience, Inc.NAGE
Niagen Bioscience, Inc. Segments Disclosure
Business Segments and Concentrations
The Company’s four reportable segments are as follows:
•Consumer Products segment: provides finished dietary supplement products that contain the Company's proprietary ingredients directly to consumers and distributors;
•Ingredients segment: develops and commercializes proprietary-based ingredient technologies, including food-grade Niagen® and pharmaceutical-grade Niagen®, and supplies these ingredients as raw materials to the manufacturers of consumer products and U.S. FDA-registered 503B outsourcing facilities, respectively;
•Analytical Reference Standards and Services segment: offers the supply of phytochemical reference standards and other research and development services; and
•Pharmaceuticals segment: pursues the pharmaceutical development of our NAD precursor portfolio for potential therapeutic applications in rare diseases, and currently conducts research and development activities, including clinical studies and regulatory planning.
During the year ended December 31, 2025, the Company identified the pharmaceuticals segment as a new reportable operating segment based on changes in internal reporting and the manner in which the Company’s chief operating decision maker (CODM) evaluates operating performance. Segment information for the years ended December 31, 2025 and 2024 has been recast to reflect the current reportable segment structure for comparability purposes. The recast did not impact the Company’s previously reported consolidated results of operations or financial position.
The Company’s reportable segments are significant operating segments that offer differentiated products and services. This segment structure reflects the Company’s current operational and financial management and provides the framework used by management to evaluate performance, allocate resources, and support the Company’s strategic objectives while maintaining financial discipline.
The Company’s CODM is a management group comprised of the Chief Executive Officer and Chief Financial Officer. The CODM reviews monthly and quarterly financial information for each operating segment, including net sales, gross profit (loss), operating income (loss), and spending by segment, to evaluate operating performance and allocate resources. The CODM does not review assets by operating segment in evaluating performance, and therefore assets by segment are not disclosed. There are no intersegment sales that require elimination. The “Corporate and other” classification includes corporate items that are not allocated to the Company’s reportable segments.
The following tables set forth financial information by segment:
| Year Ended December 31, 2025 | Consumer Products segment | Ingredients segment | Analytical Reference Standards and Services segment | Pharmaceuticals segment | Corporate and other | Total | ||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 97,672 | $ | 28,675 | $ | 3,076 | $ | — | $ | — | $ | 129,423 | ||||||||||||||||||||||||||
| Cost of sales | 32,784 | 11,119 | 2,331 | — | — | 46,234 | ||||||||||||||||||||||||||||||||
| Gross profit | 64,888 | 17,556 | 745 | — | — | 83,189 | ||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||
| Sales and marketing: | ||||||||||||||||||||||||||||||||||||||
| Advertising | 12,655 | — | — | — | — | 12,655 | ||||||||||||||||||||||||||||||||
| Marketing | 11,490 | 102 | 2 | — | — | 11,594 | ||||||||||||||||||||||||||||||||
| Selling | 10,766 | 144 | 347 | — | — | 11,257 | ||||||||||||||||||||||||||||||||
| Research and development | 3,166 | 930 | — | 2,234 | — | 6,330 | ||||||||||||||||||||||||||||||||
| General and administrative | — | — | — | — | 27,057 | 27,057 | ||||||||||||||||||||||||||||||||
| Gain on settlement of royalty obligation | (1,615) | (368) | — | — | — | (1,983) | ||||||||||||||||||||||||||||||||
| Operating expenses | 36,462 | 808 | 349 | 2,234 | 27,057 | 66,910 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 28,426 | $ | 16,748 | $ | 396 | $ | (2,234) | $ | (27,057) | $ | 16,279 | ||||||||||||||||||||||||||
| Year Ended December 31, 2024 | Consumer Products segment | Ingredients segment | Analytical Reference Standards and Services segment | Pharmaceuticals segment | Corporate and other | Total | ||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 76,772 | $ | 19,814 | $ | 3,011 | $ | — | $ | — | $ | 99,597 | ||||||||||||||||||||||||||
| Cost of sales | 27,478 | 7,808 | 2,725 | — | — | 38,011 | ||||||||||||||||||||||||||||||||
| Gross profit | 49,294 | 12,006 | 286 | — | — | 61,586 | ||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||
| Sales and marketing: | ||||||||||||||||||||||||||||||||||||||
| Advertising | 11,102 | — | — | — | — | 11,102 | ||||||||||||||||||||||||||||||||
| Marketing | 8,346 | 195 | 4 | — | — | 8,545 | ||||||||||||||||||||||||||||||||
| Selling | 9,285 | 40 | 497 | — | — | 9,822 | ||||||||||||||||||||||||||||||||
| Research and development | 3,384 | 873 | — | 1,759 | — | 6,016 | ||||||||||||||||||||||||||||||||
| General and administrative | — | — | — | — | 18,375 | 18,375 | ||||||||||||||||||||||||||||||||
| Operating expenses | 32,117 | 1,108 | 501 | 1,759 | 18,375 | 53,860 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 17,177 | $ | 10,898 | $ | (215) | $ | (1,759) | $ | (18,375) | $ | 7,726 | ||||||||||||||||||||||||||
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 it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. The pharmaceuticals segment did not generate revenue during the periods presented. Disaggregated revenues are as follows:
| Year Ended December 31, 2025 | Consumer Products Segment | Ingredients Segment | Analytical Reference Standards and Services Segment | Total | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Tru Niagen®, Consumer Product | $ | 97,672 | $ | — | $ | — | $ | 97,672 | ||||||||||||||||||
Food-grade Niagen® | — | 24,110 | — | 24,110 | ||||||||||||||||||||||
Pharmaceutical-grade Niagen® | — | 3,784 | — | 3,784 | ||||||||||||||||||||||
| Subtotal Niagen® Related | 97,672 | 27,894 | — | 125,566 | ||||||||||||||||||||||
| Other Ingredients | — | 781 | — | 781 | ||||||||||||||||||||||
| Reference Standards | — | — | 3,003 | 3,003 | ||||||||||||||||||||||
| Consulting and Other | — | — | 73 | 73 | ||||||||||||||||||||||
| Subtotal Other Goods and Services | — | 781 | 3,076 | 3,857 | ||||||||||||||||||||||
| Total Net Sales | $ | 97,672 | $ | 28,675 | $ | 3,076 | $ | 129,423 | ||||||||||||||||||
| Year Ended December 31, 2024 | Consumer Products Segment | Ingredients Segment | Analytical Reference Standards and Services Segment | Total | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Tru Niagen®, Consumer Product | $ | 76,772 | $ | — | $ | — | $ | 76,772 | ||||||||||||||||||
| Food-grade Niagen® | — | 17,540 | — | 17,540 | ||||||||||||||||||||||
| Pharmaceutical-grade Niagen® | — | 1,700 | — | 1,700 | ||||||||||||||||||||||
| Subtotal Niagen® Related | 76,772 | 19,240 | — | 96,012 | ||||||||||||||||||||||
| Other Ingredients | — | 574 | — | 574 | ||||||||||||||||||||||
| Reference Standards | — | — | 2,891 | 2,891 | ||||||||||||||||||||||
| Consulting and Other | — | — | 120 | 120 | ||||||||||||||||||||||
| Subtotal Other Goods and Services | — | 574 | 3,011 | 3,585 | ||||||||||||||||||||||
| Total Net Sales | $ | 76,772 | $ | 19,814 | $ | 3,011 | $ | 99,597 | ||||||||||||||||||
Assets Held For Sale
During the year ended December 31, 2025, the Company committed to a plan to sell substantially all of the assets of its analytical reference standards and services operating segment to a third party. As of December 31, 2025, the assets associated with this operating segment met the criteria to be classified as held for sale and are presented as assets held for sale in the accompanying consolidated balance sheets.
The Company evaluated the long-lived assets of the analytical reference standards and services operating segment for impairment prior to classification as held for sale and recorded any required adjustments to reflect the assets at the lower of carrying value or estimated fair value less costs to sell. Depreciation and amortization of long-lived assets classified as held for sale ceased as of the classification date.
The assets classified as held for sale primarily consist of $403,000 in inventory, $138,000 of certain long-lived assets, customer lists and contracts, and a trade name. The buyer will assume operating liabilities arising after the closing date, while the Company will retain all accounts receivable and accounts payable incurred prior to the closing date related to the disposed assets.
On February 24, 2026, the Company entered into a definitive asset purchase agreement with a third party for total cash consideration of approximately $6.0 million, less working capital adjustments of approximately $0.2 million.
In connection with the disposition, the Company entered into a transition services agreement pursuant to which the Company will continue to provide certain operational and administrative services to the buyer for a period of up to six months following the closing date. The Company will receive a service fee for these services, which will be recognized as the services are provided.
The results of operations of the analytical reference standards and services operating segment are included in continuing operations for all periods presented, as the disposition does not represent a strategic shift that will have a major effect on the Company’s operations or financial resultsGeographical Concentrations
Net sales from international sources
The Company's net sales are predominantly generated in the United States, however, international sources collectively represent more than 10% of both total net sales and net sales for each business segment. These international sources span across Europe, North America, South America, Asia, and Oceania. Net sales from international sources detailed by each business segment are as follows:
| Year Ended December 31, | ||||||||||||||
| (In millions) | 2025 | 2024 | ||||||||||||
| Consumer Products Segment | $ | 20.2 | $ | 19.8 | ||||||||||
| Ingredients Segment | 6.7 | $ | 3.6 | |||||||||||
| Analytical Reference Standards and Services Segment | 0.9 | $ | 0.9 | |||||||||||
| Total net sales from international sources | $ | 27.8 | $ | 24.3 | ||||||||||
Long-lived assets
The Company’s long-lived assets are located within the United States.
Concentrations of Major Customers and Vendors
Disclosure of major customers
Major customers are defined as customers whose sales or trade receivables individually consist of more than 10% of total sales or total trade receivables, respectively. No customer accounted for more than 10% of the Company’s net sales during the year ended December 31, 2025. Customers that represented more than 10% of net sales during the year ended December 31, 2024 are presented in the table below as a percentage of net sales.
| Year Ended December 31, | |||||||||||
| Major Customers | 2024 | ||||||||||
| A.S. Watson Group (1) | 12.5 | % | |||||||||
| Customer A | 11.7 | % | |||||||||
(1) Customer was classified as a related party for part of the year ended December 31, 2024. See Note 5, Related Party Transactions for further details.
The percentage of the amounts due from major customers to total trade receivables, net as of the periods indicated were as follows:
| As of December 31, | ||||||||||||||
| Major Customers | 2025 | 2024 | ||||||||||||
| A.S. Watson Group (1) | 23.0 | % | 47.6 | % | ||||||||||
| Customer B | 11.0 | % | 14.3 | % | ||||||||||
| Customer C | * | 10.3 | % | |||||||||||
* Represents less than 10%
(1) Customer was classified as a related party for part of the prior year. See Note 5, Related Party Transactions for further details.
For the years ended December 31, 2025 and 2024, the Company recorded recoveries of credit losses of approximately $1.3 million in each year, totaling approximately $2.6 million, related to a settlement arising from litigation. See Note 15, Commitments and Contingencies — Legal Proceedings, 2. Elysium Health, LLC, (A) California Action for further information.
As of December 31, 2025, concentration for the Company's outstanding trade receivables is significant, with approximately 34% of the total outstanding trade receivables aggregated among two customers. Whenever a significant concentration is present it poses 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 the Company does not consider the concentration of its trade receivables to be a significant risk. Nevertheless, to ensure prudence and safeguard against potential challenges arising from this concentration, the Company remains vigilant in monitoring the creditworthiness and payment behavior of these major customers. Furthermore, the Company continues to pursue new partnerships and business opportunities which helps to diversify its customer base and minimize the risk of an overreliance on any particular trade receivable. Despite the Company’s risk mitigation efforts, there is no assurance that the Company will not experience delays or defaults in payment from its 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.
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 | As of December 31, | |||||||||||||
| 2025 | 2024 | |||||||||||||
| W.R. Grace & Co. - Conn | 43.5 | % | 47.2 | % | ||||||||||
The Company has an exclusive manufacturing arrangement for the supply of Nicotinamide-beta-Riboside Chloride (NRCL) with W.R. Grace & Co. -Conn. (Grace). On July 25, 2025, the Company executed a Sales Agreement (the “Grace Supply Agreement”) with Grace with an effective date of April 1, 2025. Grace holds patents related to the crystalline form of NR chloride that provide Grace with exclusive manufacturing rights for certain forms of NRCL, which limit the Company’s ability to source alternative suppliers. Pursuant to the Grace Supply Agreement, Grace will exclusively supply the Company with NRCL meeting specified quality and technical requirements as defined in a previously executed quality agreement dated March 22, 2024. In addition, Grace is prohibited from selling NRCL to third parties and must notify the Company of any new business inquiries relating to the purchase of NRCL. The Company is contractually obligated to purchase minimum quantities of NRCL during each year of the agreement term.
The Grace Supply Agreement provides for an initial term through April 30, 2029, and will automatically renew for successive 12-month terms unless either party provides written notice of its intent not to renew. The Company provides rolling monthly forecasts of its anticipated purchase requirements for a 24-month period, of which the first 12 months are binding upon Grace’s acceptance. Refer to Note 15. Commitments and Contingencies - Purchase obligations for more details. Any failure to extend the Grace Manufacturing Agreement on satisfactory terms could potentially have a material adverse impact on the Company’s financial results and strategic position, as outlined in Item 1A. Risk Factors of this Annual Report on Form 10-K, "We rely on a single supplier, W.R. Grace, for NRC and a limited number of third-party suppliers for the raw materials required to produce our products."
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 7, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 17, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.