Group 1 - Natural Alternatives International, Inc. (NAI) announced an amended credit facility with Wells Fargo Bank, extending the term to December 31, 2026, and modifying the borrowing capacity to $10 million [1][2] - The CEO of NAI expressed gratitude for the relationship with Wells Fargo and highlighted that the amended facility reflects the strength of the company's balance sheet, which will support working capital needs and aims for revenue growth and sustainable profitability [2] - NAI specializes in formulating, manufacturing, and marketing customized nutritional supplements, offering a range of services including scientific research, clinical studies, and product formulation [2]

CARLSBAD, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $2.2 million, or $0.37 per diluted share, on net sales of $28.8 million for the third quarter of fiscal year 2025 compared to a net loss of $1.6 million, or $0.27 per diluted share, in the third quarter of the prior fiscal year. Net sales during the three months ended March 31, ...

Financial Performance - Net sales for the nine months ended March 31, 2025, increased by 14% to $95.994 million compared to $84.307 million for the same period in 2024[98] - Private-label contract manufacturing sales rose by 16% during the nine months ended March 31, 2025, primarily due to increased orders from a larger customer and new customer shipments[98] - Patent and trademark licensing revenue decreased by 9% to $6.0 million for the nine months ended March 31, 2025, down from $6.6 million in the prior year[99] - The company experienced a net loss of $6.359 million for the nine months ended March 31, 2025, compared to a net loss of $5.343 million for the same period in 2024, representing a 19% increase in loss[106] - Selling, general, and administrative expenses increased by 9% to $12.470 million for the nine months ended March 31, 2025, compared to $11.455 million in the prior year[110] - The gross profit margin for the nine months ended March 31, 2025, was 6.0%, a decrease from 6.5% in the prior year[106] Cash Flow and Liquidity - Net cash provided by operating activities was $2.6 million for the nine months ended March 31, 2025, compared to $1.2 million in the prior year[113] - Cash used in investing activities increased to $2.2 million for the nine months ended March 31, 2025, compared to $2.0 million in the prior year, mainly due to capital expenditures for solar energy generation equipment[118] - Cash used in financing activities rose to $1.8 million for the nine months ended March 31, 2025, compared to $0.4 million in the prior year, reflecting increased usage of the credit facility[119] - As of March 31, 2025, the company had $10.6 million in cash and cash equivalents, with $10.0 million held by NAIE, sufficient to fund current working capital needs for at least the next 12 months[122] Credit Facility and Debt - As of March 31, 2025, the company had $8.5 million of borrowing capacity available on its credit facility, with outstanding borrowings of $2.0 million[120] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the fourth quarter of fiscal 2025[122] - A tentative agreement with Wells Fargo is in place regarding proposed amended terms to the credit facility, which may include waiving current and past covenant violations[122] - The maturity date of the credit facility was extended from May 23, 2025, to June 23, 2025, allowing time to finalize negotiations for an amended credit agreement[122] - As of March 31, 2025, the company had no off-balance sheet debt or significant transactions that could materially affect its financial condition[123] Operational Focus - The company plans to continue focusing on expanding the commercialization of its beta-alanine patent estate and developing new sales distribution channels[107] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the nine months ended March 31, 2025[101] Sales Metrics - Days sales outstanding increased to 41 days during the nine months ended March 31, 2025, compared to 30 days in the prior year[114] - Private-label contract manufacturing gross profit margin increased by 1.2 percentage points to a percentage of consolidated net sales for the three months ended March 31, 2025, primarily due to increased sales volume and a favorable product sales mix[116] - Patent and trademark licensing gross profit margin decreased by 2.5 percentage points during the three months ended March 31, 2025, attributed to decreased net sales in this segment[116]

Core Insights - Natural Alternatives International, Inc. (NAI) and CarnoSyn® Brands announced positive clinical trial results for TriBsyn™, demonstrating enhanced bioavailability and efficiency of beta-alanine while eliminating paresthesia, a common side effect [1][5] Product Overview - TriBsyn™ is a carnosine booster derived from CarnoSyn beta-alanine, utilizing proprietary Hydro Oleo technology for higher bioavailability and potency, allowing for effective dosages at lower volumes [2][5] - The formulation enables absorption through multiple pathways, including direct cellular uptake and traditional gastrointestinal routes, enhancing delivery at both cellular and systemic levels [2] Clinical Study Details - The study evaluated the bioavailability, pharmacokinetics, and tolerability of a 400 mg Hydro Oleo encapsulated beta-alanine complex (TriBsyn™) designed to reduce paresthesia [3] - A randomized, double-blind, single-dose, three-treatment, three-way crossover study was conducted in healthy older adults, showing TriBsyn™ (400 mg) achieved a 4.5-fold increase in circulating beta-alanine plasma concentrations compared to 400 mg of conventional beta-alanine and a 1.3-fold increase compared to 1200 mg of conventional beta-alanine [3][7] Sensory Side Effects Assessment - No paresthesia or adverse effects were reported in the TriBsyn™ group, while conventional beta-alanine groups exhibited increasing paresthesia with dose [4] - TriBsyn™ recorded a Visual Analogue Score (VAS) of 0.62, indicating almost absent symptoms, compared to scores of 2.02 and 4.01 for conventional beta-alanine at 400 mg and 1200 mg, respectively [4] Market Implications - The results confirm TriBsyn™ as a new standard in beta-alanine supplementation, particularly beneficial for the active aging population, GLP-1 users, and those with plant-based diets [5] - NAI aims to broaden its product offerings within the dietary supplement category, medical food, and other fortified food products with the introduction of the "paresthesia-free" TriBsyn™ powder [6]

Core Insights - Natural Alternatives International, Inc. (NAI) and CarnoSyn® Brands announced positive clinical trial results for TriBsyn™, demonstrating enhanced bioavailability and efficiency of beta-alanine while eliminating paresthesia, a common side effect [1][5]. Product Overview - TriBsyn™ is a carnosine booster derived from CarnoSyn® beta-alanine, utilizing proprietary Hydro Oleo technology for higher bioavailability and potency, allowing for effective dosages at lower volumes [2][5]. - The formulation enables absorption through multiple pathways, including direct cellular uptake and traditional gastrointestinal routes, enhancing delivery at both cellular and systemic levels [2]. Clinical Study Details - The study evaluated the bioavailability, pharmacokinetics, and tolerability of a 400 mg Hydro Oleo encapsulated beta-alanine complex (TriBsyn™) designed to reduce paresthesia [3]. - A randomized, double-blind, single-dose, three-treatment, three-way crossover study was conducted in healthy older adults, showing that TriBsyn™ (400 mg) achieved a nearly 4.5-fold increase in circulating beta-alanine plasma concentrations compared to 400 mg and a 1.3-fold increase compared to 1200 mg of conventional beta-alanine [3][7]. Sensory Side Effects Assessment - Sensory side effects were assessed using Visual Analogue Score (VAS) and Qualitative Light Symptoms Inventory (QLSI), with no paresthesia reported in the TriBsyn™ group, while conventional beta-alanine groups exhibited increasing paresthesia with dose [4]. - TriBsyn™ recorded a VAS score of 0.62, indicating almost absent symptoms, compared to scores of 2.02 and 4.01 for conventional beta-alanine at 400 mg and 1200 mg, respectively [4]. Market Implications - The results confirm TriBsyn™ as a significant advancement in beta-alanine supplementation, providing scientifically proven claims to improve muscle vitality, working capacity, and cognitive performance, particularly beneficial for the active aging population and those with plant-based diets [5][6]. - NAI's new "paresthesia-free" TriBsyn™ powder allows the company to expand its product offerings within dietary supplements, medical food, and fortified food products [6].

Core Viewpoint - Natural Alternatives International, Inc. reported a net loss of $2.2 million for Q2 FY2025, an improvement from a net loss of $3.1 million in the same quarter of the previous year, with net sales increasing to $34.1 million, a 35% rise compared to $25.2 million in Q2 FY2024 [1][2]. Financial Performance - Net sales for the three months ended December 31, 2024, increased by $8.9 million, or 35%, reaching $34.1 million compared to $25.2 million in the prior year [2]. - For the six months ended December 31, 2024, net sales rose by $8.1 million, or 14%, totaling $67.2 million compared to $59.2 million in the same period of the previous year [5]. - Private-label contract manufacturing sales increased by 40% to $32.3 million in Q2 FY2025, driven by higher orders from major customers and new customer shipments [2]. - CarnoSyn beta-alanine royalty, licensing, and raw material sales revenue decreased by 18% to $1.8 million in Q2 FY2025, primarily due to reduced orders from existing customers [3]. Losses and Expenses - The company reported a net loss of $4.2 million, or $0.70 per diluted share, for the six months ended December 31, 2024, compared to a net loss of $3.8 million, or $0.64 per diluted share, for the same period in 2023 [4]. - The loss from operations for the three and six months ended December 31, 2024, was attributed to a change in sales mix, increased manufacturing costs, and higher legal expenses related to patent expansion [6]. Cash and Working Capital - As of December 31, 2024, the company had cash of $8.7 million and working capital of $36.9 million, down from $12.0 million and $38.1 million, respectively, as of June 30, 2024 [7]. Management Commentary - The CEO expressed satisfaction with revenue growth and reduced anticipated losses, while acknowledging challenges such as customer order flow and currency valuations [8].

Financial Performance - Net sales for the six months ended December 31, 2024, increased by 14% to $67.2 million compared to $59.2 million for the same period in 2023[97] - The company experienced a net loss of $4.2 million for the six months ended December 31, 2024, an 11% increase compared to a net loss of $3.8 million in the same period of 2023[102] - Patent and trademark licensing revenue increased by 9% to $4.3 million for the six months ended December 31, 2024, compared to $3.9 million in the prior year[98] Expenses - Selling, general, and administrative expenses increased by 14% to $8.5 million during the six months ended December 31, 2024, primarily due to higher compensation and legal expenses[110] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the six months ended December 31, 2024, compared to $0.1 million in the prior year[100] Profit Margins - The gross profit margin for the six months ended December 31, 2024, was 5.8%, slightly down from 6.0% in the prior year[106] - Private-label contract manufacturing gross profit margin increased by 5.5 percentage points during the three months ended December 31, 2024, primarily due to increased sales volume[116] - Patent and trademark licensing gross profit margin decreased by 2.1 percentage points during the three months ended December 31, 2024, due to decreased net sales in this segment[116] Cash Flow and Financing - Cash used in investing activities was $1.4 million for the six months ended December 31, 2024, down from $1.7 million in the prior year[117] - Cash provided by financing activities was $1.4 million for the six months ended December 31, 2024, compared to using $0.1 million in the prior year[118] - As of December 31, 2024, the company had $10.8 million of borrowing capacity available on its credit facility, with outstanding borrowings of $5.0 million[119] - The company had $8.7 million in cash and cash equivalents as of December 31, 2024, with $8.2 million held by NAIE[120] Future Outlook - The company anticipates a net loss in the second half of fiscal 2025, despite an overall increase in sales forecasted for the year[102] - The company plans to continue focusing on expanding its beta-alanine patent estate and developing new sales channels in the Wellness and Healthy Aging category[107] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the next two quarters of fiscal 2025[120] Inventory and Sales - Days sales outstanding increased to 46 days during the six months ended December 31, 2024, compared to 27 days in the prior year[114] - Changes in inventory provided $1.2 million in cash during the six months ended December 31, 2024, compared to $10.1 million in the prior year period[115] Compliance and Accounting - There were no off-balance sheet arrangements or debt as of December 31, 2024, that would materially affect the company's financial condition[122] - Recent accounting pronouncements do not materially affect the company's financial position or results of operations[123]

Financial Performance - Net sales for the three months ended September 30, 2024, were $33.15 million, a 2% decrease compared to $33.97 million for the same period in 2023[97]. - Private-label contract manufacturing sales decreased by 5% to $30.63 million, primarily due to reduced orders from a larger customer[87]. - Patent and trademark licensing revenue increased by 42% to $2.5 million, up from $1.78 million in the prior year[88]. - Gross profit for the three months ended September 30, 2024, was $2.26 million, representing a gross profit margin of 6.8%, down from 9.2% in the prior year[97]. - Loss from operations was $1.84 million, a 238% increase compared to a loss of $0.54 million in the same period last year[92]. - Selling, general, and administrative expenses rose by 11% to $4.1 million, primarily due to increased compensation and legal fees[101]. - Cash used in operating activities was $3.4 million for the three months ended September 30, 2024, compared to cash provided of $4.5 million in the same period last year[104]. Strategic Initiatives - The company plans to continue focusing on expanding its beta-alanine patent estate and developing new sales channels in the Wellness and Healthy Aging markets[94]. - The new product TriBsyn™ was announced in August 2024, aimed at enhancing market penetration in the Wellness and Healthy Aging segments[89]. Financial Position and Liquidity - As of September 30, 2024, the company had $12.5 million of borrowing capacity on its credit facility, with outstanding borrowings of $5.4 million[109]. - As of September 30, 2024, the company had $10.2 million in cash and cash equivalents, with $9.9 million held by NAIE[110]. - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the next two quarters of fiscal 2025[110]. - The company is negotiating a potential revised credit facility or waiver with Wells Fargo, which has not yet exercised any options under the Credit Agreement[110]. - There is no assurance that the company will successfully negotiate a revised credit facility or the terms of such a facility[110]. - As of September 30, 2024, the company did not have any off-balance sheet debt or significant relationships that could materially affect its financial condition[111]. - Recent accounting pronouncements are discussed in the notes to the consolidated financial statements, with no material effects on financial position or results of operations identified[112].

Financial Performance - The company reported a net loss of $2.0 million, or $0.33 per diluted share, on net sales of $33.2 million for the first quarter of fiscal year 2025, compared to a net loss of $0.7 million, or $0.12 per diluted share, in the same period of the prior fiscal year [1] - Net sales decreased by $0.8 million, or 2.4%, to $33.2 million compared to $34.0 million in the prior year period [2] - Private-label contract manufacturing sales decreased by $1.6 million, or 4.8%, primarily due to reduced orders from one larger customer, partially offset by increased shipments from other existing and new customers [2] - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue increased by 41.6% to $2.5 million compared to $1.8 million in the prior year period [3] - The company anticipates a net loss in the first half of fiscal 2025, net income in the second half, and an overall net loss for the fiscal year [4] Operational Challenges - The loss from operations was primarily due to reduced sales, a change in sales mix from the private-label contract manufacturing segment, and increased manufacturing costs, including labor, supplies, rent, and freight [4] - Selling, general, and administrative expenses increased to $4.095 million, or 12.4% of net sales, compared to $3.681 million, or 10.8% of net sales, in the prior year period [10] Liquidity and Capital - As of September 30, 2024, the company had $10.1 million in cash and $38.0 million in working capital, compared to $12.0 million and $38.1 million, respectively, as of June 30, 2024 [5] - The company had $12.5 million of borrowing capacity on its credit facility, with $5.4 million in outstanding borrowings [5] Strategic Outlook - The company remains optimistic about securing additional revenues and profitability through expanded product offerings and new client relationships [6] - The recent U.S. election has highlighted a consumer-driven mandate to promote health, which could benefit the nutraceutical and vitamin industry [6] - The company is committed to working with the new administration to foster greater understanding and acceptance of properly made health products [6] Industry Context - The company operates in the nutritional supplements industry, providing customized products and strategic partnering services, including scientific research, clinical studies, and regulatory assistance [7] - The industry is poised to meet increasing consumer demand for high-quality health products, driven by a renewed emphasis on health and wellness [6]

Company Overview - Natural Alternatives International, Inc. (NAI) is a leading formulator, manufacturer, and marketer of nutritional supplements, headquartered in Carlsbad, California [6] - NAI offers a comprehensive partnership approach that includes scientific research, proprietary ingredients, product formulation, testing, marketing management, and regulatory review [6] Product Launch - NAI has introduced a new carnosine booster called TriBsyn™, which utilizes proprietary technology to enhance beta-alanine bioavailability and absorption while eliminating the common paresthesia sensation [2] - TriBsyn™ is positioned to appeal to a wide range of consumers, including older adults, vegetarians, and vegans, looking to increase their carnosine levels [2] Strategic Partnership - NAI has formed a distribution partnership with B&D Nutritional Ingredients, effective October 1, 2024, to distribute TriBsyn™ in the U.S. dietary supplement, functional food, and beverage markets [1][2] - B&D Nutritional Ingredients has been a prominent raw material distributor in the dietary supplement industry since 1993 and is recognized for its commitment to customer service [3][4] Market Positioning - TriBsyn™ is expected to enhance B&D's specialty ingredient portfolio, which includes clinically supported and unique dietary ingredients [4] - The partnership aims to drive awareness and growth of TriBsyn™, which was launched in August 2024 [3] Industry Context - B&D Nutritional Ingredients specializes in the sales, distribution, and marketing of high-quality dietary ingredients across various sectors, including dietary supplements and functional foods [4] - The dietary supplement industry is increasingly focused on innovative ingredients that support health benefits such as anti-aging, cognitive function, and physical activity [4]