Niagen Bioscience, Inc. 10-Q

Item 1. FINANCIAL STATEMENTS (unaudited) Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (In thousands except par values, unless otherwise indicated) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents, including restricted cash of $ 152 for both periods presented $ 64,290 $ 44,660 Trade receivables, net of allowances of $ 137 and $ 95 , respectively 8,506 7,768 Inventories 18,791 9,192 Prepaid expenses and other assets 2,029 2,482 Total current assets 93,616 64,102 Leasehold improvements and equipment, net 1,499 1,719 Intangible assets, net 246 359 Right-of-use assets, net 2,361 1,730 Other long-term assets 417 368 Total assets $ 98,139 $ 68,278 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 12,742 $ 8,526 Accrued expenses 8,700 7,817 Current maturities of operating lease obligations 976 982 Current maturities of finance lease obligations 2 12 Customer deposits 292 611 Total current liabilities 22,712 17,948 Deferred revenue 2,674 2,579 Operating lease obligations, less current maturities 2,077 1,657 Total liabilities 27,463 22,184 Commitments and Contingencies (Note 10) Stockholders' Equity Common stock, $ 0.001 par value; authorized 150,000 shares; 79,639 shares and 77,330 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 79 77 Additional paid-in capital 239,266 227,931 Accumulated deficit ( 168,660 ) ( 181,910 ) Cumulative translation adjustments ( 9 ) ( 4 ) Total stockholders' equity 70,676 46,094 Total liabilities and stockholders' equity $ 98,139 $ 68,278 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 3 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Sales, net $ 33,986 $ 25,580 $ 95,584 $ 70,472 Cost of sales 12,058 9,340 34,099 27,083 Gross profit 21,928 16,240 61,485 43,389 Operating expenses: Sales and marketing 8,768 7,044 25,092 20,753 Research and development 1,795 1,290 4,620 4,701 General and administrative 7,129 6,304 19,580 17,320 Total operating expenses 17,692 14,638 49,292 42,774 Operating income 4,236 1,602 12,193 615 Nonoperating income: Interest income, net 564 276 1,575 756 Income before provision for income taxes 4,800 1,878 13,768 1,371 Provision for income taxes 222 — 518 — Net income $ 4,578 $ 1,878 $ 13,250 $ 1,371 Net income per share attributable to common stockholders: Basic $ 0.06 $ 0.02 $ 0.17 $ 0.02 Diluted $ 0.05 $ 0.02 $ 0.15 $ 0.02 Weighted average common shares outstanding: Basic 79,779 75,972 78,953 75,588 Diluted 86,619 77,768 85,487 76,804 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 4 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Stockholders' Equity (In thousands, unless otherwise indicated) Three Months Ended September 30, 2025 Common Stock Additional Paid-in Capital Accumulated Deficit Cumulative Translation Adjustments Total Stockholders' Equity Shares Amount Balance, July 1, 2025 79,586 $ 79 $ 237,358 $ ( 173,238 ) $ ( 4 ) $ 64,195 Issuance of common stock resulting from the exercise of stock options 53 — 152 — — 152 Issuance of restricted stock — — — — — — Share-based compensation — — 1,756 — — 1,756 Translation adjustment — — — — ( 5 ) ( 5 ) Net income — — — 4,578 — 4,578 Balance, September 30, 2025 79,639 $ 79 $ 239,266 $ ( 168,660 ) $ ( 9 ) $ 70,676 Three Months Ended September 30, 2024 Common Stock Additional Paid-in Capital Accumulated Deficit Cumulative Translation Adjustments Total Stockholders' Equity Shares Amount Balance, July 1, 2024 75,473 $ 75 $ 221,612 $ ( 190,967 ) $ ( 2 ) $ 30,718 Issuance of common stock resulting from the exercise of stock options 511 1 1,042 — — 1,043 Issuance of restricted stock 43 — — — — — Share-based compensation — — 735 — — 735 Translation adjustment — — — — ( 5 ) ( 5 ) Net income — — — 1,878 — 1,878 Balance, September 30, 2024 76,027 $ 76 $ 223,389 $ ( 189,089 ) $ ( 7 ) $ 34,369 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 5 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Stockholders' Equity Continued (In thousands, unless otherwise indicated) Nine Months Ended September 30, 2025 Common Stock Additional Paid-in Capital Accumulated Deficit Cumulative Translation Adjustments Total Stockholders' Equity Shares Amount Balance, January 1, 2025 77,330 $ 77 $ 227,931 $ ( 181,910 ) $ ( 4 ) $ 46,094 Issuance of common stock resulting from the exercise of stock options 2,077 2 7,016 — — 7,018 Issuance of restricted stock 232 — — — — — Share-based compensation — — 4,319 — — 4,319 Translation adjustment — — — — ( 5 ) ( 5 ) Net income — — — 13,250 — 13,250 Balance, September 30, 2025 79,639 $ 79 $ 239,266 $ ( 168,660 ) $ ( 9 ) $ 70,676 Nine Months Ended September 30, 2024 Common Stock Additional Paid-in Capital Accumulated Deficit Cumulative Translation Adjustments Total Stockholders' Equity Shares Amount Balance, January 1, 2024 74,981 $ 75 $ 218,845 $ ( 190,460 ) $ ( 4 ) $ 28,456 Issuance of common stock resulting from the exercise of stock options 768 1 1,640 — — 1,641 Issuance of restricted stock 253 — — — — — Share-based compensation 25 — 2,904 — — 2,904 Translation adjustment — — — — ( 3 ) ( 3 ) Net income — — — 1,371 — 1,371 Balance, September 30, 2024 76,027 $ 76 $ 223,389 $ ( 189,089 ) $ ( 7 ) $ 34,369 See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 6 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Cash Flows (In thousands) Nine Months Ended September 30, 2025 2024 Cash Flows From Operating Activities Net income $ 13,250 $ 1,371 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of leasehold improvements and equipment 473 512 Amortization of intangibles 113 113 Noncash lease expense 496 501 Share-based compensation expense 4,319 2,904 Loss (gain) on disposal of leasehold improvements and equipment 4 ( 19 ) (Recovery of) / Allowance for credit losses ( 1,244 ) 59 Non-cash financing costs 41 62 Changes in operating assets and liabilities: Trade receivables 506 ( 1,921 ) Inventories ( 9,599 ) 3,981 Implementation costs for cloud computing arrangement ( 66 ) — Prepaid expenses and other assets 375 312 Accounts payable 4,216 ( 3,329 ) Accrued expenses 883 99 Deferred revenue 95 ( 732 ) Customer deposits and other ( 324 ) ( 14 ) Operating lease liabilities ( 713 ) ( 373 ) Net cash provided by operating activities 12,825 3,526 Cash Flows From Investing Activities Purchases of leasehold improvements and equipment ( 191 ) ( 94 ) Proceeds from the sale of leasehold improvements and equipment, net — 20 Net cash used in investing activities ( 191 ) ( 74 ) Cash Flows From Financing Activities Proceeds from exercise of stock options 7,018 1,641 Payment of debt issuance costs ( 12 ) ( 11 ) Principal payments on finance leases ( 10 ) ( 9 ) Net cash provided by financing activities 6,996 1,621 Net increase in cash and cash equivalents 19,630 5,073 Cash and cash equivalents, including restricted cash of $ 152 for both periods - beginning of period 44,660 27,325 Cash and cash equivalents, including restricted cash of $ 152 for both periods - end of period $ 64,290 $ 32,398 Supplemental Disclosures of Cash Flow Information Cash payments for principal on operating lease liabilities $ 637 $ 358 Supplemental Schedule of Noncash Operating Activity Right-of-use assets and operating lease obligations incurred for entering into lease amendment $ 1,127 $ — See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 7 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Note 1. Nature of Business Niagen Bioscience, Inc. (formerly ChromaDex Corporation) and its wholly owned subsidiaries, ChromaDex, Inc., ChromaDex International, Inc., ChromaDex Analytics, Inc., ChromaDex Asia Limited, Asia Pacific Scientific, Inc., ChromaDex Asia Pacific Ventures Limited, ChromaDex Europa B.V. and ChromaDex Trading (Shanghai) Co., Ltd. (collectively, “Niagen Bioscience” or the “Company”) are a global bioscience company dedicated to healthy aging. The Niagen Bioscience team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (NAD+), an essential coenzyme that is a key regulator of cellular metabolism and is found in every cell of the human body. NAD+ levels in humans have been shown to decline with age, among other factors, and may be increased through administration of NAD+ precursors. Niagen Bioscience is the innovator behind the NAD+ precursor nicotinamide riboside chloride (“NRC”, commonly referred to as “NR”), commercialized as the flagship ingredient Niagen®, available in both food and pharmaceutical grades. Nicotinamide riboside chloride and other NAD+ precursors are protected by Niagen Bioscience’s patent and/or licensed rights portfolio. The Company delivers food-grade Niagen® as the sole or principal dietary ingredient in its dietary supplement consumer product line, Tru Niagen®. As part of its consumer product offerings, the Company offers NAD+ test kits exclusively to healthcare practitioners. Furthermore, the Company develops and commercializes proprietary 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. Additionally, the Company provides natural product fine chemicals, known as phytochemicals, and related research and development services. Note 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation: The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the interim Unaudited Condensed Consolidated Financial Statements include all adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial condition, results of operations and cash flows for such periods. Results of operations for any interim period are not necessarily indicative of results for any other interim period or for the full year. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2024 Annual Report on Form 10-K filed with the SEC on March 4, 2025. Basis of Consolidation: The accompanying Unaudited Condensed Financial Statements and notes thereto have been prepared on a consolidated basis and reflect the consolidated financial position of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated from these financial statements. Significant Accounting Policies: There have been no changes to the Company’s significant accounting policies described in the Company’s 2024 Annual Report on Form 10-K that have had a material impact on the Company’s Unaudited Condensed Consolidated Financial Statements and related notes. Accounting Standards Recently Issued but Not Yet Adopted by the Company: In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (ASC). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company is currently evaluating the impact that the adoption of ASU 2023-06 may have on its consolidated financial statements and disclosures. 8 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. Early adoption and retrospective application are permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-02, "Codification Improvements". ASU 2024-02 amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. ASU 2024-02 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. While the Company is currently evaluating the impact of this standard, it is not expected to have a significant impact on the Company’s financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220): Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses". ASU 2024-03 requires public companies to disclose additional information about certain expense categories, including purchases of inventory, employee compensation, depreciation, amortization, and depletion, in both interim and annual financial statements. The amendments in this ASU will be effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently evaluating the impact of this standard. In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. This standard introduces a practical expedient, and, if applicable, an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued or made available for issuance. We are currently evaluating the impact of this standard and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and accompanying notes. In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which amends the guidance in ASC 350-40. The amendment modernizes the recognition and disclosure framework for internal-use software costs, removing the previous “development stage” model and requiring capitalization of software costs once a project is authorized, funded, and deemed probable to complete, with an added focus on evaluating any significant development uncertainty. The new standard is effective for annual reporting periods beginning after December 15, 2027 and interim periods within those annual reporting periods, and early adoption is permitted. We are currently evaluating the impact of this standard and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and accompanying notes. Note 3. Liquidity Evaluation of Ability to Maintain Current Level of Operations In connection with the preparation of these Unaudited Condensed Consolidated Financial Statements for the nine months ended September 30, 2025, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to meet its obligations as they became due over the next twelve months from the date of issuance of the Company’s third quarter of 2025 interim Unaudited Condensed Consolidated Financial Statements. Management assessed that there were such conditions and events, including a history of recurring operating losses and a history of negative cash flows from operating activities. For the nine months ended September 30, 2025, the Company had net income of $ 13.3 million and the Company’s operating activities provided cash of $ 12.8 million. As of September 30, 2025, the Company had unrestricted cash and cash equivalents of $ 64.1 million which consists of bank deposits and short-term investments, including highly liquid investment-grade debt instruments with an original maturity of three months or less. The fair value of the Company’s cash and cash equivalents is derived using Level 1 inputs. 9 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Management evaluated these conditions and anticipates that its current unrestricted cash and cash equivalents and cash to be generated from net sales will be sufficient to meet its financial obligations as they become due over at least the next twelve months from the issuance date of these Unaudited Condensed Consolidated Financial Statements. The Company may, however, seek additional capital within the next twelve months, both to fund its projected operating plans after the next twelve months and/or to fund the Company’s longer-term strategic objectives. Note 4. Income Per Share Applicable to Common Stockholders The following table sets forth the computations of income per share amounts applicable to common stockholders for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2025 2024 2025 2024 Numerator: Net income $ 4,578 $ 1,878 $ 13,250 $ 1,371 Denominator: Weighted average common shares outstanding for basic earnings per share (1) 79,779 75,972 78,953 75,588 Plus: incremental shares from assumed exercise of options and assumed vesting of restricted stock units (2) 6,840 1,796 6,534 1,216 Adjusted weighted average common shares outstanding for diluted earnings per share 86,619 77,768 85,487 76,804 Income Per Share: Basic income per common share $ 0.06 $ 0.02 $ 0.17 $ 0.02 Diluted income per common share $ 0.05 $ 0.02 $ 0.15 $ 0.02 (1) Includes a weighted average of approximately 167,000 nonvested shares of restricted stock for each of the three and nine months ended September 30, 2025 and 2024 which are participating securities that feature voting and dividend rights. (2) Options that were anti-dilutive and, therefore, excluded from the computation of weighted average common shares outstanding for the three and nine months ended September 30, 2025 and 2024 are presented in the table below. There were no anti-dilutive restricted stock units during any of the periods presented. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Stock options 427 5,712 492 6,585 Note 5. Business Segments The Company has the following three reportable segments: • Consumer Products segment: provides finished dietary supplement products that contain the Company's proprietary ingredients directly to consumers and distributors and offers NAD+ test kits exclusively to healthcare practitioners; • 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; and • Analytical Reference Standards and Services segment: offers the supply of phytochemical reference standards and other research and development services. 10 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements The Company’s reportable segments are significant operating segments that offer differentiated services. This structure reflects the Company’s 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 serves as 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 the review of net sales, gross profit, and operating income (loss), by reportable segment. The Company's CODM does not review assets by segment in the evaluation, and therefore, assets by segment are not disclosed below. There are no intersegment sales that require elimination. The “Corporate and other” classification includes corporate items not allocated by the Company to each reportable segment. The following tables set forth financial information by segment: Three months ended September 30, 2025 Consumer Products segment Ingredients segment Analytical Reference Standards and Services segment Corporate and other Total (In thousands) Net sales $ 26,017 $ 7,197 $ 772 $ — $ 33,986 Cost of sales 8,560 2,944 554 — 12,058 Gross profit 17,457 4,253 218 — 21,928 Operating expenses: Sales and marketing Advertising 3,145 — — — 3,145 Marketing 2,700 17 1 — 2,718 Selling 2,788 38 79 — 2,905 Research and development 1,400 395 — — 1,795 General and administrative — — — 7,129 7,129 Operating expenses 10,033 450 80 7,129 17,692 Operating income (loss) $ 7,424 $ 3,803 $ 138 $ ( 7,129 ) $ 4,236 Three months ended September 30, 2024 Consumer Products segment Ingredients segment Analytical Reference Standards and Services segment Corporate and other Total (In thousands) Net sales $ 18,123 $ 6,673 $ 784 $ — $ 25,580 Cost of sales 6,512 2,176 652 — 9,340 Gross profit 11,611 4,497 132 — 16,240 Operating expenses: Sales and marketing Advertising 2,734 — — — 2,734 Marketing 1,920 15 — — 1,935 Selling (1) 2,264 ( 9 ) 120 — 2,375 Research and development 901 389 — — 1,290 General and administrative — — — 6,304 6,304 Operating expenses 7,819 395 120 6,304 14,638 Operating income (loss) $ 3,792 $ 4,102 $ 12 $ ( 6,304 ) $ 1,602 (1) During the three months ended September 30, 2024, the Company recorded a reversal of certain selling expenses within the Ingredients segment as a result of a reduction in commissions payable. 11 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Nine Months Ended September 30, 2025 Consumer Products segment Ingredients segment Analytical Reference Standards and Services segment Corporate and other Total (In thousands) Net sales $ 70,217 $ 22,985 $ 2,382 $ — $ 95,584 Cost of sales 23,420 8,853 1,826 — 34,099 Gross profit 46,797 14,132 556 — 61,485 Operating expenses: Sales and marketing Advertising 9,003 — — — 9,003 Marketing 7,667 87 1 — 7,755 Selling 7,973 94 267 — 8,334 Research and development 3,481 1,139 — — 4,620 General and administrative — — — 19,580 19,580 Operating expenses 28,124 1,320 268 19,580 49,292 Operating income (loss) $ 18,673 $ 12,812 $ 288 $ ( 19,580 ) $ 12,193 Nine Months Ended September 30, 2024 Consumer Products segment Ingredients segment Analytical Reference Standards and Services segment Corporate and other Total (In thousands) Net sales $ 54,121 $ 14,062 $ 2,289 $ — $ 70,472 Cost of sales 19,451 5,558 2,074 — 27,083 Gross profit 34,670 8,504 215 — 43,389 Operating expenses: Sales and marketing Advertising 7,770 — — — 7,770 Marketing 5,886 77 4 — 5,967 Selling 6,635 7 374 — 7,016 Research and development 3,731 970 — — 4,701 General and administrative — — — 17,320 17,320 Operating expenses 24,022 1,054 378 17,320 42,774 Operating income (loss) $ 10,648 $ 7,450 $ ( 163 ) $ ( 17,320 ) $ 615 12 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements 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. Disaggregated revenues are as follows: Three Months Ended September 30, 2025 Consumer Products Segment Ingredients Segment Analytical Reference Standards and Services Segment Total (In thousands) Tru Niagen®, Consumer Product $ 26,017 $ — $ — $ 26,017 Food-grade Niagen® — 6,405 — 6,405 Pharmaceutical-grade Niagen® — 510 — 510 Subtotal Niagen® Related 26,017 6,915 — 32,932 Other Ingredients — 282 — 282 Reference Standards — — 757 757 Consulting and Other — — 15 15 Subtotal Other Goods and Services — 282 772 1,054 Total Net Sales $ 26,017 $ 7,197 $ 772 $ 33,986 Three Months Ended September 30, 2024 Consumer Products Segment Ingredients Segment Analytical Reference Standards and Services Segment Total (In thousands) Tru Niagen®, Consumer Product $ 18,123 $ — $ — $ 18,123 Food-grade Niagen® — 5,760 — 5,760 Pharmaceutical-grade Niagen® — 900 — 900 Subtotal Niagen® Related 18,123 6,660 — 24,783 Other Ingredients — 13 — 13 Reference Standards — — 759 759 Consulting and Other — — 25 25 Subtotal Other Goods and Services — 13 784 797 Total Net Sales $ 18,123 $ 6,673 $ 784 $ 25,580 13 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Nine Months Ended September 30, 2025 Consumer Products Segment Ingredients Segment Analytical Reference Standards and Services Segment Total (In thousands) Tru Niagen®, Consumer Product $ 70,217 $ — $ — $ 70,217 Food-grade Niagen® — 19,373 — 19,373 Pharmaceutical-grade Niagen® — 2,900 2,900 Subtotal Niagen® Related 70,217 22,273 — 92,490 Other Ingredients — 712 — 712 Reference Standards — — 2,327 2,327 Consulting and Other — — 55 55 Subtotal Other Goods and Services — 712 2,382 3,094 Total Net Sales $ 70,217 $ 22,985 $ 2,382 $ 95,584 Nine Months Ended September 30, 2024 Consumer Products Segment Ingredients Segment Analytical Reference Standards and Services Segment Total (In thousands) Tru Niagen®, Consumer Product $ 54,121 $ — $ — $ 54,121 Food-grade Niagen® — 12,992 — 12,992 Pharmaceutical-grade Niagen® — 900 — 900 Subtotal Niagen® Related 54,121 13,892 — 68,013 Other Ingredients — 170 — 170 Reference Standards — — 2,195 2,195 Consulting and Other — — 94 94 Subtotal Other Goods and Services — 170 2,289 2,459 Total Net Sales $ 54,121 $ 14,062 $ 2,289 $ 70,472 Disclosure of Major Customers Major customers are defined as customers whose sales or trade receivables individually consist of more than ten percent of total sales or total trade receivables, respectively. Percentage of net sales from major customers of the Company’s consumer products segment and ingredients segment for the periods indicated were as follows: Three Months Ended September 30, Nine Months Ended September 30, Major Customers 2025 2024 2025 2024 A.S. Watson Group - Former Related Party (1) 10.8 % * * 12.4 % Life Extension 11.9 % 16.8 % 12.4 % 13.3 % * Represents less than 10% (1) For additional information regarding the relationship between the Company and A.S. Watson Group, see Note 6, Related Party Transactions . 14 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements The percentage of the amounts due from major customers to total trade receivables, net for the periods indicated were as follows: Percentage of the Company's Total Trade Receivables Major Customers At September 30, 2025 At December 31, 2024 A.S. Watson Group - Former Related Party (1) 39.0 % 47.6 % Amazon Marketplaces * 14.3 % Life Extension 14.7 % * Wells Pharma of Houston * 10.3 % BioTe Medical 11.2 % * * Represents less than 10% (1) For additional information regarding the relationship between the Company and A.S. Watson Group, see Note 6, Related Party Transactions . As of September 30, 2025, the Company had total outstanding trade receivables of $ 8.5 million, with approximately 64.9 % of this total concentrated among three 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. Note 6. Related Party Transactions Prior to August 20, 2024, A.S. Watson Group was considered a related party through common ownership by an enterprise that beneficially owned more than 10% of the common stock of the Company. On August 20, 2024, this entity sold its ownership in the Company, and A.S. Watson Group ceased to be a related party as of that date. However, the Company has maintained its relationship with A.S. Watson Group. The Company had no trade receivables connected to related parties as of September 30, 2025 or December 31, 2024. The sale of consumer products to related parties during the periods indicated are as follows: Three Months Ended September 30, Nine Months Ended September 30, Net Sales 2025 2024 2025 2024 A.S. Watson Group - Former Related Party (1) $— million $ 2.0 million $— million $ 8.7 million (1) Due to the change in ownership of A.S. Watson Group in 2024, sales after August 20, 2024 are excluded from the amounts presented in the above table. 15 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Note 7. Inventories The Company's major classes of inventory and corresponding balances as of September 30, 2025 and December 31, 2024 are as follows: (In thousands) September 30, 2025 December 31, 2024 Consumer Products - Finished Goods $ 7,636 $ 5,811 Consumer Products - Work in Process 7,044 2,130 Bulk ingredients 3,678 757 Reference standards 433 494 Total Inventory $ 18,791 $ 9,192 Note 8. Leases The Company accounts for its leases in accordance with ASU No. 2016-02 (Topic 842), which requires that a lessee recognize the assets and liabilities that arise from operating leases. The ASU requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use (ROU) asset on the balance sheet. The Company leases office space facilities and a research and development laboratory under non-cancelable operating leases, with varying expirations extending through fiscal year 2030. The lease agreements provide for renewal options and rent escalation over the lease term, as well as require the Company to pay maintenance, insurance and property taxes. Lease expense is recognized on a straight-line basis over the term of the lease. During the first quarter of 2025, the Company amended its existing lease in Longmont, Colorado. In accordance with ASC 842, the amended lease agreement is considered to be modified and subject to lease modification guidance. The right-of-use (ROU) asset and lease liability related to the agreement were remeasured based on the change in the lease conditions such as rent payment and lease terms. The fair value of the increase in related lease liability and ROU asset is approximately $ 1.1 million. The amended lease now extends through October 31, 2030. Operating Leases As of September 30, 2025 and December 31, 2024, the Company had ROU assets of $ 2.4 million and $ 1.7 million, respectively, and corresponding operating lease liabilities of $ 3.1 million and $ 2.6 million, respectively. For the three and nine months ended September 30, 2025 and 2024, the components of operating lease expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Operating leases Operating lease expense $ 226 $ 218 $ 671 $ 668 Variable lease expense (1) 122 104 308 309 Operating lease expense 348 322 979 977 Short-term lease rent expense 6 4 13 12 Total expense $ 354 $ 326 $ 992 $ 989 (1) Variable lease costs, including property taxes and insurance and common area maintenance fees, are classified in cost of services in the Company's Unaudited Condensed Consolidated Statements of Operations. At September 30, 2025 Weighted-average remaining lease term (years), operating leases 3.6 Weighted-average discount rate, operating leases 7.8 % 16 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Future minimum lease payments under operating leases as of September 30, 2025 are as follows: Year (In thousands) 2025 (Remainder) $ 215 2026 1,183 2027 782 2028 657 2029 338 2030 263 Total 3,438 Less present value discount ( 385 ) Present value of total operating lease liabilities 3,053 Less current portion ( 976 ) Long-term obligations under operating leases $ 2,077 Note 9. Share-Based Compensation Equity Plans The Company grants awards to recipients through the 2017 Equity Incentive Plan, as amended (the “2017 Plan”), which was approved by stockholders and the Board of Directors. In June 2025, stockholders approved an amendment to the Company’s 2017 Equity Incentive Plan to increase the number of shares available for issuance by 4.75 million shares of common stock. Pursuant to the latest amendment, the 2017 Plan provides for the issuance of shares that total no more than the sum of (i) 22,900,000 new shares, (ii) any returning shares such as forfeited, cancelled, or expired shares granted under either the 2017 Plan or the Second Amended and Restated 2007 Equity Incentive Plan, and (iii) 500,000 shares pursuant to an inducement award. The number of shares available to be issued under the 2017 Plan will be reduced by (i) one share for each share that relates to an option or stock appreciation right award, and (ii) 1.5 shares for each share that relates to an award other than a stock option or stock appreciation right award (a full-value award). As of September 30, 2025, there were approximately 6.4 million remaining shares available for issuance under the 2017 Plan. Options expire 10 years from the date of grant. The Company uses the Black-Scholes option-pricing model to recognize the value of stock-based compensation expense for stock option awards that are not market based. Determining the appropriate fair-value model and calculating the fair value of stock option awards at the grant date requires judgment, including estimating stock price volatility and expected option life. The fair-value of the restricted stock unit awards at the grant date is based on the market price on the grant date. The fair-value of the market performance stock unit awards (PSUs) at the grant date is based on a Monte Carlo simulation based on the specific performance metrics. The Company develops estimates based on historical data and market information, which can change significantly over time, and adjusts for forfeitures as they occur. General Vesting Conditions Historically, the Company’s stock options awards have been generally subject to a one-year cliff vesting period, after which one-third of the shares vest with the remaining shares vesting ratably each month over a two-year period subject to the applicable grantee’s continued service. Beginning August 1, 2025, newly granted stock option awards will generally vest over four years at 25 % per year on the anniversary of the grant date. Restricted stock unit (RSU) awards are generally subject to a three-year vesting period with one-third vesting per year on the anniversary of the grant date. The PSUs are eligible to vest during a seven-year performance period based on the achievement and maintenance of certain volume weighted average price thresholds for a minimum of 60 Trading Days and upon certification by the Board’s Compensation Committee and subject to the Chief Executive Officer’s continued employment with the Company on the applicable vesting date. Certain executive stock option awards provide for accelerated vesting if there is a change in control or termination without cause. 17 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Employee Stock Purchase Plan On June 24, 2025, the Company’s shareholders approved the Niagen Bioscience, Inc. Employee Stock Purchase Plan (“ESPP”), pursuant to which 650,000 shares of the Company’s common stock were reserved for issuance. The ESPP allows eligible officers and employees to purchase designated shares of the Company’s stock through payroll deductions, up to 10 % of their base salary or wages. The price of common stock purchased under the ESPP is equal to 85 % of the lesser of (i) the closing price of a share of common stock on the purchase date, or (ii) the closing price of a share of common stock on the offering date. Offering periods under the ESPP will generally be in six month increments, commencing on January 1 and July 1 of each calendar year, with the administrator having the right to establish different offering periods. The Company has not yet extended its first offering period and 650,000 shares remained available for issuance as of September 30, 2025. Stock Options The Company used the following weighted average assumptions for options granted during the nine months ended September 30, 2025: Weighted Average: Nine Months Ended September 30, 2025 Expected term 6.4 years Expected volatility 78.0 % Risk-free rate 4.5 % Expected dividends — % Market Performance Stock Units The Company used the following weighted average assumptions in the Monte Carlo model for market PSUs granted during the nine months ended September 30, 2025: Weighted Average: Nine Months Ended September 30, 2025 Discount Period 7.0 years Expected volatility 76.7 % Risk-free rate 4.1 % Size Premium 1.7 % Cost of Equity 22.1 % Service Period Based Stock Options The following table summarizes activity of service period-based stock options during the nine months ended September 30, 2025 : Weighted Average (In thousands except per share data and remaining contractual term) Number of Options Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2024 9,377 $ 3.17 6.1 $ 22,988 Options Granted 1,477 6.44 Options Exercised ( 1,077 ) 2.58 6,852 Options Forfeited ( 507 ) 5.06 Outstanding at September 30, 2025 9,270 $ 3.65 6.2 $ 53,842 * Exercisable at September 30, 2025 6,441 $ 3.42 5.1 $ 38,609 * *The aggregate intrinsic values in the table above are based on the Company’s stock price of $ 9.33 , which is the closing price of the Company’s stock on the last trading day for the period ended September 30, 2025. 18 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Market Based Stock Options The Company grants stock option awards that are market based which have vesting conditions associated with a service condition as well as performance of the Company’s stock price. The following table summarizes market based stock options activity during the nine months ended September 30, 2025: Weighted Average (In thousands except per share data and remaining contractual term) Number of Options Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2024 1,000 $ 4.24 2.8 $ 1,070 Options Granted — — Options Exercised ( 1,000 ) 4.24 $ 3,860 Options Forfeited — — Outstanding and exercisable at September 30, 2025 — $ — — $ — There were no activities related to restricted stock awards during the nine months ended September 30, 2025. Restricted Stock Units The following table summarizes activity of RSUs during the nine months ended September 30, 2025: (In thousands except per share fair value) Number of RSUs Weighted Average Fair Value Unvested shares at December 31, 2024 609 $ 1.64 Granted — — Vested ( 233 ) 1.70 Forfeited ( 93 ) 1.61 Unvested shares at September 30, 2025 283 $ 1.61 Market Performance Stock Units The Company grants market performance stock units that are market based which have vesting conditions associated with the performance of the Company’s stock price. During the nine months ended September 30, 2025, none of the market-based vesting conditions tied to the Company’s stock price were met. The following table summarizes activity of market PSUs during the nine months ended September 30, 2025: (In thousands except per share fair value) Number of PSUs Weighted Average Fair Value Unvested shares at December 31, 2024 — $ — Granted 1,519 3.44 Vested — — Forfeited — — Unvested shares at September 30, 2025 1,519 $ 3.44 19 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Total Share-Based Compensation Total share-based compensation expense was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Share-based compensation expense Cost of sales $ 71 $ 73 $ 196 $ 245 Sales and marketing 196 128 616 568 Research and development 145 144 417 580 General and administrative 1,344 390 3,090 1,511 Total $ 1,756 $ 735 $ 4,319 $ 2,904 As of September 30, 2025, the Company expects to recognize future share-based compensation expense of approximately $ 6.8 million related to unvested stock options, $ 0.3 million for unvested RSUs, and $ 4.0 million for unvested PSUs. These expenses will be recognized over weighted-average years of approximately 1.9 for options, 1.2 for RSUs, and 3.5 for PSUs. Note 10. Commitments and Contingencies Legal proceedings 1. Elysium Health, LLC (A) California Action On December 29, 2016, Niagen Bioscience filed a complaint in the United States District Court for the Central District of California, naming Elysium Health, Inc. (together with Elysium Health, LLC, “Elysium”) as defendant (Complaint). On January 25, 2017, Elysium filed an answer and counterclaims in response to the Complaint (together with the Complaint, the “California Action”). Over the course of the California Action, the parties have each filed amended pleadings several times and have each engaged in several rounds of motions to dismiss and one round of motion for judgment on the pleadings with respect to various claims. Most recently, on November 27, 2018, Niagen Bioscience filed a fifth amended complaint that added an individual, Mark Morris, as a defendant. Elysium and Morris (Defendants) moved to dismiss on December 21, 2018. The court denied Defendants’ motion on February 4, 2019. Defendants filed their answer to Niagen Bioscience’s fifth amended complaint on February 19, 2019. Niagen Bioscience filed an answer to Elysium’s restated counterclaims on March 5, 2019. Discovery closed on August 9, 2019. On August 16, 2019, the parties filed motions for partial summary judgment as to certain claims and counterclaims. On January 16, 2020, the court granted both parties’ motions for summary judgment in part and denied both in part. Following the court’s January 16, 2020 order, Niagen Bioscience’s claims asserted in the California Action, among other allegations, were that (i) Elysium breached the Supply Agreement, dated June 26, 2014, by and between Niagen Bioscience and Elysium (pTeroPure® Supply Agreement), (ii) Elysium breached the Supply Agreement, dated February 3, 2014, by and between Niagen Bioscience and Elysium, as amended (“Niagen® Supply Agreement”), (iii) Defendants misappropriated Niagen Bioscience trade secrets, (iv) Morris breached two confidentiality agreements, (v) Morris breached his fiduciary duty to Niagen Bioscience, and (vi) Elysium aided and abetted Morris’s breach of fiduciary duty. Niagen Bioscience sought damages, interest, and other relief. Elysium’s claims alleged in the California Action were that (i) Niagen Bioscience breached the Niagen® Supply Agreement, (ii) Niagen Bioscience fraudulently induced Elysium into entering into the Trademark License and Royalty Agreement, dated February 3, 2014, by and between Niagen Bioscience and Elysium (the “License Agreement”), (iv) Niagen Bioscience misused its patent rights, and (v) Niagen Bioscience was unjustly enriched by the royalties Elysium paid pursuant to the License Agreement. Elysium sought damages, restitution, a declaratory judgment, and other relief. On November 18, 2020, the court set trial to begin on September 21, 2021. The jury trial portion of the case commenced on September 21, 2021. The jury returned a verdict on September 27, 2021. The verdict found (i) Elysium liable for breaches of the Niagen® and pTeroPure® Supply Agreements for failing to pay for purchases of the ingredients totaling approximately $ 3.0 million, (ii) Mark Morris liable for breach of a confidentiality agreement, requiring him to disgorge approximately $ 17,307 , (iii) Niagen Bioscience liable for breaching the Niagen® Supply Agreement for not issuing certain refunds or credits 20 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements to Elysium in the amount of $ 625,000 , and (iv) Niagen Bioscience liable for fraudulent inducement of the Licensing Agreement in the amount of $ 250,000 , along with $ 1,025,000 in punitive damages arising from the same counterclaim. On October 25, 2021, Niagen Bioscience informed the court that it would request prejudgment interest on the approximately $ 3.0 million in damages awarded by the jury for Elysium’s breaches of the Niagen® and pTeroPure® Supply Agreements. On February 10, 2022, the court denied Niagen Bioscience’s motion for prejudgment interest. On February 18, 2022, Niagen Bioscience and Elysium jointly filed a notice informing the court that Niagen Bioscience had filed in the U.S. District Court for the Southern District of New York (SDNY Court) a motion to enforce a settlement agreement between Niagen Bioscience and Elysium. On April 22, 2022, Niagen Bioscience and Elysium jointly filed a notice informing the court that the SDNY Court had granted Niagen Bioscience’s motion to enforce the settlement agreement. On August 22, 2022, Niagen Bioscience filed a motion for entry of judgment pursuant to Federal Rule of Civil Procedure 54(b) on the basis that the settlement agreement was enforceable and resolved the claims and counterclaims tried to the jury in the California Action. On September 13, 2022, the court denied Niagen Bioscience’s motion for entry of judgment pursuant to Rule 54(b). On September 28, 2022, Niagen Bioscience, Inc., Elysium, and Mark Morris filed a joint stipulation requesting that the court stay the California Action pending the final resolution of Niagen Bioscience’s appeal in the U.S. Court of Appeals for the Federal Circuit captioned ChromaDex, Inc. v. Elysium Health, Inc., No. 2022-1116 (the “Federal Circuit Appeal”). On September 28, 2022, the court issued an order staying the California Action pending the final resolution of the Federal Circuit Appeal. The California Action remained stayed until early 2024. On February 23, 2024, Niagen Bioscience, Elysium, and Mark Morris filed a joint status report and stipulation requesting that the court approve a schedule for briefing concerning the judgment in the California Action. On February 26, 2024, the court approved the joint stipulation and adopted the parties’ proposed briefing schedule. On April 26, 2024, Niagen Bioscience filed its motion for entry of final judgment. On August 13, 2024, the court granted Niagen Bioscience’s motion for entry of final judgment and entered a judgment requiring Elysium to pay to Niagen Bioscience the sum of $ 2,500,000 . On September 11, 2024, Elysium and Mark Morris filed a notice of appeal. On September 25, 2024, Niagen Bioscience filed a notice of conditional cross-appeal. On September 3, 2024, Niagen Bioscience filed with the district court a motion for attorney’s fees, costs, and interest. On October 8, 2024, the court issued an order granting Niagen Bioscience’s request for interest and denying Niagen Bioscience’s request for attorney’s fees and costs. In its October 8, 2024 order, the court awarded to Niagen Bioscience pre-judgment interest in the amount of $ 21,768.82 and post-judgment interest accruing at the rate of 4.46 percent per annum until satisfaction of the $ 2,500,000 judgment. On November 7, 2024, Niagen Bioscience filed a notice of appeal from the court’s order denying Niagen Bioscience’s request for attorney’s fees and costs. On December 24, 2024, the parties reached a binding settlement agreement (the “Settlement Agreement”) to resolve the California Action, including any outstanding post-judgment matters, as well as each of the above-referenced appeals pending in the U.S. Court of Appeals for the Ninth Circuit (the “Appeals”). On December 26, 2024, pursuant to the Settlement Agreement, the parties filed with the district court a joint stipulation to amend the judgment, whereby the parties requested that the court vacate the August 13, 2024 judgment and enter an amended judgment consistent with the terms of the Settlement Agreement. On December 27, 2024, the court vacated the August 13, 2024 judgment and entered an amended judgment consistent with the terms of the parties’ Settlement Agreement as stated in the parties’ December 26, 2024 joint stipulation. Pursuant to the Settlement Agreement and the December 27, 2024 judgment: (i) Elysium must pay a total of $ 2,650,000 to Niagen Bioscience to resolve the California Action and the Appeals (the “Settlement Payment”); (ii) the $ 2,650,000 Settlement Payment shall be paid in two equal installments of $ 1,325,000 each, the first of which was to be paid on or before December 31, 2024 (the “First Installment”), and the second of which is to be paid on or before March 31, 2025 (the “Second Installment”); (iii) if Elysium fails to timely pay either installment of the Settlement Payment, Niagen Bioscience shall be entitled to recover from Elysium reasonable attorney’s fees and interest. The December 27, 2024 judgment also provides that the district court shall retain jurisdiction of the California Action until April 30, 2025 for the purposes of enforcing the terms of the December 27, 2024 judgment and the Settlement Agreement. 21 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements On December 27, 2024, the Company received from Elysium payment of the First Installment in the amount of $ 1,325,000 and on March 28, 2025 the Company received from Elysium payment of the Second Installment in the amount of $ 1,325,000 , which the Company recorded as a recovery of credit losses within general and administrative expense in its Consolidated Statements of Operations. On December 30, 2024, pursuant to the Settlement Agreement, the parties filed with the Ninth Circuit a stipulated motion to voluntarily dismiss the pending Appeals, and on December 31, 2024, the Ninth Circuit dismissed the Appeals. On April 4, 2025, the Company filed an acknowledgement of satisfaction of judgment, confirming that the December 27, 2024 judgment has been fully satisfied. (B) Delaware - Patent Infringement Action On September 17, 2018, Niagen Bioscience and Trustees of Dartmouth College filed a patent infringement complaint in the United States District Court for the District of Delaware against Elysium Health, Inc. The complaint alleges that Elysium’s BASIS® dietary supplement infringes U.S. Patent Nos. 8,197,807 (‘807 Patent) and 8,383,086 (‘086 Patent) that comprise compositions containing isolated nicotinamide riboside held by Dartmouth and licensed exclusively to Niagen Bioscience. On October 23, 2018, Elysium filed an answer to the complaint. The answer asserts various affirmative defenses and denies that Plaintiffs are entitled to any relief. On November 7, 2018, Elysium filed a motion to stay the patent infringement proceedings pending resolution of (1) the inter partes review of the ‘807 Patent and the ‘086 Patent before the Patent Trial and Appeal Board (PTAB) and (2) the outcome of the litigation in the California Action. Niagen Bioscience filed an opposition brief on November 21, 2018 detailing the issues with Elysium’s motion to stay. In particular, Niagen Bioscience argued that given claim 2 of the ‘086 Patent was only included in the PTAB’s inter partes review for procedural reasons the PTAB was unlikely to invalidate claim 2 and therefore litigation in Delaware would continue regardless. In addition, Niagen Bioscience argued that the litigation in the California Action is unlikely to have a significant effect on the ongoing patent litigation. After the PTAB released its written decision upholding claim 2 of the ‘086 Patent, proving right Niagen Bioscience’s prediction, Niagen Bioscience informed the Delaware court of the PTAB’s decision on January 17, 2019. On June 19, 2019, the Delaware court granted in part and denied in part Elysium’s motion, ordering that the case was stayed pending the resolution of Elysium’s patent misuse counterclaim in the California Action. On November 1, 2019, Niagen Bioscience filed a motion to lift the stay due to changed circumstances in the California Action, among other reasons. Briefing on the motion was completed on November 22, 2019. On January 6, 2020, the Delaware court issued an oral order instructing the parties to submit a joint status report after the January 13, 2020 motions hearing in the California Action. The joint status report was submitted on January 30, 2020. On February 4, 2020, the Delaware court issued an order granting Niagen Bioscience’s motion to lift the stay and setting a scheduling conference for March 10, 2020. On March 19, 2020, the Delaware court entered a scheduling order, which, among other things, set the claim-construction hearing for December 17, 2020 and trial for the week of September 27, 2021. On April 17, 2020, Niagen Bioscience served infringement contentions. Elysium filed a Second Amended Answer on July 10, 2020. On April 24, 2020, Niagen Bioscience moved for leave to amend the complaint to add Healthspan Research, LLC as a plaintiff. On May 5, 2020, Elysium filed its opposition to Niagen Bioscience’s motion for leave to amend and moved to dismiss Niagen Bioscience for alleged lack of standing. Niagen Bioscience filed its opposition to Elysium’s motion to dismiss and reply in support of its motion to amend on May 19, 2020. Elysium filed its reply in support of its motion to dismiss on May 26, 2020. The Court held a hearing on the motion for leave to amend the complaint and Elysium’s motion to dismiss on September 16, 2020. On December 15, 2020, the Court entered orders (i) granting in part and denying in part Elysium’s motion to dismiss Niagen Bioscience for alleged lack of standing; and (ii) denying Niagen Bioscience’s motion for leave to amend. Niagen Bioscience filed a motion for reargument on December 29, 2020. Elysium filed a response to the motion for reargument on January 28, 2021. Niagen Bioscience filed a motion for leave to file a reply on February 8, 2021. Elysium filed a response to the motion for leave to file a reply on February 12, 2021. Niagen Bioscience filed a reply to the motion for leave to file a reply on February 19, 2021. The Court granted the motion for leave to file the reply on April 26, 2021, and denied the motion for reargument on April 27, 2021. On July 22, 2020 the parties filed a Joint Claim Construction Chart and respective motions for claim construction. The parties filed a Joint Claim Construction Brief on November 5, 2020. The Court held a Markman hearing on claim-construction issues on December 17, 2020. The Court entered a claim-construction ruling on January 5, 2021. Fact discovery closed on January 26, 2021. Opening expert reports were served on February 9, 2021. Responsive expert reports were served on March 9, 2021. Reply expert reports were served on March 30, 2021. Both parties filed dispositive and Daubert motions on April 27, 2021. 22 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements On September 21, 2021, the Court granted Elysium’s motion for summary judgment that the claims of the ‘807 and ‘086 patents are invalid based on patent-ineligible subject matter. Niagen Bioscience filed a notice of appeal on November 2, 2021. Niagen Bioscience’s opening brief was filed on February 2, 2022. Elysium’s response brief was filed on April 11, 2022. Niagen Bioscience’s reply brief was filed on May 9, 2022. Oral argument occurred on December 6, 2022. On February 13, 2023, the court of appeals issued a decision affirming the district court’s decision. On March 15, 2023, Niagen Bioscience filed a petition for a panel rehearing and/or rehearing en banc. On April 10, 2023, the court of appeals invited Elysium to file a response to the petition and on April 24, 2023, Elysium filed a response to the petition. On May 10, 2023, the court of appeals denied the petition. On May 17, 2023, the court of appeals issued the mandate. On June 16, 2023, Elysium filed a bill of costs and a motion for attorneys’ fees and costs. On June 30, 2023, Niagen Bioscience filed objections to Elysium’s bill of costs. On July 21, 2023, Niagen Bioscience filed a response to Elysium’s motion for attorneys’ fees and costs. On July 28, 2023, Niagen Bioscience filed an application for an extension of time to September 7, 2023 to file a petition for writ of certiorari . On August 1, 2023, the Supreme Court granted the requested extension. On August 14, 2023, Elysium filed a reply in support of its motion for attorneys’ fees and costs. On September 7, 2023, Niagen Bioscience filed a petition for writ of certiorari . On October 16, 2023, the Supreme Court denied the petition. On March 25, 2024, the Court granted Elysium’s motion for attorneys’ fees and costs. On April 9, 2024, the Court entered a stipulated schedule and procedure for resolving the amount of fees and costs. On May 23, 2024, Elysium filed its opening brief. On June 6, 2024, Niagen Bioscience filed its response brief. On June 13, 2024, Elysium filed its reply brief. On August 20, 2024, the Court issued a ruling on the parties’ disputes regarding the amount of fees and costs and instructed the parties to meet and confer about the next steps in light of the ruling. On October 1, 2024, the parties submitted a joint motion for entry of judgment. On October 28, 2024, the court issued its final judgment resolving the amount of fees and costs granting $ 9.2 million, plus judgment interest on this amount calculated at a rate of 5.02 % compounded annually on any unpaid balance for the period from March 25, 2024, until Niagen Bioscience pays the total sum owed. On December 4, 2024, Niagen Bioscience filed an unopposed motion in the district court to approve bond and stay enforcement under Rule 62. On December 6, 2024, the Court granted the motion. On November 25, 2024, Niagen Bioscience appealed the final judgment to the U.S. Court of Appeals for the Federal Circuit. On February 26, 2025, Niagen Bioscience filed its opening appeal brief. Elysium filed its response brief on March 21, 2025. Niagen Bioscience filed its reply brief on April 25, 2025. The Federal Circuit has not yet scheduled oral argument. In connection with the Court's current ruling and the Company’s filed appeal, management has assessed that it is reasonably possible a contingent liability will be incurred. If the Company is successful in its appeal, no liability would be incurred. The Company believes the Court abused its discretion in granting the award. However, if the Company is not successful, the Company may be liable for the aggregate amount sought by Elysium, which, inclusive of Niagen Bioscience’s estimates for post-judgment interest through the anticipated appeal, is approximately $ 10.4 million. As of September 30, 2025, the Company has not recorded an accrual for this matter, as the ultimate resolution remains uncertain. 2. Contingencies In September 2019, the Company received a letter from a licensor stating that the Company owed the licensor $ 1.6 million plus interest for sublicense fees as a result of the Company entering into a supply agreement with a customer. After reviewing the relevant facts and circumstances, the Company believes that the Company does not owe any sublicense fees to the licensor and has corresponded with the licensor to resolve the matter. The Company does not believe that the ultimate resolution of this matter will be material to the Company’s results of operations, financial condition or cash flows. In August 2025, the Company received a demand letter alleging violations of California’s Business and Professions Code related to automatic renewal and cancellation disclosures on its e-commerce platform. On October 31, 2025, a class action lawsuit was filed in connection with the same matter. The Company believes its automatic renewal flow complies with all applicable laws, including recent amendments effective July 2025, and believes the allegations lack merit. The amount or range of potential loss cannot be reasonably estimated at this time, if any, and in any event, the Company does not believe that the ultimate resolution of this matter will be material to the Company’s results of operations, financial condition or cash flows. 23 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements 3. Purchase Commitments On July 25, 2025, the Company executed a Sales Agreement (the “Grace Supply Agreement”) with W. R. Grace & Co.-Conn (“Grace”) with an effective date of April 1, 2025. In January 2019, Grace was issued patents related to the crystalline form of NR chloride which limit the Company’s ability to source alternative suppliers (Grace Patents). Pursuant to the Grace Supply Agreement, Grace will exclusively supply the Company with Nicotinamide-beta-Riboside Chloride (“NRCL”) meeting certain specifications 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 Grace Supply Agreement provides for an initial term through April 30, 2029, and will automatically renew for successive twelve ( 12 ) month terms unless either party provides written notice of its intent not to renew. The Company is required to purchase a minimum quantity of NRCL during each year of the term. The Company will also provide monthly rolling forecasts of its purchase needs for a twenty-four ( 24 ) month period, with the first twelve ( 12 ) months of each forecast binding upon Grace’s acceptance. The Company has submitted its initial rolling forecast pursuant to the Supply Agreement, which requires the purchase of approximately $ 33.6 million in inventory through September 30, 2026. The parties have further agreed to make a good faith effort to execute a supplemental agreement establishing a process by which the Company would obtain from Grace a world-wide, royalty-bearing, exclusive, non-transferable and sub-licensable license to Grace’s patents covering NRCL’s manufacture, sufficient to enable the Company to manufacture NRCL for an agreed-upon royalty percentage (“License Agreement”). The License Agreement would become effective upon proper termination of the Grace Supply Agreement under specified conditions. There is no guarantee that any such agreement will be entered into, or the timing of any such agreement or its terms. u Note 11. Employee Retention Tax Credit In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Tax Credit (ERTC): a refundable tax credit against certain employment taxes for qualifying businesses keeping employees on their payroll during the COVID-19 pandemic. The Company determined its qualification for the ERTC in the last three quarters of 2020 and all three quarters of 2021, and filed a claim for the credit in August 2022. During the quarter ended September 30, 2022, the Company recorded an aggregate benefit of approximately $ 2.1 million to reflect the ERTC for all eligible quarters. During the years ended December 31, 2023 and December 31, 2022, the Company collected $ 0.9 million and $ 0.6 million, respectively, related to the ERTC. During the three and nine months ended September 30, 2025, the Company collected $ 0.3 million related to the ERTC. As of September 30, 2025, the Company's Consolidated Balance Sheets include an ERTC benefit of $ 0.6 million and associated commissions payable of $ 0.1 million recorded within prepaid expenses and other current assets and accrued expenses, respectively. On September 14, 2023, the IRS announced an immediate halt in processing new claims for the employee retention credit until at least the end of 2023, citing ongoing concerns about improper claims. The IRS guaranteed ongoing processing of existing claims, albeit at a reduced pace and with increased compliance scrutiny. The Company has since received partial payment related to its ERTC claim, with the most recent collection occurring during the nine months ended September 30, 2025. The Company continues to monitor guidance and communications from the IRS and remains committed to complying with all applicable requirements. 24 Table of Contents Niagen Bioscience, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements Note 12. Deferred Revenue - NHSc On October 10, 2022, the Company and Société des Produits Nestlé SA, a société anonyme organized under the laws of Switzerland (NHSc), as successor-in-interest to NESTEC Ltd., entered into an amended and restated supply agreement (the “Supply Agreement”), which amends and restates the supply agreement, dated December 19, 2018, entered into by the Company and NESTEC Ltd. Pursuant to the Supply Agreement, NHSc and its affiliates will exclusively purchase nicotinamide riboside chloride (NRCL) from the Company and NHSc and its affiliates will have the non-exclusive right to manufacture, market, distribute, and sell products using NRCL for human use in the (i) medical nutritional, (ii) functional food and beverage and (iii) multi-ingredient dietary supplements categories sold under one of the NHSc brands world-wide, but excluding certain countries and ingredient combinations. The term of the Supply Agreement is five years , unless earlier terminated, and is subject to automatic extensions provided certain minimum purchases by NHSc are met. Under the Supply Agreement, the Company will continue to recognize the deferred revenue balance received in connection with the original Nestec Ltd. agreement utilizing the output method. Deferred revenue will be recognized by the Company based on the percentage of NRCL kilograms delivered to-date compared to the total forecasted NRCL kilograms expected to be delivered over the duration of the contract term, including renewal options, as estimated by the Company. As a result of the updated forecast, the proportion of NRCL delivered to-date may increase or decline relative to the revised total expected output. Such changes in estimates may lead to an adjustment in the amount of deferred revenue recognized. The impact of the updated estimates on revenue recognized from deferred revenue for the three and nine months ended September 30, 2025 and 2024 is as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue (reversed) recognized from deferred revenue $ — $ 732 $ ( 95 ) $ 732 The corresponding deferred revenue balance as of September 30, 2025 and December 31, 2024 is as follows: (In thousands) September 30, 2025 December 31, 2024 Deferred revenue balance $ 2,674 $ 2,579 25 Table of Contents