What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-09-28 compared with 2025-09-23 · 74 added, 98 removed, 166 unchanged (51% of the section changed)

1 unchanged sentence

We are a leading formulator, manufacturer and marketer of nutritional supplements.

Our comprehensive strategic partnerships with our customers allow us to offer a wide range of innovative nutritional products and services to such customers including:

scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance.

Our comprehensive strategic partnerships with our customers allow us to offer a wide range of innovative nutritional products and services to such customers including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance.

As our primary business activity, we provide private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal and other nutritional supplements, as well as other health care products, to consumers both within and outside the U.S.

We also own a patent estate related to the raw material ingredient known as beta-alanine, which is primarily commercialized through the direct sale of this raw material and supply agreements with third parties for the distribution and use of this raw material under our CarnoSyn®, SR CarnoSyn® and TriBsyn™ trademarks.

We previously sold a branded version of our SR CarnoSyn® Wellness tablet product under a brand we created called SustainedRx® and a product named Perfect Synergy®.

14 unchanged sentences

As part of our business strategy, we have sought to commercialize our CarnoSyn® patent estate through contract manufacturing, royalty and license agreements, and further expansion of our patent estate.

We recently expanded our licensed product offerings with patent applications associated with a new form of CarnoSyn® beta-alanine trademarked as TriBsyn™.

We directly sell CarnoSyn®, SR CarnoSyn®, and TriBsyn™ and license our related patent and trademark rights to others for use in or with their products.

We recently expanded our licensed product offerings with patent applications associated with a new form of CarnoSyn® beta-alanine trademarked as CarnoSyn® 4X and TriBsyn®.

We directly sell CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X, and TriBsyn® and license our related patent and trademark rights to others for use in or with their products.

Unless the context requires otherwise, all references in this report to the “Company,” “NAI,” “we,” “our,” and “us” refer to Natural Alternatives International, Inc.

1 unchanged sentence

Overview of our Facilities and Operations

Our U.S.-based manufacturing operations are located in Vista and Carlsbad, California and include manufacturing and distribution, sales and marketing, in-house formulation, laboratory, and other research and development services.

Our Vista manufacturing facilities are certified by the Therapeutic Goods Administration (TGA) of Australia after its audit of our GMP’s.

TGA evaluates new therapeutic products, prepares standards, develops testing methods and conducts testing programs to ensure that products are high in quality, safe and effective.

TGA also conducts a range of assessment and monitoring activities including audits of the manufacturing practices of companies who export and sell products to Australia.

TGA certification enables us to manufacture products for export into countries that have signed the Pharmaceutical Inspection Convention, which includes most European countries as well as several Pacific Rim countries.

TGA certifications are generally reviewed every eighteen to thirty-six months.

During August 2022, TGA completed an inspection of our Vista, California facility and quality systems for compliance with GMP, and issued a renewed GMP certification valid through August 12, 2025.

As of this report, the TGA is experiencing delays and has yet to confirm timing of a renewal inspection.

NAI’s GMP Certification and authorization to manufacture product for Australia remains in place, and we advise our TGA clients to file for clearance extensions to ensure supply is not interrupted until a renewal inspection may be completed.

Our Vista, California facilities have also been awarded GMP registration annually since October 2002 by NSF International (NSF) through the NSF Dietary Supplements Certification Program and received “GMP for Sport” NSF Certified registration on February 16, 2009.

GMP requirements are regulatory standards and guidelines setting forth necessary processes, procedures and documentation for manufacturers in an effort to assure the products produced by that manufacturer have the identity, strength, composition, quality and purity represented.

The NSF Certified for Sport program focuses on minimizing the risk that a dietary supplement or sports nutrition product contains banned substances and was developed due to growing demand from athletes and coaches concerned about banned substances in sports supplements.

The program focuses primarily on manufacturing and sourcing processes, while embedding preventative measures throughout.

NAI’s participation in the program allows us to produce products bearing the NSF Sport logo.

Our Vista, California operations are also certified by Health Canada as compliant with the GMP requirements outlined in Part 3 of the Canadian Natural Health Products Regulations.

Health Canada is the department of the Canadian government with responsibility for national public health.

Health Canada has initiated work to modernize its regulatory system for food and health products.

Health Canada plays an active role in ensuring access to safe and effective drugs and health products while giving high priority to public safety and strives to provide information needed to make good choices and informed decisions regarding one’s health.

NAI was issued its initial certification by Health Canada in December 2011 and maintains renewal in compliance with the Natural and Non-prescription Health Products Directorate.

This approval demonstrates another level of regulatory compliance by NAI and may also ease the approval process for our customers who import products into Canada.

Our Vista, California facility is also certified as an Organic Processor and Handler by Natural Food Certifiers (NFC).

This certification demonstrates our facility meets the USDA National Organic Program standards and allows our contract manufacturing and packaging services to include products labeled as Organic.

The certification was initially issued in March 2015 and requires annual renewal.

The last renewal inspection was conducted in December 2024.

We are registered with the State of California, Department of Public Health Food and Drug Branch as an organic processor.

Additionally, we are certified by various Rabbinical and Halal authorities to produce Kosher and Halal certified products.

These certifications guarantee the manufacturing facility and processes for, and the ingredients of, certified products have been reviewed and found to be in compliance with the strict dietary laws of the respective Jewish and Muslim communities.

In April 2021, NAI became the first company to meet new safety and benchmarking standards created by the Supplement Safety & Compliance Initiative (SSCI).

The SSCI is an industry-driven initiative led by retailers to provide a harmonized benchmark to recognize various safety standards throughout the entire dietary supplement supply chain.

Patterned after the Global Food Safety Initiative (GFSI), which has been successfully implemented in the grocery marketplace and food retail sectors.

The program is focused on improved traceability and identification protocols to provide maximum safety for end users.

SSCI key objectives include creating effective global systems to ensure traceability, transparency, and quality in the supply chain;

reducing risks by ensuring equivalence between safety management systems’ and driving global change through benchmarking of domestic and international quality standards.

NAI’s SSCI certification was last renewed in April 2025.

In August 2021, NAI acquired a new manufacturing and warehouse facility in Carlsbad, California and retrofitted the facility to become a dedicated high-volume powder blending and packaging facility while also providing additional raw material storage capacity.

The state-of-the-art facility commenced full operations in April 2023 and was added to the NFC Organic certification at that time.

This facility is now also third-party GMP certified through the above-mentioned NSF and NSF for Sport programs as of November 2024 and the SSCI program as of April 2025.

NAIE operates a manufacturing, warehousing, packaging and distribution facility in Manno, Switzerland.

In January 2004, NAIE obtained a pharmaceutical license from the Swissmedic Authority of Bern, Switzerland to process pharmaceuticals for packaging, import, export and sale within Switzerland and other countries.

In March 2007, following the expansion of NAIE’s manufacturing facilities to include powder filling capabilities, NAIE obtained an additional pharmaceutical license from the Swissmedic Authority certifying that NAIE’s expanded facilities conform to their GMPs.

In January 2013, following an additional upgrade of NAIE’s manufacturing facilities to include the manufacture of pharmaceuticals, NAIE obtained an additional pharmaceutical approval from the Swissmedic Authority certifying that NAIE’s upgraded facilities conform to GMP.

The plant is subject to periodic inspections by the Swissmedic to verify compliance and maintain validity of the GMP certification.

NAIE’s most recent Swissmedic inspection was conducted in July 2024.

In addition, NAIE obtained FSSC 22000 certification in May 2024 following a successful food safety audit of its operations.

We believe these licenses, certifications and NAIE’s manufacturing capabilities help strengthen our relationships with existing customers and improve our ability to develop relationships with new customers.

Our Vista, California manufacturing facilities maintain third-party certifications supporting the manufacture of dietary supplements and nutritional products for domestic and international markets.

The facilities have maintained annual Good Manufacturing Practices (GMP) registration through the NSF Dietary Supplements Certification Program since 2002 and have been certified under the NSF Certified for Sport® program since 2009, enabling the manufacture of products bearing the NSF Certified for Sport® mark.

The facilities are also recognized by Health Canada as compliant with the Good Manufacturing Practices requirements of the Canadian Natural Health Products Regulations, supporting customers who market products in Canada.

Our Vista, California facilities are certified as an Organic Processor and Handler by Natural Food Certifiers (NFC) under the USDA National Organic Program, allowing the manufacture and packaging of certified organic products.

These facilities are also registered with the California Department of Public Health as an organic processor and maintain certifications to manufacture Kosher and Halal products.

These certifications are maintained through periodic inspections and renewals.

In April 2021, NAI became the first company to achieve certification under the Supplement Safety & Compliance Initiative (SSCI), an industry benchmarking program focused on supply chain safety, traceability, and quality management.

NAI's SSCI certification was most recently renewed in May 2026.

In August 2021, NAI acquired a manufacturing and warehouse facility in Carlsbad, California, which was retrofitted as a dedicated high-volume powder blending and packaging facility and commenced full operations in April 2023.

The Carlsbad facility is certified under the NSF Dietary Supplements Certification Program, the NSF Certified for Sport® program, the SSCI program, the NFC Organic program, and maintains certifications to manufacture Kosher and Halal products.

NAIE operates a manufacturing, packaging, warehousing, distribution, and analytical laboratory facility in Manno, Switzerland.

The facility is licensed and periodically inspected by the Swissmedic Authority of Bern, Switzerland and operates in compliance with applicable pharmaceutical Good Manufacturing Practice (GMP) requirements.

NAIE manufactures and packages food supplements and nutritional products under these quality standards.

Swissmedic conducts periodic inspections to verify continued compliance, with the most recent inspection completed in September 2025.

The facility also maintains FSSC 22000 certification, demonstrating compliance with internationally recognized food safety management system requirements.

The certification was most recently renewed in April 2026.

We believe these licenses, certifications, and manufacturing capabilities strengthen our relationships with existing customers and support opportunities to develop new business.

Business Strategy

Our goals are to achieve long-term growth and profitability and to diversify our sales base.

To accomplish these goals, we have sought, and intend to continue to seek, to do the following:

leverage our state-of-the-art, California and Swiss facilities to increase the value of the goods and services we provide to our highly valued private-label contract manufacturing customers and to assist in developing relationships with additional quality oriented customers;

expand the commercialization of our beta-alanine patent estate through raw material sales, further development of the Wellness and Healthy Aging distribution channel through sales of our sustained release form of beta-alanine marketed under our SR CarnoSyn® trademark and our recently launched TriBsyn™ product offering, exploiting new contract manufacturing opportunities, introduction of private-label branded products, and license and royalty agreements while protecting our proprietary rights;

improve operational efficiencies and manage costs and business risks to improve profitability.

To accomplish the se goal s, we have sought, and intend to continue to seek, to do the following:

Leveraging our state-of-the-art, certified facilities to increase the value of the goods and services we provide to our highly valued private-label contract manufacturing customers, and developing relationships with additional quality-oriented customers;

Expanding the commercialization of our beta-alanine patent and trademark estate in Sports Nutrition, Wellness and Healthy Aging and Medical food channels with our CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X, and TriBsyn® beta-alanine product lines;

exploiting new contract manufacturing opportunities, license and royalty agreements, and protecting our proprietary rights;

Consolidating our facilities and factories to improve operational efficiencies and manage costs and business risks to improve profitability.

Overall, we believe there is an opportunity to enhance consumer confidence in the quality of our customers' nutritional supplements and their adherence to label claims through education provided by direct sales and direct-to-consumer marketing programs.

We believe our GMP and TGA certified manufacturing operations, science-based product formulations, peer-reviewed clinical studies and regulatory expertise collectively provide us with a sustainable competitive advantage and provide our customers with a high degree of confidence in the products we manufacture.

We believe our GMP certified manufacturing operations, science-based product formulations, peer-reviewed clinical studies and regulatory expertise collectively provide us with a sustainable competitive advantage and provide our customers with a high degree of confidence in the products we manufacture.

While today’s consumer may have access to a variety of information, we believe many consumers remain uneducated about nutrition and nutritional supplementation, uncertain about the relevance or reliability of the information available to them, or confused about conflicting claims or information.

4 unchanged sentences

We also believe there is significant opportunity with the commercialization of our patent estate through the introduction of our existing patented ingredients into additional markets and the introduction of new beta-alanine product offerings.

Currently, a majority of our sales of CarnoSyn® are to companies that operate in the sports nutrition channel and are focused on products containing the instant release form of beta-alanine.

We believe there are several other markets and distribution channels that represent growth opportunities for the distribution of our SR CarnoSyn® and TriBsyn™ product offerings.

We believe SR CarnoSyn® is a superior delivery system of CarnoSyn® beta-alanine based on its sustained release profile that allows for increased daily dosing and improved muscle retention of carnosine.

However, this product offering is limited to solid dose tablet offerings, which limits the potential for customization of the product by our target customers.

With the introduction of our recent product called TriBsyn™, and its patent-pending formulation, we believe we now have a product that will allow us to better penetrate the Wellness and Healthy Aging channel.

This groundbreaking product is a carnosine booster that utilizes CarnoSyn® beta-alanine and other proprietary technology to increase beta-alanine bioavailability and absorption while effectively eliminating beta-alanine related paresthesia.

This product is available as a raw material powder, which allows formulation flexibility for our customers.

The elimination of paresthesia while maintaining efficacy of dosage creates a new opportunity to reach segments of the market that to-date have been untapped, including older adults, vegetarians, and vegans.

In addition, we also sell several versions of SR CarnoSyn® tablet products and an encapsulated form of TriBsyn™ that are offered as business-to-business private label products.

The tablet product offerings are condition-specific tablet products that include CarnoSyn® as the primary ingredient along with other science-backed ingredients that strengthen the claims and marketing around the product and are more recognizable to the consumer.

We are also working on several other innovations that could lead to new patentable products for CarnoSyn® Brands in the future.

Our patents related to instant release beta-alanine extend through July 2026, our patents for SR CarnoSyn® extend through 2036, and we have patent applications pending related our TriBsyn™ product.

Currently, the majority of our CarnoSyn® sales are to companies operating in the Sports Nutrition market, where products are primarily formulated with the instant-release form of beta-alanine.

We believe several additional markets and distribution channels represent significant growth opportunities for our SR CarnoSyn®, CarnoSyn® 4X, and TriBsyn® product offerings.

We believe SR CarnoSyn® provides a superior delivery system for CarnoSyn® beta-alanine due to its sustained-release profile, which supports higher daily dosing and improved muscle carnosine retention.

However, this product is currently limited to solid-dose tablet formulations, reducing the potential for customization by our target customers.

With the introduction of CarnoSyn® 4X and TriBsyn®, along with their patent-pending formulations, we believe we are well positioned to expand our presence in the Wellness and Healthy Aging markets.

This groundbreaking product is a carnosine booster that utilizes CarnoSyn® beta-alanine and proprietary technology to enhance beta-alanine bioavailability and absorption while effectively eliminating beta-alanine related paresthesia.

Available as a raw material powder, it offers formulation flexibility for our customers.

By eliminating paresthesia while maintaining an efficacious dosage, this product creates new opportunities to reach previously untapped market segments, including older adults, vegetarians, and vegans.

It is well suited for a wide range of applications, including ready-to-drink beverages, protein drinks, dairy-based products, gummies, and medical nutrition products.

We are also developing several additional innovations that could result in new patentable products for the CarnoSyn® Brands portfolio.

Our patents covering instant-release beta-alanine expired in July 2026.

However, our patents for SR CarnoSyn® extend through 2036, and we have patent applications pending for our TriBsyn® and CarnoSyn® 4X products.

We believe our comprehensive approach to customer service is unique within our industry.

13 unchanged sentences

packaging in multiple formats and labeling design.

We also seek to commercialize our patent and trademarks through the direct distribution and sale of CarnoSyn®, SR CarnoSyn®, TriBsyn™, new contract manufacturing opportunities, and various license, royalty, and similar arrangements.

We also seek to commercialize our patent and trademarks through the direct distribution and sale of CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X, TriBsyn®, new contract manufacturing opportunities, and various license, royalty, and similar arrangements.

For the last two fiscal years ended June 30, our net sales were derived from the following (in thousands):

23 unchanged sentences

Additionally, uncertainty remains high related in part to existing and potentially increased tariffs.

Throughout fiscal 2026, we expect upward pricing pressures for raw materials, packaging components, and other costs will continue as a result of limited supplies of various ingredients and the impact of inflationary factors, including higher labor and transportation costs, and tariffs on goods we import from overseas.

Sourcing of raw materials for our business has also been impacted by various geo-political issues, including the Ukraine-Russia and Israel-Hamas conflicts.

Throughout fiscal 2027, we expect upward pricing pressures will continue for raw materials, packaging components, and other costs as a result of limited supplies of various ingredients and the impact of inflationary factors, including higher labor, transportation costs, and tariffs on goods we import from overseas.

Sourcing of raw materials for our business has also been impacted by various geo-political conflicts, including the 2026 Iran War in the Middle East, the Russo-Ukrainian war in Eastern Europe, and ongoing conflicts in Sudan and Syria.

These conflicts have impacted the availability and pricing of certain raw materials that we purchase along with impacts to lead times associated with materials brought in by ocean freight.

We have actively worked with our customers to identify alternative sources of these materials, which has mostly mitigated the impact of these issues.

We have three private-label contract manufacturing customers that each individually represent more than 10% of our consolidated net sales.

The loss of any of these customers could result in a significant negative impact to our financial position and results of operations.

We have actively worked with our customers to identify alternative sources of these materials, which has mostly mitigated the impact of these conflicts.

We have two private-label contract manufacturing customers that each individually represent more than 10% of our consolidated net sales.

The loss of either of these customers could result in a significant negative impact to our financial position and results of operations.

We continue to focus on obtaining new private-label contract manufacturing customers to reduce the risks associated with deriving a significant portion of our sales from a limited number of customers.

1 unchanged sentence

The nutritional supplement industry is highly fragmented and competition for the sale of nutritional supplements comes from many sources.

These products are sold primarily through retailers (drug store chains, supermarkets, and mass market discount retailers), ecommerce, health and natural food stores, and direct sales channels (network marketing and internet sales).

These products are sold primarily through retailers (i.e.

drug store chains, supermarkets, and mass market discount retailers), ecommerce, health and natural food stores, and direct sales channels (i.e.

network marketing and internet sales).

We believe private-label contract manufacturing competition in our industry is based on, among other things, customized services offered, product quality and safety, innovation, price and customer service.

4 unchanged sentences

our ability to successfully expand our product offerings related to our patent and trademark estate;

our ability to maintain adequate inventory levels to meet our customer’s demands;

our ability to maintain compliance with debt covenants or in the event of non-compliance with our debt covenants;

our ability to obtain amendments, waivers, or modifications from our lenders on acceptable terms, or at all;

the sufficiency of our available cash, cash equivalents and restricted cash, including continued access to borrowings under our credit facilities, and potential cash flows from our operations to fund our working capital and capital expenditure needs through the next 12 months and longer;

our ability to recover the carrying value of long-lived assets and accurately estimate their impairment if and when circumstances arise;

our ability to maintain adequate inventory levels to meet our customers' demands;

our ability to continue to manufacture high quality products at competitive prices;

9 unchanged sentences

Department of Agriculture, and the Environmental Protection Agency.

Various state and local agencies in areas where we operate and in which our products are sold also regulate our business, such as the California Department of Health Services, Food and Drug Branch.

Various state and local agencies in areas where we operate and in which our or our customers' products are sold also regulate our business, such as the California Department of Health Services, Food and Drug Branch.

The areas of our business regulated by both these, and other authorities include, among others:

2 unchanged sentences

product ingredients;

how we manufacture, package, distribute, import, export, sell and store our products;

how we manufacture, package, distribute, import, export, sell and store our or our customers' products;

our classification as an essential business and our right to continue operations during government shutdowns.

18 unchanged sentences

Our operations outside the U.S.

are similarly regulated by various agencies and entities in the countries in which we operate and in which our products are sold.

are similarly regulated by various agencies and entities in the countries in which we operate and in which our or our customers' products are sold.

The regulations of these countries may conflict with those in the U.S.

and may vary from country to country.

The sale of our products in certain European countries is subject to the rules and regulations of the European Union, which may be interpreted differently among the countries within the European Union.

The sale of our and our customers' products in certain European countries are subject to the rules and regulations of the European Union, which may be interpreted differently among the countries within the European Union.

In other markets outside the U.S., we may be required to obtain approvals, licenses or certifications from a country’s Ministry of Health or comparable agency before we or our customers begin operations or the marketing of products in that country.

Approvals or licenses may be conditioned on reformulation of our or our customers’ products for a particular market or may be unavailable for certain products or product ingredients.

These regulations may limit our or our customer’s ability to enter, or continue to operate in certain markets outside the U.S.

These regulations may limit our or our customers' ability to enter, or continue to operate in certain markets outside the U.S.

As with the costs of regulatory compliance in the U.S., foreign regulations require significant financial and operational resources to ensure compliance, and we cannot provide assurances we will always be in compliance despite our best efforts to do so or that being in compliance will not become prohibitively costly to our business.

Our failure to maintain regulatory compliance within and outside the U.S.

could impact our ability to sell our products and thus, adversely impact our financial position and results of operations.

could impact our or our customers' ability to sell products and thus, adversely impact our financial position and results of operations.

Intellectual Property

7 unchanged sentences

In addition, rights in a registered mark are dependent upon the continued use of the mark in connection with the goods and/or services set forth in the registration.

We have 46 foreign registered trademarks covering 39 foreign countries including registrations for CarnoSyn®, SR CarnoSyn® or TriBsyn™ in Australia, Brazil, Canada, China, Hong Kong, Cuba, the European Union, Israel, Japan, Mexico, New Zealand, South Korea, Switzerland and the United Kingdom.

We have 48 foreign registered trademarks covering 40 foreign countries, including registrations for CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X or TriBsyn® in Australia, Brazil, Canada, China, Cuba, Hong Kong, the European Union, Israel, Japan, Mexico, New Zealand, South Korea, Switzerland, the United Kingdom and Vietnam.

Our registered trademarks include CarnoSyn® and the SR CarnoSyn® logos in Switzerland.

We also claim common law ownership and protection of certain trademarks based upon our continued use of the tradenames.

In some countries, such as the United States, common law can provide protection of a name or mark within the particular geographic area in which it is continually and deliberately used.

In some countries, such as the United States, common law can provide some protection of a name or mark within the particular geographic area in which it is continually and deliberately used.

We believe our registered trademarks and our tradenames constitute valuable assets adding to the recognition of our products and services in the marketplace.

6 unchanged sentences

Patents and Patent Licenses .

We currently own nine U.S.

patents and eight corresponding non-U.S.

patents registered in countries throughout North America, Europe and Asia.

We also have one pending U.S.

We currently own two U.S.

patents and one corresponding non-U.S.

patent registered in countries throughout North America and Europe.

All of these patents and patent rights relate to the ingredient known as beta-alanine.

Certain of these patents were assigned to NAI and we make certain ongoing royalty payments to the prior owners of the patents.

The royalty payments and licenses are expected to continue until the expiration of the patents.

Certain of these patents were assigned to NAI, and we made ongoing royalty payments to the prior owners of the patents until expiration of those patents in July 2026.

We also sell beta-alanine and license our patent and trademark rights related to beta-alanine.

Some of our patents extend as far as through 2036.

Licensing, royalties, raw material sales, and revenues we have received associated with the sale and licensing of beta-alanine under the CarnoSyn® and SR CarnoSyn® trade names and TriBsyn™ trademark were primarily related to the direct sale of the raw material beta-alanine and totaled $8.1 million in fiscal 2025.

We incurred intellectual property litigation and patent compliance expenses of approximately $0.4 million during fiscal 2025 primarily in connection with our efforts to procure and protect our proprietary rights and patent estate.

We expect to continue to incur these types of litigation and compliance expenses during fiscal 2026.

As of June 30, 2025, we employed 215 full-time employees in the U.S., three of whom are executive officers of the Company.

Of the remaining full-time employees, 45 were employed in research, laboratory and quality control, 13 in sales and marketing, and 154 in manufacturing and administration.

Licensing, royalties, raw material sales, and revenues we have received associated with the sale and licensing of beta-alanine under the CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X and TriBsyn® trademarks were primarily related to the direct sale of the raw material beta-alanine and totaled $7.9 million in fiscal 2026.

We incurred patent compliance expenses of approximately $0.4 million during fiscal 2026 primarily in connection with our efforts to procure, protect and support our proprietary rights and patent estate.

We expect to continue to incur these types of compliance expenses during fiscal 2027 and beyond.

As of June 30, 2026, we employed 219 employees in the U.S., 46 who were employed in research, laboratory and quality control, 10 in sales and marketing, and 162 in manufacturing and administration.

From time to time, we use temporary personnel to help us meet shorter-term operating requirements.

1 unchanged sentence

As of June 30, 2026, we had 11 temporary personnel in the U.S.

As of June 30, 2025, NAIE employed an additional 78 full-time employees and 21 temporary employees.

As of June 30, 2026, NAIE employed an additional 82 employees and 11 temporary employees.

Most of these positions were in the areas of manufacturing and manufacturing support.

4 unchanged sentences

We manufacture and sell products to customers that operate in many different countries throughout the world and these seasonal factors vary by region.

Although we believe the impact of seasonality on our consolidated results of operations is minimal, our quarterly results may vary significantly in the future due to the timing of private-label contract manufacturing and CarnoSyn®, SR CarnoSyn®, and TriBsyn™ beta-alanine raw material orders.

Future revenue trends may not follow historical patterns.

3 unchanged sentences

Private-label contract manufacturing, in which we primarily provide manufacturing services to companies that market and distribute nutritional supplements and other health care products.

Royalty, licensing, and raw material sales primarily associated with the sale and license of beta-alanine under our CarnoSyn®, SR CarnoSyn® and TriBsyn™ trademarks.

Royalty, licensing, and raw material sales primarily associated with the sale and license of beta-alanine under our CarnoSyn®, SR CarnoSyn®, CarnoSyn® 4X and TriBsyn® trademarks.

Our private-label contract manufacturing products are sold both in the U.S.

5 unchanged sentences

Our activities in markets outside the U.S.

are subject to political, economic and other risks in the countries in which our products are sold and in which we operate.

are subject to political, economic and other risks in the countries in which our and our customers' products are sold and in which we operate.

For more information about these and other risks, please see Item 1A in this report.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business