Niagen Bioscience, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
NAGE$2.07-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001386570-26-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001386570-26-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 88 current paragraphs.
46 unchanged; 37 reworded; 5 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Brand Campaign
Current report
In October 2026, we announced the launch of “Don’t Get Old. Age Better®,” a brand campaign for our Niagen® brand and sub-brands Tru Niagen® and Niagen Plus™, featuring surfer Kelly Slater and more than 20 partners across sports, entertainment, and medicine. As the campaign launched in October 2026, marketing expenses in our Unaudited Condensed Consolidated Statement of Operations during the three and nine months ended September 30, 2026 were not material.
Current report
Reversal of Elysium Attorneys’ Fee Award
Current report
On October 30, 2026, the U.S. Court of Appeals for the Federal Circuit reversed the district court’s October 2024 judgment awarding Elysium Health, Inc. (Elysium) approximately $9.2 million in attorneys’ fees and costs, plus post-judgment interest, in connection with our patent infringement action against Elysium in the U.S. District Court for the District of Delaware. The Federal Circuit concluded that the district court abused its discretion in finding the case exceptional and declined Elysium’s request to remand the matter for further proceedings. We had not recorded an accrual for this matter. Elysium may seek rehearing of the decision or review by the U.S. Supreme Court. For additional information, refer to Note 8, Commitments and Contingencies, to our Unaudited Condensed Consolidated Financial Statements.
Current report
•R&D expenses in our pharmaceuticals segment decreased by $0.4 million and $0.2 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The decrease was largely driven by the absence of expenses associated with a potential Parkinson's disease therapy that were recognized in the third quarter of 2025, partially offset by continued investment in the research and development of an NAD+ precursor-based candidate for potential therapeutic applications in rare diseases.
Removed paragraphs (10)
Previous report
NB4168 Rare Disease Development Milestones
Previous report
In July 2026, we publicly introduced NB4168, our proprietary lead investigational therapeutic candidate for the treatment of Ataxia-Telangiectasia (A-T). NB4168 is an oral small molecule engineered to deliver substantially greater nicotinamide riboside (NR) exposure than conventional NR while maintaining a differentiated pharmacokinetic and safety profile. More recently, the U.S. Food and Drug Administration granted Rare Pediatric Disease (RPD) designation for NB4168 for the treatment of AT, and the European Medicines Agency (EMA) granted Orphan Medicinal Product Designation (OMPD) for NB4168, supporting our plans to advance the program globally.
Previous report
Telehealth Platform Launch
Previous report
In May 2026, we launched a clinician-directed telehealth platform under Niagen Plus, enabling eligible U.S. patients to connect with independent licensed healthcare providers who, where medically appropriate, may prescribe Niagen® at-home injection kits, expanding the Niagen Plus clinic channel beyond in-person settings and introducing a direct-to-patient access model.
Previous report
Resolution of Previously Disclosed Contingency
Previous report
In April 2026, we reached an agreement in principle with a retail partner in Asia to resolve a previously disclosed dispute related to the recall and withdrawal of certain Tru Niagen® Immune Daily Defense products.
Previous report
Under the terms of the arrangement, previously withheld receivables totaling approximately $1.3 million were released and fully collected by the end of April 2026. We expect this to result in improved collections and a reduction in accounts receivable in the near term.
Previous report
The agreement also includes the return of certain unsold inventory and the provision of replacement products. As a result, we expect to recognize costs associated with returned inventory, rework activities, and replacement products, which will be reflected in cost of sales in the period incurred. These costs are expected to impact gross margin in the near term; however, we do not expect these costs to be material. Subsequent to June 30, 2026, we received the returned inventory from the retail partner and began shipping replacement products in accordance with the terms of the agreement.
Previous report
We do not expect the resolution of this matter to have a material adverse impact on our overall financial condition. In addition, while we have agreed to provide replacement products for certain future customer returns of the affected product, such obligations are limited in scope and are not currently expected to be material.
Previous report
•R&D expenses in our pharmaceuticals segment slightly increased by $0.1 million and $0.2 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. This increase primarily reflects continued research and development of an NAD+ precursor-based candidate for potential therapeutic applications in rare diseases. These costs were primarily related to ongoing preclinical activities and supporting research infrastructure. In late June 2026, we entered into an agreement with a contract research organization ("CRO") to support the advancement of our development programs. While the agreement had a limited impact on current-period expenses, we expect it to contribute to increased research and development expenditures in future periods as activities under the agreement progress.
Reworded paragraphs (37)
Previous wording
Growth and percentage comparisons made herein generally refer to the three and six months ended June 30, 2026 compared with the three and six months ended June 30, 2025 unless otherwise noted. Unless otherwise indicated or unless the context otherwise requires, all references in this document to “we,” “us,” “our,” the “Company,” “Niagen Bioscience” and similar expressions refer to Niagen Bioscience, Inc., and depending on the context, its subsidiaries.
Current wording
Growth and percentage comparisons made herein generally refer to the three and nine months ended September 30, 2026 compared with the three and nine months ended September 30, 2025 unless otherwise noted. Unless otherwise indicated or unless the context otherwise requires, all references in this document to “we,” “us,” “our,” the “Company,” “Niagen Bioscience” and similar expressions refer to Niagen Bioscience, Inc., and depending on the context, its subsidiaries.
Previous wording
Our business and product platform are grounded in a significant and growing body of scientific research related to NAD+ and its role in human health. Nicotinamide riboside chloride (“NRC,” also referred to as “NRCL” or “NR”), the active ingredient in our proprietary Niagen®, is among the most extensively studied NAD+ precursors. Data from preclinical studies and human clinical trials indicate that orally administered NRC can increase NAD+ levels in blood and tissue. Food-grade Niagen® has been reviewed under the U.S. Food and Drug Administration’s (FDA) new dietary ingredient notification program, notified to the FDA as generally recognized as safe (GRAS), and has received approvals or authorizations in multiple international jurisdictions, including Canada, the European Union, Turkey, and Australia. Niagen® and other NAD+ precursors are protected by a portfolio of owned and licensed patents.
Current wording
Our business and product platform are grounded in a significant and growing body of scientific research related to NAD+ and its role in human health. Nicotinamide riboside (“NR”), the active ingredient in our proprietary Niagen®, is among the most extensively studied NAD+ precursors. Data from preclinical studies and human clinical trials indicate that orally administered NR can increase NAD+ levels in blood and tissue. Food-grade Niagen® has been reviewed under the U.S. Food and Drug Administration’s (FDA) new dietary ingredient notification program, notified to the FDA as generally recognized as safe (GRAS), and has received approvals or authorizations in multiple international jurisdictions, including Canada, the European Union, Turkey, and Australia. Niagen® and other NAD+ precursors are protected by a portfolio of owned and licensed patents.
Previous wording
There are more than 525 published human clinical studies related to NAD+ and its role in health. Areas of study include, but are not limited to, understanding NAD+’s role in rare diseases such as Ataxia-Telangiectasia, neurodegenerative diseases, neuropathy, sarcopenia, liver disease and heart failure. Through our Niagen Research Program (NRP®), formerly the ChromaDex External Research Program (CERP®), we have established research collaborations with universities and research institutions that contribute to peer-reviewed publications advancing the understanding of NAD+ biology and informing the development of our products and technologies.
Current wording
There are more than 525 published human clinical studies related to NAD+ and its role in health. Areas of study include, but are not limited to, understanding NAD+’s role in rare diseases such as Ataxia-Telangiectasia, neurodegenerative diseases, neuropathy, kidney disease, mitochondrial myopathy, liver disease and heart failure. Through our Niagen Research Program (NRP®), formerly the ChromaDex External Research Program (CERP®), we have established research collaborations with universities and research institutions that contribute to peer-reviewed publications advancing the understanding of NAD+’s role in healthy aging and longevity.
Previous wording
We develop and supply proprietary ingredient technologies, including food-grade and pharmaceutical-grade Niagen®. Food-grade Niagen® is supplied as a dietary and food ingredient to manufacturers of consumer products. Pharmaceutical-grade Niagen® is supplied to U.S. FDA-registered 503B outsourcing facilities and certain international compounding pharmacies for use in compounded intravenous and injectable formulations, subject to applicable regulatory requirements. The Company also supports clinician-directed telehealth access to prescription-based Niagen® offerings. These formulations are marketed by the compounding pharmacies as Niagen IV and Niagen injectable products, including under the name "Niagen Plus."
Current wording
We develop and supply proprietary ingredient technologies, including food-grade and pharmaceutical-grade Niagen®. Food-grade Niagen® is supplied as a dietary and food ingredient or as a skincare ingredient to manufacturers of consumer and pet products. Pharmaceutical-grade Niagen® is supplied to U.S. FDA-registered 503B outsourcing facilities and certain international compounding pharmacies for use in compounded intravenous and injectable formulations, subject to applicable regulatory requirements. We also support clinician-directed telehealth access to prescription-based Niagen® offerings. These formulations are marketed by the compounding pharmacies as Niagen IV and Niagen injectable products, including under the name “Niagen Plus.”
Previous wording
In June 2026, we entered into a new office lease for 10,564 rentable square feet in Los Angeles, California. The lease has a contractual term of approximately 8 years and is scheduled to commence on April 1, 2027. We may receive limited early access to the premises prior to the commencement date for move-in and related activities. Because the lease had not commenced as of June 30, 2026, no right-of-use asset or lease liability has been recognized under ASC 842.
Current wording
In June 2026, we entered into a new office lease for 10,564 rentable square feet in Los Angeles, California. The lease has a contractual term of approximately eight years and is scheduled to commence on April 1, 2027. We will have early access to the premises starting on December 1, 2026, prior to the commencement date for move-in and related activities. Because the lease had not commenced as of September 30, 2026, no right-of-use asset or lease liability has been recognized under ASC 842.
Previous wording
Disposal of Analytical Reference Standards and Services Segment
Current wording
Divestiture of Analytical Reference Standards and Services Segment
Previous wording
As a result of the disposition, revenue attributable to analytical reference standards and services is no longer included in our ongoing operating results following the closing date. This change is expected to further concentrate our revenue mix toward higher-growth, consumer-oriented product offerings and ingredient sales. In addition, the analytical reference standards and services business operated with a cost structure and margin profile that differed from our core businesses, including higher fixed operating costs related to specialized personnel, laboratory operations, and quality systems. Following the disposition, certain shared fixed costs that were previously allocated to the analytical reference standards and services segment will be absorbed primarily by our remaining operations, particularly the ingredients segment, until such time as we are able to realign our cost structure. We may also undertake organizational and workforce adjustments in response to the disposition; however, any related cost savings are expected to be realized over time and not immediately. As a result, the full impact of these changes on our cost structure and operating margins may evolve over the course of the year. The exit of this operating segment is expected to reduce ongoing operating complexity and may result in greater margin consistency across our remaining operations over time. However, period-to-period comparability of revenue and margins may be affected due to the absence of revenues previously generated by this operating segment.
Current wording
As a result of the divestiture, revenue attributable to analytical reference standards and services is no longer included in our ongoing operating results following the closing date. This change is expected to further concentrate our revenue mix toward higher-growth, consumer-oriented product offerings and ingredient sales. In addition, the analytical reference standards and services business operated with a cost structure and margin profile that differed from our core businesses, including higher fixed operating costs related to specialized personnel, laboratory operations, and quality systems. Following the divestiture, certain shared fixed costs that were previously allocated to the analytical reference standards and services segment will be absorbed primarily by our remaining operations, particularly the ingredients segment, until such time as we are able to realign our cost structure. We may also undertake organizational and workforce adjustments in response to the divestiture; however, any related cost savings are expected to be realized over time and not immediately. As a result, the full impact of these changes on our cost structure and operating margins may evolve over the course of the year. The exit of this operating segment is expected to reduce ongoing operating complexity and may result in greater margin consistency across our remaining operations over time. However, period-to-period comparability of revenue and margins may be affected due to the absence of revenues previously generated by this operating segment.
Previous wording
In connection with the sale, we entered into a transition services agreement (TSA) under which we will provide certain operational and administrative services to the buyer for a period of up to six months following the closing date. We receive service fees for these services, which are recognized as the services are performed. During the three and six months ended June 30, 2026, we recognized $236,000 and $310,000 of transition services revenue, respectively, which is included in net sales. The net sales and cost of sales from this TSA are temporary in nature and are not expected to recur beyond the transition period.
Current wording
In connection with the sale, we entered into a transition services agreement (TSA) under which we provided certain operational and administrative services to the buyer for a period of up to six months following the closing date. We received service fees for these services, which were recognized as the services were performed. During the three and nine months ended September 30, 2026, we recognized $70,000 and $380,000 of transition services revenue, respectively, which is included in net sales. The TSA expired in August 2026. Accordingly, we do not expect to recognize any further net sales and cost of sales from this TSA in future periods.
Previous wording
As of June 30, 2026, our cash and cash equivalents totaled approximately $66.7 million, of which $66.6 million was unrestricted. We anticipate that our current unrestricted cash and cash equivalents and cash to be generated from net sales will be sufficient to meet our financial obligations as they become due over at least the next twelve months. We may, however, seek additional capital in the next twelve months, both to meet our projected operating plans after the next twelve months and/or to fund our longer-term strategic objectives.
Current wording
As of September 30, 2026, our cash and cash equivalents totaled approximately $69.5 million, of which $69.4 million was unrestricted. We anticipate that our current unrestricted cash and cash equivalents and cash to be generated from net sales will be sufficient to meet our financial obligations as they become due over at least the next twelve months. We may, however, seek additional capital in the next twelve months, both to meet our projected operating plans after the next twelve months and/or to fund our longer-term strategic objectives.
Previous wording
Our consolidated net sales, net income and income per share for the three and six months ended June 30, 2026 and 2025 are as follows:
Current wording
Our consolidated net sales, net income and income per share for the three and nine months ended September 30, 2026 and 2025 are as follows:
Previous wording
Total net sales decreased by $1.3 million and $0.3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The decrease was primarily attributable to lower net sales from our ingredients segment and the absence of analytical reference standards and services revenue following the February 2026 disposition of that business, partially offset by growth within our consumer products segment. The pharmaceuticals segment did not generate revenue during the periods presented. Detailed changes in net sales were driven by the following:
Current wording
Total net sales decreased by $6.8 million and $7.1 million for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. The decrease was attributable to lower net sales from our ingredients segment, consumer products segment, and the absence of analytical reference standards and services revenue following the February 2026 divestiture of that business. The pharmaceuticals segment did not generate revenue during the periods presented. Detailed changes in net sales were driven by the following:
Previous wording
•Within our consumer products segment, Tru Niagen® sales increased by $1.5 million and $2.4 million for the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in 2025. This growth was driven by increased e-commerce channel performance, which grew by approximately $2.5 million and $4.8 million, respectively, compared to prior year periods, reflecting increased customer demand and acquisition. Sales to A.S. Watson Group were lower by $2.3 million and $4.7 million, respectively, compared to the prior year periods, partially offset by increased sales to other distribution channels by $1.3 million and $2.2 million. Growth within other distribution channels was driven in part by increased cross-border sales into China, which increased approximately $1.0 million and $1.6 million for the three and six months ended June 30, 2026, respectively, compared to the corresponding prior-year periods. The decline in sales to A.S. Watson Group reflects variability in ordering patterns and commercial activity during the period. We continue to engage with this partner on marketing and sales initiatives to support the ongoing relationship.
Current wording
•Within our consumer products segment, Tru Niagen® sales decreased by $2.7 million and $0.3 million for the three and nine months ended September 30, 2026, respectively, compared to the corresponding periods in 2025. The decrease during the three months ended September 30, 2026 was driven by lower A.S. Watson sales of $1.7 million and lower e-commerce channel sales of $0.9 million, compared to the corresponding prior year period. The decrease in e-commerce channel sales is primarily attributable to Amazon Prime Day occurring in Q3 in 2025, as compared to Q4 in 2026. The slight decrease during the nine months ended September 30, 2026 was driven by lower A.S. Watson sales of $6.4 million, offset by higher e-commerce channel sales of $3.9 million and increased sales to other distribution channels of $2.2 million, compared to the corresponding prior year period. Growth within other distribution channels was driven in part by increased cross-border sales into China, which increased approximately $0.5 million and $2.1 million for the three and nine months ended September 30, 2026, respectively, compared to the corresponding prior-year periods. The decline in sales to A.S. Watson Group reflects variability in ordering patterns and commercial activity during the period. We continue to engage with this partner on marketing and sales initiatives to support the ongoing relationship.
Previous wording
•Total ingredient sales decreased by $2.2 million and $1.8 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The decrease was primarily driven by lower sales to food-grade Niagen® partners, which declined by approximately $1.1 million and $0.7 million, respectively, as well as lower pharmaceutical-grade Niagen® sales of $1.0 million and $1.1 million respectively. Food-grade ingredient sales were impacted by lower purchasing from a significant customer due to softer downstream demand and sell-through. Pharmaceutical-grade sales also reflected reduced purchasing expectations from certain partners. Ingredient partner orders remain subject to timing variability.
Current wording
•Total ingredient sales decreased by $3.4 million and $5.2 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The decrease was primarily driven by lower sales to food-grade Niagen® partners, which declined by approximately $3.0 million and $3.8 million, respectively, as well as lower pharmaceutical-grade Niagen® sales of $0.1 million and $1.2 million, respectively. The decrease in food-grade ingredient sales was primarily driven by lower purchasing from the largest ingredient customer due to softer downstream demand and sell-through, which resulted in decreases of $3.2 million and $6.5 million for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. Pharmaceutical-grade sales also reflected reduced purchasing expectations from partners as compared to prior year periods. Ingredient partner orders remain subject to timing variability.
Previous wording
•Analytical reference standards and services net sales decreased by $0.8 million and $1.2 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The decreases reflect the February 2026 divestiture of the Analytical Reference Standards and Services business, resulting in only partial-period revenue being recognized during the current-year periods. As a result of the divestiture, we do not expect to generate additional net sales from this segment in future periods.
Current wording
•Analytical reference standards and services net sales decreased by $0.8 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The decreases reflect the February 2026 divestiture of the Analytical Reference Standards and Services business, resulting in only partial-period revenue being recognized during the current-year periods. As a result of the divestiture, we do not expect to generate additional net sales from this segment in future periods.
Previous wording
•Corporate and other net sales represent revenue generated under the TSA entered into in connection with the February 2026 disposition of our Analytical Reference Standards and Services operating segment. The TSA provides for specified transition services to support the buyer for a period of up to six months following the closing date. Accordingly, the related revenue is temporary in nature and is not expected to recur beyond the transition period.
Current wording
•Corporate and other net sales represent revenue generated under the TSA entered into in connection with the February 2026 divestiture of our Analytical Reference Standards and Services operating segment. The TSA provided for specified transition services to support the buyer for a period of up to six months following the closing date. The TSA expired in August 2026. Accordingly, we do not expect to recognize additional related revenue in future periods.
Previous wording
Total cost of sales, as a percentage of net sales, remained generally consistent at 35.2% and 35.9% for the three and six months ended June 30, 2026, respectively, compared to 35.0% and 35.8% for the corresponding periods in 2025. Changes in cost of sales were primarily driven by the following:
Current wording
Total cost of sales, as a percentage of net sales, increased to 37.1% and 36.2% for the three and nine months ended September 30, 2026, respectively, compared to 35.5% and 35.7% for the corresponding periods in 2025. Changes in cost of sales were primarily driven by the following:
Previous wording
•Cost of sales, as a percentage of net sales, within our consumer products segment may vary due to changes in business mix, product mix, costs of components, inflationary pressures, optimization efforts in our supply chain, and other factors. For the three and six months ended June 30, 2026, cost of sales as a percentage of net sales decreased by approximately 40 basis points and 50 basis points, respectively, compared to the same periods in 2025. The modest improvement was attributable to a favorable shift in business mix, with e-commerce representing a greater portion of segment net sales, which generally carries higher gross margins.
Current wording
•Cost of sales, as a percentage of net sales, within our consumer products segment may vary due to changes in business mix, product mix, costs of components, inflationary pressures, optimization efforts in our supply chain, and other factors. For the three and nine months ended September 30, 2026, cost of sales as a percentage of net sales increased by approximately 210 basis points and 30 basis points, respectively, compared to the same periods in 2025. The increase for the three months ended September 30, 2026 was attributable to lower e-commerce sales, which generally carry higher gross margins.
Previous wording
•Cost of sales, as a percentage of net sales, in our ingredients segment are influenced by several factors including inventory purchase costs, fixed supply chain overhead, transportation and storage costs, product mix, and other factors. For the three and six months ended June 30, 2026, cost of sales as a percentage of net sales increased by approximately 720 basis points and 510 basis points, respectively, compared to the same periods in 2025. The increase was primarily attributable to an unfavorable shift in product mix, with food-grade Niagen® representing a greater proportion of segment sales and pharmaceutical-grade Niagen® representing a smaller proportion of segment sales, each of which carries a distinct margin profile, resulting in lower overall gross margins during the period. Gross margins were also impacted by pricing concessions provided to certain customers to support commercial relationships in a more competitive market environment.
Current wording
•Cost of sales, as a percentage of net sales, in our ingredients segment are influenced by several factors including inventory purchase costs, fixed supply chain overhead, transportation and storage costs, product mix, and other factors. For the three and nine months ended September 30, 2026, cost of sales as a percentage of net sales increased by approximately 780 basis points and 530 basis points, respectively, compared to the same periods in 2025. The increase was primarily attributable to lower overall sales, as a large portion of overhead costs is fixed in nature and therefore does not decrease in line with reduced sales levels. In addition, for the nine months ended September 30, 2026, we had an unfavorable shift in product mix, with food-grade Niagen® representing a greater proportion of segment sales and pharmaceutical-grade Niagen® representing a smaller proportion of segment sales, each of which carries a distinct margin profile, resulting in lower overall gross margins during the period. Gross margins were also impacted by pricing concessions provided to certain customers to support commercial relationships in a more competitive market environment.
Previous wording
•Cost of sales, as a percentage of net sales, in our analytical reference standards and services segment are influenced by many factors including inventory purchase costs, fixed supply chain overhead, transportation and storage costs, and other factors. Following the February 2026 disposition of the business, both net sales and cost of sales reflect only partial-period operations during the current year and therefore declined compared to the corresponding prior-year periods. We do not expect this segment to generate additional net sales or incur additional cost of sales in future periods.
Current wording
•Cost of sales, as a percentage of net sales, in our analytical reference standards and services segment are influenced by many factors including inventory purchase costs, fixed supply chain overhead, transportation and storage costs, and other factors. Following the February 2026 divestiture of the business, both net sales and cost of sales reflect only partial-period operations during the current year and therefore declined compared to the corresponding prior-year periods. We do not expect this segment to generate additional net sales or incur additional cost of sales in future periods.
Previous wording
•Corporate and other cost of sales represent expenses incurred under the TSA entered into in connection with the February 2026 disposition of our Analytical Reference Standards and Services operating segment. The TSA provides for specified transition services to support the buyer for a period of up to six months following the closing date. Accordingly, the related cost of sales are temporary in nature and are not expected to recur beyond the transition period.
Current wording
•Corporate and other cost of sales represent expenses incurred under the TSA entered into in connection with the February 2026 divestiture of our Analytical Reference Standards and Services operating segment. The TSA provided for specified transition services to support the buyer for a period of up to six months following the closing date. The TSA expired in August 2026. Accordingly, we do not expect to incur additional related cost of sales in future periods.
Previous wording
Total sales and marketing expenses increased by $1.9 million and $3.5 million during the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. As a percentage of net sales, total sales and marketing expenses increased by 760 basis points and 580 basis points, respectively. The increase primarily reflects higher cost of advertising and customer acquisition, investments to support brand growth and planned commercial initiatives, including increased spending in marketing channels that are expected to build longer-term brand awareness and customer acquisition rather than generate immediate revenue.
Current wording
Total sales and marketing expenses decreased by $0.1 million and increased by $3.4 million during the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. As a percentage of net sales, total sales and marketing expenses increased by 620 basis points and 590 basis points, respectively. The increase primarily reflects higher advertising and customer acquisition costs, investments to support brand growth and planned commercial initiatives, including increased spending in marketing channels that are expected to build longer-term brand awareness and customer acquisition rather than generate immediate revenue.
Previous wording
•For our consumer products segment, sales and marketing expenses increased by $1.8 million and $3.3 million during the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 and, as a percentage of net sales, increased to 41.0% from 35.6% and to 41.5% from 36.2%, respectively. The increase was primarily attributable to higher marketing and advertising expenditures to support brand growth and customer acquisition initiatives, as well as increased personnel-related costs associated with the expansion of our marketing organization. These initiatives are intended to support long-term growth and may not result in immediate increases in net sales.
Current wording
•For our consumer products segment, sales and marketing expenses slightly decreased by $0.1 million and increased by $3.2 million during the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025 and, as a percentage of net sales, increased to 36.6% from 33.2% and to 39.9% from 35.1%, respectively. The increase was primarily attributable to higher marketing and advertising expenditures to support brand growth and customer acquisition initiatives, as well as increased personnel-related costs associated with the expansion of our marketing organization. These initiatives are intended to support long-term growth and may not result in immediate increases in net sales.
Previous wording
•For our ingredients segment, sales and marketing expense slightly increased by $0.2 million and $0.3 million during the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 and, as a percentage of net sales, increased to 4.1% from 0.7% and to 2.9% from 0.8%. The increase was primarily attributable to higher marketing and promotional expenditures supporting pharmaceutical-grade Niagen® commercialization initiatives.
Current wording
•For our ingredients segment, sales and marketing expense slightly increased by $0.1 million and $0.4 million during the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025 and, as a percentage of net sales, increased to 4.5% from 0.8% and to 3.3% from 0.8%. The increase was primarily attributable to higher marketing and promotional expenditures supporting pharmaceutical-grade Niagen® commercialization initiatives.
Previous wording
•For our analytical reference standards and services segment, sales and marketing expense decreased for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, primarily due to the February 2026 disposition of the business and the resulting reduction in operating activities.
Current wording
•For our analytical reference standards and services segment, sales and marketing expense decreased for the three and nine months ended September 30, 2026, compared to the corresponding periods in 2025, primarily due to the February 2026 divestiture of the business and the resulting reduction in operating activities.
Previous wording
•The remaining R&D expenses related to our Niagen® branded ingredient are allocated to the consumer products and ingredients segments based on recorded revenues. R&D expenses allocated to these segments remained generally consistent for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025. Lower direct consulting and product development research expenses were largely offset by higher spending on other research and development activities, including scientific engagement initiatives such as a research conference. We expect R&D spending within these segments to continue to vary based on the timing and scope of research projects, clinical development activities, scientific engagement initiatives, and internal resource allocation.
Current wording
•The remaining R&D expenses related to our Niagen® branded ingredient are allocated to the consumer products and ingredients segments based on recorded revenues. R&D expenses allocated to these segments increased by $0.4 million for each of the three and nine months ended September 30, 2026, compared to the corresponding periods in 2025 primarily due to higher spending on other research and development activities, including scientific engagement initiatives such as a research conference were partially offset by lower direct consulting and product development research expenses. We expect R&D spending within these segments to continue to vary based on the timing and scope of research projects, clinical development activities, scientific engagement initiatives, and internal resource allocation.
Previous wording
Total general and administrative expenses decreased by $0.3 million during the three months ended June 30, 2026, compared to the corresponding period in 2025. The slight decrease was primarily due to lower royalties, professional fees, and employee-related expenses, substantially offset by higher share-based compensation. Total general and administrative expenses increased by $1.8 million during the six months ended June 30, 2026, compared to the corresponding period in 2025. The increase was primarily driven by a $1.3 million increase in provisions for credit losses, reflecting a $1.3 million recovery of credit losses recognized in the prior year period that did not occur in 2026, as well as $1.0 million in higher share-based compensation, partially offset by lower royalties of $0.7 million. For additional details regarding the prior year recovery of credit losses, refer to our Form 10-K filing for the year ended December 31, 2025, Note 10, Commitments and Contingencies.
Current wording
Total general and administrative expenses increased by $1.1 million and $2.8 million during the three and nine months ended September 30, 2026, compared to the corresponding periods in 2025. The increase during the three months ended September 30, 2026, compared to the corresponding period in 2025 was primarily due to a $1.5 million increase in legal fees partially offset by $0.3 million in lower royalties and $0.3 million in lower employee-related expenses. The increase during the nine months ended September 30, 2026, compared to the corresponding period in 2025 was primarily driven by a $1.3 million increase in provisions for credit losses, reflecting a $1.3 million recovery of credit losses recognized in the prior year period that did not occur in 2026, a $1.7 million increase in legal fees, as well as an increase of $0.9 million in share-based compensation, partially offset by $1.0 million in lower royalties. For additional details regarding the prior year recovery of credit losses, refer to our Form 10-K filing for the year ended December 31, 2025, Note 10, Commitments and Contingencies.
Previous wording
The Company recorded income tax expense of $106,000 and $523,000 during the three and six months ended June 30, 2026, respectively, representing 9.9% and 6.7% of earnings before income taxes for the respective periods. During the three and six months ended June 30, 2025, the Company recorded $128,000 and $296,000, respectively, of income tax expense representing 3.4% and 3.3% of earnings before income taxes for the respective periods.
Current wording
The Company did not record income tax expense for the three months ended September 30, 2026 and recorded $523,000 for the nine months ended September 30, 2026, representing 7.9% of earnings before income taxes. During the three and nine months ended September 30, 2025, the Company recorded $222,000 and $518,000, respectively, of income tax expense representing 4.6% and 3.8% of earnings before income taxes for the respective periods.
Previous wording
Depreciation expense was approximately $233,000 and $316,000 for the six months ended June 30, 2026 and 2025, respectively. We depreciate our assets on a straight-line basis, based on the estimated useful lives of the respective assets.
Current wording
Depreciation expense was approximately $348,000 and $473,000 for the nine months ended September 30, 2026 and 2025, respectively. We depreciate our assets on a straight-line basis, based on the estimated useful lives of the respective assets.
Previous wording
Amortization expense of intangible assets was approximately $349,000 and $75,000 for the six months ended June 30, 2026 and 2025, respectively. We amortize intangible assets using a straight-line method, generally over 10 years. For licensed patent rights, the useful lives are 10 years or the remaining term of the patents underlying licensing rights, whichever is shorter. The useful life of subsequent milestone payments that are capitalized match the remaining useful life of the initial licensing payment that was originally capitalized.
Current wording
Amortization expense of intangible assets was approximately $524,000 and $113,000 for the nine months ended September 30, 2026 and 2025, respectively. We amortize intangible assets using a straight-line method, generally over 10 years. For licensed patent rights, the useful lives are 10 years or the remaining term of the patents underlying licensing rights, whichever is shorter. The useful life of subsequent milestone payments that are capitalized match the remaining useful life of the initial licensing payment that was originally capitalized.
Previous wording
Noncash lease expense related to right-of-use assets was approximately $352,000 for the six months ended June 30, 2026 compared to $332,000 for the six months ended June 30, 2025.
Current wording
Noncash lease expense related to right-of-use assets was approximately $535,000 for the nine months ended September 30, 2026 compared to $496,000 for the nine months ended September 30, 2025.
Previous wording
From inception through June 30, 2026, we have incurred aggregate losses of approximately $157.2 million. These losses are primarily due to expenses associated with the development and expansion of our operations and investments to protect our intellectual property, including litigation-related expenses. Historically, our operations were financed primarily through capital contributions, including the issuance of common stock in private placements, as well as cash generated from sales. As our operating results and cash generation have improved, our liquidity profile has strengthened.
Current wording
From inception through September 30, 2026, we have incurred aggregate losses of approximately $158.4 million. These losses are primarily due to expenses associated with the development and expansion of our operations and investments to protect our intellectual property, including litigation-related expenses. Historically, our operations were financed primarily through capital contributions, including the issuance of common stock in private placements, as well as cash generated from sales. As our operating results and cash generation improved in recent periods, our liquidity profile also strengthened. Additional periods of decline in our net income or net losses would negatively impact our liquidity.
Previous wording
As of June 30, 2026, we had cash and cash equivalents of $66.7 million, including approximately $0.2 million of restricted cash. Our cash and cash equivalents as of June 30, 2026 consisted of bank deposits and short-term investments in highly liquid investment-grade debt instruments with an original maturity of three months or less. In addition, as of June 30, 2026, we had purchase obligations of approximately $20.5 million related to inventory purchase commitments and approximately $2.6 million related to future minimum lease obligations under commenced leases to be paid over twelve months and four years, respectively, as well as fixed, unconditional deferred consideration obligations of approximately $9.5 million and £0.4 million payable through 2038 in connection with the assignment of certain patent rights. During June 2026, we entered into a new operating lease for office space in Los Angeles with a contractual commencement date of April 1, 2027, subject to certain early access provisions. Because the lease had not commenced as of June 30, 2026, no related right-of-use asset or lease liability has been recognized in the accompanying Unaudited Condensed Consolidated Balance Sheets. Upon commencement of the lease, we expect to recognize the associated operating lease assets and liabilities in accordance with ASC 842. As of June 30, 2026 and December 31, 2025, we had no material off-balance sheet arrangements and no borrowings outstanding under our line of credit. We believe that our current unrestricted cash and cash equivalents, together with cash expected to be generated from operations will be sufficient to meet our financial obligations as they become due over at least the next twelve months and beyond. In addition, pursuant to the Sales Agreement with Canaccord Genuity LLC and Roth Capital Partners, LLC entered into on June 26, 2026 (ATM Facility), our ATM facility provides us with the ability to raise up to $50.0 million of additional capital, subject to market conditions. As of the date of this Quarterly Report on Form 10-Q, we have not sold any shares under the ATM Facility.
Current wording
As of September 30, 2026, we had cash and cash equivalents of $69.5 million, including approximately $0.2 million of restricted cash. Our cash and cash equivalents as of September 30, 2026 consisted of bank deposits and short-term investments in highly liquid investment-grade debt instruments with an original maturity of three months or less. In addition, as of September 30, 2026, we had purchase obligations of approximately $17.7 million related to inventory purchase commitments and approximately $2.3 million related to future minimum lease obligations under commenced leases to be paid over twelve months and four years, respectively, as well as fixed, unconditional deferred consideration obligations of approximately $9.5 million and £0.4 million payable through 2038 in connection with the assignment of certain patent rights. During June 2026, we entered into a new operating lease for office space in Los Angeles with a contractual commencement date of April 1, 2027, subject to certain early access provisions. Because the lease had not commenced as of September 30, 2026, no related right-of-use asset or lease liability has been recognized in the accompanying Unaudited Condensed Consolidated Balance Sheets. Upon commencement of the lease, we expect to recognize the associated operating lease assets and liabilities in accordance with ASC 842. As of September 30, 2026 and December 31, 2025, we had no material off-balance sheet arrangements and no borrowings outstanding under our line of credit. We believe that our current unrestricted cash and cash equivalents, together with cash expected to be generated from operations will be sufficient to meet our financial obligations as they become due over at least the next twelve months and beyond. In addition, pursuant to the Sales Agreement with Canaccord Genuity LLC and Roth Capital Partners, LLC entered into on June 26, 2026 (ATM Facility), our ATM facility provides us with the ability to raise up to $50.0 million of additional capital, subject to market conditions. As of the date of this Quarterly Report on Form 10-Q, we have not sold any shares under the ATM Facility.
Previous wording
Net cash provided by operating activities: Cash provided by operating activities is net income adjusted for certain non-cash items and changes in operating assets and liabilities. For the six months ended June 30, 2026, net cash provided by operating activities was approximately $1.6 million, compared to approximately $9.1 million for the same period in 2025, representing a decrease of $7.6 million.
Current wording
Net cash provided by operating activities: Cash provided by operating activities is net income adjusted for certain non-cash items and changes in operating assets and liabilities. For the nine months ended September 30, 2026, net cash provided by operating activities was approximately $4.2 million, compared to approximately $12.8 million for the same period in 2025, representing a decrease of $8.6 million.
Previous wording
Net income for the six months ended June 30, 2026 was $7.3 million, compared to $8.7 million for the same period in 2025. Net income in the current period includes several non-cash items, including $3.4 million of share-based compensation expense and a $4.8 million gain on the sale of the analytical reference standards and services business segment. In addition, the prior year period included the recovery of previously written-off amounts, which did not recur in the current period.
Current wording
Net income for the nine months ended September 30, 2026 was $6.1 million, compared to $13.3 million for the same period in 2025. Net income in the current period includes several non-cash items, including $5.0 million of share-based compensation expense and a $4.8 million gain on the sale of the analytical reference standards and services business segment. In addition, the prior year period included the recovery of previously written-off amounts, which did not recur in the current period.
Previous wording
Changes in working capital resulted in a net use of cash during the six months ended June 30, 2026, primarily driven by accounts payable and accrued expenses. Accounts payable decreased, resulting in a $1.4 million use of cash during the current period, compared to a $5.2 million source of cash in the prior year period. Accrued expenses decreased, resulting in a $3.9 million use of cash during the current period, compared to a $0.4 million use of cash in the prior year period. These decreases were partially offset by inventory and trade receivables. Inventory increased, resulting in a $0.2 million use of cash during the current period, compared to a $5.2 million use of cash in the prior year period, reflecting higher inventory purchases in the prior year period associated with our inventory purchase commitments. Trade receivables resulted in a $1.1 million source of cash during the six months ended June 30, 2026, compared to a $0.7 million use of cash in the prior year period.
Current wording
Changes in working capital resulted in a net use of cash during the nine months ended September 30, 2026, primarily driven by accrued expenses and prepaid expenses and other assets. Accrued expenses decreased, resulting in a $3.8 million use of cash during the current period, compared to a $0.9 million source of cash in the prior year period. Prepaid expenses and other assets increased, resulting in a $2.1 million use of cash during the current period, compared to $0.4 million source of cash in the prior year period, reflecting higher prepayments associated with marketing and advertising expenses as well as ongoing research and development projects. These uses of cash were partially offset by sources of cash from trade receivables and accounts payable. Trade receivables resulted in a $2.9 million source of cash during the current period, compared to a $0.5 million source of cash in the prior year period. Accounts payable increased, resulting in a $0.7 million source of cash during the current period, compared to a $4.2 million source of cash in the prior year period.
Previous wording
Cash provided by (used in) investing activities: Investing cash flows consist primarily of proceeds from the sale of a business segment and related transaction costs as well as capital expenditures. Net cash provided by investing activities was $5.2 million for the six months ended June 30, 2026 compared to a net use of cash of approximately $0.2 million for the same period in 2025. The increase of $5.3 million was driven by the sale of the analytical reference standards and services business segment.
Current wording
Cash provided by (used in) investing activities: Investing cash flows consist primarily of proceeds from the sale of a business segment and related transaction costs as well as capital expenditures. Net cash provided by investing activities was $5.1 million for the nine months ended September 30, 2026 compared to a net use of cash of approximately $0.2 million for the same period in 2025. The increase of $5.3 million was driven by the sale of the analytical reference standards and services business segment.
Previous wording
Net cash (used in) provided by financing activities: Financing cash flows consist primarily of exercises of stock options and ESPP purchases through employee equity incentive plans, share repurchases, and settlements of deferred consideration. For the six months ended June 30, 2026, net cash used in financing activities was $4.8 million, compared to net cash provided by financing activities of $6.8 million for the same period in 2025. This decrease of $11.6 million was primarily driven by $5.1 million of common stock repurchases in the current year period and lower proceeds from stock option exercises of approximately $6.5 million compared to the prior year period.
Current wording
Net cash (used in) provided by financing activities: Financing cash flows consist primarily of exercises of stock options and ESPP purchases through employee equity incentive plans, share repurchases, and settlements of deferred consideration. For the nine months ended September 30, 2026, net cash used in financing activities was $4.6 million, compared to net cash provided by financing activities of $7.0 million for the same period in 2025. This decrease of $11.6 million was primarily driven by $5.1 million of common stock repurchases in the current year period and lower proceeds from stock option exercises of approximately $6.5 million compared to the prior year period.