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Natural Alternatives International Inc. (NAII) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a 14% increase in net sales for the six-month period compared to the previous year, driven by a 14% rise in private-label contract manufacturing sales. This was attributed to increased orders from larger customers and new customer acquisitions.
Patent and trademark licensing revenue increased by 9% to $4.3 million for the six months ended December 31, 2024, primarily due to decreased volume rebates.
The company reported a net loss of $2.2 million for the quarter, a decrease from the $3.1 million loss in the same quarter the previous year. The improvement was primarily due to increased net sales and a reduction in other expenses.
Cash used in operating activities was $3.4 million for the six months ended December 31, 2024, compared to cash provided by operating activities of $4.8 million in the prior year period.
As of December 31, 2024, Natural Alternatives International had $8.7 million in cash and cash equivalents, with $8.2 million held by its Swiss subsidiary.
The company had $10.8 million of borrowing capacity available on its credit facility, with $5.0 million in outstanding borrowings.
The filing notes that the company was not in compliance with certain financial covenants under its credit facility as of December 31, 2024, and is negotiating with its lender for a revised credit facility or waiver.
Natural Alternatives International continues to focus on expanding its CarnoSyn® product offerings and developing new sales channels, including the introduction of its new TriBsyn™ product.
The company is monitoring geopolitical tensions and trade tariffs, which may impact its operations and financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Natural Alternatives International Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.