Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 16, 2015 | Dec. 31, 2014 | |
Entity Registrant Name | NATURAL ALTERNATIVES INTERNATIONAL INC | ||
Entity Central Index Key | 787,253 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,713,831 | ||
Entity Public Float | $ 29,300,099 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 18,551,000 | $ 19,512,000 |
Accounts receivable – less allowance for doubtful accounts of $20 at June 30, 2015 and $94 at June 30, 2014 | 9,895,000 | 6,835,000 |
Inventories, net | 12,564,000 | 12,840,000 |
Deferred income taxes | 367,000 | 344,000 |
Income tax receivable | 316,000 | 228,000 |
Prepaids and other current assets | 1,907,000 | 1,144,000 |
Total current assets | 43,600,000 | 40,903,000 |
Property and equipment, net | 7,633,000 | 8,811,000 |
Deferred income taxes | 1,663,000 | 1,593,000 |
Other noncurrent assets, net | 920,000 | 951,000 |
Total assets | 53,816,000 | 52,258,000 |
Current liabilities: | ||
Accounts payable | 4,647,000 | 6,418,000 |
Accrued liabilities | 2,495,000 | 1,565,000 |
Accrued compensation and employee benefits | 1,462,000 | 1,238,000 |
Income taxes payable | 489,000 | 379,000 |
Total current liabilities | 9,093,000 | 9,600,000 |
Long-term pension liability | 439,000 | 183,000 |
Deferred rent | 403,000 | $ 37,000 |
Other noncurrent liabilities, net | 21,000 | |
Total liabilities | $ 9,956,000 | $ 9,820,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock; $.01 par value; 500,000 shares authorized; none issued or outstanding | $ 0 | $ 0 |
Common stock; $.01 par value; 20,000,000 shares authorized at June 30, 2015 and June 30, 2014, issued and outstanding (net of treasury shares) 6,743,093 at June 30, 2015 and 6,997,754 at June 30, 2014 | 75,000 | 74,000 |
Additional paid-in capital | 20,258,000 | 19,865,000 |
Accumulated other comprehensive loss | (766,000) | (469,000) |
Retained earnings | 29,007,000 | 25,661,000 |
Treasury stock, at cost, 875,584 shares at June 30, 2015 and 515,923 at June 30, 2014 | (4,714,000) | (2,693,000) |
Total stockholders’ equity | 43,860,000 | 42,438,000 |
Total liabilities and stockholders’ equity | $ 53,816,000 | $ 52,258,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 20 | $ 94 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 6,743,093 | 6,997,754 |
Common stock, outstanding (in shares) | 6,743,093 | 6,997,754 |
Treasury stock, shares (in shares) | 875,584 | 515,923 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 79,508 | $ 73,942 |
Cost of goods sold | 65,169 | 61,204 |
Gross profit | 14,339 | 12,738 |
Selling, general and administrative expenses | 10,180 | 9,961 |
Income from operations | 4,159 | 2,777 |
Other income (expense): | ||
Interest income | 36 | 34 |
Interest expense | (12) | (11) |
Foreign exchange gain (loss) | 127 | (29) |
Other, net | (3) | (103) |
148 | (109) | |
Income before income taxes | 4,307 | 2,668 |
Provision for income taxes | 961 | 674 |
Net income | 3,346 | 1,994 |
Change in minimum pension liability, net of tax | (141) | (20) |
Unrealized loss resulting from change in fair value of derivative instruments, net of tax | (156) | (19) |
Comprehensive income | $ 3,049 | $ 1,955 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.29 |
Diluted (in dollars per share) | $ 0.49 | $ 0.29 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 6,753,239 | 6,820,466 |
Diluted (in shares) | 6,806,385 | 6,864,216 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Jun. 30, 2013 | 7,408,677 | 494,122 | ||||
Balance at Jun. 30, 2013 | $ 73,000 | $ 19,662,000 | $ 23,667,000 | $ (2,633,000) | $ (430,000) | $ 40,339,000 |
Issuance of common stock for restricted stock grants (in shares) | 105,000 | |||||
Issuance of common stock for restricted stock grants | $ 1,000 | (1,000) | ||||
Compensation expense related to stock compensation plans | 235,000 | 235,000 | ||||
Repurchase of common stock (in shares) | 21,801 | |||||
Repurchase of common stock | $ (60,000) | (60,000) | ||||
Tax effect of stock compensation | (31,000) | (31,000) | ||||
Change in minimum pension liability, net of tax | (20,000) | (20,000) | ||||
Unrealized loss resulting from change in fair value of derivative instruments, net of tax | (19,000) | (19,000) | ||||
Net income | 1,994,000 | 1,994,000 | ||||
Balance (in shares) at Jun. 30, 2014 | 7,513,677 | 515,923 | ||||
Balance at Jun. 30, 2014 | $ 74,000 | 19,865,000 | 25,661,000 | $ (2,693,000) | (469,000) | 42,438,000 |
Issuance of common stock for restricted stock grants (in shares) | 105,000 | |||||
Issuance of common stock for restricted stock grants | $ 1,000 | (1,000) | ||||
Compensation expense related to stock compensation plans | 390,000 | 390,000 | ||||
Repurchase of common stock (in shares) | 359,661 | |||||
Repurchase of common stock | $ (2,021,000) | (2,021,000) | ||||
Tax effect of stock compensation | 4,000 | 4,000 | ||||
Change in minimum pension liability, net of tax | (141,000) | (141,000) | ||||
Unrealized loss resulting from change in fair value of derivative instruments, net of tax | (156,000) | (156,000) | ||||
Net income | 3,346,000 | 3,346,000 | ||||
Balance (in shares) at Jun. 30, 2015 | 7,618,677 | 875,584 | ||||
Balance at Jun. 30, 2015 | $ 75,000 | $ 20,258,000 | $ 29,007,000 | $ (4,714,000) | $ (766,000) | $ 43,860,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 3,346,000 | $ 1,994,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for uncollectible accounts receivable | 7,000 | 38,000 |
Depreciation and amortization | 2,431,000 | 2,905,000 |
Non-cash equipment impairment charge | 417,000 | 0 |
Deferred income taxes | (93,000) | 199,000 |
Non-cash compensation | 390,000 | 235,000 |
Pension expense | 31,000 | 70,000 |
Gain on disposal of assets | (62,000) | (23,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,067,000) | (268,000) |
Inventories | 276,000 | (2,805,000) |
Prepaids and other assets | (875,000) | (329,000) |
Accounts payable and accrued liabilities | (520,000) | 3,112,000 |
Income taxes | 173,000 | (212,000) |
Accrued compensation and employee benefits | 224,000 | 431,000 |
Net cash provided by operating activities | 2,678,000 | 5,347,000 |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,708,000) | (2,679,000) |
Proceeds from sale of property and equipment | 90,000 | 207,000 |
Net cash used in investing activities | $ (1,618,000) | $ (2,472,000) |
Cash flows from financing activities | ||
Issuance of common stock | ||
Repurchase of common stock | $ (2,021,000) | $ (60,000) |
Net cash used in financing activities | (2,021,000) | (60,000) |
Net (decrease) increase in cash and cash equivalents | (961,000) | 2,815,000 |
Cash and cash equivalents at beginning of year | 19,512,000 | 16,697,000 |
Cash and cash equivalents at end of year | 18,551,000 | 19,512,000 |
Supplemental disclosures of cash flow information | ||
Taxes | 888,000 | 718,000 |
Interest | 10,000 | 13,000 |
Disclosure of non-cash activities: | ||
Change in minimum pension liability, net of tax | 141,000 | 20,000 |
Change in unrealized gain resulting from change in fair value of derivative instruments, net of tax | 156,000 | 19,000 |
Fixed assets in accounts payable | $ 14,000 | $ 41,000 |
Note A - Organization and Summa
Note A - Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | A. Organization and Summary of Significant Accounting Policies Organization We provide private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbs, and other nutritional supplements, as well as other health care products, to consumers both within and outside the U.S. We also seek to commercialize our patent and trademark estate related to the ingredient known as beta-alanine through direct raw material sales and various license and similar arrangements. Subsidiaries On January 22, 1999, Natural Alternatives International Europe S.A. (NAIE) was formed as our wholly owned subsidiary, based in Manno, Switzerland. In September 1999, NAIE opened its manufacturing facility and possesses manufacturing capability in encapsulation, powders, tablets, finished goods packaging, quality control laboratory testing, warehousing, distribution and administration. Principles of Consolidation The consolidated financial statements include the accounts of Natural Alternatives International, Inc. (NAI) and our wholly owned subsidiary, NAIE. All intercompany accounts and transactions have been eliminated. The functional currency of NAIE, our foreign subsidiary, is the U.S. Dollar. The financial statements of NAIE have been translated at either current or historical exchange rates, as appropriate, with gains and losses included in the consolidated statements of operations. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. ASU 2014-09 will require the recognition of revenue at the amount an entity expects to be entitled when products are transferred to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. We are currently evaluating the impact this guidance will have on our consolidated financial condition, results of operations, cash flows and disclosures and are currently unable to estimate the impact of adopting this guidance. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost or net realizable value. The new standard is effective for our fiscal years and interim periods beginning after December 15, 2016. We are currently evaluating the impact of adopting ASU 2015-11 on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965) (ASU 2015-12): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. This update reduces complexity in employee benefit plan accounting, which is consistent with the FASB's Simplification initiative. Part I: Fully Benefit-Responsive Investment Contracts. Topics 962 and 965 on employee benefit plan accounting require fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. The amendments in Part I of this update designate contract value as the only required measure for fully benefit-responsive investment contracts, which maintains the relevant information while reducing the cost and complexity of reporting for fully benefit-responsive investment contracts. Part II: Plan Investment Disclosures. As new disclosure requirements have been issued or amended, employee benefit plan financial statements have been affected. Specifically, the interaction between Topic 820, Fair Value Measurement, and Topics 960, 962, and 965 on employee benefit plan accounting sometimes requires aggregation, or organization of similar investment information, in multiple ways. The objective of Part II of this update is to simplify and make more effective the investment disclosure requirements under Topic 820 and under Topics 960, 962, and 965 for employee benefit plans. Part III: Measurement Date Practical Expedient. The objective of Part III of this update is to reduce complexity in employee benefit plan accounting by providing a practical expedient that permits plans to measure investments and investment-related accounts as of a month-end date that is closest to the plan's fiscal year-end, when the fiscal period does not coincide with month-end. This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF–15C—Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), which has been deleted. The amendments are effective for fiscal years beginning after December 15, 2015. Earlier application is permitted. The adoption of this pronouncement is not expected to have a material effect on our financial position or results of operations. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-level hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available under the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs. In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. We classify cash, cash equivalents, and marketable securities balances as Level 1 assets. Fair values determined by Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable or can be corroborated, either directly or indirectly by observable market data. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These include certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. As of June 30, 2015 and June 30, 2014, we did not have any financial assets or liabilities classified as Level 1, except for assets and liabilities related to our pension plan. We classify derivative forward exchange contracts as Level 2 assets. The fair value of our forward exchange contracts as of June 30, 2015 was a net asset of $474,000 and the value as of June 30, 2014 was a net liability of $24,000. The fair values were determined based on obtaining pricing from our bank and corroborating those values with a third party bank. As of June 30, 2015 and June 30, 2014, we did not have any financial assets or liabilities classified as Level 3. We did not transfer any assets or liabilities between any levels during fiscal 2015. Accounts Receivable We perform ongoing credit evaluations of our customers and adjust credit limits based on payment history and customer credit-worthiness. An allowance for estimated doubtful accounts is maintained based on historical experience and identified customer credit issues. We monitor collections regularly and adjust the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Upon conclusion that a receivable is uncollectible, we record the respective amount as a charge against allowance for doubtful accounts. To date, such doubtful accounts reserves, in the aggregate, have been adequate to cover collection losses. Inventories We operate primarily as a private-label contract manufacturer that builds products based upon anticipated demand or following receipt of customer specific purchase orders. From time to time, we build inventory for private-label contract manufacturing customers under a specific purchase order with delivery dates that may subsequently be rescheduled or canceled at the customer’s request. We value inventory at the lower of cost (first-in, first-out) or market (net realizable value) on an item-by-item basis, including costs for raw materials, labor and manufacturing overhead. We establish reserves equal to all or a portion of the related inventory to reflect situations in which the cost of the inventory is not expected to be recovered. This requires us to make estimates regarding the market value of our inventory, including an assessment for excess and obsolete inventory. Once we establish an inventory reserve in a fiscal period, the reduced inventory value is maintained until the inventory is sold or otherwise disposed of. In evaluating whether inventory is stated at the lower of cost or market, management considers such factors as the amount of inventory on hand, the estimated time required to sell such inventory, the remaining shelf life and efficacy, the foreseeable demand within a specified time horizon and current and expected market conditions. Based on this evaluation, we record adjustments to cost of goods sold to adjust inventory to its net realizable value. Property and Equipment We state property and equipment at cost. Depreciation of property and equipment is provided using the straight-line method over their estimated useful lives, generally ranging from 1 to 39 years. We amortize leasehold improvements using the straight-line method over the shorter of the life of the improvement or the term of the lease. Maintenance and repairs are expensed as incurred. Significant expenditures that increase economic useful lives are capitalized. Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During fiscal 2015, we recorded an impairment loss of $417,000 related to manufacturing equipment and related tooling that was determined to be obsolete. We did not recognize any impairment losses during fiscal 2014. Derivative Financial Instruments We currently may use derivative financial instruments in the management of our foreign currency exchange risk inherent in our forecasted transactions denominated in Euros. We may hedge our foreign currency exposures by entering into offsetting forward exchange contracts and currency options. To the extent we use derivative financial instruments, we account for them using the deferral method, when such instruments are intended to hedge identifiable, firm foreign currency commitments or anticipated transactions and are designated as, and effective as, hedges. Foreign exchange exposures arising from certain transactions that do not meet the criteria for the deferral method are marked-to-market through the Consolidated Statements of Operations and Comprehensive Income. We recognize any unrealized gains and losses associated with derivative instruments in income in the period in which the underlying hedged transaction is realized. In the event the derivative instrument is deemed ineffective we would recognize the resulting gain or loss in income at that time. As of June 30, 2015, we held derivative contracts designated as cash flow hedges primarily to protect against the foreign exchange risks inherent in our forecasted sales of products at prices denominated in currencies other than the U.S. Dollar. As of June 30, 2015, the notional amounts of our foreign exchange contracts were $27.1 million (EUR 23.8 million). These contracts will mature over the next 14 months. Defined Benefit Pension Plan We sponsor a defined benefit pension plan. Effective June 21, 1999, we adopted an amendment to freeze benefit accruals to the participants. The plan obligation and related assets of the plan are presented in the notes to the consolidated financial statements. Plan assets, which consist primarily of marketable equity and debt instruments, are valued based upon third party market quotations. Independent actuaries, through the use of a number of assumptions, determine plan obligation and annual pension expense. Key assumptions in measuring the plan obligation include the discount rate and estimated future return on plan assets. In determining the discount rate, we use an average long-term bond yield. Asset returns are based on the historical returns of multiple asset classes to develop a risk free rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk free rate of return and the associated risk premium. A weighted average rate is developed based on the overall rates and the plan’s asset allocation. Revenue Recognition To recognize revenue, four basic criteria must be met: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (a) the seller’s price to the buyer is substantially fixed or determinable at the date of sale; (b) the buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product; (c) the buyer’s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product; (d) the buyer acquiring the product for resale has economic substance apart from that provided by the seller; (e) the seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer; and (f) the amount of future returns can be reasonably estimated. We recognize revenue upon determination that all criteria for revenue recognition have been met. The criteria are usually met at the time title passes to the customer, which usually occurs upon shipment. Revenue from shipments where title passes upon delivery is deferred until the shipment has been delivered. We record reductions to gross revenue for estimated returns of private label contract manufacturing products and branded products. The estimated returns are based on the trailing six months of private label contract manufacturing gross sales and our historical experience for both private label contract manufacturing and branded product returns. However, the estimate for product returns does not reflect the impact of a potential large product recall resulting from product nonconformance or other factors as such events are not predictable nor is the related economic impact estimable. We followed the provisions of ASU No. 2009-13 for all multiple element agreements. Under this guidance, the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in our control. A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that a deliverable has standalone value from the undelivered items, the deliverable is identified as a separate unit of accounting and the amounts allocated to the deliverable are recognized upon the delivery of the deliverable, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the deliverable through the relative selling price allocation exceed the upfront fee, the amount recognized upon the delivery of the deliverable is limited to the upfront fee received. If facts and circumstances dictate that the deliverable does not have standalone value, the transaction price, including any upfront fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered and accepted. In addition, we enter into arrangements that provide for milestone payments upon contractually stated events. Under the milestone method, we recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either our performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from our performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the entity. We currently own certain U.S. patents, and each patent’s corresponding foreign patent applications. All of these patents and patent rights relate to the ingredient known as beta-alanine marketed and sold under the CarnoSyn® trade name. S ince March 2009, we have had an agreement with Compound Solutions, Inc. (CSI) to grant a license to manufacture, offer for sale and/or sell products incorporating, using or made in accordance with our patent rights to customers of CSI who purchase beta-alanine under the CarnoSyn® trade name from CSI. The most recent agreement additionally granted such a license to CSI. We received a fee from CSI that varied based on the quantity and source of beta-alanine sold by CSI. Our most recent agreement with CSI expired on March 31, 2015. We elected not to renew our agreement with CSI and, effective April 1, 2015, we began directly selling beta-alanine, and licensing the related patent and trademark rights, in order to take advantage of strategic opportunities, including opportunities to provide additional contract manufacturing services, and to increase our top-line revenue and profit profile. In June 2011, we entered into a license and supply agreement (Agreement) with Abbott Laboratories (Abbott) under which we agreed to grant an exclusive license to Abbott for the use of beta-alanine in certain medical foods and medical nutritionals. Under the terms of the agreement, Abbott paid an initial license fee of $300,000, an additional fee of $300,000 in January 2012, and upon achievement of certain milestones, an additional license fee of $150,000 was paid on October 3, 2012. The license and supply agreement provided Abbott with the right to terminate the agreement at any time up to March 31, 2012, at which time, if not terminated, Abbott was required to pay $4.3 million payable over six annual payments with the initial installment payment of $708,334 due March 31, 2012. We have determined that each of the milestone payments meets the definition of a milestone in accordance with the milestone method of revenue recognition. In February 2012 and June 2012, we amended the Agreement and extended Abbott’s termination rights initially through July 31, 2012 and then further through October 31, 2012 in exchange for two payments of $354,167 each by Abbott to NAI. Abbott made the first payment on March 13, 2012 and the second payment on July 12, 2012. In October 2012, the Agreement was amended for a third time. Unless earlier terminated by Abbott, the amendment requires Abbott to pay to NAI (i) upon earlier of achievement of certain milestones or December 1, 2012, additional license fees of $204,167; (ii) upon earlier of achievement of certain milestones or June 1, 2013, additional license fees of $204,167; (iii) upon earlier of achievement of certain milestones or July 1, 2013, additional license fees of $150,000; (iv) upon earlier of achievement of certain milestones or December 1, 2013, additional license fees of $150,000; and (v) approximately $2.8 million payable over four annual payments beginning on March 31, 2014. The payment noted in (i) was collected in December 2012, the payment noted in (ii) was collected in May 2013, the payment noted in (iii) was collected in July 2013 and the payment noted in (iv) was collected in January 2014. Effective November 27, 2013, citing further time and cost required to bring its anticipated product to market, Abbott exercised its right to terminate the Agreement. We recorded beta-alanine raw material sales and royalty and licensing income as a component of revenue in the amount of $9.1 million during fiscal 2015 and $5.4 million during fiscal 2014. These royalty income and raw material sale amounts resulted in royalty expense paid to the original patent holders from whom NAI acquired its patents and patent rights. We recognized royalty expense as a component of cost of goods sold in the amount of $806,000 during fiscal 2015 and $722,000 during fiscal 2014. Cost of Goods Sold Cost of goods sold includes raw material, labor, manufacturing overhead, and royalty expense. Shipping and Handling Costs We include fees earned on the shipment of our products to customers in sales and include costs incurred on the shipment of product to customers in costs of goods sold. Research and Development Costs As part of the services we provide to our private-label contract manufacturing customers, we may perform, but are not obligated to perform, certain research and development activities related to the development or improvement of their products. While our customers typically do not pay directly for this service, the cost of this service is included as a component of the price we charge to manufacture and deliver their products. We also direct and participate in clinical research studies, often in collaboration with scientists and research institutions, to validate the benefits of a product and provide scientific support for product claims and marketing initiatives. We believe our commitment to research and development, as well as our facilities and strategic alliances with our suppliers and customers, allow us to effectively identify, develop and market high-quality and innovative products. Research and development costs are expensed when incurred. Our research and development expenses for the last two fiscal years ended June 30 were $1.1 million for 2015 and $1.0 million for 2014. These costs were included in selling, general and administrative expenses and cost of goods sold. Advertising Costs We expense the production costs of advertising the first time the advertising takes place. We incurred and expensed advertising costs in the amount of $69,000 during the fiscal year ended June 30, 2015 and $131,000 during fiscal 2014. These costs were included in selling, general and administrative expenses. Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates, for each of the jurisdictions in which we operate, expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. We account for uncertain tax positions using the more-likely-than-not recognition threshold. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2015 and June 30, 2014, we had not recorded any tax liabilities for uncertain tax positions. We record valuation allowances to reduce our deferred tax assets to an amount that we believe is more likely than not to be realized. We consider estimated future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If we determine that it is more likely than not that we will not realize all or part of our deferred tax assets in the future, we will record an adjustment to the carrying value of the deferred tax asset, which would be reflected as income tax expense. Conversely, if we determine we will realize a deferred tax asset, which currently has a valuation allowance, we will reverse the valuation allowance, which would be reflected as an income tax benefit. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. During fiscal 2014, as a result of changes in California apportionment rules and the state nexus study which was completed during the 3 rd We are subject to taxation in the U.S., Switzerland and various state jurisdictions. Our tax years for the fiscal year ended June 30, 2009 and forward are subject to examination by the U.S. tax authorities and our years for the fiscal year ended June 30, 2007 and forward are subject to examination by the state tax authorities. Our tax years for the fiscal year ended June 30, 2013 and forward are subject to examination by the Switzerland tax authorities. We do not record U.S. income tax expense for NAIE’s retained earnings that are declared as indefinitely reinvested offshore, thus reducing our overall income tax expense. The amount of earnings designated as indefinitely reinvested in NAIE is based on the actual deployment of such earnings in NAIE’s assets and our expectations of the future cash needs of our U.S. and foreign entities. Income tax laws are also a factor in determining the amount of foreign earnings to be indefinitely reinvested offshore. Stock-Based Compensation We have an omnibus incentive plan that was approved by our Board of Directors effective as of October 15, 2009 and approved by our stockholders at the Annual Meeting of Stockholders held on November 30, 2009. Under the plan, we may grant nonqualified and incentive stock options and other stock-based awards to employees, non-employee directors and consultants. Our prior equity incentive plan was terminated effective as of November 30, 2009. We estimate the fair value of stock option awards at the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Option valuation models require the input of highly subjective assumptions. Black-Scholes uses assumptions related to volatility, the risk-free interest rate, the dividend yield (which we assume to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities used in the model are based on the historical volatility of our stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect in the period of grant. The expected life of stock option grants is derived from historical experience. The fair value of restricted stock shares granted is based on the market price of our common stock on the date of grant. We amortize the estimated fair value of our stock awards to expense over the related vesting periods. The Company did not grant any options during fiscal 2015 or 2014. We did not have any options exercised during fiscal 2015 or fiscal 2014. All remaining outstanding stock options are fully vested and all related compensation cost was fully recognized at June 30, 2014. No options vested during the fiscal year ended June 30, 2015. The total fair value of options vested during the fiscal year ended June 30, 2014 was $121,000. During fiscal 2013 we granted a total of 98,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. These restricted shares partially vested, and the remainder will continue to vest over three years and the unvested portion of these shares cannot be sold or otherwise transferred and the rights to receive dividends, if declared by our Board of Directors, are forfeitable until the shares become vested. During the three months ended September 30, 2013, 10,000 of these shares were forfeited due to the termination of employment of one of the grantees. On March 7, 2014 we granted 105,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. On March 19, 2015 we granted an additional 105,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. These restric |
Note B - Inventories
Note B - Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventories Inventories, net, consisted of the following at June 30 (in thousands): 2015 2014 Raw materials $ 9,744 $ 9,764 Work in progress 1,552 2,176 Finished goods 1,603 1,621 Reserve (335 ) (721 ) $ 12,564 $ 12,840 |
Note C - Property and Equipment
Note C - Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | C. Property and Equipment Property and equipment consisted of the following at June 30 (dollars in thousands): Depreciable Life 2015 2014 Land NA $ 393 $ 393 Building and building improvements 7 – 39 2,793 2,793 Machinery and equipment 3 – 12 26,444 26,772 Office equipment and furniture 3 – 5 3,168 3,189 Vehicles 3 209 209 Leasehold improvements 1 – 15 11,244 10,949 Total property and equipment 44,251 44,305 Less: accumulated depreciation and amortization (36,618 ) (35,494 ) Property and equipment, net $ 7,633 $ 8,811 |
Note D - Other Comprehensive Lo
Note D - Other Comprehensive Loss | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | D. Other comprehensive loss Other comprehensive (loss) income consisted of the following at June 30 (dollars in thousands): Year Ended June 30, 2015 Defined Benefit Pension Plan Unrealized Losses on Cash Flow Hedges Total Balance as of June 30, 2014 $ (502 ) $ 33 $ (469 ) Other comprehensive loss before reclassifications (176 ) 2,228 2,052 Amounts reclassified from OCI (49 ) (2,461 ) (2,510 ) Tax effect of OCI activity 84 77 161 Other comprehensive loss (141 ) (156 ) (297 ) Balance as of June 30, 2015 $ (643 ) $ (123 ) $ (766 ) Year Ended June 30, 2014 Defined Benefit Pension Plan Unrealized Losses on Cash Flow Hedges Total Balance as of June 30, 2013 $ (482 ) $ 52 $ (430 ) Other comprehensive loss before reclassifications 31 (488 ) (457 ) Amounts reclassified from OCI (10 ) 454 444 Tax effect of OCI activity (41 ) 15 (26 ) Other comprehensive loss (20 ) (19 ) (39 ) Balance as of June 30, 2014 $ (502 ) $ 33 $ (469 ) |
Note E - Debt
Note E - Debt | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | E. Debt On December 22, 2014, we executed a new Credit Agreement with Wells Fargo Bank, N.A. The Credit Agreement replaces the previous credit facility between NAI and the lender. The Credit Agreement is on substantially similar terms as the previous credit facility. The Credit Agreement provides NAI with a line of credit of up to $5,000,000. The line of credit may be used to finance working capital requirements. In consideration for granting the line of credit, NAI paid the lender a commitment fee of $10,000. There are no amounts currently drawn under the line of credit. Under the terms of the Credit Agreement, borrowings are subject to eligibility requirements including maintaining (i) net income after taxes of not less than $750,000 on a trailing four quarter basis as of the end of each calendar quarter beginning with the four quarter period ending December 31, 2014; and (ii) a ratio of total liabilities to tangible net worth of not greater than 1.25 to 1.0 at any time. Any amounts outstanding under the line of credit will bear interest at a fixed or fluctuating interest rate as elected by NAI from time to time; provided, however, that if the outstanding principal amount is less than $100,000 such amount shall bear interest at the then applicable fluctuating rate of interest. If elected, the fluctuating rate per annum would be equal to 1.75% above the daily one month LIBOR rate as in effect from time to time. If a fixed rate is elected, it would equal a per annum rate of 1.75% above the LIBOR rate in effect on the first day of the applicable fixed rate term. Any amounts outstanding under the line of credit must be paid in full on or before November 1, 2016; provided, however, that NAI must maintain a zero balance on advances under the line of credit for a period of at least 30 consecutive days during each fiscal year. Amounts outstanding that are subject to a fluctuating interest rate may be prepaid at any time without penalty. Amounts outstanding that are subject to a fixed interest rate may be prepaid at any time in minimum amounts of $100,000, subject to a prepayment fee equal to the sum of the discounted monthly differences for each month from the month of prepayment through the month in which the then applicable fixed rate term matures. Our obligations under the Credit Agreement are secured by our accounts receivable and other rights to payment, general intangibles, inventory, equipment and fixtures. We also have a foreign exchange facility with Wells Fargo Bank, N.A. in effect until November 1, 2016, and with Bank of America, N.A. in effect until August 15, 2016. On June 30, 2015, we were in compliance with all of the financial and other covenants required under the Credit Agreement. On September 22, 2006, NAIE, our wholly owned subsidiary, entered into a credit facility with Credit Suisse to provide NAIE with a credit line of up to CHF 1.3 million, or approximately $1.4 million, which was the initial maximum aggregate amount that could be outstanding at any one time under the credit facility. This maximum amount is reduced annually by CHF 160,000, or approximately $171,000. On February 19, 2007, NAIE amended its credit facility to provide that the maximum aggregate amount that may be outstanding under the facility cannot be reduced below CHF 500,000, or approximately $535,000. As of June 30, 2015, there was no outstanding balance under this credit facility. Under its credit facility, NAIE may draw amounts either as current account loan credits to its current or future bank accounts or as fixed loans with a maximum term of 24 months. Current account loans will bear interest at the rate of 5% per annum. Fixed loans will bear interest at a rate determined by the parties based on current market conditions and must be repaid pursuant to a repayment schedule established by the parties at the time of the loan. If a fixed loan is repaid early at NAIE’s election or in connection with the termination of the credit facility, NAIE will be charged a pre-payment penalty equal to 0.1% of the principal amount of the fixed loan or CHF 1,000 (approximately $1,070), whichever is greater. The bank reserves the right to refuse individual requests for an advance under the credit facility, although its exercise of such right will not have the effect of terminating the credit facility as a whole. We did not use our working capital line of credit nor did we have any long-term debt outstanding during the year ended June 30, 2015. As of June 30, 2015, we had $5.5 million available under our credit facilities. |
Note F - Income Taxes
Note F - Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | F. Income Taxes During fiscal 2014 we recognized certain discrete items as part of our income tax calculations. These discrete items included (1) an expense to adjust the state deferred tax assets as a result of a change in the estimated state tax rate, (2) an expense to establish a valuation allowance on a portion of the deferred tax asset for the California net operating loss, (3) a net benefit of state taxes as a result of adjusting California apportionment and filing in other states for prior years, and (4) a true-up of the R&D credit claimed on the federal income tax return filed in fiscal 2014. We did not have any such discrete items in fiscal 2015. In addition, during fiscal 2014, as a result of changes in California apportionment rules and the state nexus study which was completed during the year, we determined that $193,000 of the deferred tax asset for California net operating losses was not more likely than not to be realized. As a result, we have established a valuation allowance on our net deferred tax assets for this amount. We did not make any adjustment to our deferred tax asset valuation in fiscal 2015. The provision for income taxes for the years ended June 30 consisted of the following (in thousands): 2015 2014 Current: Federal $ 396 $ 559 State 41 (370 ) Foreign 450 343 887 532 Deferred: Federal 125 (264 ) State (51 ) 213 Valuation allowance — 193 74 142 Provision for income taxes $ 961 $ 674 Net deferred tax assets and deferred tax liabilities as of June 30 were as follows (in thousands): 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 3 $ 28 Accrued vacation expense 106 101 Tax credit carry forward 88 51 Allowance for inventories 74 234 Stock-based compensation 130 157 Pension liability 322 238 Other, net 210 106 Deferred rent 143 13 Accumulated depreciation and amortization 897 911 Net operating loss carry forward 439 458 Total gross deferred tax assets 2,412 2,297 Deferred tax liabilities: Prepaid expenses (189 ) (157 ) Other — (10 ) Deferred tax liabilities (189 ) (167 ) Valuation allowance (193 ) (193 ) Net deferred tax assets $ 2,030 $ 1,937 At June 30, 2015, we had state tax net operating loss carry forwards of approximately $7.5 million. Under California tax law, net operating loss deductions were suspended for tax years beginning in 2008, 2009, 2010 and 2011 and the carry forward periods of any net operating losses not utilized due to such suspension were extended. Our state tax loss carry forwards will begin to expire in fiscal 2022, unless used before their expiration. Pursuant to Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), the annual use of the net operating loss carry forwards and research and development tax credits could be limited by any greater than 50% ownership change during any three-year testing period. We did not have any ownership changes that met this criterion during the fiscal years ended June 30, 2015 and June 30, 2014. NAIE’s effective tax rate for Swiss federal, cantonal and communal taxes is approximately 17.0%. NAIE had net income of $2.2 million for the fiscal year ended June 30, 2015. Undistributed earnings of NAIE amounted to approximately $15.1 million at June 30, 2015. These earnings are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal taxes has been provided thereon. A reconciliation of income tax provision computed by applying the statutory federal income tax rate of 34% to net income before income taxes for the year ended June 30 is as follows (dollars in thousands): 2015 2014 Income taxes computed at statutory federal income tax rate $ 1,463 $ 913 State income taxes, net of federal income tax expense 7 (35 ) Expenses not deductible for tax purposes 13 19 Foreign tax rate differential (451 ) (297 ) Return to provision – differences — (41 ) Adjust state deferred due to change in apportionment (25 ) 195 State tax planning – net savings — (239 ) Change in valuation allowance — 193 Other, net (46 ) (34 ) Income tax provision as reported $ 961 $ 674 Effective tax rate 22.3 % 25.1 % |
Note G - Employee Benefit Plans
Note G - Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | G. Employee Benefit Plans We have a profit sharing plan pursuant to Section 401(k) of the Code, whereby participants may contribute a percentage of compensation not in excess of the maximum allowed under the Code. All employees with six months of continuous employment are eligible to participate in the plan. Effective January 1, 2004, the plan was amended to require that we match 100% of the first 3% and 50% of the next 2% of a participant’s compensation contributed to the plan. Effective January 1, 2009, we elected to temporarily discontinue the company match program. The match program was reinstated effective July 15, 2011. The total contributions under the plan charged to income from operations totaled $225,000 for fiscal 2015 and $184,000 for fiscal 2014. We have a “Cafeteria Plan” pursuant to Section 125 of the Code, whereby health care benefits are provided for active employees through insurance companies. Substantially all active full-time employees are eligible for these benefits. We recognize the cost of providing these benefits by expensing the annual premiums, which are based on benefits paid during the year. The premiums expensed to operating income for these benefits totaled $1.1 million for the fiscal year ended June 30, 2015 and $956,000 for fiscal 2014. We sponsor a defined benefit pension plan, which provides retirement benefits to employees based generally on years of service and compensation during the last five years before retirement. Effective June 21, 1999, we adopted an amendment to freeze benefit accruals to the participants. We contribute an amount not less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 nor more than the maximum tax-deductible amount. Disclosure of Funded Status The following table sets forth the defined benefit pension plan’s funded status and amount recognized in our consolidated balance sheets at June 30 (in thousands): 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of year $ 1,901 $ 1,796 Interest cost 80 80 Actuarial loss 144 165 Benefits paid (45 ) (140 ) Benefit obligation at end of year $ 2,080 $ 1,901 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,719 $ 1,662 Actual return on plan assets (5 ) 226 Benefits paid (45 ) (140 ) Plan expenses (27 ) (29 ) Fair value of plan assets at end of year $ 1,642 $ 1,719 Reconciliation of Funded Status: Difference between benefit obligation and fair value of plan assets $ (438 ) $ (182 ) Unrecognized net actuarial loss in accumulated other comprehensive income 904 679 Net amount recognized $ 466 $ 497 Projected benefit obligation $ 2,080 $ 1,901 Accumulated benefit obligation $ 2,080 $ 1,901 Fair value of plan assets $ 1,642 $ 1,719 The weighted-average discount rate used for determining the projected benefit obligations for the defined benefit pension plan was 4.4% during the year ended June 30, 2015 and 4.3% for the year ended June 30, 2014. Net Periodic Benefit Cost The components included in the defined benefit pension plan’s net periodic benefit expense for the fiscal years ended June 30 were as follows (in thousands): 2015 2014 Interest cost $ 80 $ 80 Expected return on plan assets (115 ) (105 ) Recognized actuarial loss 46 46 Settlement loss 20 49 Net periodic benefit expense $ 31 $ 70 We did not make any contributions to our defined benefit pension plan in fiscal 2015 and do not expect to make any contributions in fiscal 2016. The following is a summary of changes in plan assets and benefit obligations recognized in other comprehensive income (in thousands): 2015 2014 Net loss $ 265 $ 45 Settlement loss (20 ) (50 ) Amortization of net loss (47 ) (46 ) Plan expenses 27 29 Total recognized in other comprehensive income (loss) $ 225 $ (22 ) Total recognized in net periodic benefit cost and other comprehensive income $ 256 $ 48 The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $46,000. We do not have any transition obligations or prior service costs recorded in accumulated other comprehensive income. The following benefit payments are expected to be paid (in thousands): 2016 $ 22 2017 53 2018 74 2019 113 2020 124 2021-2025 673 $ 1,059 The weighted-average rates used for the years ended June 30 in determining the defined benefit pension plan’s net pension costs, were as follows: 2015 2014 Discount rate 4.33 % 4.80 % Expected long-term rate of return 7.00 % 7.00 % Compensation increase rate N/A N/A Our expected rate of return is determined based on a methodology that considers historical returns of multiple classes analyzed to develop a risk free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocation of the plan. Our defined benefit pension plan’s weighted average asset allocation at June 30 and weighted average target allocation were as follows: 2015 2014 Target Equity securities 53 % 49 % 49 % Debt securities 45 % 45 % 46 % Commodities — — 2 % Cash and money market funds 2 % 6 % 3 % 100 % 100 % 100 % The underlying basis of the investment strategy of our defined benefit pension plan is to ensure that pension funds are available to meet the plan’s benefit obligations when due. Our investment strategy is a long-term risk controlled approach using diversified investment options with relatively minimal exposure to volatile investment options like derivatives. The fair values by asset category of our defined benefit pension plan at June 30, 2015 were as follows (in thousands): Total Quoted Prices in Significant Significant Cash and money market funds $ 37 $ 37 $ — $ — Equity securities (1) $ 872 $ 872 $ — $ — Debt securities (2) $ 733 $ 733 $ — $ — Total $ 1,642 $ 1,642 $ — $ — (1) This category is comprised of publicly traded funds, of which 76% are large-cap funds, 13% are emerging markets equity funds, and 11% are international equity funds. (2) This category is comprised of publicly traded funds, of which 32% are short-term fixed income funds, 14% are high-yield fixed income funds, 38% are intermediate fixed income funds, 12% are REITs and MLPs funds, and 4% are international/emerging markets funds. |
Note H - Stockholders' Equity
Note H - Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | H. Stockholders’ Equity Treasury Stock On June 2, 2011, the Board of Directors authorized the repurchase of up to $2.0 million of our common stock. On February 6, 2015, the Board of Directors authorized a $1.0 million increase to our stock repurchase plan bringing the total authorized repurchase amount to $3.0 million. On May 11, 2015, the Board of Directors authorized a $2.0 million increase to our stock repurchase plan bringing the total authorized repurchase amount to $5.0 million. Under the repurchase plan, we may, from time to time, purchase shares of our common stock, depending upon market conditions, in open market or privately negotiated transactions. For the year ended June 30, 2014, we purchased 5,100 shares at a weighted average cost of $4.55 per share and a total cost of $23,000, including commissions and fees. During the twelve months ended June 30, 2015, we purchased 342,121 shares at a weighted average cost of $5.63 per share and a total cost of $1.9 million including commissions and fees. During fiscal 2015 we acquired 17,540 shares from employees in connection with restricted stock shares that vested during the year and during fiscal 2014 we acquired 6,701 shares in connection with restricted stock shares that vested during that year. These shares were returned to the Company by the related employees and in return the Company paid each employee’s required tax withholding. The valuation of the shares acquired and thereby the amount of shares returned to the Company was calculated based on the closing share price on the date the shares vested. Stock Option Plans On December 6, 1999, our stockholders approved the adoption of the 1999 Omnibus Equity Incentive Plan (the “1999 Plan”). The 1999 Plan was terminated effective as of November 30, 2009. Effective as of October 15, 2009, our Board of Directors approved an omnibus incentive plan (the “2009 Plan”). The 2009 Plan was approved by our stockholders at the Annual Meeting of Stockholders held on November 30, 2009. Under the plan, we may grant nonqualified and incentive stock options and other stock-based awards to employees, non-employee directors and consultants. As of June 30, 2015, a total of 1.0 million shares of common stock were reserved under the 2009 Plan for issuance to our employees, non-employee directors and consultants. Stock option activity for the year ended June 30, 2015 was as follows: 1999 Weighted Weighted Aggregate Intrinsic Outstanding at June 30, 2014 10,000 $ 10.19 Exercised — — Forfeited (10,000 ) $ 10.19 Granted — $ — Outstanding at June 30, 2015 — $ — — $ — Vested and exercisable at June 30, 2015 — $ — — $ — Available for grant at June 30, 2015 — 2009 Weighted Weighted Aggregate Intrinsic Outstanding at June 30, 2014 190,019 $ 6.76 Exercised — $ — Forfeited (5,019 ) $ 7.50 Granted — $ — Outstanding at June 30, 2015 185,000 $ 6.74 4.41 $ 86,000 Vested and exercisable at June 30, 2015 185,000 $ 6.74 4.41 $ 86,000 Restricted stock activity for the year ended June 30, 2015 was as follows (2009 Plan): Number of Shares Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 163,280 $ 5.28 Granted 105,000 $ 5.51 Vested (64,146 ) $ 5.20 Forfeited — $ — Nonvested at June 30, 2015 204,134 $ 5.42 As of June 30, 2015, there were 541,241 shares available for grant under the 2009 Plan. |
Note I - Commitments
Note I - Commitments | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | I. Commitments We lease a total of 162,000 square feet at our manufacturing facility in Vista, California from an unaffiliated third party under a non-cancelable operating lease. On July 31, 2013, we executed a third amendment to the lease for our manufacturing facility in Vista, CA. As a result of this amendment, our facility lease has been extended for an additional 10 year term through March 2024. NAIE leases facility space in Manno, Switzerland. The leased space totals approximately 87,763 square feet. We primarily use the facilities for manufacturing, packaging, warehousing and distributing nutritional supplement products for the European marketplace. Effective July 1, 2014, NAIE entered into a new lease with its current landlord. The new lease replaced, extended, and enlarged an existing lease between the same parties for the same building in Manno Switzerland. NAIE intends to improve portions of the additional space acquired by the new lease, and will continue to use the entire leased premises for offices, laboratory, warehouse and production. The new lease has a term of five years with a right for NAIE to extend the lease for an additional five years. The initial five year term expires on June 30, 2019. Minimum rental commitments (exclusive of property tax, insurance and maintenance) under all non-cancelable operating leases with initial or remaining lease terms in excess of one year, including the lease agreements referred to above, are set forth below as of June 30, 2015 (in thousands): 2016 2017 2018 2019 2020 There- Total Gross minimum rental commitments $ 2,859 $ 2,783 $ 2,815 $ 2,848 $ 1,394 $ 5,543 $ 18,242 Rental expense totaled $3.0 million for the fiscal year ended June 30, 2015 and $2.3 million for fiscal 2014. |
Note J - Economic Dependency
Note J - Economic Dependency | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | J. Economic Dependency We had substantial net sales to certain customers during the fiscal years ended June 30 shown in the following table. The loss of any of these customers, or a significant decline in sales or the growth rate of sales to these customers, or in their ability to make payments when due, could have a material adverse impact on our net sales and net income. Net sales to any one customer representing 10% or more of the respective year’s total private-label contract manufacturing net sales were as follows (dollars in thousands): 2015 2014 Net Sales by % of Total Net Sales by % of Total Customer 1 $ 29,724 43 % $ 25,252 38 % Customer 2 11,018 16 % 11,256 17 % Customer 3 8,090 12 % (a ) (a ) Customer 3 (a ) (a ) 10,960 16 % $ 48,832 71 % $ 47,468 71 % (a) Sales were less than 10% of the respective period’s total private label contract manufacturing net sales Accounts receivable from these customers totaled $4.6 million at June 30, 2015 and $3.1 million at June 30, 2014. We buy certain products, including beta-alanine, from a limited number of raw material suppliers. The loss of any of these suppliers could have a material adverse impact on our net sales and net income. During fiscal 2015 and 2014, we did not have any suppliers that individually represented greater than 10% of our raw material purchases. |
Note K - Derivatives and Hedgin
Note K - Derivatives and Hedging | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | K. Derivatives and Hedging We are exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to forecasted product sales denominated in foreign currencies and transactions of NAIE, our foreign subsidiary. As part of our overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, we may use foreign exchange contracts in the form of forward contracts. There can be no guarantee any such contracts, to the extent we enter into such contracts, will be effective hedges against our foreign currency exchange risk. During the year ended June 30, 2015 and prior, we entered into forward contracts designated as cash flow hedges primarily to protect against the foreign exchange risks inherent in our forecasted sales of products at prices denominated in currencies other than the U.S. dollar. These contracts are expected to be settled through August 2016. For derivative instruments that are designated and qualify as cash flow hedges, we record the effective portion of the gain or loss on the derivative in accumulated other comprehensive income (OCI) as a separate component of stockholders’ equity and subsequently reclassify these amounts into earnings in the period during which the hedged transaction is recognized in earnings. For foreign currency contracts designated as cash flow hedges, hedge effectiveness is measured using the spot rate. Changes in the spot-forward differential are excluded from the test of hedge effectiveness and are recorded currently in earnings as interest expense. We measure effectiveness by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item. During the year ended June 30, 2015, we did not have any losses or gains related to the ineffective portion of our hedging instruments. No hedging relationships were terminated as a result of ineffective hedging or forecasted transactions no longer probable of occurring for foreign currency forward contracts. We monitor the probability of forecasted transactions as part of the hedge effectiveness testing on a quarterly basis. As of June 30, 2015, the notional amounts of our foreign exchange contracts were $27.1 million (EUR 23.7 million). As of June 30, 2015, a net loss of approximately $191,000, offset by $68,000 of deferred taxes, related to derivative instruments designated as cash flow hedges was recorded in OCI. As of June 30, 2014, a net gain of approximately $28,000, offset by $10,000 of deferred taxes, related to derivative instruments designated as cash flow hedges was recorded in OCI. It is expected that $168,000 of the gross loss, as of June 30, 2015, will be reclassified into earnings in the next 12 months along with the earnings effects of the related forecasted transactions. As of June 30, 2015, $528,000 of the fair value of our cash flow hedges was classified in prepaids and other current assets, $45,000 was classified in accrued liabilities, and $9,000 was classified in other noncurrent liabilities, net in our Consolidated Balance Sheets. During the year ended June 30, 2015, we recognized $2.2 million of gains in OCI and reclassified $2.4 million of gains from OCI to revenue. During the year ended June 30, 2014, we recognized $508,000 of losses in OCI and reclassified $474,000 of losses from OCI to revenue. |
Note L - Contingencies
Note L - Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | L. Contingencies From time to time, we become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. These matters may relate to product liability, employment, intellectual property, tax, regulation, contract or other matters. The resolution of these matters as they arise will be subject to various uncertainties and, even if such claims are without merit, could result in the expenditure of significant financial and managerial resources. While unfavorable outcomes are possible, based on available information, we generally do not believe the resolution of these matters will result in a material adverse effect on our business, consolidated financial condition, or results of operation. However, a settlement payment or unfavorable outcome could adversely impact our results of operation. Our evaluation of the likely impact of these actions could change in the future and we could have unfavorable outcomes that we do not expect. On December 21, 2011, NAI filed a lawsuit in the U.S. District Court for the Southern District of Texas, Houston Division, alleging infringement by Woodbolt Distribution, LLC, also known as Cellucor (Woodbolt), Vitaquest International, Inc., d/b/a Garden State Nutritionals (Garden State) and F.H.G. Corporation, d/b/a Integrity Nutraceuticals (Integrity), of NAI’s ’381 patent. The complaint alleges that Woodbolt sells nutritional supplements, including supplements containing beta-alanine such as C4 Extreme™, M5 Extreme™, and N-Zero Extreme™, that infringe the ‘381 patent. Woodbolt, in turn, filed a complaint seeking a declaratory judgment of non-infringement and invalidity of the ’381 patent in the U.S. District Court for the District of Delaware. On February 17, 2012, Woodbolt filed a First Amended Complaint, realleging its original claims against the Company and asserting new claims of violation of the Sherman Antitrust Act (15 U.S.C. § 2) and Unfair Competition. The Company reasserted the arguments in its prior motion to dismiss and moved to dismiss the new claims asserted by Woodbolt. On January 23, 2013, the Delaware Court granted the Company’s motion to dismiss Woodbolt’s case. On June 5, 2012, the Court in the above-referenced Texas case consolidated the pending suit with a second patent infringement ca se filed against Woodbolt by the Company on May 3, 2012, asserting infringement its ‘422 patent. On November 9, 2012, NAI filed a supplemental complaint adding allegations of infringement of Woodbolt’s Cellucor Cor –Performance ®-BCAA™ and Cellucor Cor –Pe rformance™ Creatine products. On June 14, 2013, NAI filed a third patent infringement lawsuit in the U.S. District Court for the Southern District of Texas, Houston Division, against Woodbolt, BodyBuilding.com and GNC Corporation alleging infringement of the ‘381 and ‘422 patents by Woodbolt’s Neon Sport Volt™ product. Woodbolt asserted the same defenses and counterclaims as set forth in the earlier lawsuits. On June 24, 2013, the Court consolidated the case with the earlier-filed lawsuits identified above. On June 25, 2013, Woodbolt filed a lawsuit in the U.S. District Court for the Southern District of Texas, Houston Division, against a newly-issued NAI U.S. patent no. 8,470,865, asserting declaratory judgment claims of non-infringement, invalidity and unenforceability. On July 1, 2013, Woodbolt’s lawsuit was consolidated with the three pending lawsuits filed by NAI. On July 24, 2013, NAI filed its Answer and Amended Counterclaims against Woodbolt alleging infringement of the ‘865 patent by the products accused in the pending cases previously filed by NAI. On August 14, 2013, Woodbolt filed a counterclaim to NAI’s counterclaim asserting violation of the Sherman Antitrust Act (15 U.S.C. § 2) and Unfair Competition. On September 4, 2013, NAI moved to have Woodbolt’s counterclaims dismissed from the case. All of the consolidated cases remain pending. Woodbolt has also requested inter partes re-examination of the ’381 and ’422 patents by the USPTO. On July 26, 2012, the USPTO accepted the request to re-examine the ’381 patent. On August 17, 2012, the USPTO accepted the request to re-exam the ’422 patent. On December 6, 2013, the USPTO rejected the claims of the ‘381 patent and issued a right of appeal notice. On January 6, 2014, the Company filed its notice of appeal. On January 13, 2015, the USPTO issued a notification of appeal hearing in the '381 reexamination, which took place on April 15, 2015, before the Patent Trial and Appeal Board (PTAB) at the USPTO. On July 17, 2015, the PTAB issued its decision affirming the USPTO's prior rejection of the '381 patent claims. On August 13, 2015, the Company filed a Request for Rehearing regarding the PTAB's decision. The request is currently pending. On August 8, 2014, the USPTO rejected the claims of the ‘422 patent and issued a right of appeal notice. On September 8, 2014, NAI filed its notice of appeal. The parties have filed briefs with the USPTO and the ‘422 reexamination is pending. A declaration of non-infringement, invalidity or unenforceability of certain of our patents could have a material adverse impact upon our business results, operations, and financial condition. Although we believe the above litigation matters are supported by valid claims, there is no assurance NAI will prevail in these litigation matters or in similar proceedings it may initiate or that litigation expenses will be as anticipated. |
Note M - Segment Information
Note M - Segment Information | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | M. Segment Information Our business consists of three segments for financial reporting purposes. The three segments are identified as (i) private label contract manufacturing, which primarily relates to the provision of private label contract manufacturing services to companies that market and distribute nutritional supplements and other health care products, (ii) patent and trademark licensing, which primarily includes direct raw material sales and royalty income from our license and supply agreements associated with the sale and use of beta-alanine under our CarnosSyn® trade name, and (iii) branded products, which relates to the marketing and distribution of our branded nutritional supplements and consists primarily of the products sold under our Pathway to Healing ® product line. Due to the steady decline in sales of our Pathway to Healing ® product line over the prior several years, we decided to discontinue the product line. Pursuant to the license agreements between NAI and each of Dr. Reginald Cherry and the Cherry Ministries Inc. dated as of September 1, 2014 as amended (the License Agreements). Dr. Cherry and Cherry Ministries licensed to NAI the name, likeness, style, persona and other attributes of Dr. Cherry in connection with the sale of nutritional products that were marketed by NAI under its Pathway to Healing brand. Pursuant to the License Agreements, NAI was permitted to terminate the License Agreements by written notice at any time. We notified Dr. Cherry and Cherry Ministries of our decision to discontinue the product line and the termination of the related license agreement was effective as of September 15, 2014. All termination activities related to the Pathway to Healing® product line were substantially completed by December 31, 2014. We did not change the financial presentation in this report to reflect the branded products segment as “Discontinued Operations” as the wind down of this product line did not meet the criteria for discontinued operations presentation as prescribed by applicable accounting regulations (ASC 205-20). We evaluate performance based on a number of factors. The primary performance measures for each segment are net sales and income or loss from operations before corporate allocations. Operating income or loss for each segment does not include corporate general and administrative expenses, interest expense and other miscellaneous income and expense items. Corporate general and administrative expenses include, but are not limited to: human resources, corporate legal, finance, information technology, and other corporate level related expenses, which are not allocated to any segment. The accounting policies of our segments are the same as those described in the summary of significant accounting policies in Note A. Our operating results by business segment for the years ended June 30 were as follows (in thousands): 2015 2014 Net Sales Private-label contract manufacturing $ 69,670 $ 67,339 Patent and trademark licensing 9,140 5,444 Branded products 698 1,159 $ 79,508 $ 73,942 2015 2014 Operating Income Private-label contract manufacturing $ 5,172 $ 5,559 Patent and trademark licensing 3,811 2,281 Branded products 248 (235 ) Income from operations of reportable segments 9,231 7,605 Corporate expenses not allocated to segments (5,072 ) (4,828 ) $ 4,159 $ 2,777 2015 2014 Total Assets Private-label contract manufacturing $ 50,313 $ 50,424 Patent and trademark licensing 3,503 1,632 Branded products — 202 $ 53,816 $ 52,258 Our private-label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Mexico, Australia, South Africa and Asia. Our primary market outside the U.S. is Europe. Our patent and trademark licensing activities are primarily based in the U.S. and our branded products are only sold in the U.S. Net sales by geographic region, based on the customers’ location, for the two years ended June 30 were as follows (in thousands): 2015 2014 United States $ 43,671 $ 38,729 Markets outside the United States 35,837 35,213 Total net sales $ 79,508 $ 73,942 Products manufactured by NAIE accounted for 74% of net sales in markets outside the U.S. in fiscal 2015 and 57% in fiscal 2014. No products manufactured by NAIE were sold in the U.S. during the fiscal years ended June 30, 2015 and 2014. Assets and capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, for the two years ended June 30 were as follows (in thousands): 201 5 Long-Lived Total Capital United States $ 5,525 $ 34,988 $ 1,071 Europe 2,108 18,828 637 $ 7,633 $ 53,816 $ 1,708 2014 Long-Lived Total Capital United States $ 6,648 $ 36,618 $ 2,297 Europe 2,163 15,640 382 $ 8,811 $ 52,258 $ 2,679 |
Note N - Subsequent Events
Note N - Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | N. Subsequent Events On July 30, 2015, we entered into a purchase and sale agreement for the sale of our domestic corporate headquarters in San Marcos, CA. This proposed sale is as of the result of an unsolicited offer for the purchase of our building and we are currently in a 150-day escrow that includes significant contingencies to the completion of the sale. As a result of these contingencies, it is premature to estimate the final sales price or expected gain or loss that will result from the completion of this sales transaction. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Subsidiaries On January 22, 1999, Natural Alternatives International Europe S.A. (NAIE) was formed as our wholly owned subsidiary, based in Manno, Switzerland. In September 1999, NAIE opened its manufacturing facility and possesses manufacturing capability in encapsulation, powders, tablets, finished goods packaging, quality control laboratory testing, warehousing, distribution and administration. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Natural Alternatives International, Inc. (NAI) and our wholly owned subsidiary, NAIE. All intercompany accounts and transactions have been eliminated. The functional currency of NAIE, our foreign subsidiary, is the U.S. Dollar. The financial statements of NAIE have been translated at either current or historical exchange rates, as appropriate, with gains and losses included in the consolidated statements of operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. ASU 2014-09 will require the recognition of revenue at the amount an entity expects to be entitled when products are transferred to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. We are currently evaluating the impact this guidance will have on our consolidated financial condition, results of operations, cash flows and disclosures and are currently unable to estimate the impact of adopting this guidance. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost or net realizable value. The new standard is effective for our fiscal years and interim periods beginning after December 15, 2016. We are currently evaluating the impact of adopting ASU 2015-11 on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965) (ASU 2015-12): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. This update reduces complexity in employee benefit plan accounting, which is consistent with the FASB's Simplification initiative. Part I: Fully Benefit-Responsive Investment Contracts. Topics 962 and 965 on employee benefit plan accounting require fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. The amendments in Part I of this update designate contract value as the only required measure for fully benefit-responsive investment contracts, which maintains the relevant information while reducing the cost and complexity of reporting for fully benefit-responsive investment contracts. Part II: Plan Investment Disclosures. As new disclosure requirements have been issued or amended, employee benefit plan financial statements have been affected. Specifically, the interaction between Topic 820, Fair Value Measurement, and Topics 960, 962, and 965 on employee benefit plan accounting sometimes requires aggregation, or organization of similar investment information, in multiple ways. The objective of Part II of this update is to simplify and make more effective the investment disclosure requirements under Topic 820 and under Topics 960, 962, and 965 for employee benefit plans. Part III: Measurement Date Practical Expedient. The objective of Part III of this update is to reduce complexity in employee benefit plan accounting by providing a practical expedient that permits plans to measure investments and investment-related accounts as of a month-end date that is closest to the plan's fiscal year-end, when the fiscal period does not coincide with month-end. This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF–15C—Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), which has been deleted. The amendments are effective for fiscal years beginning after December 15, 2015. Earlier application is permitted. The adoption of this pronouncement is not expected to have a material effect on our financial position or results of operations. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-level hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available under the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs. In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. We classify cash, cash equivalents, and marketable securities balances as Level 1 assets. Fair values determined by Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable or can be corroborated, either directly or indirectly by observable market data. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These include certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. As of June 30, 2015 and June 30, 2014, we did not have any financial assets or liabilities classified as Level 1, except for assets and liabilities related to our pension plan. We classify derivative forward exchange contracts as Level 2 assets. The fair value of our forward exchange contracts as of June 30, 2015 was a net asset of $474,000 and the value as of June 30, 2014 was a net liability of $24,000. The fair values were determined based on obtaining pricing from our bank and corroborating those values with a third party bank. As of June 30, 2015 and June 30, 2014, we did not have any financial assets or liabilities classified as Level 3. We did not transfer any assets or liabilities between any levels during fiscal 2015. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable We perform ongoing credit evaluations of our customers and adjust credit limits based on payment history and customer credit-worthiness. An allowance for estimated doubtful accounts is maintained based on historical experience and identified customer credit issues. We monitor collections regularly and adjust the allowance for doubtful accounts as necessary to recognize any changes in credit exposure. Upon conclusion that a receivable is uncollectible, we record the respective amount as a charge against allowance for doubtful accounts. To date, such doubtful accounts reserves, in the aggregate, have been adequate to cover collection losses. |
Inventory, Policy [Policy Text Block] | Inventories We operate primarily as a private-label contract manufacturer that builds products based upon anticipated demand or following receipt of customer specific purchase orders. From time to time, we build inventory for private-label contract manufacturing customers under a specific purchase order with delivery dates that may subsequently be rescheduled or canceled at the customer’s request. We value inventory at the lower of cost (first-in, first-out) or market (net realizable value) on an item-by-item basis, including costs for raw materials, labor and manufacturing overhead. We establish reserves equal to all or a portion of the related inventory to reflect situations in which the cost of the inventory is not expected to be recovered. This requires us to make estimates regarding the market value of our inventory, including an assessment for excess and obsolete inventory. Once we establish an inventory reserve in a fiscal period, the reduced inventory value is maintained until the inventory is sold or otherwise disposed of. In evaluating whether inventory is stated at the lower of cost or market, management considers such factors as the amount of inventory on hand, the estimated time required to sell such inventory, the remaining shelf life and efficacy, the foreseeable demand within a specified time horizon and current and expected market conditions. Based on this evaluation, we record adjustments to cost of goods sold to adjust inventory to its net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment We state property and equipment at cost. Depreciation of property and equipment is provided using the straight-line method over their estimated useful lives, generally ranging from 1 to 39 years. We amortize leasehold improvements using the straight-line method over the shorter of the life of the improvement or the term of the lease. Maintenance and repairs are expensed as incurred. Significant expenditures that increase economic useful lives are capitalized. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During fiscal 2015, we recorded an impairment loss of $417,000 related to manufacturing equipment and related tooling that was determined to be obsolete. We did not recognize any impairment losses during fiscal 2014. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments We currently may use derivative financial instruments in the management of our foreign currency exchange risk inherent in our forecasted transactions denominated in Euros. We may hedge our foreign currency exposures by entering into offsetting forward exchange contracts and currency options. To the extent we use derivative financial instruments, we account for them using the deferral method, when such instruments are intended to hedge identifiable, firm foreign currency commitments or anticipated transactions and are designated as, and effective as, hedges. Foreign exchange exposures arising from certain transactions that do not meet the criteria for the deferral method are marked-to-market through the Consolidated Statements of Operations and Comprehensive Income. We recognize any unrealized gains and losses associated with derivative instruments in income in the period in which the underlying hedged transaction is realized. In the event the derivative instrument is deemed ineffective we would recognize the resulting gain or loss in income at that time. As of June 30, 2015, we held derivative contracts designated as cash flow hedges primarily to protect against the foreign exchange risks inherent in our forecasted sales of products at prices denominated in currencies other than the U.S. Dollar. As of June 30, 2015, the notional amounts of our foreign exchange contracts were $27.1 million (EUR 23.8 million). These contracts will mature over the next 14 months. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Defined Benefit Pension Plan We sponsor a defined benefit pension plan. Effective June 21, 1999, we adopted an amendment to freeze benefit accruals to the participants. The plan obligation and related assets of the plan are presented in the notes to the consolidated financial statements. Plan assets, which consist primarily of marketable equity and debt instruments, are valued based upon third party market quotations. Independent actuaries, through the use of a number of assumptions, determine plan obligation and annual pension expense. Key assumptions in measuring the plan obligation include the discount rate and estimated future return on plan assets. In determining the discount rate, we use an average long-term bond yield. Asset returns are based on the historical returns of multiple asset classes to develop a risk free rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk free rate of return and the associated risk premium. A weighted average rate is developed based on the overall rates and the plan’s asset allocation. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition To recognize revenue, four basic criteria must be met: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (a) the seller’s price to the buyer is substantially fixed or determinable at the date of sale; (b) the buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product; (c) the buyer’s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product; (d) the buyer acquiring the product for resale has economic substance apart from that provided by the seller; (e) the seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer; and (f) the amount of future returns can be reasonably estimated. We recognize revenue upon determination that all criteria for revenue recognition have been met. The criteria are usually met at the time title passes to the customer, which usually occurs upon shipment. Revenue from shipments where title passes upon delivery is deferred until the shipment has been delivered. We record reductions to gross revenue for estimated returns of private label contract manufacturing products and branded products. The estimated returns are based on the trailing six months of private label contract manufacturing gross sales and our historical experience for both private label contract manufacturing and branded product returns. However, the estimate for product returns does not reflect the impact of a potential large product recall resulting from product nonconformance or other factors as such events are not predictable nor is the related economic impact estimable. We followed the provisions of ASU No. 2009-13 for all multiple element agreements. Under this guidance, the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in our control. A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that a deliverable has standalone value from the undelivered items, the deliverable is identified as a separate unit of accounting and the amounts allocated to the deliverable are recognized upon the delivery of the deliverable, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the deliverable through the relative selling price allocation exceed the upfront fee, the amount recognized upon the delivery of the deliverable is limited to the upfront fee received. If facts and circumstances dictate that the deliverable does not have standalone value, the transaction price, including any upfront fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered and accepted. In addition, we enter into arrangements that provide for milestone payments upon contractually stated events. Under the milestone method, we recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either our performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from our performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the entity. We currently own certain U.S. patents, and each patent’s corresponding foreign patent applications. All of these patents and patent rights relate to the ingredient known as beta-alanine marketed and sold under the CarnoSyn® trade name. S ince March 2009, we have had an agreement with Compound Solutions, Inc. (CSI) to grant a license to manufacture, offer for sale and/or sell products incorporating, using or made in accordance with our patent rights to customers of CSI who purchase beta-alanine under the CarnoSyn® trade name from CSI. The most recent agreement additionally granted such a license to CSI. We received a fee from CSI that varied based on the quantity and source of beta-alanine sold by CSI. Our most recent agreement with CSI expired on March 31, 2015. We elected not to renew our agreement with CSI and, effective April 1, 2015, we began directly selling beta-alanine, and licensing the related patent and trademark rights, in order to take advantage of strategic opportunities, including opportunities to provide additional contract manufacturing services, and to increase our top-line revenue and profit profile. In June 2011, we entered into a license and supply agreement (Agreement) with Abbott Laboratories (Abbott) under which we agreed to grant an exclusive license to Abbott for the use of beta-alanine in certain medical foods and medical nutritionals. Under the terms of the agreement, Abbott paid an initial license fee of $300,000, an additional fee of $300,000 in January 2012, and upon achievement of certain milestones, an additional license fee of $150,000 was paid on October 3, 2012. The license and supply agreement provided Abbott with the right to terminate the agreement at any time up to March 31, 2012, at which time, if not terminated, Abbott was required to pay $4.3 million payable over six annual payments with the initial installment payment of $708,334 due March 31, 2012. We have determined that each of the milestone payments meets the definition of a milestone in accordance with the milestone method of revenue recognition. In February 2012 and June 2012, we amended the Agreement and extended Abbott’s termination rights initially through July 31, 2012 and then further through October 31, 2012 in exchange for two payments of $354,167 each by Abbott to NAI. Abbott made the first payment on March 13, 2012 and the second payment on July 12, 2012. In October 2012, the Agreement was amended for a third time. Unless earlier terminated by Abbott, the amendment requires Abbott to pay to NAI (i) upon earlier of achievement of certain milestones or December 1, 2012, additional license fees of $204,167; (ii) upon earlier of achievement of certain milestones or June 1, 2013, additional license fees of $204,167; (iii) upon earlier of achievement of certain milestones or July 1, 2013, additional license fees of $150,000; (iv) upon earlier of achievement of certain milestones or December 1, 2013, additional license fees of $150,000; and (v) approximately $2.8 million payable over four annual payments beginning on March 31, 2014. The payment noted in (i) was collected in December 2012, the payment noted in (ii) was collected in May 2013, the payment noted in (iii) was collected in July 2013 and the payment noted in (iv) was collected in January 2014. Effective November 27, 2013, citing further time and cost required to bring its anticipated product to market, Abbott exercised its right to terminate the Agreement. We recorded beta-alanine raw material sales and royalty and licensing income as a component of revenue in the amount of $9.1 million during fiscal 2015 and $5.4 million during fiscal 2014. These royalty income and raw material sale amounts resulted in royalty expense paid to the original patent holders from whom NAI acquired its patents and patent rights. We recognized royalty expense as a component of cost of goods sold in the amount of $806,000 during fiscal 2015 and $722,000 during fiscal 2014. |
Cost of Sales, Policy [Policy Text Block] | Cost of Goods Sold Cost of goods sold includes raw material, labor, manufacturing overhead, and royalty expense. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs We include fees earned on the shipment of our products to customers in sales and include costs incurred on the shipment of product to customers in costs of goods sold. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs As part of the services we provide to our private-label contract manufacturing customers, we may perform, but are not obligated to perform, certain research and development activities related to the development or improvement of their products. While our customers typically do not pay directly for this service, the cost of this service is included as a component of the price we charge to manufacture and deliver their products. We also direct and participate in clinical research studies, often in collaboration with scientists and research institutions, to validate the benefits of a product and provide scientific support for product claims and marketing initiatives. We believe our commitment to research and development, as well as our facilities and strategic alliances with our suppliers and customers, allow us to effectively identify, develop and market high-quality and innovative products. Research and development costs are expensed when incurred. Our research and development expenses for the last two fiscal years ended June 30 were $1.1 million for 2015 and $1.0 million for 2014. These costs were included in selling, general and administrative expenses and cost of goods sold. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs We expense the production costs of advertising the first time the advertising takes place. We incurred and expensed advertising costs in the amount of $69,000 during the fiscal year ended June 30, 2015 and $131,000 during fiscal 2014. These costs were included in selling, general and administrative expenses. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates, for each of the jurisdictions in which we operate, expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. We account for uncertain tax positions using the more-likely-than-not recognition threshold. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2015 and June 30, 2014, we had not recorded any tax liabilities for uncertain tax positions. We record valuation allowances to reduce our deferred tax assets to an amount that we believe is more likely than not to be realized. We consider estimated future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If we determine that it is more likely than not that we will not realize all or part of our deferred tax assets in the future, we will record an adjustment to the carrying value of the deferred tax asset, which would be reflected as income tax expense. Conversely, if we determine we will realize a deferred tax asset, which currently has a valuation allowance, we will reverse the valuation allowance, which would be reflected as an income tax benefit. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. During fiscal 2014, as a result of changes in California apportionment rules and the state nexus study which was completed during the 3 rd We are subject to taxation in the U.S., Switzerland and various state jurisdictions. Our tax years for the fiscal year ended June 30, 2009 and forward are subject to examination by the U.S. tax authorities and our years for the fiscal year ended June 30, 2007 and forward are subject to examination by the state tax authorities. Our tax years for the fiscal year ended June 30, 2013 and forward are subject to examination by the Switzerland tax authorities. We do not record U.S. income tax expense for NAIE’s retained earnings that are declared as indefinitely reinvested offshore, thus reducing our overall income tax expense. The amount of earnings designated as indefinitely reinvested in NAIE is based on the actual deployment of such earnings in NAIE’s assets and our expectations of the future cash needs of our U.S. and foreign entities. Income tax laws are also a factor in determining the amount of foreign earnings to be indefinitely reinvested offshore. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation We have an omnibus incentive plan that was approved by our Board of Directors effective as of October 15, 2009 and approved by our stockholders at the Annual Meeting of Stockholders held on November 30, 2009. Under the plan, we may grant nonqualified and incentive stock options and other stock-based awards to employees, non-employee directors and consultants. Our prior equity incentive plan was terminated effective as of November 30, 2009. We estimate the fair value of stock option awards at the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Option valuation models require the input of highly subjective assumptions. Black-Scholes uses assumptions related to volatility, the risk-free interest rate, the dividend yield (which we assume to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities used in the model are based on the historical volatility of our stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect in the period of grant. The expected life of stock option grants is derived from historical experience. The fair value of restricted stock shares granted is based on the market price of our common stock on the date of grant. We amortize the estimated fair value of our stock awards to expense over the related vesting periods. The Company did not grant any options during fiscal 2015 or 2014. We did not have any options exercised during fiscal 2015 or fiscal 2014. All remaining outstanding stock options are fully vested and all related compensation cost was fully recognized at June 30, 2014. No options vested during the fiscal year ended June 30, 2015. The total fair value of options vested during the fiscal year ended June 30, 2014 was $121,000. During fiscal 2013 we granted a total of 98,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. These restricted shares partially vested, and the remainder will continue to vest over three years and the unvested portion of these shares cannot be sold or otherwise transferred and the rights to receive dividends, if declared by our Board of Directors, are forfeitable until the shares become vested. During the three months ended September 30, 2013, 10,000 of these shares were forfeited due to the termination of employment of one of the grantees. On March 7, 2014 we granted 105,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. On March 19, 2015 we granted an additional 105,000 restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to our 2009 Omnibus Incentive plan. These restricted stock grants have partially vested and the remainder will vest over three years from the date of grant and the unvested shares cannot be sold or otherwise transferred and the rights to receive dividends, if declared by our Board of Directors, are forfeitable until the shares become vested. There were 93,866 vested restricted stock shares as of June 30, 2015 and there were 29,720 vested restricted stock shares as of June 30, 2014. The total remaining unrecognized compensation cost related to unvested restricted stock shares amounted to $945,000 at June 30, 2015 and the weighted average remaining requisite service period of unvested restricted stock shares was 2.0 years. The weighted average fair value of restricted stock shares granted during fiscal 2015 was $5.51. The weighted average fair value of restricted stock shares granted during fiscal 2014 was $5.56. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. |
Earnings Per Share, Policy [Policy Text Block] | Net Income per Common Share We compute basic net income per common share using the weighted average number of common shares outstanding during the period, and diluted net income per common share using the additional dilutive effect of all dilutive securities. The dilutive impact of stock options and restricted shares account for the additional weighted average shares of common stock outstanding for our diluted net income per common share computation. We calculated basic and diluted net income per common share as follows (in thousands, except per share data): For the Years Ended June 30, 2015 2014 Numerator Net income $ 3,346 $ 1,994 Denominator Basic weighted average common shares outstanding 6,753 6,820 Dilutive effect of stock options and restricted stock shares 53 44 Diluted weighted average common shares outstanding 6,806 6,864 Basic net income per common share $ 0.50 $ 0.29 Diluted net income per common share $ 0.49 $ 0.29 Shares related to 151,000 stock options for the fiscal year ended June 30, 2015 and 268,000 for fiscal 2014, were excluded from the calculation of diluted net income per common share, as the effect of their inclusion would be anti-dilutive. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with highly rated financial institutions. Credit risk with respect to receivables is concentrated with our two largest customers, whose receivable balances collectively represented 28.5% of gross accounts receivable at June 30, 2015 and 26.9% at June 30, 2014. Additionally, amounts due related to our beta-alanine raw material sales were 26.0% of gross accounts receivable at June 30, 2015 and royalty amounts due from CSI were 23.6% of gross accounts receivable at June 30, 2014. Concentrations of credit risk related to the remaining accounts receivable balances are limited due to the number of customers comprising our remaining customer base. |
Note A - Organization and Sum22
Note A - Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended June 30, 2015 2014 Numerator Net income $ 3,346 $ 1,994 Denominator Basic weighted average common shares outstanding 6,753 6,820 Dilutive effect of stock options and restricted stock shares 53 44 Diluted weighted average common shares outstanding 6,806 6,864 Basic net income per common share $ 0.50 $ 0.29 Diluted net income per common share $ 0.49 $ 0.29 |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2015 2014 Raw materials $ 9,744 $ 9,764 Work in progress 1,552 2,176 Finished goods 1,603 1,621 Reserve (335 ) (721 ) $ 12,564 $ 12,840 |
Note C - Property and Equipme24
Note C - Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Depreciable Life 2015 2014 Land NA $ 393 $ 393 Building and building improvements 7 – 39 2,793 2,793 Machinery and equipment 3 – 12 26,444 26,772 Office equipment and furniture 3 – 5 3,168 3,189 Vehicles 3 209 209 Leasehold improvements 1 – 15 11,244 10,949 Total property and equipment 44,251 44,305 Less: accumulated depreciation and amortization (36,618 ) (35,494 ) Property and equipment, net $ 7,633 $ 8,811 |
Note D - Other Comprehensive 25
Note D - Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Year Ended June 30, 2015 Defined Benefit Pension Plan Unrealized Losses on Cash Flow Hedges Total Balance as of June 30, 2014 $ (502 ) $ 33 $ (469 ) Other comprehensive loss before reclassifications (176 ) 2,228 2,052 Amounts reclassified from OCI (49 ) (2,461 ) (2,510 ) Tax effect of OCI activity 84 77 161 Other comprehensive loss (141 ) (156 ) (297 ) Balance as of June 30, 2015 $ (643 ) $ (123 ) $ (766 ) Year Ended June 30, 2014 Defined Benefit Pension Plan Unrealized Losses on Cash Flow Hedges Total Balance as of June 30, 2013 $ (482 ) $ 52 $ (430 ) Other comprehensive loss before reclassifications 31 (488 ) (457 ) Amounts reclassified from OCI (10 ) 454 444 Tax effect of OCI activity (41 ) 15 (26 ) Other comprehensive loss (20 ) (19 ) (39 ) Balance as of June 30, 2014 $ (502 ) $ 33 $ (469 ) |
Note F - Income Taxes (Tables)
Note F - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 Current: Federal $ 396 $ 559 State 41 (370 ) Foreign 450 343 887 532 Deferred: Federal 125 (264 ) State (51 ) 213 Valuation allowance — 193 74 142 Provision for income taxes $ 961 $ 674 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 3 $ 28 Accrued vacation expense 106 101 Tax credit carry forward 88 51 Allowance for inventories 74 234 Stock-based compensation 130 157 Pension liability 322 238 Other, net 210 106 Deferred rent 143 13 Accumulated depreciation and amortization 897 911 Net operating loss carry forward 439 458 Total gross deferred tax assets 2,412 2,297 Deferred tax liabilities: Prepaid expenses (189 ) (157 ) Other — (10 ) Deferred tax liabilities (189 ) (167 ) Valuation allowance (193 ) (193 ) Net deferred tax assets $ 2,030 $ 1,937 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 Income taxes computed at statutory federal income tax rate $ 1,463 $ 913 State income taxes, net of federal income tax expense 7 (35 ) Expenses not deductible for tax purposes 13 19 Foreign tax rate differential (451 ) (297 ) Return to provision – differences — (41 ) Adjust state deferred due to change in apportionment (25 ) 195 State tax planning – net savings — (239 ) Change in valuation allowance — 193 Other, net (46 ) (34 ) Income tax provision as reported $ 961 $ 674 Effective tax rate 22.3 % 25.1 % |
Note G - Employee Benefit Pla27
Note G - Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of year $ 1,901 $ 1,796 Interest cost 80 80 Actuarial loss 144 165 Benefits paid (45 ) (140 ) Benefit obligation at end of year $ 2,080 $ 1,901 Change in Plan Assets: Fair value of plan assets at beginning of year $ 1,719 $ 1,662 Actual return on plan assets (5 ) 226 Benefits paid (45 ) (140 ) Plan expenses (27 ) (29 ) Fair value of plan assets at end of year $ 1,642 $ 1,719 Reconciliation of Funded Status: Difference between benefit obligation and fair value of plan assets $ (438 ) $ (182 ) Unrecognized net actuarial loss in accumulated other comprehensive income 904 679 Net amount recognized $ 466 $ 497 Projected benefit obligation $ 2,080 $ 1,901 Accumulated benefit obligation $ 2,080 $ 1,901 Fair value of plan assets $ 1,642 $ 1,719 |
Schedule of Net Benefit Costs [Table Text Block] | 2015 2014 Interest cost $ 80 $ 80 Expected return on plan assets (115 ) (105 ) Recognized actuarial loss 46 46 Settlement loss 20 49 Net periodic benefit expense $ 31 $ 70 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | 2015 2014 Net loss $ 265 $ 45 Settlement loss (20 ) (50 ) Amortization of net loss (47 ) (46 ) Plan expenses 27 29 Total recognized in other comprehensive income (loss) $ 225 $ (22 ) Total recognized in net periodic benefit cost and other comprehensive income $ 256 $ 48 |
Schedule of Expected Benefit Payments [Table Text Block] | 2016 $ 22 2017 53 2018 74 2019 113 2020 124 2021-2025 673 $ 1,059 |
Schedule of Assumptions Used [Table Text Block] | 2015 2014 Discount rate 4.33 % 4.80 % Expected long-term rate of return 7.00 % 7.00 % Compensation increase rate N/A N/A |
Schedule of Weighted Average Allocation of Assets Related to Defined Benefit Plans Disclosure [Table Text Block] | 2015 2014 Target Equity securities 53 % 49 % 49 % Debt securities 45 % 45 % 46 % Commodities — — 2 % Cash and money market funds 2 % 6 % 3 % 100 % 100 % 100 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Total Quoted Prices in Significant Significant Cash and money market funds $ 37 $ 37 $ — $ — Equity securities (1) $ 872 $ 872 $ — $ — Debt securities (2) $ 733 $ 733 $ — $ — Total $ 1,642 $ 1,642 $ — $ — |
Note H - Stockholders' Equity (
Note H - Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 1999 Weighted Weighted Aggregate Intrinsic Outstanding at June 30, 2014 10,000 $ 10.19 Exercised — — Forfeited (10,000 ) $ 10.19 Granted — $ — Outstanding at June 30, 2015 — $ — — $ — Vested and exercisable at June 30, 2015 — $ — — $ — Available for grant at June 30, 2015 — 2009 Weighted Weighted Aggregate Intrinsic Outstanding at June 30, 2014 190,019 $ 6.76 Exercised — $ — Forfeited (5,019 ) $ 7.50 Granted — $ — Outstanding at June 30, 2015 185,000 $ 6.74 4.41 $ 86,000 Vested and exercisable at June 30, 2015 185,000 $ 6.74 4.41 $ 86,000 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number of Shares Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 163,280 $ 5.28 Granted 105,000 $ 5.51 Vested (64,146 ) $ 5.20 Forfeited — $ — Nonvested at June 30, 2015 204,134 $ 5.42 |
Note I - Commitments (Tables)
Note I - Commitments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2016 2017 2018 2019 2020 There- Total Gross minimum rental commitments $ 2,859 $ 2,783 $ 2,815 $ 2,848 $ 1,394 $ 5,543 $ 18,242 |
Note J - Economic Dependency (T
Note J - Economic Dependency (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 2015 2014 Net Sales by % of Total Net Sales by % of Total Customer 1 $ 29,724 43 % $ 25,252 38 % Customer 2 11,018 16 % 11,256 17 % Customer 3 8,090 12 % (a ) (a ) Customer 3 (a ) (a ) 10,960 16 % $ 48,832 71 % $ 47,468 71 % |
Note M - Segment Information (T
Note M - Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2015 2014 Net Sales Private-label contract manufacturing $ 69,670 $ 67,339 Patent and trademark licensing 9,140 5,444 Branded products 698 1,159 $ 79,508 $ 73,942 2015 2014 Operating Income Private-label contract manufacturing $ 5,172 $ 5,559 Patent and trademark licensing 3,811 2,281 Branded products 248 (235 ) Income from operations of reportable segments 9,231 7,605 Corporate expenses not allocated to segments (5,072 ) (4,828 ) $ 4,159 $ 2,777 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | 2015 2014 Total Assets Private-label contract manufacturing $ 50,313 $ 50,424 Patent and trademark licensing 3,503 1,632 Branded products — 202 $ 53,816 $ 52,258 |
Revenue from External Customers by Geographic Areas [Table Text Block] | 2015 2014 United States $ 43,671 $ 38,729 Markets outside the United States 35,837 35,213 Total net sales $ 79,508 $ 73,942 |
Long-lived Assets by Geographic Areas [Table Text Block] | 201 5 Long-Lived Total Capital United States $ 5,525 $ 34,988 $ 1,071 Europe 2,108 18,828 637 $ 7,633 $ 53,816 $ 1,708 2014 Long-Lived Total Capital United States $ 6,648 $ 36,618 $ 2,297 Europe 2,163 15,640 382 $ 8,811 $ 52,258 $ 2,679 |
Note A - Organization and Sum32
Note A - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, € in Millions | Mar. 19, 2015shares | Mar. 07, 2014shares | Jul. 01, 2013USD ($) | Jun. 01, 2013USD ($) | Dec. 01, 2012USD ($) | Oct. 03, 2012USD ($) | Jul. 12, 2012USD ($) | Mar. 13, 2012USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2012USD ($) | Jan. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Sep. 30, 2013shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013shares | Jun. 30, 2015EUR (€)shares | Jun. 30, 2015USD ($)shares | Dec. 01, 2013USD ($) |
Amendment [Member] | |||||||||||||||||||
Proceeds from License Fees Received | $ 150,000 | $ 204,167 | $ 204,167 | $ 354,167 | $ 354,167 | ||||||||||||||
Additional License Fees Upon Achievement of Certain Milestones | $ 2,800,000 | ||||||||||||||||||
Additional License Fees Receivable Upon Achievement of Certain Milestones | $ 150,000 | ||||||||||||||||||
Prior to Amendment [Member] | |||||||||||||||||||
Additional License Fees Upon Achievement of Certain Milestones | $ 4,300,000 | ||||||||||||||||||
Additional License Fees Receivable Upon Achievement of Certain Milestones | $ 708,334 | ||||||||||||||||||
Installment [Member] | |||||||||||||||||||
Number of Installment Payments | 4 | 6 | |||||||||||||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||||||||||||
Fair Value, Net Asset (Liability) | $ 0 | ||||||||||||||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||||||||||||
Fair Value, Net Asset (Liability) | $ 0 | ||||||||||||||||||
Minimum [Member] | |||||||||||||||||||
Property, Plant and Equipment, Useful Life | 1 year | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Property, Plant and Equipment, Useful Life | 39 years | ||||||||||||||||||
Foreign Exchange Contract [Member] | |||||||||||||||||||
Derivative, Notional Amount | € 23.8 | $ 27,100,000 | |||||||||||||||||
Derivative, Remaining Maturity | 1 year 60 days | ||||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||||||||||
Restricted Stock [Member] | 2009 Omnibus Stock Incentive Plan [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 105,000 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | 0 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 5.51 | ||||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 29,720 | 93,866 | 93,866 | ||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 945,000 | ||||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 5.51 | $ 5.56 | |||||||||||||||||
2009 Omnibus Stock Incentive Plan [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 0 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 105,000 | 105,000 | 98,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | 10,000 | ||||||||||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Beta Alanine Raw Material Sale Customers [Member] | |||||||||||||||||||
Concentration Risk, Percentage | 26.00% | ||||||||||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | CSI [Member] | |||||||||||||||||||
Concentration Risk, Percentage | 23.60% | ||||||||||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||||||||||||||
Concentration Risk, Percentage | 28.50% | 26.90% | |||||||||||||||||
Proceeds from License Fees Received | $ 150,000 | $ 300,000 | $ 300,000 | ||||||||||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 417,000 | $ 0 | |||||||||||||||||
Liability for Uncertain Tax Positions, Current | 0 | 0 | |||||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0 | $ 193,000 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 | 0 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 0 | 0 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0 | $ 121,000 | |||||||||||||||||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 474,000 | ||||||||||||||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 24,000 | ||||||||||||||||||
Royalty and Licensing Revenue | 9,100,000 | 5,400,000 | |||||||||||||||||
Royalty Expense | 806,000 | 722,000 | |||||||||||||||||
Research and Development Expense | 1,100,000 | 1,000,000 | |||||||||||||||||
Advertising Expense | $ 69,000 | $ 131,000 | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 151,000 | 268,000 | |||||||||||||||||
Concentration of Risk Number of Major Customers | 2 |
Note A - Organization and Sum33
Note A - Organization and Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||
Net Income (Loss) Attributable to Parent | $ 3,346 | $ 1,994 |
Denominator | ||
Basic weighted average common shares outstanding (in shares) | 6,753,239 | 6,820,466 |
Dilutive effect of stock options and restricted stock shares (in shares) | 53,000 | 44,000 |
Diluted weighted average common shares outstanding (in shares) | 6,806,385 | 6,864,216 |
Basic net income per common share (in dollars per share) | $ 0.50 | $ 0.29 |
Diluted net income per common share (in dollars per share) | $ 0.49 | $ 0.29 |
Note B - Inventories - Summary
Note B - Inventories - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Raw materials | $ 9,744 | $ 9,764 |
Work in progress | 1,552 | 2,176 |
Finished goods | 1,603 | 1,621 |
Reserve | (335) | (721) |
$ 12,564 | $ 12,840 |
Note C - Property and Equipme35
Note C - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Land [Member] | ||
Property and equipment | $ 393 | $ 393 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Building and Building Improvements [Member] | ||
Property and equipment | $ 2,793 | 2,793 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 12 years | |
Machinery and Equipment [Member] | ||
Property and equipment | $ 26,444 | 26,772 |
Office Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Office Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Office Equipment [Member] | ||
Property and equipment | $ 3,168 | 3,189 |
Vehicles [Member] | ||
Property and equipment | $ 209 | 209 |
Property, Plant and Equipment, Useful Life | 3 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Leasehold Improvements [Member] | ||
Property and equipment | $ 11,244 | 10,949 |
Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Property and equipment | $ 44,251 | 44,305 |
Less: accumulated depreciation and amortization | (36,618) | (35,494) |
Property and equipment, net | $ 7,633 | $ 8,811 |
Note D - Other Comprehensive 36
Note D - Other Comprehensive Loss - Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated other comprehensive loss | $ (502,000) | $ (482,000) |
Other comprehensive loss before reclassifications | (176,000) | 31,000 |
Amounts reclassified from OCI | (49,000) | (10,000) |
Tax effect of OCI activity | 84,000 | (41,000) |
Other comprehensive loss | (141,000) | (20,000) |
Accumulated other comprehensive loss | (643,000) | (502,000) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated other comprehensive loss | 33,000 | 52,000 |
Other comprehensive loss before reclassifications | 2,228,000 | (488,000) |
Amounts reclassified from OCI | (2,461,000) | 454,000 |
Tax effect of OCI activity | 77,000 | 15,000 |
Other comprehensive loss | (156,000) | (19,000) |
Accumulated other comprehensive loss | (123,000) | 33,000 |
Accumulated other comprehensive loss | (469,000) | (430,000) |
Other comprehensive loss before reclassifications | 2,052,000 | (457,000) |
Amounts reclassified from OCI | (2,510,000) | 444,000 |
Tax effect of OCI activity | 161,000 | (26,000) |
Other comprehensive loss | (297,000) | (39,000) |
Accumulated other comprehensive loss | $ (766,000) | $ (469,000) |
Note E - Debt (Details Textual)
Note E - Debt (Details Textual) | 12 Months Ended | |||||
Jun. 30, 2015CHF (SFr) | Jun. 30, 2015USD ($) | Feb. 19, 2007CHF (SFr) | Feb. 19, 2007USD ($) | Sep. 22, 2006CHF (SFr) | Sep. 22, 2006USD ($) | |
Maximum [Member] | ||||||
Ratio of Indebtedness to Net Capital | 1.25 | |||||
Minimum [Member] | ||||||
Line of Credit Covenant Number of Consecutive Days That Outstanding Balance Must Be Zero | 30 days | 30 days | ||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% | ||||
Debt Instrument Basis Spread on Elected Fixed Rate Borrowing | 1.75% | |||||
Natural Alternatives International Europe SA [Member] | Fixed Loans [Member] | ||||||
Debt Prepayment Penalty Rate | 0.10% | 0.10% | ||||
Debt Pre Payment Penalty | SFr 1,000 | $ 1,070 | ||||
Natural Alternatives International Europe SA [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | SFr 1,300,000 | $ 1,400,000 | ||||
Line of Credit Facility Maximum Borrowing Capacity Annual Reduction | SFr 160,000 | $ 171,000 | ||||
Line of Credit Facility Maximum Amount Outstanding after Reduction | SFr 500,000 | $ 535,000 | ||||
Debt Instrument, Term | 2 years | 2 years | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||
Line of Credit Facility, Commitment Fee Amount | 10,000 | |||||
Net Income Required in Future for Income Covenant | 750,000 | |||||
Long-term Line of Credit | 0 | |||||
Long-term Debt, Percentage Bearing Variable Interest, Amount | 100,000 | |||||
Line of Credit Facility Outstanding Daily Balance During Period | 0 | |||||
Minimum Prepayment Amount Under Line of Credit | 100,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 5,500,000 |
Note F - Income Taxes (Details
Note F - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards | $ 7,500,000 | |
Foreign Tax Authority [Member] | Natural Alternatives International Europe SA [Member] | ||
Effective Income Tax Rate Reconciliation, Percent | 17.00% | |
Natural Alternatives International Europe SA [Member] | ||
Net Income (Loss) Attributable to Parent | $ 2,200,000 | |
Undistributed Earnings of Foreign Subsidiaries | 15,100,000 | |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0 | $ 193,000 |
Effective Income Tax Rate Reconciliation, Percent | 22.30% | 25.10% |
Net Income (Loss) Attributable to Parent | $ 3,346,000 | $ 1,994,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% |
Note F - Income Taxes - Provisi
Note F - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Current: | ||
Federal | $ 396 | $ 559 |
State | 41 | (370) |
Foreign | 450 | 343 |
887 | 532 | |
Deferred: | ||
Federal | 125 | (264) |
State | $ (51) | 213 |
Valuation allowance | 193 | |
$ 74 | 142 | |
Provision for income taxes | $ 961 | $ 674 |
Note F - Income Taxes - Net Def
Note F - Income Taxes - Net Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 3 | $ 28 |
Accrued vacation expense | 106 | 101 |
Tax credit carry forward | 88 | 51 |
Allowance for inventories | 74 | 234 |
Stock-based compensation | 130 | 157 |
Pension liability | 322 | 238 |
Other, net | 210 | 106 |
Deferred rent | 143 | 13 |
Accumulated depreciation and amortization | 897 | 911 |
Net operating loss carry forward | 439 | 458 |
Total gross deferred tax assets | 2,412 | 2,297 |
Deferred tax liabilities: | ||
Prepaid expenses | $ (189) | (157) |
Other | (10) | |
Deferred tax liabilities | $ (189) | (167) |
Valuation allowance | (193) | (193) |
Net deferred tax assets | $ 2,030 | $ 1,937 |
Note F - Income Taxes - Reconci
Note F - Income Taxes - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income taxes computed at statutory federal income tax rate | $ 1,463 | $ 913 |
State income taxes, net of federal income tax expense | 7 | (35) |
Expenses not deductible for tax purposes | 13 | 19 |
Foreign tax rate differential | $ (451) | (297) |
Return to provision – differences | (41) | |
Adjust state deferred due to change in apportionment | $ (25) | 195 |
State tax planning – net savings | (239) | |
Change in valuation allowance | 193 | |
Other, net | $ (46) | (34) |
Provision for income taxes | $ 961 | $ 674 |
Effective tax rate | 22.30% | 25.10% |
Note G - Employee Benefit Pla42
Note G - Employee Benefit Plans (Details Textual) - USD ($) | Jan. 01, 2004 | Jun. 30, 2015 | Jun. 30, 2014 |
First Contributions [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | ||
Next Contributions [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | ||
Large-cap Funds [Member] | |||
Defined Benefit Plan Equity Securities by Type, Percentage | 76.00% | ||
Emerging Market Equity Funds [Member] | |||
Defined Benefit Plan Equity Securities by Type, Percentage | 13.00% | ||
International Equity Funds [Member] | |||
Defined Benefit Plan Equity Securities by Type, Percentage | 11.00% | ||
Short-term Fixed Income Funds [Member] | |||
Defined Benefit Plan Debt Securities by Type, Percentage | 32.00% | ||
High-yield Fixed Income Funds [Member] | |||
Defined Benefit Plan Debt Securities by Type, Percentage | 14.00% | ||
Intermediate Fixed Income Funds [Member] | |||
Defined Benefit Plan Debt Securities by Type, Percentage | 38.00% | ||
REIT and MPL Funds [Member] | |||
Defined Benefit Plan Debt Securities by Type, Percentage | 12.00% | ||
International Emerging Markets Funds [Member] | |||
Defined Benefit Plan Debt Securities by Type, Percentage | 4.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 225,000 | $ 184,000 | |
Health Insurance Plan Premium Expense | $ 1,100,000 | $ 956,000 | |
Number of Years Compensation Used for Benefit Obligation Assumptions | 5 years | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.40% | 4.30% | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 46,000 |
Note G - Employee Benefit Pla43
Note G - Employee Benefit Plans - Defined Benefit Pension Plan's Funded Status and Amount Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Change in Benefit Obligation: | ||
Benefit obligation at beginning of year | $ 1,901 | $ 1,796 |
Interest cost | 80 | 80 |
Actuarial loss | 144 | 165 |
Benefits paid | (45) | (140) |
Benefit obligation at end of year | 2,080 | 1,901 |
Change in Plan Assets: | ||
Fair value of plan assets at beginning of year | 1,719 | 1,662 |
Actual return on plan assets | (5) | 226 |
Benefits paid | (45) | (140) |
Plan expenses | (27) | (29) |
Fair value of plan assets at end of year | 1,642 | 1,719 |
Reconciliation of Funded Status: | ||
Difference between benefit obligation and fair value of plan assets | (438) | (182) |
Unrecognized net actuarial loss in accumulated other comprehensive income | 904 | 679 |
Net amount recognized | 466 | 497 |
Projected benefit obligation | 2,080 | 1,901 |
Accumulated benefit obligation | 2,080 | 1,901 |
Fair value of plan assets | $ 1,642 | $ 1,719 |
Note G - Employee Benefit Pla44
Note G - Employee Benefit Plans - Components Included in Defined Benefit Pension Plan's Net Periodic Benefit Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Interest cost | $ 80 | $ 80 |
Expected return on plan assets | (115) | (105) |
Recognized actuarial loss | 46 | 46 |
Settlement loss | 20 | 49 |
Net periodic benefit expense | $ 31 | $ 70 |
Note G - Employee Benefit Pla45
Note G - Employee Benefit Plans - Summary of Changes in Plan Assets and Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net loss | $ 265 | $ 45 |
Settlement loss | (20) | (50) |
Amortization of net loss | (46) | (46) |
Plan expenses | 27 | 29 |
Total recognized in other comprehensive income (loss) | 225 | (22) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 256 | $ 48 |
Note G - Employee Benefit Pla46
Note G - Employee Benefit Plans - Benefit Payments Expected to be Paid (Details) $ in Thousands | Jun. 30, 2015USD ($) |
2,016 | $ 22 |
2,017 | 53 |
2,018 | 74 |
2,019 | 113 |
2,020 | 124 |
2021-2025 | 673 |
$ 1,059 |
Note G - Employee Benefits Plan
Note G - Employee Benefits Plans - Weighted-Average Rates Used in Determining Defined Benefit Pension Plan's Net Pension Costs (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Discount rate | 4.33% | 4.80% |
Expected long-term rate of return | 7.00% | 7.00% |
Compensation increase rate |
Note G - Employee Benefits Pl48
Note G - Employee Benefits Plans - Defined Benefit Pension Plan's Weighted Average Asset Allocation and Weighted Average Target Allocation (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity Securities [Member] | ||
Weighted-average asset allocation | 53.00% | 49.00% |
Weighted-average target allocation | 49.00% | |
Debt Securities [Member] | ||
Weighted-average asset allocation | 45.00% | 45.00% |
Weighted-average target allocation | 46.00% | |
Commodity Contract [Member] | ||
Weighted-average asset allocation | 0.00% | 0.00% |
Weighted-average target allocation | 2.00% | |
Cash and Cash Equivalents [Member] | ||
Weighted-average asset allocation | 2.00% | 6.00% |
Weighted-average target allocation | 3.00% | |
Weighted-average asset allocation | 100.00% | 100.00% |
Weighted-average target allocation | 100.00% |
Note G - Employee Benefit Pla49
Note G - Employee Benefit Plans - Fair Values by Asset Category of Defined Benefit Pension Plan (Details) - USD ($) | Jun. 30, 2015 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value by asset category | $ 37,000 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value by asset category | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value by asset category | 0 | |
Cash and Cash Equivalents [Member] | ||
Fair value by asset category | 37,000 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value by asset category | [1] | 872,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value by asset category | [1] | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value by asset category | [1] | 0 |
Equity Securities [Member] | ||
Fair value by asset category | [1] | 872,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value by asset category | [2] | 733,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value by asset category | [2] | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value by asset category | [2] | 0 |
Debt Securities [Member] | ||
Fair value by asset category | [2] | 733,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair value by asset category | 1,642,000 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair value by asset category | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value by asset category | 0 | |
Fair value by asset category | $ 1,642,000 | |
[1] | This category is comprised of publicly traded funds, of which 76% are large-cap funds, 13% are emerging markets equity funds, and 11% are international equity funds. | |
[2] | This category is comprised of publicly traded funds, of which 32% are short-term fixed income funds, 14% are high-yield fixed income funds, 38% are intermediate fixed income funds, 12% are REITs and MLPs funds, and 4% are international/emerging markets funds. |
Note H - Stockholders' Equity50
Note H - Stockholders' Equity (Details Textual) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | May. 11, 2015 | Feb. 06, 2015 | Jun. 02, 2011 | |
2015 Increase [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | $ 1,000,000 | |||
Excluding Restricted Stock Purchased [Member] | |||||
Treasury Stock, Shares, Acquired | 342,121 | 5,100 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 5.63 | $ 4.55 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 1,900,000 | $ 23,000 | |||
2009 Omnibus Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 541,241 | ||||
Stock Repurchase Program, Authorized Amount | $ 5,000,000 | $ 3,000,000 | $ 2,000,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 2,021,000 | $ 60,000 | |||
Shares Paid for Tax Withholding for Share Based Compensation | 17,540 | 6,701 |
Note H - Stockholders' Equity -
Note H - Stockholders' Equity - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Omnibus Stock Incentive Plan 1999 [Member] | ||
Beginning Balance Outstanding (in shares) | 10,000 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 10.19 | |
Exercised (in shares) | 0 | |
Weighted-average exercise price, exercised (in dollars per share) | $ 0 | |
Forfeited (in shares) | (10,000) | |
Weighted-average exercise price, forfeited (in dollars per share) | $ 10.19 | |
Granted (in shares) | 0 | |
Weighted-average exercise price, granted (in dollars per share) | $ 0 | |
Ending Balance Outstanding (in shares) | 0 | 10,000 |
Weighted-average exercise price, outstanding (in dollars per share) | $ 0 | $ 10.19 |
Weighted-average contractual term, outstanding | ||
Aggregate intrinsic value, outstanding | $ 0 | |
Vested and exercisable (in shares) | 0 | |
Weighted-average exercise price, vested and exercisable (in dollars per share) | $ 0 | |
Weighted-average contractual term, vested and exercisable | ||
Aggregate intrinsic value, vested and exercisable | $ 0 | |
2009 Omnibus Stock Incentive Plan [Member] | ||
Beginning Balance Outstanding (in shares) | 190,019 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 6.76 | |
Exercised (in shares) | 0 | |
Weighted-average exercise price, exercised (in dollars per share) | $ 0 | |
Forfeited (in shares) | (5,019) | |
Weighted-average exercise price, forfeited (in dollars per share) | $ 7.50 | |
Granted (in shares) | 0 | |
Weighted-average exercise price, granted (in dollars per share) | $ 0 | |
Ending Balance Outstanding (in shares) | 185,000 | 190,019 |
Weighted-average exercise price, outstanding (in dollars per share) | $ 6.74 | $ 6.76 |
Weighted-average contractual term, outstanding | 4 years 149 days | |
Aggregate intrinsic value, outstanding | $ 86,000 | |
Vested and exercisable (in shares) | 185,000 | |
Weighted-average exercise price, vested and exercisable (in dollars per share) | $ 6.74 | |
Weighted-average contractual term, vested and exercisable | 4 years 149 days | |
Aggregate intrinsic value, vested and exercisable | $ 86,000 | |
Exercised (in shares) | 0 | 0 |
Granted (in shares) | 0 | 0 |
Note H - Stockholders' Equity52
Note H - Stockholders' Equity - Restricted Stock (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock [Member] | 2009 Omnibus Stock Incentive Plan [Member] | ||
Nonvested beginning balance (in shares) | 163,280 | |
Nonvested weighted-average grant date fair value (in dollars per share) | $ 5.28 | |
Granted (in shares) | 105,000 | |
Granted weighted-average grant date fair value (in dollars per share) | $ 5.51 | |
Vested (in shares) | (64,146) | |
Vested weighted-average grant date fair value (in dollars per share) | $ 5.20 | |
Forfeited (in shares) | 0 | |
Forfeited weighted-average grant date fair value (in dollars per share) | $ 0 | |
Nonvested ending balance (in shares) | 204,134 | 163,280 |
Nonvested weighted-average grant date fair value (in dollars per share) | $ 5.42 | $ 5.28 |
Restricted Stock [Member] | ||
Granted weighted-average grant date fair value (in dollars per share) | $ 5.51 | $ 5.56 |
Note I - Commitments (Details T
Note I - Commitments (Details Textual) $ in Millions | 12 Months Ended | |
Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | |
California [Member] | ||
Operating Lease Facility Area | 162,000 | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 10 years | |
SWITZERLAND | Natural Alternatives International Europe SA [Member] | ||
Operating Lease Facility Area | 87,763 | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | |
Operating Leases, Rent Expense, Net | $ | $ 3 | $ 2.3 |
Note I - Commitments - Minimum
Note I - Commitments - Minimum Rental Commitments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
2,016 | $ 2,859 |
2,017 | 2,783 |
2,018 | 2,815 |
2,019 | 2,848 |
2,020 | 1,394 |
There-after | 5,543 |
Total | $ 18,242 |
Note J - Economic Dependency (D
Note J - Economic Dependency (Details Textual) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Customer Concentration Risk [Member] | ||
Accounts Receivable, Net, Current | $ 4,600,000 | $ 3,100,000 |
Accounts Receivable, Net, Current | $ 9,895,000 | $ 6,835,000 |
Note J - Economic Dependency -
Note J - Economic Dependency - Substantial Net Sales to Certain Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Goods, Net [Member] - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | |||
Customer 1 [Member] | ||||
Net sales by customer | $ 29,724,000 | $ 25,252,000 | ||
% of total net sales | 43.00% | 38.00% | ||
Customer 2 [Member] | ||||
Net sales by customer | $ 11,018,000 | $ 11,256,000 | ||
% of total net sales | 16.00% | 17.00% | ||
Customer 3 [Member] | ||||
Net sales by customer | $ 8,090,000 | $ 0 | [1] | |
% of total net sales | 12.00% | 0.00% | [1] | |
Customer 4 [Member] | ||||
Net sales by customer | $ 0 | [1] | $ 10,960,000 | |
% of total net sales | 0.00% | [1] | 16.00% | |
Net sales by customer | $ 48,832,000 | $ 47,468,000 | ||
% of total net sales | 71.00% | 71.00% | ||
[1] | Sales were less than 10% of the respective period's total private label contract manufacturing net sales. |
Note K - Derivatives and Hedg57
Note K - Derivatives and Hedging (Details Textual) € in Millions | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015EUR (€) | Jun. 30, 2015USD ($) | |
Cash Flow Hedging Foreign Exchange Contract [Member] | ||||
Derivative, Notional Amount | € 23.7 | $ 27,100,000 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (168,000) | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 528,000 | |||
Accrued Liabilities [Member] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 45,000 | |||
Other Noncurrent Liabilities [Member] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 9,000 | |||
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 2,200,000 | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 2,400,000 | |||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 508,000 | |||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 474,000 | |||
Accumulated Other Comprehensive Income (Loss) Cumulative Cash Flow Hedges, Gain (Loss) | 28,000 | 191,000 | ||
Accumulated Other Comprehensive Income (Loss) Cumulative Cash Flow Hedges Gain (Loss), Tax Effect | $ 10,000 | $ 68,000 |
Note M - Segment Information (D
Note M - Segment Information (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Natural Alternatives International Europe SA [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Revenue, Net | $ 0 | $ 0 |
Concentration Risk, Percentage | 74.00% | 57.00% |
Revenue, Net | $ 79,508,000 | $ 73,942,000 |
Number of Reportable Segments | 3 |
Note M - Segment Information -
Note M - Segment Information - Operating Results by Business Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Private Label Contract Manufacturing [Member] | Operating Segments [Member] | ||
Operating Income | ||
Income from Operations | $ 5,172 | $ 5,559 |
Private Label Contract Manufacturing [Member] | ||
Net Sales | ||
Net Sales | 69,670 | 67,339 |
Patent and Trademark Licensing [Member] | Operating Segments [Member] | ||
Operating Income | ||
Income from Operations | 3,811 | 2,281 |
Patent and Trademark Licensing [Member] | ||
Net Sales | ||
Net Sales | 9,140 | 5,444 |
Branded Products [Member] | Operating Segments [Member] | ||
Operating Income | ||
Income from Operations | 248 | (235) |
Branded Products [Member] | ||
Net Sales | ||
Net Sales | 698 | 1,159 |
Operating Segments [Member] | ||
Operating Income | ||
Income from Operations | 9,231 | 7,605 |
Corporate, Non-Segment [Member] | ||
Operating Income | ||
Income from Operations | (5,072) | (4,828) |
Net Sales | 79,508 | 73,942 |
Income from Operations | $ 4,159 | $ 2,777 |
Note M - Segment Information 60
Note M - Segment Information - Assets by Business Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Private Label Contract Manufacturing [Member] | ||
Total Assets | ||
Assets | $ 50,313 | $ 50,424 |
Patent and Trademark Licensing [Member] | ||
Total Assets | ||
Assets | $ 3,503 | 1,632 |
Branded Products [Member] | ||
Total Assets | ||
Assets | 202 | |
Assets | $ 53,816 | $ 52,258 |
Note M - Segment Information 61
Note M - Segment Information - Net Sales by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
UNITED STATES | ||
Net Sales | $ 43,671 | $ 38,729 |
Markets Outside the United States [Member] | ||
Net Sales | 35,837 | 35,213 |
Net Sales | $ 79,508 | $ 73,942 |
Note M - Segment Information 62
Note M - Segment Information - Assets and Capital Expenditures by Geographical Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
UNITED STATES | ||
Long-Lived Assets | $ 5,525 | $ 6,648 |
Total Assets | 34,988 | 36,618 |
Capital Expenditures | 1,071 | 2,297 |
Europe [Member] | ||
Long-Lived Assets | 2,108 | 2,163 |
Total Assets | 18,828 | 15,640 |
Capital Expenditures | 637 | 382 |
Long-Lived Assets | 7,633 | 8,811 |
Total Assets | 53,816 | 52,258 |
Capital Expenditures | $ 1,708 | $ 2,679 |