# Chairman's Letter

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-defensive-packaged-foods/NASDAQ_NAII_2022/NASDAQ_NAII_2022.mmd` · pages 2-8_

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Chairman's Letter to Stockholders

Dear Fellow Stockholders,

Entering our 43 \( ^{rd} \)  year of continuous operations, I am happy to report that in spite of a series of logistical challenges facing our industry and businesses at large, we have emerged from the pandemic with renewed stamina, vigor and capability. We have certainly learned lessons related to inventory management, global procurement and transportation efficiencies, along with the ever present need to protect the balance sheet.

Our fiscal year was colored by a variety of factors. Some of our customers have experienced significant challenges in the European marketplace given the emergence of hostilities on the continent leading to exorbitant increases in energy costs, with commensurate reductions in consumer discretionary purchasing patterns. To some degree the same is true in North America as well, but for disparate reasons. Energy, food, housing and transportation costs have all surged in the last year, and in some cases show limited signs of abatement. It seems as if the normal cycles of up and down or sine and cosine are modulating out of synchrony, leading to a litany of problems. Lack of refining capacity in North America combined with a regulatory move to embrace renewables at the expense of other fuel sources, combined with weather anomalies from excess precipitation to lack thereof, mixed together with a lack of micro-processor chips – which apparently inhabit just about every inanimate modern convenience – have combined to sabotage the best laid plans of many companies.

Within this backdrop we have to the best of our ability been stalwart protecting our clients from the vagaries of out-of-stock situations, often through heroic efforts tackling labor or material shortages, and always with the intent to put our customer's needs foremost in our efforts, and in many cases to succeed where others failed.

Happily, our investment in essential raw materials has born significant benefits as we seek to expand our client relationships and our global footprint. Our Vista California processing facility successfully launched a state-of-the-art blending suite which has allowed us to expand our relationships and throughput capability, and our Carlsbad California high-speed powder facility buildout nears completion with activation expected in early calendar 2023.

To be sure, challenges exist in the global supply chain, and inflation continues to pressure margins across the industry and reduce consumer discretionary spending, but we remain hopeful that some semblance of stability will emerge over the next year allowing some equilibrium to be restored.

As we approach a mid-century point in our storied history, we remain steadfast in our approach to this business knowing the lessons learned from the pandemic by both business and consumer alike have forever changed the roles of scientifically validated nutrition and nutritional supplementation, clearly for the better.

We appreciate your continued support of this noble cause.

Sincerely,

![](images/2_0.jpg)

Mark A. LeDoux

Chairman of the Board of Directors

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# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

000-15701
(Commission file number)

## NATURAL ALTERNATIVES INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)

84-1007839
(IRS Employer Identification No.)

1535 Faraday Ave
Carlsbad, CA 92008
(Address of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of exchange on which registered
Common Stock, $0.01 par value per share
Nasdaq Global Market

Securities registered pursuant to Section 12(g) of the Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, $0.01 par value per share NAII Nasdaq Stock Market

Indicate by check mark if Natural Alternatives International, Inc. (NAI) is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1933. □ Yes □ No

Indicate by check mark if NAI is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934. □ Yes □ No
Indicate by check mark whether NAI (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that NAI was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether NAI has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that NAI was required to submit such files). ☒ Yes ☐ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of NAI's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. □

Indicate by check mark whether NAI is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.

Large accelerated filer ☐ Accelerated filer ☐ Emerging Growth Company ☐

Non-accelerated filer ☐ Smaller reporting company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. □

Indicate by check mark whether NAI is a shell company (as defined in Rule 12b-2 of the Exchange Act): ☐ Yes ☑ No

The aggregate market value of NAI's common stock held by non-affiliates of NAI as of the last business day of NAI's most recently completed second fiscal quarter (December 31, 2021) was approximately $63,775,000 (based on the closing sale price of $12.65 reported by Nasdaq on December 31, 2021).

As of September 21, 2022, 6,090,205 shares of NAI's common stock were outstanding, net of 3,101,201 treasury shares.

## DOCUMENTS INCORPORATED BY REFERENCE

Part III (Items 10, 11, 12, 13 and 14) of this Form 10-K incorporates by reference portions of NAI's definitive proxy statement, to be filed on or before October 28, 2022, for its Annual Meeting of Stockholders to be held December 2, 2022.

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