# Chairman's Letter

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-defensive-packaged-foods/NASDAQ_NAII_2021/NASDAQ_NAII_2021.mmd` · pages 2-8_

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Chairman's Letter to Stockholders

Dear Stockholders,

To suggest that the fiscal year concluded June 30, of 2021, was abnormal would be an understatement. At the beginning of the year the world found itself in the throes of a global pandemic, struggling for answers against a threat that embodies a 'black-swan' event. Mercifully, our company retained its status as an essential business, which allowed our global operations to continue, even in the face of significant concerns for the welfare of our team members, their families and our customers. The efforts of our heroic employees, vendors and logistic suppliers were nothing short of amazing. During fiscal 2021 NAI experienced a 50% year over year growth in sales and resulting record profits.

Notwithstanding the challenges presented in the past year, some of which remain in the areas of supply chain disruption, and our need for continued increases in human resources, we continue to make bold efforts preparing for what we believe is a very bright future. Our new 54,000 square foot facility in Carlsbad, California is being retrofitted to create a dedicated high-volume, high-quality powder blending and packaging facility, and is anticipated to be fully operational by the summer of 2022. Our investment in state-of-the-art production equipment continues with the installation of a new high capacity blender for our Vista California manufacturing facility, which should be fully operational by early January of 2022, further bolstering our throughput capacity. Packaged powder delivery systems of high-quality whole food based nutrient rich protein and meal replacements are enjoying sustained growth in the industry, and as this segment grows, NAII intends to be well positioned to capture relevant market share.

As Fiscal Year 2022 represents our 42 \( ^{nd} \)  year of continuous operations, we are excited with the positive momentum garnered throughout the past 18 months. Clearly consumers have endorsed the expanded use of properly made dietary supplements as part of their daily food choices and the science has supported this direction every step of the way. We believe the entire COVID-19 experience resulted in consumers globally becoming more educated and taking greater personal control over their health and well-being. We see no signs of this trend decelerating.

With the growth of our business, both in capacity and dosage forms, we are focusing on client and channel diversification. With our facilities around the world receiving the highest regulatory licensure, major players in the food and beverage industry are being added to our esteemed roster of clients, and our products are finding their way into the global supply chain at an expanding rate. Maintaining the financial discipline to make long-term decisions that generate appropriate returns on investment while fortifying our balance sheet has placed this firm in an enviable position. Having these financial resources available to us allows us to meet the dynamic service demands of new and existing customers while permitting us to also make strategic investments.

Our CarnoSyn \( ^{\circledR} \)  beta-alanine portfolio recovered during fiscal 2021 from the negative impacts of COVID-19 gym closures. We believe this channel will stabilize for us and return to pre-pandemic levels in fiscal 2022. We are also working diligently on commercialization of patent-protected sustained release forms of SR CarnoSyn \( ^{\circledR} \)  where we believe there is significant opportunity in the rapidly growing healthy aging and wellness marketplace. Market research has indicated to us that this channel is larger in scope and size than the sports nutrition channel where our instant release CarnoSyn \( ^{\circledR} \)  has enjoyed such great success.

In the face of various economic and logistical headwinds we continue to work diligently to resolve supply concerns and build appropriate safety-stocks whenever available, so as to remain well positioned to support our customers. We remain committed to leading the responsible members of our industry while enriching the world with the best of nutrition.

We thank you for your continued support of our worthy endeavors.

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, 2021
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 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, 2020) was approximately \(50,488,386 (based on the closing sale price of \)10.59 reported by Nasdaq on December 31, 2020).

As of September 17, 2021, 6,434,902 shares of NAI's common stock were outstanding, net of 2,569,463 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, 2021, for its Annual Meeting of Stockholders to be held December 3, 2021.

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