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

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

March 2016,

the

FASB issued Accounting Standards Update

No.

2016

02,

Leases (Topic

842

) (ASU

2016

), which amends existing standards for leases to increase transparency and comparability among organizations by requiring recognition of lease assets and liabilities on the balance sheet and requiring disclosure of key information about such arrangements. ASU

2016

will be effective for us beginning in our

first

quarter of fiscal

2020.

Early adoption is permitted. We are currently evaluating the impact of adopting the new standard on our consolidated financial statements and the timing and presentation of our adoption.

March 2016,

the FASB issued Accounting Standards Update

No.

2016

09,

Compensation-Stock Compensation (Topic

718

) (ASU

2016

), which provides guidance improvements to employee share-based payment accounting. The standard amends several aspects of current employee share-based payment accounting including income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU

2016

will be effective for us beginning in our

first

quarter of fiscal

2018.

We do

not

expect the new standard to have a material impact on our consolidated financial statements.

April 2016

, the FASB issued Accounting Standards Update

No.

2016

10,

Revenue from Contracts with Customers (Topic

606

)(ASU

2016

), which amends and adds clarity to certain aspects of the guidance set forth in the upcoming revenue standard (ASU

2014

) related to identifying performance obligations and licensing. In

May 2016,

the FASB issued Accounting Standards Update

No.

2016

11,

Revenue Recognition (Topic

605

) and Derivatives and Hedging (Topic

815

) (ASU

2016

), which amends and rescinds certain revenue recognition guidance previously released within ASU

2014

09.

May 2016

the FASB issued Accounting Standards Update

No.

2016

12,

Revenue from Contracts with Customers (Topic

606

) (ASU

2016

), which provides narrow scope improvements and practical expedients related to ASU

2014

09.

ASU

2014

defines a

five

step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates

may

be required within the revenue recognition process than is required under present U.S. GAAP. These

may

include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments.

All of these new standards will be effective for us concurrently with ASU

2014

09,

beginning in our

first

quarter of fiscal

2019.

Early adoption is

not

permitted.

Currently, w

e do

not

expect our annual revenue to be materially

different under Topic

606.

The most significant change will be to our quarterly and annual financial statement disclosures. We are continuing to evaluate the impact of adopting the new standard.

August

2017,

the FASB issued ASU

2017

12,

Derivatives and Hedging (Topic

815

): Targeted Improvements to Accounting for Hedging Activities. The ASU is intended to improve and simplify accounting rules around hedge accounting and improve the disclosures of hedging arrangements.

We are currently evaluating the impact of adopting the new standard on our consolidated financial statements. ASU

2017

will be effective for us beginning in our

first

quarter of fiscal

2020.

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

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

assets. Fair values determined by Level

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

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 techniqu

es that use significant unobservable inputs.

As of

June 30,

2017

and

June 30, 2016,

we did

not

have any financial assets or liabilities classified as Level

except for assets and liabilities related to our pension plan. We classify derivative forward exchange contracts as Level

assets and liabilities. The fair value of our forward exchange contracts as of

June 30, 2017

was a net liability of

$521,000

and the value as of

June

30,

2016

was a net asset of

$250,000.

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,

2017

and

June

30,

2016,

we did

not

have any financial assets or liabilities classified as Level

We did

not

transfer any assets or liabilities between any levels during fiscal

2017.

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

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.

We did

not

recognize any impairment losses during fiscal

2017

or fiscal

2016.

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,

2017,

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,

2017,

the notional amounts of our foreign exchange contracts were

$26.1

million (EUR

23.1

million). These contracts will mature over the next

months.

Defined Benefit Pension Plan

formerly sponsored 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:

) there is evidence that an arrangement exists;

) delivery has occurred;

) the fee is fixed or determinable; and

) 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 beta-alanine raw material sales. The estimated returns are based on the trailing

six

months of gross sales and our historical experience for both private-label contract manufacturing and beta-alanine raw material 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 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® and SR CarnoSyn® trade names.

We recorded beta-alanine raw material sales and royalty and licensing income as a component of revenue in the amount of

$26.9

million during fiscal

2017

and

$21.8

million during fiscal

2016.

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

$1.0

million during fiscal

2017

and

$865,000

during fiscal

2016.

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

were

$1.6

million for fiscal

2017

and

$1.1

million for fiscal

2016.

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 $

598,000

during the fiscal year ended

June

30,

2017

and

$334,000

during fiscal

2016.

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.

For each of the jurisdictions in which we operate, deferred tax assets and liabilities are measured using enacted tax rates 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,

2017

and

June

30,

2016,

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

. There was

change in the valuation allowance during fiscal

2017.

During the

fourth

quarter of fiscal

2016,

we concluded that it was more likely than

not

that we would be able to realize the benefit of our federal and state deferred tax assets in the future. We based this conclusion on historical and projected operating performance, as well as our expectation that our operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As a result, we reduced the valuation allowance on our net deferred tax assets by

$193,000

June 30,

2016.

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.

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

2009

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

vesting restrictions and are fully transferable. Option valuation models require the use 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

2017

2016.

We did

not

have any options exercised during fiscal

2017

or fiscal

2016.

All remaining outstanding stock options are fully vested and all related compensation cost was fully recognized at

June

30,

2014.

options vested during the fiscal years ended

June 30, 2017

and

June 30, 2016.

During fiscal

2017,

we granted a total of

155,000

restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to the

2009

Plan. During fiscal

2016,

we granted a total of

208,000

restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to the

2009

Plan. These restricted stock grants will vest over

three

five

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

319,335

vested restricted stock shares as of

June 30, 2017

and there were

193,012

vested restricted stock shares as of

June 30, 2016.

The total remaining unrecognized compensation cost related to unvested restricted stock shares amounted to

$2.5

million at

June 30, 2017

and the weighted average remaining requisite service period of unvested restricted stock shares was

2.4

years. The weighted average fair value of restricted stock shares granted during fiscal

2017

was

$8.82

per share. The weighted average fair value of restricted stock shares granted during fiscal

2016

was

$9.86

per share.

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.

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,
	201 7		201 6
Numerator
Net income	$	7,235	$	9,546
Denominator
Basic weighted average common shares outstanding		6,577		6,524
Dilutive effect of stock opt ions and restricted stock shares		79		117
Diluted weighted average common shares outstanding		6,656		6,641
Basic net income per common share	$	1.10	$	1.46
Diluted net income per common share	$	1.09	$	1.44

shares related to stock options were excluded for the

year ended

June 30, 2017.

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

three

largest customers, whose receivable balances collectively represented

65.6%

of gross accounts receivable at

June

30,

2017

and

58.7%

June

30,

2016.

Additionally, amounts due related to our beta-alanine raw material sales were

21.3%

of gross accounts receivable at

June 30, 2017,

and

14.6%

of gross accounts receivable at

June 30, 2016.

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 C - Property and Equipment

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment Disclosure [Text Block]

. Property and Equipment

Property and equipment consisted of the following at

June

(dollars in thousands):

	Depreciable Life In Years				201 7			201 6
Land			NA		$	1,200		$	1,200
Building and building improvements		7	–	39		3,706			3,324
Machinery and equipment		3	–	12		24,194			23,846
Office equipment and furniture		3	–	5		3,954			2,994
Vehicles			3			209			209
Leasehold improvements		1	–	15		17,038			15,261
Total property and equipment						50,301			46,834
Less: accumulated depreciation and amortization						(32,165	)		(31,667	)
Property and equipment, net					$	18,136		$	15,167

Depreciation expense was approximately

$2.3

million in fiscal

2017

and

$1.8

million in fiscal

2016.

Note D - Other Comprehensive Loss

12 Months Ended

Jun. 30, 2017

Comprehensive Income (Loss) Note [Text Block]

. Other comprehensive loss

Other comprehensive (loss) income (“OCL” and “OCI”) consisted of the following at

June

(dollars in thousands):

	Year Ended June 30, 201 7
	Defined Benefit Pension Plan			Unrealized Gains ( Losses ) on Cash Flow Hedges			Total

Balance as of June 30, 201 6	$	(775	)	$	95		$	(680	)

OCI/OCL before reclassifications		271			(110)			161
Amounts reclassified from OCI		175			(685	)		(510	)

Tax effect of OCI activity		(162	)		286			124
Net current period OCI/OCL		284			(509	)		(225	)
Balance as of June 30, 201 7	$	(491	)	$	(414	)	$	(905	)

	Year Ended June 30, 201 6
	Defined Benefit Pension Plan			Unrealized ( Losses ) Gains on Cash Flow Hedges			Total

Balance as of June 30, 2015	$	(643	)	$	(123	)	$	(766	)

OCI/OCL before reclassifications		(232	)		414			182
Amounts reclassified from OCI		19			(74	)		(55	)

Tax effect of OCI activity		81			(122	)		(41	)
Net current period OCI/OCL		(132	)		218			86
Balance as of June 30, 2016	$	(775	)	$	95		$	(680	)

Note E - Debt	12 Months Ended
Note E - Debt	Jun. 30, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	E . Debt On March 28, 2017, we executed an amendment to our credit facility with Wells Fargo Bank, N.A . to extend the maturity for our working line of credit from January 31, 2019, to February 1, 2020. The Credit Agreement provides us with a credit line of up to $10.0 million. The line of credit may be used to finance working capital requirements. There was no commitment fee required as part of this agreement. There are no amounts currently drawn under the line of credit. Under the terms of the Credit Agreement, borrowings are subject to eligibility requirements includ ing maintaining (i) a ratio of total liabilities to tangible net worth of not greater than 1.25 to 1.0 at any time; and (ii) a ratio of total current assets to total current liabilities of not less than 1.75 to 1.0 at each fiscal quarter end. 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 1.25% 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 1.25% 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 the maturity date. 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 January 31, 2019, and with Bank of America, N.A. in effect until August 15, 2019. On June 30, 2017, we were in compliance with all of the financial and other covenants required under the Credit Agreement. Our wholly owned subsidiary, NAIE, formerly had a credit facility with Credit Suisse that would provide NAIE with a credit line of up to CHF 500,000, or approximately $ 522,000. We terminated this line of credit in December 2016 as we determined that it was unnecessary as we believe our current cash position and ongoing cash from operations are sufficient to support our cash requirements . 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, 2017. As of June 30, 2017, we had $10.0 million available under our credit facilities.

Note F - Income Taxes

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Text Block]

Income Taxes

During fiscal

201

we recorded U.S.-based domestic tax expense of

$2.2

million. During fiscal

2016,

we recorded U.S.-based domestic tax expense of

$3.6

million on U.S.-based income, which was offset by the release of our deferred tax asset valuation of

$193,000

resulting in a net domestic tax expense of

$3.4

million. The release of our deferred tax asset valuation was based on historical and projected operating performance, as well as our expectation that our operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. The valuation allowance activity did

not

have any impact on the tax expense and related liability recorded for operating income recognized by NAIE during the years ended

June

30,

2017

June

30,

2016.

The provision for income taxes for the years

ended

June

consisted of the following (in thousands):

	201 7		2016
Current:
Federal	$	1,791	$	3,339
State		90		138
Foreign		646		629
Total current		2,527		4,106
Deferred:
Federal		305		46
State		44		67
Valuation allowance		—		(193	)
Total deferred		349		(80	)
Total provision for income taxes	$	2,876	$	4,026

Net deferred tax assets and deferred tax

liabilities as of

June

were as follows (in thousands):

	201 7			2016
Deferred tax assets:
Inventory capitalization	$	438		$	576
Inventory reserves		178			103
Pension liability		241			403
Accrued bonus		114			391
Net operating loss carry forward		240			298
Deferred rent		193			175
Accumulated depreciation and amortization		8			158
Stock-based compensation		195			154
Tax credit carry forward		176			138
Accrued vacation expense		111			130
Other, net		256			15
Total gross deferred tax assets		2,150			2,541

Deferred tax liabilities:
Prepaid expenses		(148	)		(260	)
Other, net		—			(54	)
Deferred tax liabilities		(148	)		(314	)
Valuation allowance		—			—
Net deferred tax assets	$	2,002		$	2,227

June

30,

2017,

we had state tax net operating loss carry forwards of approximately

$4.1

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

2032,

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,

2017

and

June

30,

2016.

We are subject to taxation in the U.S., Switzerland and various state jurisdictions. Our tax years for the fiscal year ended

June

30,

2014

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,

2015

and forward are subject to examination by the Switzerland tax authorities.

NAIE

’s effective tax rate for Swiss federal, cantonal and communal taxes is approximately

17.5%.

NAIE had net income of

$3.1

million for the fiscal year ended

June

30,

2017.

Undistributed earnings of NAIE amounted to approximately

$20.9

million at

June

30,

2017.

These earnings are considered to be indefinitely reinvested and, accordingly,

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

is as follows (dollars in thousands):

	2017			2016
Income taxes computed at statutory federal income tax rate	$	3,438		$	4,614
State income taxes, net of federal income tax expense		95			179
Expenses not deductible for tax purposes		29			19
Foreign tax rate differential		(613	)		(514	)
Adjust state deferred due to change in apportionment		6			(18	)
Change in valuation allowance		—			(193	)
Other, net		(79	)		(61	)
Income tax provision as reported	$	2,876		$	4,026
Effective tax rate		28.4	%		29.7	%

Note G - Employee Benefit Plans

12 Months Ended

Jun. 30, 2017

Pension and Other Postretirement Benefits Disclosure [Text Block]

. 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

2004,

the plan was amended to require that we match

100%

of the

first

and

50%

of the next

of a participant’s compensation contributed to the plan. Effective

January

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

$248,000

for fiscal

2017

and

$229,000

for fiscal

2016.

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

$1.0

million for the fiscal year ended

June

30,

2017

and

$847,000

for the fiscal year ended

June 30, 2016.

formerly sponsored 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

(in thousands):

	2017			2016
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	2,329		$	2,080
Interest cost		70			87
Actuarial (gain) loss		(189	)		272
Benefits paid		(406	)		(110	)
Benefit obligation at end of year	$	1,804		$	2,329
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	1,571		$	1,642
Actual return on plan assets		117			74
Benefits paid		(406	)		(112	)
Plan expenses		(35	)		(33	)
Fair value of plan assets at end of year	$	1,247		$	1,571
Reconciliation of Funded Status:
Difference between benefit obligation and fair value of plan assets	$	(557	)	$	(758	)
Unrecognized net actuarial loss in accumulated other comprehensive income		671			1,117
Net amount recognized	$	114		$	359
Projected benefit obligation	$	1,804		$	2,329
Accumulated benefit obligation	$	1,804		$	2,329
Fair value of plan assets	$	1,247		$	1,571

The weighted-average discount rate used for determining the projected benefit obligations for the defined benefit pension plan

was

3.9%

for the year ended

June 30, 2017

and

3.6%

during the year ended

June

30,

2016.

Net Periodic Benefit Cost

The components included in the defined benefit pension plan

’s net periodic benefit expense for the fiscal years ended

June

were as follows (in thousands):

	201 7			201 6
Interest cost	$	70		$	87
Expected return on plan assets		(74	)		(105	)
Recognized actuarial loss		93			68
Settlement loss		155			55
Net periodic benefit expense	$	244		$	105

did

not

make any contributions to our defined benefit pension plan in fiscal

2017

and do

not

expect to make any contributions in fiscal

2018.

The following is a summary of changes in plan assets and benefit obligations recognized in other comprehensive income (in thousands):

	201 7			2016
Net (gain) loss	$	(233	)	$	304
Settlement loss		(155	)		(55	)
Amortization of net loss		(93	)		(68	)
Plan expenses		35			32
Total recognized in other comprehensive income (loss)	$	(446	)	$	213
Total recognized in net periodic benefit cost and other comprehensive income	$	(202)		$	318

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

$38,000.

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):

2018	$	45
2019		65
2020		103
2021		114
2022		113
2023 -2027		650
Total benefit payments expected to be paid	$	1,090

The weighted-average rates used for the years ended

June

in determining the defined benefit pension plan’s net pension costs, were as follows:

	201 7			201 6
Discount rate		3.87	%		3.61	%
Expected long-term rate of return		6.5	%		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

and weighted average target allocation were as follows:

	201 7			201 6			Target Allocation
Equity securities		41	%		50	%		49	%
Debt securities		44	%		47	%		46	%
Commodities		2	%		—			2	%
Cash and money market funds		13	%		3	%		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,

2017

were as follows (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and money market funds	$	157	$	157	$	—	$	—
Commodities and other	$	27	$	27	$	—	$	—
Equity securities (1)	$	517	$	517	$	—	$	—
Debt securities (2)	$	546	$	546	$	—	$	—
Total	$	1,247	$	1,247	$	—	$	—

(

)

This category is comprised of publicly traded funds, of which

26%

are large-cap funds,

46%

are mid-cap and small-cap,

17%

are developed market funds,

10%

are emerging markets equity funds, and

are specialty funds.

(

)

This category is comprised of publicly traded funds, of

which

28%

are REITs,

25%

are high-yield fixed income funds,

24%

are U.S. fixed income funds,

12%

are developed market fixed income funds, and

11%

are international/emerging markets funds.

Note H - Stockholders' Equity

12 Months Ended

Jun. 30, 2017

Stockholders' Equity Note Disclosure [Text Block]

. Stockholders’ Equity

Treasury Stock

June

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. On

March 28, 2017,

the Board of Directors authorized a

$2.0

million increase to our stock repurchase plan bringing the total authorized repurchase amount to

$7.0

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.

During the

twelve

months ended

June 30, 2017,

we purchased

39,547

shares at a weighted average cost of $

8.74

per share and a total cost of

$345,000

including commissions and fees. During the

twelve

months ended

June 30, 2016,

we purchased

52,603

shares at a weighted average cost of

$6.26

per share and a total cost of

$329,000

including commissions and fees.

During fiscal

2017,

we acquired

38,729

shares in connection with restricted stock shares that vested during that year at a weighted

average cost of

$9.47

per share and a total cost of

$367,000

. During fiscal

2016

we acquired

27,195

shares from employees in connection with restricted stock shares that vested during the year

at a weighted average cost of

$11.70

per share and a total cost of

$319,000

. 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 number of shares returned to the Company was calculated based on the closing share price on the date the shares vested.

Stock

Option Plans

Effective as of

October

15,

2009,

our Board of Directors approved the

2009

Plan. The

2009

Plan was approved by our stockholders at the Annual Meeting of Stockholders held on

November

30,

2009.

Under the

2009

Plan, we

may

grant nonqualified and incentive stock options and other stock-based awards to employees, non-employee directors and consultants. Between

October 15, 2009,

and

June

30,

2017,

a total of

1.2

million shares of common stock have been authorized under the

2009

Plan for issuance to our employees, non-employee directors and consultants. As of

June 30, 2017,

there were

389,000

remaining shares available for grant under the

2009

Plan.

Stock option activity for the year

ended

June

30,

2017

was as follows:

	2009 Plan		Weighted Average Exercise Price		Weighted Average Contractual Term (in years)		Aggregate Intrinsic Value
Vested and exercisable at June 30, 2016		140,000	$	6.36
Exercised		—	$	—
Forfeited		—	$	—
Granted		—	$	—
Outstanding at June 30, 2017		140,000	$	6.36		3.58	$	502,000
Vested and exercisable at June 30, 2017		140,000	$	6.36		3.58	$	502,000

Restricted stock activity for the year ended

June 30,

2017

was as follows (

2009

Plan):

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at June 30, 2016		310,321		$	8.43
Granted		155,000		$	8.82
Vested		(126,323	)	$	7.77
Forfeited		(8,333	)	$	9.96
Nonvested at June 30, 2017		330,665		$	8.83

Note I - Commitments

12 Months Ended

Jun. 30, 2017

Commitments Disclosure [Text Block]

. 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 through

March 2024.

During

February 2016,

we sold our former corporate headquarters in San Marcos, CA and the property was leased though a sale

-leaseback agreement through

August 2016.

The property was vacated during

August 2016.

We purchased the Carlsbad facility in

March 2016

and began to occupy as our new corporate headquarters during

August 2016.

NAIE leases facility space in Manno, Switzerland.

The leased space totals approximately

94,217

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,

2017

(in thousands):

		2018				2019				2020				2021				2022				There- after				Total
Gross minimum rental commitments		$	2,816			$	2,812			$	1,394			$	1,429			$	1,092			$	3,022			$	12,565

Rental expense totaled $

3.0

million for the fiscal year ended

June

30,

2017

and

$3.1

million for the fiscal year ended

June 30, 2016.

Note J - Economic Dependency

12 Months Ended

Jun. 30, 2017

Concentration Risk Disclosure [Text Block]

. Economic Dependency

We had substantial net sales to certain customers during the fiscal years ended

June

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 consolidated net sales were as follows (dollars in thousands):

	Fiscal 2017		Fiscal 2016
Customer 1	$	60,532	$	49,442
Customer 2	(a)			13,952
	$	60,532	$	63,394

(a)

Sales were less than

10%

of the respective period

’s consolidated net sales.

Accounts receivable from these

customers totaled

$1.5

million at

June

30,

2017

and

$8.1

million at

June

30,

2016.

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.

Raw material purchases from any

one

supplier representing

10%

or more of the respective period’s total raw material purchases were as follows (dollars in thousands):

	Year ended June 30 ,
	201 7					201 6
	Raw Material Purchases by Supplier		% of Total Raw Material Purchases			Raw Material Purchases by Supplier	% of Total Raw Material Purchases
Supplier 1	$	6,694		12	%	(a)	(a)
	$	6,694		12	%	(a)	(a)

(a)

Purchases were less than

10%

of the respective period’s total raw material purchases.

Note K - Derivatives and Hedging	12 Months Ended
Note K - Derivatives and Hedging	Jun. 30, 2017
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, 2017 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 2018. 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 income or 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, 2017, we recorded a $189,000 gain related to the ineffective portion of our hedging instruments to other income. We did not have any losses or gains related to the ineffective portion of our hedging instruments during the year ended June 30, 2016. 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, 2017, the notional amounts of our foreign exchange contracts were $26.1 million (EUR 23.1 million). As of June 30, 2017, a net liability of approximately $646,000, offset by $232,000 of deferred taxes, related to derivative instruments designated as cash flow hedges was recorded in OCI. As of June 30, 2016, a net asset of approximately $149,000, offset by $54,000 of deferred taxes, related to derivative instruments designated as cash flow hedges was recorded in OCI. It is expected that $541,000 of the gross loss, as of June 30, 2017, will be reclassified into earnings in the next 12 months along with the earnings effects of the related forecasted transactions. As of June 30, 2017, $422,000 of the fair value of our cash flow hedges was classified in accrued liabilities, and $99,000 was classified other noncurrent liabilities, net in our Consolidated Balance Sheets. During the year ended June 30, 2017, we recognized $110,000 of losses in OCI and reclassified $685,000 of gains from OCI to revenue. During the year ended June 30, 2016, we recognized $414,000 of losses in OCI and reclassified $74,000 of gains from OCI to revenue.

Note L - Contingencies	12 Months Ended
Note L - Contingencies	Jun. 30, 2017
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 operations. However, a settlement payment or unfavorable outcome could adversely impact our results of operations. 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.

Note M - Segment Information

12 Months Ended

Jun. 30, 2017

Segment Reporting Disclosure [Text Block]

. Segment Information

Our business consists of

two

segments for financial reporting purposes. The

two

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, and (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 CarnoSyn® trade name.

We evaluate performance based on a number of factors. The primary perf

ormance 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. Transfers of raw materials between segments are recorded at cost.

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

were as follows (in thousands):

	201 7		201 6
Net Sales
Private-label contract manufacturing	$	95,024	$	92,420
Patent and trademark licensing		26,922		21,781
Total net sales	$	121,946	$	114,201

	201 7			201 6
Income from Operations
Private-label contract manufacturing	$	8,569		$	12,184
Patent and trademark licensing		7,534			6,153
Income from operations of reportable segments		16,103			18,337
Corporate expenses not allocated to segments		(6,401	)		(6,079	)
Total income from operations	$	9,702		$	12,258

	201 7		201 6
Assets
Private-label contract manufacturing	$	60,489	$	66,375
Patent and trademark licensing		12,122		7,800
Total assets	$	72,611	$	74,175

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.

Net sales by geographic region, based on the customers

’ location, for the

two

years ended

June

were as follows (in thousands):

	201 7		201 6
United States	$	63,104	$	50,575
Markets outside the United States		58,842		63,626
Total net sale	$	121,946	$	114,201

Products manufactured by NAIE accounted for

59%

of consolidated net sales in markets outside the U.S. in fiscal

2017

and

61%

in fiscal

2016.

products manufactured by NAIE were sold in the U.S. during the fiscal years ended

June

30,

2017

and

2016.

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

were as follows (in thousands):

201 7	Long-Lived Assets		Total Assets		Capital Expenditures
United States	$	10,753	$	47,777	$	2,365
Europe		7,383		24,834		2,989
	$	18,136	$	72,611	$	5,354

201 6	Long-Lived Assets		Total Assets		Capital Expenditures
United States	$	9,678	$	49,755	$	6,423
Europe		5,489		24,420		4,018
	$	15,167	$	74,175	$	10,441

Note N - Subsequent Events	12 Months Ended
Note N - Subsequent Events	Jun. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	N . Subsequent Events On August 7, 2017, we entered into three agreements (“Agreements”), with The Juice Plus+ Company LLC (“Juice Plus+”). The Agreements are an Exclusive Manufacturing Agreement, a Restricted Stock Award Agreement, and an Irrevocable Proxy. Pursuant to the Exclusive Manufacturing Agreement Juice Plus+ has granted us exclusive rights to manufacture and supply Juice Plus+ with certain Juice Plus+ products within 24 countries that Juice Plus+ currently sells those products. Pursuant to the Restricted Stock Award Agreement, NAI has agreed to grant 500,000 shares of NAI common stock to Juice Plus+, (the “Shares”), and Juice Plus+ has agreed the Shares are subject to certain restrictions and risk of forfeiture. Pursuant to the Irrevocable Proxy, Juice Plus+ has granted to the NAI Board of Directors Juice Plus+ ’s right to vote the Shares as long as they are subject to the associated risk of forfeiture. The Agreements are for a term of 5 years, and may be terminated by either party only on the occurrence of specified events. On July 3, 2017, we purchased 24 forward contracts designated and effective as cash flow hedges to protect against the foreign currency exchange risk inherent in a portion of our forecasted sales transactions denominated in Euros. The 24 contracts expire monthly beginning September 2017 and ending August 2019. The forward contracts had a notional amount of 26.2 million Euros and a weighted average forward rate of $1.16. On August 4, 2017 , we purchased 11 forward contracts designated and effective as cash flow hedges to protect against the foreign currency exchange risk inherent in a portion of our forecasted sales transactions denominated in Euros. The 11 contracts expire monthly beginning October 2017 and ending August 2018. The forward contracts had a notional amount of 12.5 million Euros and a weighted average forward rate of $1.18.

Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]

Subsidiaries

January

22,

1999,

Natural Alternatives International Europe S.A. (NAIE) was formed as our wholly owned subsidiary, based in Manno, Switzerland. In

September 1999,

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

with gains and losses included in the consolidated statements of operations.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

March 2016,

the

FASB issued Accounting Standards Update

No.

2016

02,

Leases (Topic

842

) (ASU

2016

will be effective for us beginning in our

first

quarter of fiscal

2020.

Early adoption is permitted. We are currently evaluating the impact of adopting the new standard on our consolidated financial statements and the timing and presentation of our adoption.

March 2016,

the FASB issued Accounting Standards Update

No.

2016

09,

Compensation-Stock Compensation (Topic

718

) (ASU

2016

will be effective for us beginning in our

first

quarter of fiscal

2018.

We do

not

expect the new standard to have a material impact on our consolidated financial statements.

April 2016

, the FASB issued Accounting Standards Update

No.

2016

10,

Revenue from Contracts with Customers (Topic

606

)(ASU

2016

), which amends and adds clarity to certain aspects of the guidance set forth in the upcoming revenue standard (ASU

2014

) related to identifying performance obligations and licensing. In

May 2016,

the FASB issued Accounting Standards Update

No.

2016

11,

Revenue Recognition (Topic

605

) and Derivatives and Hedging (Topic

815

) (ASU

2016

), which amends and rescinds certain revenue recognition guidance previously released within ASU

2014

09.

May 2016

the FASB issued Accounting Standards Update

No.

2016

12,

Revenue from Contracts with Customers (Topic

606

) (ASU

2016

), which provides narrow scope improvements and practical expedients related to ASU

2014

09.

ASU

2014

defines a

five

step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates

may

be required within the revenue recognition process than is required under present U.S. GAAP. These

may

All of these new standards will be effective for us concurrently with ASU

2014

09,

beginning in our

first

quarter of fiscal

2019.

Early adoption is

not

permitted.

Currently, w

e do

not

expect our annual revenue to be materially

different under Topic

606.

The most significant change will be to our quarterly and annual financial statement disclosures. We are continuing to evaluate the impact of adopting the new standard.

August

2017,

the FASB issued ASU

2017

12,

Derivatives and Hedging (Topic

815

We are currently evaluating the impact of adopting the new standard on our consolidated financial statements. ASU

2017

will be effective for us beginning in our

first

quarter of fiscal

2020.

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

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

The fair value hierarchy is broken down into

three

levels based on the source of inputs. In general, fair values determined by Level

assets. Fair values determined by Level

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

es that use significant unobservable inputs.

As of

June 30,

2017

and

June 30, 2016,

we did

not

have any financial assets or liabilities classified as Level

except for assets and liabilities related to our pension plan. We classify derivative forward exchange contracts as Level

assets and liabilities. The fair value of our forward exchange contracts as of

June 30, 2017

was a net liability of

$521,000

and the value as of

June

30,

2016

was a net asset of

$250,000.

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,

2017

and

June

30,

2016,

we did

not

have any financial assets or liabilities classified as Level

We did

not

transfer any assets or liabilities between any levels during fiscal

2017.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts

Receivable

Inventory, Policy [Policy Text Block]

Inventories

may

subsequently be rescheduled or canceled at the customer

’s request. We value inventory at the lower of cost (

first

-in,

first

not

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

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

We did

not

recognize any impairment losses during fiscal

2017

or fiscal

2016.

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

not

meet the criteria for the deferral method are marked-to-market through the Consolidated Statements of Operations and Comprehensive Income.

June

30,

2017,

June

30,

2017,

the notional amounts of our foreign exchange contracts were

$26.1

million (EUR

23.1

million). These contracts will mature over the next

months.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Defined Benefit Pension Plan

formerly sponsored a defined benefit pension plan. Effective

June

21,

1999,

third

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

To recognize revenue

four

basic criteria must be met:

) there is evidence that an arrangement exists;

) delivery has occurred;

) the fee is fixed or determinable; and

not

contingent on resale of the product; (c) the buyer’s obligation to the seller would

not

We record reductions to gross revenue for estimated returns of

private-label contract manufacturing products and beta-alanine raw material sales. The estimated returns are based on the trailing

six

months of gross sales and our historical experience for both private-label contract manufacturing and beta-alanine raw material 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 currently own certain U.S. patents, and each patent

We recorded beta-alanine raw material sales and royalty and licensing income as a component of revenue in the amount of

$26.9

million during fiscal

2017

and

$21.8

million during fiscal

2016.

$1.0

million during fiscal

2017

and

$865,000

during fiscal

2016.

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.

Research and development costs are expensed when incurred. Our research and development expenses for the last

two

fiscal years ended

June

were

$1.6

million for fiscal

2017

and

$1.1

million for fiscal

2016.

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 $

598,000

during the fiscal year ended

June

30,

2017

and

$334,000

during fiscal

2016.

These costs were included in selling, general and administrative expenses.

Income Tax, Policy [Policy Text Block]

Income Taxes

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,

2017

and

June

30,

2016,

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

that we will

not

In assessing the realizability of deferred tax assets, management considers whether it is more likely than

not

. There was

change in the valuation allowance during fiscal

2017.

During the

fourth

quarter of fiscal

2016,

we concluded that it was more likely than

not

$193,000

June 30,

2016.

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.

We do

not

record U.S. income tax expense for

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

2009

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

not

The Company did

not

grant any options during fiscal

2017

2016.

We did

not

have any options exercised during fiscal

2017

or fiscal

2016.

All remaining outstanding stock options are fully vested and all related compensation cost was fully recognized at

June

30,

2014.

options vested during the fiscal years ended

June 30, 2017

and

June 30, 2016.

During fiscal

2017,

we granted a total of

155,000

restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to the

2009

Plan. During fiscal

2016,

we granted a total of

208,000

restricted stock shares to the members of our Board of Directors and certain key members of our management team pursuant to the

2009

Plan. These restricted stock grants will vest over

three

five

319,335

vested restricted stock shares as of

June 30, 2017

and there were

193,012

vested restricted stock shares as of

June 30, 2016.

The total remaining unrecognized compensation cost related to unvested restricted stock shares amounted to

$2.5

million at

June 30, 2017

and the weighted average remaining requisite service period of unvested restricted stock shares was

2.4

years. The weighted average fair value of restricted stock shares granted during fiscal

2017

was

$8.82

per share. The weighted average fair value of restricted stock shares granted during fiscal

2016

was

$9.86

per share.

Use of Estimates, Policy [Policy Text Block]

Use of

Estimates

Earnings Per Share, Policy [Policy Text Block]

Net Income per Common Share

calculated basic and diluted net income per common share as follows (in thousands, except per share data):

	For the Years Ended June 30,
	201 7		201 6
Numerator
Net income	$	7,235	$	9,546
Denominator
Basic weighted average common shares outstanding		6,577		6,524
Dilutive effect of stock opt ions and restricted stock shares		79		117
Diluted weighted average common shares outstanding		6,656		6,641
Basic net income per common share	$	1.10	$	1.46
Diluted net income per common share	$	1.09	$	1.44

shares related to stock options were excluded for the

year ended

June 30, 2017.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

our

three

largest customers, whose receivable balances collectively represented

65.6%

of gross accounts receivable at

June

30,

2017

and

58.7%

June

30,

2016.

Additionally, amounts due related to our beta-alanine raw material sales were

21.3%

of gross accounts receivable at

June 30, 2017,

and

14.6%

of gross accounts receivable at

June 30, 2016.

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 B - Inventories (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Inventory, Current [Table Text Block]

	201 7			2016
Raw materials	$	9,469		$	14,751
Work in progress		1,312			3,487
Finished goods		3,562			2,832
Reserve		(614	)		(302	)
Total inventories	$	13,729		$	20,768

Note C - Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Table Text Block]

	Depreciable Life In Years				201 7			201 6
Land			NA		$	1,200		$	1,200
Building and building improvements		7	–	39		3,706			3,324
Machinery and equipment		3	–	12		24,194			23,846
Office equipment and furniture		3	–	5		3,954			2,994
Vehicles			3			209			209
Leasehold improvements		1	–	15		17,038			15,261
Total property and equipment						50,301			46,834
Less: accumulated depreciation and amortization						(32,165	)		(31,667	)
Property and equipment, net					$	18,136		$	15,167

Note F - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	201 7		2016
Current:
Federal	$	1,791	$	3,339
State		90		138
Foreign		646		629
Total current		2,527		4,106
Deferred:
Federal		305		46
State		44		67
Valuation allowance		—		(193	)
Total deferred		349		(80	)
Total provision for income taxes	$	2,876	$	4,026

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	201 7			2016
Deferred tax assets:
Inventory capitalization	$	438		$	576
Inventory reserves		178			103
Pension liability		241			403
Accrued bonus		114			391
Net operating loss carry forward		240			298
Deferred rent		193			175
Accumulated depreciation and amortization		8			158
Stock-based compensation		195			154
Tax credit carry forward		176			138
Accrued vacation expense		111			130
Other, net		256			15
Total gross deferred tax assets		2,150			2,541

Deferred tax liabilities:
Prepaid expenses		(148	)		(260	)
Other, net		—			(54	)
Deferred tax liabilities		(148	)		(314	)
Valuation allowance		—			—
Net deferred tax assets	$	2,002		$	2,227

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2017			2016
Income taxes computed at statutory federal income tax rate	$	3,438		$	4,614
State income taxes, net of federal income tax expense		95			179
Expenses not deductible for tax purposes		29			19
Foreign tax rate differential		(613	)		(514	)
Adjust state deferred due to change in apportionment		6			(18	)
Change in valuation allowance		—			(193	)
Other, net		(79	)		(61	)
Income tax provision as reported	$	2,876		$	4,026
Effective tax rate		28.4	%		29.7	%

Note G - Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2017

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

	2017			2016
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	2,329		$	2,080
Interest cost		70			87
Actuarial (gain) loss		(189	)		272
Benefits paid		(406	)		(110	)
Benefit obligation at end of year	$	1,804		$	2,329
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	1,571		$	1,642
Actual return on plan assets		117			74
Benefits paid		(406	)		(112	)
Plan expenses		(35	)		(33	)
Fair value of plan assets at end of year	$	1,247		$	1,571
Reconciliation of Funded Status:
Difference between benefit obligation and fair value of plan assets	$	(557	)	$	(758	)
Unrecognized net actuarial loss in accumulated other comprehensive income		671			1,117
Net amount recognized	$	114		$	359
Projected benefit obligation	$	1,804		$	2,329
Accumulated benefit obligation	$	1,804		$	2,329
Fair value of plan assets	$	1,247		$	1,571

Schedule of Net Benefit Costs [Table Text Block]

	201 7			201 6
Interest cost	$	70		$	87
Expected return on plan assets		(74	)		(105	)
Recognized actuarial loss		93			68
Settlement loss		155			55
Net periodic benefit expense	$	244		$	105

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

	201 7			2016
Net (gain) loss	$	(233	)	$	304
Settlement loss		(155	)		(55	)
Amortization of net loss		(93	)		(68	)
Plan expenses		35			32
Total recognized in other comprehensive income (loss)	$	(446	)	$	213
Total recognized in net periodic benefit cost and other comprehensive income	$	(202)		$	318

Schedule of Expected Benefit Payments [Table Text Block]

2018	$	45
2019		65
2020		103
2021		114
2022		113
2023 -2027		650
Total benefit payments expected to be paid	$	1,090

Schedule of Assumptions Used [Table Text Block]

	201 7			201 6
Discount rate		3.87	%		3.61	%
Expected long-term rate of return		6.5	%		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]

	201 7			201 6			Target Allocation
Equity securities		41	%		50	%		49	%
Debt securities		44	%		47	%		46	%
Commodities		2	%		—			2	%
Cash and money market funds		13	%		3	%		3	%
		100	%		100	%		100	%

Schedule of Allocation of Plan Assets [Table Text Block]

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and money market funds	$	157	$	157	$	—	$	—
Commodities and other	$	27	$	27	$	—	$	—
Equity securities (1)	$	517	$	517	$	—	$	—
Debt securities (2)	$	546	$	546	$	—	$	—
Total	$	1,247	$	1,247	$	—	$	—

Note H - Stockholders' Equity (Tables)

12 Months Ended

Jun. 30, 2017

Share-based Compensation, Stock Options, Activity [Table Text Block]

	2009 Plan		Weighted Average Exercise Price		Weighted Average Contractual Term (in years)		Aggregate Intrinsic Value
Vested and exercisable at June 30, 2016		140,000	$	6.36
Exercised		—	$	—
Forfeited		—	$	—
Granted		—	$	—
Outstanding at June 30, 2017		140,000	$	6.36		3.58	$	502,000
Vested and exercisable at June 30, 2017		140,000	$	6.36		3.58	$	502,000

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, 2016		310,321		$	8.43
Granted		155,000		$	8.82
Vested		(126,323	)	$	7.77
Forfeited		(8,333	)	$	9.96
Nonvested at June 30, 2017		330,665		$	8.83

Note J - Economic Dependency (Tables)

12 Months Ended

Jun. 30, 2017

Supplier Concentration Risk [Member]

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Year ended June 30 ,
	201 7					201 6
	Raw Material Purchases by Supplier		% of Total Raw Material Purchases			Raw Material Purchases by Supplier	% of Total Raw Material Purchases
Supplier 1	$	6,694		12	%	(a)	(a)
	$	6,694		12	%	(a)	(a)

Customer Concentration Risk [Member]

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Fiscal 2017		Fiscal 2016
Customer 1	$	60,532	$	49,442
Customer 2	(a)			13,952
	$	60,532	$	63,394

Note M - Segment Information (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	201 7		201 6
Net Sales
Private-label contract manufacturing	$	95,024	$	92,420
Patent and trademark licensing		26,922		21,781
Total net sales	$	121,946	$	114,201

	201 7			201 6
Income from Operations
Private-label contract manufacturing	$	8,569		$	12,184
Patent and trademark licensing		7,534			6,153
Income from operations of reportable segments		16,103			18,337
Corporate expenses not allocated to segments		(6,401	)		(6,079	)
Total income from operations	$	9,702		$	12,258

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	201 7		201 6
Assets
Private-label contract manufacturing	$	60,489	$	66,375
Patent and trademark licensing		12,122		7,800
Total assets	$	72,611	$	74,175

Revenue from External Customers by Geographic Areas [Table Text Block]

	201 7		201 6
United States	$	63,104	$	50,575
Markets outside the United States		58,842		63,626
Total net sale	$	121,946	$	114,201

Long-lived Assets by Geographic Areas [Table Text Block]

201 7	Long-Lived Assets		Total Assets		Capital Expenditures
United States	$	10,753	$	47,777	$	2,365
Europe		7,383		24,834		2,989
	$	18,136	$	72,611	$	5,354

201 6	Long-Lived Assets		Total Assets		Capital Expenditures
United States	$	9,678	$	49,755	$	6,423
Europe		5,489		24,420		4,018
	$	15,167	$	74,175	$	10,441

Note A - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, € in Millions	12 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2017 EUR (€) shares
Foreign Currency Contract, Asset, Fair Value Disclosure	$ 521,000	$ 250,000
Royalty and Licensing Revenue	26,900,000	21,800,000
Royalty Expense	1,000,000	865,000
Research and Development Expense	1,600,000	1,100,000
Advertising Expense	598,000	334,000
Liability for Uncertainty in Income Taxes, 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	$ 0
Concentration of Risk Number of Major Customers	3
Impairment of Long-Lived Assets to be Disposed of	$ 0	$ 0
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk, Percentage	65.60%	58.70%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Beta Alanine Raw Material Sale Customers [Member]
Concentration Risk, Percentage	21.30%	14.60%
2009 Omnibus Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross \| shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period \| shares
2009 Omnibus Stock Incentive Plan [Member] \| Board of Directors and Management Members [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross \| shares	155,000	208,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares	0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number \| shares	319,335	193,012	319,335
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 2,500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 8.82	$ 9.86
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, Weighted Average Grant Date Fair Value \| $ / shares	$ 8.82
Foreign Exchange Contract [Member]
Derivative, Notional Amount	$ 26,100,000		€ 23.1
Derivative, Remaining Maturity	1 year 60 days
Minimum [Member]
Property, Plant and Equipment, Useful Life	1 year
Minimum [Member] \| Restricted Stock [Member] \| 2009 Omnibus Stock Incentive Plan [Member] \| Board of Directors and Management Members [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life	39 years
Maximum [Member] \| Restricted Stock [Member] \| 2009 Omnibus Stock Incentive Plan [Member] \| Board of Directors and Management Members [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Fair Value, Inputs, Level 1 [Member]
Fair Value, Net Asset (Liability)	$ 0	$ 0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Net Asset (Liability)	$ 0	$ 0

Note A - Organization and Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Numerator
Net income	$ 7,235	$ 9,546
Denominator
Basic weighted average common shares outstanding (in shares)	6,576,711	6,523,555
Dilutive effect of stock options and restricted stock shares (in shares)	79,000	117,000
Diluted weighted average common shares outstanding (in shares)	6,655,573	6,640,728
Basic net income per common share (in dollars per share)	$ 1.10	$ 1.46
Diluted net income per common share (in dollars per share)	$ 1.09	$ 1.44

Note B - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Raw materials	$ 9,469	$ 14,751
Work in progress	1,312	3,487
Finished goods	3,562	2,832
Reserve	(614)	(302)
Total inventories	$ 13,729	$ 20,768

Note C - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Property and equipment, gross	$ 50,301	$ 46,834
Less: accumulated depreciation and amortization	(32,165)	(31,667)
Property and equipment, net	$ 18,136	15,167
Minimum [Member]
Depreciable Life In Years (Year)	1 year
Maximum [Member]
Depreciable Life In Years (Year)	39 years
Land [Member]
Property and equipment, gross	$ 1,200	1,200
Building and Building Improvements [Member]
Property and equipment, gross	$ 3,706	3,324
Building and Building Improvements [Member] \| Minimum [Member]
Depreciable Life In Years (Year)	7 years
Building and Building Improvements [Member] \| Maximum [Member]
Depreciable Life In Years (Year)	39 years
Machinery and Equipment [Member]
Property and equipment, gross	$ 24,194	23,846
Machinery and Equipment [Member] \| Minimum [Member]
Depreciable Life In Years (Year)	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Depreciable Life In Years (Year)	12 years
Office Equipment [Member]
Property and equipment, gross	$ 3,954	2,994
Office Equipment [Member] \| Minimum [Member]
Depreciable Life In Years (Year)	3 years
Office Equipment [Member] \| Maximum [Member]
Depreciable Life In Years (Year)	5 years
Vehicles [Member]
Depreciable Life In Years (Year)	3 years
Property and equipment, gross	$ 209	209
Leasehold Improvements [Member]
Property and equipment, gross	$ 17,038	$ 15,261
Leasehold Improvements [Member] \| Minimum [Member]
Depreciable Life In Years (Year)	1 year
Leasehold Improvements [Member] \| Maximum [Member]
Depreciable Life In Years (Year)	15 years

Note D - Other Comprehensive Loss - Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Balance	$ (680)
Balance	(905)	$ (680)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(775)	(643)
OCI/OCL before reclassifications	271	(232)
Amounts reclassified from OCI	175	19
Tax effect of OCI activity	(162)	81
Net current period OCI/OCL	284	(132)
Balance	(491)	(775)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Balance	95	(123)
OCI/OCL before reclassifications	(110)	414
Amounts reclassified from OCI	(685)	(74)
Tax effect of OCI activity	286	(122)
Net current period OCI/OCL	(509)	218
Balance	(414)	95
AOCI Attributable to Parent [Member]
Balance	(680)	(766)
OCI/OCL before reclassifications	161	182
Amounts reclassified from OCI	(510)	(55)
Tax effect of OCI activity	124	(41)
Net current period OCI/OCL	(225)	86
Balance	$ (905)	$ (680)

Note E - Debt (Details Textual)		12 Months Ended
Note E - Debt (Details Textual)	Mar. 28, 2017 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CHF (SFr)
Proceeds from Long-term Lines of Credit		$ 0
Line of Credit Facility, Remaining Borrowing Capacity		10,000,000
Long-term Debt		$ 0
Natural Alternatives International Europe SA [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 522,000	SFr 500,000
Wells Fargo Bank, N.A. [Member] \| Credit Agreement [Member]
Line of Credit Facility, Commitment Fee Amount	$ 0
Long-term Line of Credit	0
Long-term Debt, Percentage Bearing Fluctuating Interest, Threshold Amount	100,000
Minimum Prepayment Amount Under Line of Credit	100,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Wells Fargo Bank, N.A. [Member] \| Credit Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Debt Instrument Basis Spread on Elected Fixed Rate Borrowing	1.25%
Wells Fargo Bank, N.A. [Member] \| Credit Agreement [Member] \| Maximum [Member]
Ratio of Indebtedness to Net Capital	1.25
Ratio of Total Current Assets to Total Current Liabilities	1.75

Note F - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note F - Income Taxes (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016
Federal, State and Local Income Tax Expense (Benefit), Gross, Continuing Operations	$ 2,200,000	$ 3,600,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 0	193,000
Federal, State and Local Income Tax Expense Benefit, Continuing Operations		$ 3,400,000
Effective Income Tax Rate Reconciliation, Percent	28.40%	29.70%
Net Income (Loss) Attributable to Parent	$ 7,235,000	$ 9,546,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%
Natural Alternatives International Europe SA [Member]
Net Income (Loss) Attributable to Parent	$ 3,100,000
Undistributed Earnings of Foreign Subsidiaries	20,900,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	$ 4,100,000
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member]
Open Tax Year	2008
Domestic Tax Authority [Member] \| Earliest Tax Year [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year	2014
Foreign Tax Authority [Member] \| Natural Alternatives International Europe SA [Member]
Effective Income Tax Rate Reconciliation, Percent	17.50%
Foreign Tax Authority [Member] \| Earliest Tax Year [Member] \| Swiss Federal Tax Administration (FTA) [Member]
Open Tax Year	2015

Note F - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Current:
Federal	$ 1,791	$ 3,339
State	90	138
Foreign	646	629
Total current	2,527	4,106
Deferred:
Federal	305	46
State	44	67
Valuation allowance		(193)
Total deferred	349	(197)
Total provision for income taxes	$ 2,876	$ 4,026

Note F - Income Taxes - Net Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Deferred tax assets:
Inventory capitalization	$ 438	$ 576
Inventory reserves	178	103
Pension liability	241	403
Accrued bonus	114	391
Net operating loss carry forward	240	298
Deferred rent	193	175
Accumulated depreciation and amortization	8	158
Stock-based compensation	195	154
Tax credit carry forward	176	138
Accrued vacation expense	111	130
Other, net	256	15
Total gross deferred tax assets	2,150	2,541
Deferred tax liabilities:
Prepaid expenses	(148)	(260)
Other, net		(54)
Deferred tax liabilities	(148)	(314)
Valuation allowance
Net deferred tax assets	$ 2,002	$ 2,227

Note F - Income Taxes - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income taxes computed at statutory federal income tax rate	$ 3,438	$ 4,614
State income taxes, net of federal income tax expense	95	179
Expenses not deductible for tax purposes	29	19
Foreign tax rate differential	(613)	(514)
Adjust state deferred due to change in apportionment	6	(18)
Valuation allowance		(193)
Other, net	(79)	(61)
Total provision for income taxes	$ 2,876	$ 4,026
Effective Income Tax Rate Reconciliation, Percent	28.40%	29.70%

Note G - Employee Benefit Plans (Details Textual) - USD ($)		12 Months Ended
	Jan. 01, 2004	Jun. 30, 2017	Jun. 30, 2016
Defined Contribution Plan, Employer Discretionary Contribution Amount		$ 248,000	$ 229,000
Health Insurance Plan Premium Expense		$ 1,000,000	$ 847,000
Number of Years Compensation Used for Benefit Obligation Assumptions		5 years
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		3.90%	3.60%
Defined Benefit Plan, Plan Assets, Contributions by Employer		$ 0
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		0
Defined Benefit Plan, Expected Amortization, Next Fiscal Year		$ 38,000
Large-cap Funds [Member]
Defined Benefit Plan Equity Securities by Type, Percentage		26.00%
Mid-cap and Small-cap Funds [Member]
Defined Benefit Plan Equity Securities by Type, Percentage		46.00%
Developed Market Funds [Member]
Defined Benefit Plan Equity Securities by Type, Percentage		17.00%
Emerging Market Equity Funds [Member]
Defined Benefit Plan Equity Securities by Type, Percentage		10.00%
Specialty Funds [Member]
Defined Benefit Plan Equity Securities by Type, Percentage		1.00%
REIT [Member]
Defined Benefit Plan Debt Securities by Type, Percentage		28.00%
High-yield Fixed Income Funds [Member]
Defined Benefit Plan Debt Securities by Type, Percentage		25.00%
Fixed Income Funds [Member]
Defined Benefit Plan Debt Securities by Type, Percentage		24.00%
Developed Market Fixed Income 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		11.00%
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%

Note G - Employee Benefit Plans - Defined Benefit Pension Plan's Funded Status and Amount Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 2,329	$ 2,080
Interest cost	70	87
Actuarial (gain) loss	(189)	272
Change in Plan Assets:
Fair value of plan assets at beginning of year	1,571	1,642
Actual return on plan assets	117	74
Benefits paid	(406)	(112)
Plan expenses	(35)	(33)
Fair value of plan assets at end of year	1,247	1,571
Reconciliation of Funded Status:
Benefits paid	(406)	(110)
Difference between benefit obligation and fair value of plan assets	(557)	(758)
Unrecognized net actuarial loss in accumulated other comprehensive income	671	1,117
Net amount recognized	114	359
Projected benefit obligation	1,804	2,329
Accumulated benefit obligation	1,804	2,329
Fair value of plan assets	1,247	1,571
Benefit obligation at end of year	$ 1,804	$ 2,329

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, 2017	Jun. 30, 2016
Interest cost	$ 70	$ 87
Expected return on plan assets	(74)	(105)
Recognized actuarial loss	93	68
Settlement loss	155	55
Net periodic benefit expense	$ 244	$ 105

Note G - Employee Benefit Plans - Summary of Changes in Plan Assets and Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net (gain) loss	$ (233)	$ 304
Settlement loss	(155)	(55)
Amortization of net loss	(93)	(68)
Plan expenses	35	33
Total recognized in other comprehensive income (loss)	(446)	213
Total recognized in net periodic benefit cost and other comprehensive income	$ (202)	$ 318

Note G - Employee Benefit Plans - Benefit Payments Expected to be Paid (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2018	$ 45
2019	65
2020	103
2021	114
2022	113
2023-2027	650
Total benefit payments expected to be paid	$ 1,090

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, 2017	Jun. 30, 2016
Discount rate	3.87%	3.61%
Expected long-term rate of return	6.50%	7.00%
Compensation increase rate

Note G - Employee Benefits Plans - Defined Benefit Pension Plan's Weighted Average Asset Association and Weighted Average Target Allocation (Details)	Jun. 30, 2017	Jun. 30, 2016
Weighted-average asset allocation	100.00%	100.00%
Weighted-average target allocation	100.00%
Equity Securities [Member]
Weighted-average asset allocation	41.00%	50.00%
Weighted-average target allocation	49.00%
Debt Securities [Member]
Weighted-average asset allocation	44.00%	47.00%
Weighted-average target allocation	46.00%
Commodity Contract [Member]
Weighted-average asset allocation	2.00%
Weighted-average target allocation	2.00%
Cash and Cash Equivalents [Member]
Weighted-average asset allocation	13.00%	3.00%
Weighted-average target allocation	3.00%

Note G - Employee Benefits Plans - Fair Values by Asset Category of Defined Benefit Pension Plan (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Fair Value, Inputs, Level 1 [Member]

$ 1,247

$ 1,571

$ 1,642

Fair Value, Inputs, Level 2 [Member]

1,247

Fair Value, Inputs, Level 3 [Member]

Cash and Cash Equivalents [Member]

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]

157

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]

157

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]

Commodities and Other [Member]

Commodities and Other [Member] | Fair Value, Inputs, Level 1 [Member]

Commodities and Other [Member] | Fair Value, Inputs, Level 2 [Member]

Commodities and Other [Member] | Fair Value, Inputs, Level 3 [Member]

Equity Securities [Member]

Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]

^[1]

517

Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]

^[1]

517

Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]

^[1]

^[1]

Debt Securities [Member]

Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]

^[2]

546

Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]

^[2]

546

Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]

^[2]

^[2]

[1]	This category is comprised of publicly traded funds, of which 26% are large-cap funds, 46% are mid-cap and small-cap, 17% are developed market funds, 10% are emerging markets equity funds, and 1% are specialty funds.
[2]	This category is comprised of publicly traded funds, of which 28% are REITs, 25% are high-yield fixed income funds, 24% are U.S. fixed income funds, 12% are developed market fixed income funds, and 11% are international/emerging markets funds.

Note H - Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 28, 2017	May 11, 2015	Feb. 06, 2015	Jun. 02, 2011
Stock Repurchase Program, Authorized Amount			$ 7,000,000	$ 5,000,000	$ 3,000,000	$ 2,000,000
Treasury Stock, Value, Acquired, Cost Method	$ 712,000	$ 648,000
Shares Paid for Tax Withholding for Share Based Compensation	38,729	27,195
Shares Paid for Tax Withholding for Share-based Compensation, Average Cost Per Share	$ 9.47	$ 11.70
Payments Related to Tax Withholding for Share-based Compensation	$ 367,000	$ 319,000
2009 Omnibus Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	389,000
Excluding Restricted Stock Purchased [Member]
Treasury Stock, Shares, Acquired	39,547	52,603
Treasury Stock Acquired, Average Cost Per Share	$ 8.74	$ 6.26
Treasury Stock, Value, Acquired, Cost Method	$ 345,000	$ 329,000
2015 Increase [Member]
Stock Repurchase Program, Authorized Amount				$ 2,000,000	$ 1,000,000
2017 Increase [Member]
Stock Repurchase Program, Authorized Amount			$ 2,000,000

Note H - Stockholders' Equity - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Exercised (in shares)	0	0
Granted (in shares)	0	0
2009 Omnibus Stock Incentive Plan [Member]
Vested and exercisable (in shares)	140,000
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 6.36
Exercised (in shares)
Exercised, weighted average exercise price (in dollars per share)
Forfeited (in shares)
Forfeited, weighted average exercise price (in dollars per share)
Granted (in shares)
Granted, weighted average exercise price (in dollars per share)
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 6.36	$ 6.36
Vested and exercisable, weighted average contractual term (Year)	3 years 211 days
Vested and exercisable, aggregate intrinsic value	$ 502,000
Outstanding (in shares)	140,000
Outstanding, weighted average exercise price (in dollars per share)	$ 6.36
Outstanding, weighted average contractual term (Year)	3 years 211 days
Outstanding, aggregate intrinsic value	$ 502,000
Vested and exercisable (in shares)	140,000	140,000

Note H - Stockholders' Equity - Restricted Stock (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Granted, weighted-average grant date fair value (in dollars per share)	$ 8.82	$ 9.86
2009 Omnibus Stock Incentive Plan [Member]
Nonvested, beginning balance (in shares)	310,321
Nonvested, weighted-average grant date fair value (in dollars per share)	$ 8.43
Granted (in shares)	155,000
Granted, weighted-average grant date fair value (in dollars per share)	$ 8.82
Vested (in shares)	(126,323)
Vested, weighted-average grant date fair value (in dollars per share)	$ 7.77
Forfeited (in shares)	(8,333)
Forfeited, weighted-average grant date fair value (in dollars per share)	$ 9.96
Nonvested, ending balance (in shares)	330,665	310,321
Nonvested, weighted-average grant date fair value (in dollars per share)	$ 8.83	$ 8.43

Note I - Commitments (Details Textual) $ in Millions	12 Months Ended
Note I - Commitments (Details Textual) $ in Millions	Jun. 30, 2017 USD ($) ft²	Jun. 30, 2016 USD ($)
Operating Leases, Rent Expense, Net \| $	$ 3.0	$ 3.1
California [Member]
Operating Lease Facility Area	162,000
SWITZERLAND \| Natural Alternatives International Europe SA [Member]
Operating Lease Facility Area	94,217
Lessee, Operating Lease, Renewal Term	5 years
Lessee, Operating Lease, Term of Contract	5 years

Note I - Commitments - Minimum Rental Commitments (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2018	$ 2,816
2019	2,812
2020	1,394
2021	1,429
2022	1,092
There-after	3,022
Total	$ 12,565

Note J - Economic Dependency (Details Textual) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Customer 1, 2 and 3 [Member]
Accounts Receivable, Net	$ 1.5	$ 8.1

Note J - Economic Dependency - Substantial Net Sales to Certain Customers (Details) - USD ($)
$ in Thousands

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]

$ 121,946

$ 114,201

Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer 1 [Member]

60,532

63,394

Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer 2 [Member]

60,532

49,442