NATURAL ALTERNATIVES INTERNATIONAL INC
AI Executive Summary
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NAI discloses substantial doubt about its ability to continue as a going concern, citing multiple years of operating losses, negative operating cash flows, and anticipated non-compliance with a new credit facility's fixed charge coverage ratio covenant as of September 30, 2026. The company is actively marketing its corporate headquarters and Carlsbad manufacturing facility for sale to raise liquidity, with no assurance these sales will occur on favorable terms or at all. A key private-label contract manufacturing customer has materially cut its projected fiscal 2027 order forecast, directly threatening covenant compliance and revenue.
Red Flags Detected (7)
Explicit going concern doubt disclosed by management
Only $7.5 million in total cash, with $6.3 million trapped at Swiss subsidiary NAIE (subject to 5% withholding tax on repatriation)
Anticipated breach of fixed charge coverage ratio covenant under new Legacy Corporate Lending credit facility as of Sept 30, 2026
4 more red flags detected
Key Takeaways
Company's viability is now explicitly in question per management's own disclosure
Liquidity is thin and partially trapped overseas, limiting flexibility
3 more takeaways
Filing Overview
What This Means
High Risk Filing: This company is showing signs of financial stress or significant operational challenges.
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Annual Report: Comprehensive filing covering the full fiscal year with audited financial statements.