On August 16, 2023, after the market closed, the Company filed with the SEC a current report on Form 8-K. Attached to this current report was a press release in which Natural Alternatives International announced that it had “a temporary closure of its new facility in Carlsbad, California, opened earlier this year to expand [Natural Alternative’s] production and add high-speed powder blending and packaging to its manufacturing capabilities, with an initial objective of handling current and estimated orders from one of its largest customers. Due to this customer’s efforts to rebalance supply and demand, it is temporarily ceasing purchases from Natural Alternatives. As a result, [Natural Alternative] has determined to temporarily close its new high-speed powder blending and packaging facility and has provided sixty days advance notice to most of the staff at that facility, who will be furloughed starting in early October and lasting until approximately December 31, 2023. [Natural Alternative] currently expects these economic factors will be short lived, and in order to influence furloughed employees to return, [Natural Alternative] will pay for the health insurance costs of all furloughed employees during the employee’s furlough period, through December 31, 2023. [Natural Alternative] expects to begin shipping new orders to this customer during the first quarter of calendar 2024.”

Further, “[r]eduction of these anticipated orders and the closure of the facility is anticipated to have an adverse effect on our results of operations and financial condition primarily during the last calendar quarter of this year, and possibly into the early part of 2024.”

On this news, Natural Alternatives International stock fell $1.51 per share, or 21.6%, to close at $5.47 on August 17, 2023.