ChromaDex Reports Second Quarter 2017 Financial Results

ChromaDex Reports Second Quarter 2017 Financial Results

-Company Reports Revenue of $5.3 Million for Q2 2017- – Continued Progress on Building a Consumer Products Platform Around TruNiagen®- IRVINE, Calif., Aug. 10, 2017 (GLOBE NEWSWIRE) — ChromaDex Corp. (NASDAQ:CDXC), an innovator of proprietary health, wellness and nutritional ingredients, that creates science-based solutions to dietary supplement, food and beverage, skin care, sports nutrition, and […]

-Company Reports Revenue of $5.3 Million for Q2 2017-

– Continued Progress on Building a Consumer Products Platform Around TruNiagen®-

IRVINE, Calif., Aug. 10, 2017 (GLOBE NEWSWIRE) — ChromaDex Corp. (NASDAQ:CDXC), an innovator of proprietary health, wellness and nutritional ingredients, that creates science-based solutions to dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, announced today the financial results for the quarter ended July 1, 2017.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex commented, “We are the innovator of nicotinamide riboside and have positioned the company as the gatekeeper of the emerging NAD+ precursor market. During the second quarter we have significantly strengthened our balance sheet, forged strategic relationships for international opportunities and began a strategic transformation. Most importantly, the supporting science continues to build and we eagerly await the upcoming publication of two additional human trials on nicotinamide riboside (NR) in the near future.”

Rob Fried, President and Chief Strategy Officer of ChromaDex added, “ChromaDex is making excellent progress in our mission to grow from a strong science based ingredient company to a vertically integrated anti-aging platform company focusing on NIAGEN® and NAD precursors.  Our consumer brand, TruNiagen, is poised to deliver excellent results in the near future.”

Results of operations for the three months ended July 1, 2017

For the three months ended July 1, 2017 (“Q2 2017”), ChromaDex reported net sales of $5.3 million, compared to $8.8 million for the three months ended July 2, 2016 (“Q2 2016”).     

The ingredients segment generated net sales of $3.0 million for Q2 2017, compared to $6.2 million for Q2 2016, the decrease largely as a result of terminating our largest customer during fiscal year 2016.

The core standards and services segment posted net sales of $2.3 million for Q2 2017, compared to $2.6 million for Q2 2016.  Since the year ended December 31, 2016, ChromaDex has made operational changes to merge its scientific and regulatory consulting segment into the core standards and services segment.

The net loss attributable to common stock holders for Q2 2017 was $2.8 million or ($0.07) per share, which included a one-time loss of $746,000 from ongoing litigation, as compared to a net loss of approximately $83,000 or ($0.00) per share for Q2 2016.  Adjusted EBITDA, a non-GAAP measure, was ($2.1 million) for Q2 2017, compared to adjusted EBITDA of $0.5 million for Q2 2016.  The Basic and Diluted Adjusted EBITDA per share for Q2 2017 was ($0.05) versus $0.01 for Q2 2016.

Recent Company highlights include:

             

Investor Conference Call
             
ChromaDex management will host an investor conference call to discuss the year end results and provide a general business update on Thursday, August 10, at 4:30 p.m. ET.

Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:

     
U.S. Toll-Free Number:   (866) 327-8118
International Dial-In Number:   (678) 509-7526
Conference ID:     65841215
Webcast link:     http://edge.media-server.com/m/p/3mm48mw7/lan/en
     

The earnings press release, accompanying financial exhibits and webcast replay will all be available on the Investor Relations section of the Company website, www.chromadex.com.
             

About Non-GAAP Financial Measures

ChromaDex’s non-GAAP financial measures exclude interest, tax, depreciation, amortization and share-based compensation. ChromaDex used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for ChromaDex’s financial results in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is attached to this press release.

About ChromaDex:

ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as “phytochemicals”), chemistry and analytical testing services, and product regulatory and safety consulting. As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house chemistry, regulatory and safety consulting business units to develop commercially viable ingredients. Our ingredient portfolio is backed with clinical and scientific research, as well as extensive IP protection. Our portfolio of patented ingredient technologies includes NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; IMMULINA, a spirulina extract; and AnthOrigin, anthocyanins derived from a domestically-produced, water-extracted purple corn. To learn more about ChromaDex, please visit www.ChromaDex.com.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended including statements related to financial results, financial representations, the status and results of clinical trials, the future performance of ChromaDex’s consumer product, and the innovative qualities of NIAGEN®.  Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. More detailed information about ChromaDex and the risk factors that may affect the realization of forward-looking statements is set forth in ChromaDex’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, ChromaDex’s Quarterly Reports on Form 10-Q and other filings submitted by ChromaDex to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and actual results may differ materially from those suggested by these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and ChromaDex undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.

     
Condensed Consolidated Statements of Operations    
For the Three Month Periods Ended July 1, 2017 and July 2, 2016    
     
  July 1, 2017 July 2, 2016
     
Sales, net  $  5,306,855   $  8,829,579 
Cost of sales   3,044,086    4,702,132 
     
Gross profit   2,262,769    4,127,447 
     
Operating expenses:    
Sales and marketing   728,299    698,031 
Research and development   849,962    751,726 
General and administrative   2,657,573    2,306,559 
Other   745,773    – 
Operating expenses   4,981,607    3,756,316 
     
Operating income (loss)   (2,718,838)    371,131 
     
Nonoperating income (expense):    
Interest expense, net   (45,286)    (144,786) 
Loss on debt extinguishment   –    (313,099) 
Nonoperating expenses   (45,286)    (457,885) 
     
Loss before taxes   (2,764,124)    (86,754) 
Provision for taxes   –    4,087 
     
Net loss  $  (2,764,124)   $  (82,667) 
     
Basic and diluted loss per common share  $  (0.07)   $  (0.00) 
     
Basic and diluted weighted average common shares outstanding   42,121,150    36,990,032 
     
See Notes to Condensed Consolidated Financial Statements in Part I of ChromaDex’s Quarterly Report 
on Form 10-Q filed with Securities and Exchange Commission on August 10, 2017.   
   

 

               
Condensed Consolidated Statements of Operations (Unaudited)   Effects of Charges associated with Interest, Tax, Depreciation, Amortization and Share-based Compensation Expense         Condensed Consolidated Statements of Operations, Adjusted EBITDA Excluding Interest, Tax, Depreciation, Amortization and Share-based Compensation (Non-GAAP Presentation) 
 (US GAAP)                            
                                 
For the Three Month Periods Ended July 1, 2017 and July 2, 2016   For the Three Month Periods Ended July 1, 2017 and July 2, 2016         For the Three Month Periods Ended July 1, 2017 and July 2, 2016
                                     
      Q2 2017   Q2 2016       Q2 2017     Q2 2016       Q2 2017   Q2 2016
                                     
Sales   $ 5,306,855  $ 8,829,579    Sales  $    –    $    –    Sales $    5,306,855  $    8,829,579 
Cost of sales       3,044,086      4,702,132    Cost of sales     (98,375)        (67,409)    Cost of sales     2,945,711      4,634,723 
                                     
Gross profit       2,262,769      4,127,447    Gross profit     98,375        67,409    Gross profit     2,361,144      4,194,856 
                                     
Operating expenses:             Operating expenses:             Operating expenses:        
Sales and marketing       728,299      698,031    Sales and marketing     –        –    Sales and marketing     728,299      698,031 
Research and development       849,962      751,726    Research and development     –        –    Research and development     849,962      751,726 
General and administrative       2,657,573      2,306,559    General and administrative     (502,218)        (370,161)    General and administrative     2,155,355      1,936,398 
Other       745,773      –    Other     –        –    Other     745,773      – 
Operating expenses       4,981,607      3,756,316    Operating expenses     (502,218)        (370,161)    Operating expenses     4,479,389      3,386,155 
                                     
Operating income (loss)        (2,718,838)      371,131    Operating income     600,593        437,570    Operating income (loss)      (2,118,245)      808,701 
                                     
Nonoperating income (expense):             Nonoperating income:             Nonoperating income (expense):        
Interest expense, net       (45,286)      (144,786)    Interest expense, net     45,286        144,786    Interest expense, net     –      – 
Loss on debt extinguishment       –      (313,099)    Loss on debt extinguishment     –        –    Loss on debt extinguishment     –      (313,099) 
Nonoperating expense       (45,286)      (457,885)    Nonoperating income     45,286        144,786    Nonoperating expense     –      (313,099) 
                                     
Loss before taxes       (2,764,124)      (86,754)    Income before taxes     645,879        582,356    Income (loss) before taxes     (2,118,245)      495,602 
Provision for taxes       –      4,087    Provision for taxes     –        (4,087)    Provision for taxes     –      – 
                                     
Net income (loss)   $  (2,764,124)  $    (82,667)    Effects of adjusted EBITDA  $    645,879    $  578,269    Adjusted EBITDA $   (2,118,245)  $    495,602 
                                     
Basic and diluted loss per common share   $    (0.07)  $  (0.00)    Basic effects of adjusted EBITDA per common share  $    0.02    $    0.02    Basic adjusted EBITDA per common share $  $  (0.05)  $    0.01 
                                     
Weighted average common shares outstanding             Weighted average common shares outstanding             Weighted average common shares outstanding        
  Basic and diluted       42,121,150      36,990,032      Basic and diluted     42,121,150        36,990,032      Basic and diluted     42,121,150      36,990,032 
                                     

 

CONTACT: ChromaDex Investor Relations Contact:
Andrew Johnson, Director of Investor Relations
949-419-0288
andrewj@chromadex.com

ChromaDex Public Relations Contact:
Breah Ostendorf, Director of Marketing
949-537-4103
breaho@chromadex.com

Source: Biotechnology

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