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 April 1, 2017.
“I am very excited about the changes we have
made the past few months,” commented Frank Jaksch, Jr., CEO and
co-founder of ChromaDex. “As the science and research continues to
validate the effectiveness of NIAGEN®, we are
setting the foundation to take full advantage of this extraordinary
ingredient opportunity.”
“We fully recognize the value of
NIAGEN® and its vital impact on energy metabolism
and aging,” said Rob Fried, President and Chief Strategy Officer of
ChromaDex. “This is an exciting time for ChromaDex as we focus our
strategy on bringing NIAGEN® and our NAD+
precursor platform to market.”
Results of operations for the three
months ended April 1, 2017
For the three months ended April 1, 2017 (“Q1
2017”), ChromaDex reported net sales of $4.4 million, a decrease of
39% as compared to $7.3 million for the three months ended April 2,
2016 (“Q1 2016”), largely due to decreased sales in its ingredients
business segment, as a result of dropping our largest customer for
fiscal year 2016. The ingredients segment generated net
sales of $2.1 million for Q1 2017, a decrease of 55%, compared to
$4.6 million for Q1 2016.
The core standards and services segment posted a
13% decline in net sales to $2.4 million for Q1 2017, compared to
$2.7 million for Q1 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 Q1 2017 was $1.9 million or ($0.05) per share as
compared to a net income of $0.3 million or $0.01 per share for Q1
2016. Adjusted EBITDA, a non-GAAP measure, was ($1.4 million)
for Q1 2017, compared to adjusted EBITDA of $0.9 million for Q1
2016. The Basic and Diluted Adjusted EBITDA per share for Q1
2017 was ($0.04) versus $0.02 for Q1 2016.
Recent Company highlights include:
- In April 2017, the Company announced that it entered into a
securities purchase agreement, pursuant to which the Company sold
$3.5 million of its common stock, with the possibility of selling
up to an additional $21.5 million of its common stock in future
tranches, in a private placement led by Hong Kong business leader
Mr. Li Ka-shing with Horizons Ventures.
- In March 2017, the Company acquired all the outstanding equity
interests of Healthspan Research, LLC and its only product
TRUNIAGEN. The product is a standalone nicotinamide riboside
NIAGEN® supplement currently being sold direct-to-consumer (“DTC”)
in the US through the website www.truniagen.com.
- In March 2017, Robert Fried, a member of the Company’s board of
directors since July 2015, was appointed President and Chief
Strategy Officer for ChromaDex.
- In March 2017, the Company announced that Steven D. Rubin, J.D.
joined the Company's board of directors. Mr. Rubin has served
as OPKO Health’s Executive Vice President – Administration since
May 2007 and a director since February 2007. Mr. Rubin is a member
of The Frost Group, LLC, a private investment firm.
- In February 2017, the Company announced that University of Iowa
researchers published a study in the prestigious Journal of the
International Association for the Study of Pain (“PAIN”) showing
that NIAGEN® nicotinamide riboside ameliorates chemotherapy-induced
peripheral neuropathy (“CIPN”) in an animal model. Results
from this study suggest that nicotinamide riboside may be an
effective therapy in relieving CIPN in humans.
- In January 2017, the Company opened a new state-of-the-art
research and development center in Longmont, Colorado. The
10,000-square-foot research and development center is an important
milestone for ChromaDex to continue its global leadership in the
identification and development of NAD+ metabolites.
- In December 2016, the Company terminated the purchase
agreements of one of its former customers and filed suit to collect
payment owed under the agreements.
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,
May 11, 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) 327-8118International Dial-In
Number: (678) 509-7526Conference ID: 18237041Webcast
link: http://edge.media-server.com/m/p/t8in2vhy/lan/en
The webcast replay will be available after the
completion of the call on the Investor Relations section of the
Company website, www.chromadex.com.
The earnings press release, and its accompanying
financial exhibits, will 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, statements related to
the anticipated proceeds to be received in the private placement,
success of Horizons Ventures’ investments, Horizons Ventures’
ability to support future ChromaDex developments in the
global marketplace, the innovative qualities of NIAGEN®, results of
the NIAGEN® studies and their significance, whether
nicotinamide riboside may be an effective therapy in relieving CIPN
in humans and the anti-aging capabilities of nicotinamide
riboside. 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.
ChromaDex Corporation and Subsidiaries |
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Condensed Consolidated Statements of Operations
(Unaudited) |
|
For the Three Month Periods Ended April 1, 2017 and
April 2, 2016 |
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April 1, 2017 |
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April 2, 2016 |
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Sales, net |
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$ |
4,449,122 |
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|
$ |
7,331,945 |
|
Cost of sales |
|
|
|
|
|
|
|
2,696,469 |
|
|
|
3,880,526 |
|
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Gross profit |
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|
|
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1,752,653 |
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|
3,451,419 |
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Operating
expenses: |
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Sales and
marketing |
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|
|
|
|
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596,162 |
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|
544,722 |
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Research
and development |
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664,190 |
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|
464,072 |
|
General
and administrative |
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2,383,146 |
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|
1,988,559 |
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Operating expenses |
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|
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3,643,498 |
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|
2,997,353 |
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Operating income (loss) |
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(1,890,845 |
) |
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|
454,066 |
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Nonoperating income
(expense): |
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|
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Interest
income |
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|
|
|
|
|
|
2 |
|
|
|
794 |
|
Interest
expense |
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|
|
|
|
|
(37,912 |
) |
|
|
(188,495 |
) |
Nonoperating expenses |
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|
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(37,910 |
) |
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|
(187,701 |
) |
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|
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|
Income (loss) before
income taxes |
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(1,928,755 |
) |
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|
266,365 |
|
Provision for income
taxes |
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|
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|
- |
|
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(10,740 |
) |
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Net income (loss) |
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|
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|
|
|
$ |
(1,928,755 |
) |
|
$ |
255,625 |
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Basic earnings (loss)
per common share |
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$ |
(0.05 |
) |
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$ |
0.01 |
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Diluted earnings (loss)
per common share |
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$ |
(0.05 |
) |
|
$ |
0.01 |
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Basic weighted average
common shares outstanding |
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38,030,688 |
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|
36,414,041 |
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Diluted weighted
average common shares outstanding |
|
|
|
|
|
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|
38,030,688 |
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|
|
37,472,579 |
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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 May 11, 2017. |
Condensed Consolidated Statements of Operations
(Unaudited) (US GAAP) |
|
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) |
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For
the Three Month Periods Ended April 1, 2017 and April 2,
2016 |
|
For
the Three Month Periods Ended April 1, 2017 and April 2,
2016 |
|
For
the Three Month Periods Ended April 1, 2017 and April 2,
2016 |
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|
Q1 2017 |
Q1 2016 |
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Q1 2017 |
Q1 2016 |
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Q1 2017 |
Q1 2016 |
|
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|
Sales |
|
$ |
4,449,122 |
|
$ |
7,331,945 |
|
|
Sales |
|
$ |
- |
|
$ |
- |
|
|
Sales |
|
$ |
4,449,122 |
|
$ |
7,331,945 |
Cost of sales |
|
|
2,696,469 |
|
|
3,880,526 |
|
|
Cost of sales |
|
|
(95,008 |
) |
|
(73,703 |
) |
|
Cost of sales |
|
|
2,601,461 |
|
|
3,806,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,752,653 |
|
|
3,451,419 |
|
|
Gross profit |
|
|
95,008 |
|
|
73,703 |
|
|
Gross profit |
|
|
1,847,661 |
|
|
3,525,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
Operating
expenses: |
|
|
Operating
expenses: |
|
Sales and
marketing |
|
|
596,162 |
|
|
544,722 |
|
|
Sales and
marketing |
|
|
- |
|
|
- |
|
|
Sales and
marketing |
|
|
596,162 |
|
|
544,722 |
Research
and development |
|
|
664,190 |
|
|
464,072 |
|
|
Research
and development |
|
|
- |
|
|
- |
|
|
Research
and development |
|
|
664,190 |
|
|
464,072 |
General
and administrative |
|
|
2,383,146 |
|
|
1,988,559 |
|
|
General
and administrative |
|
|
(378,127 |
) |
|
(344,149 |
) |
|
General
and administrative |
|
|
2,005,019 |
|
|
1,644,410 |
Operating expenses |
|
|
3,643,498 |
|
|
2,997,353 |
|
|
Operating expenses |
|
|
(378,127 |
) |
|
(344,149 |
) |
|
Operating expenses |
|
|
3,265,371 |
|
|
2,653,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
(1,890,845 |
) |
|
454,066 |
|
|
Operating income |
|
|
473,135 |
|
|
417,852 |
|
|
Operating income
(loss) |
|
|
(1,417,710 |
) |
|
871,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense): |
|
|
|
Nonoperating
income: |
|
|
|
|
|
|
Nonoperating income (expense): |
|
|
|
|
Interest
income |
|
|
2 |
|
|
794 |
|
|
Interest
income |
|
|
(2 |
) |
|
(794 |
) |
|
Interest
income |
|
|
- |
|
|
- |
Interest
expense |
|
|
(37,912 |
) |
|
(188,495 |
) |
|
Interest
expense |
|
|
37,912 |
|
|
188,495 |
|
|
Interest
expense |
|
|
- |
|
|
- |
Nonoperating expense |
|
|
(37,910 |
) |
|
(187,701 |
) |
|
Nonoperating income |
|
|
37,910 |
|
|
187,701 |
|
|
Nonoperating expense |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes |
|
|
(1,928,755 |
) |
|
266,365 |
|
|
Income before
taxes |
|
|
511,045 |
|
|
605,553 |
|
|
Income (loss) before
taxes |
|
|
(1,417,710 |
) |
|
871,918 |
Provision for
taxes |
|
|
- |
|
|
(10,740 |
) |
|
Provision for
taxes |
|
|
- |
|
|
10,740 |
|
|
Provision for
taxes |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(1,928,755 |
) |
$ |
255,625 |
|
|
Effects of adjusted EBITDA |
|
$ |
511,045 |
|
$ |
616,293 |
|
|
Adjusted EBITDA |
|
$ |
(1,417,710 |
) |
$ |
871,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share |
|
$ |
(0.05 |
) |
$ |
0.01 |
|
|
Basic effects of
adjusted EBITDA per common share |
|
$ |
0.01 |
|
$ |
0.02 |
|
|
Basic adjusted EBITDA
per common share |
|
$ |
(0.04 |
) |
$ |
0.02 |
Diluted earnings (loss)
per common share |
|
$ |
(0.05 |
) |
$ |
0.01 |
|
|
Diluted effects of
adjusted EBITDA per common share |
|
$ |
0.01 |
|
$ |
0.02 |
|
|
Diluted adjusted EBITDA
per common share |
|
$ |
(0.04 |
) |
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
Basic |
|
|
38,030,688 |
|
|
36,414,041 |
|
|
Basic |
|
|
38,030,688 |
|
|
36,414,041 |
|
|
Basic |
|
|
38,030,688 |
|
|
36,414,041 |
Diluted |
|
|
38,030,688 |
|
|
37,472,579 |
|
|
Diluted |
|
|
38,030,688 |
|
|
37,472,579 |
|
|
Diluted |
|
|
38,030,688 |
|
|
37,472,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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
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