-Company Reports Revenue of $5.3 Million
for Q2 2017-
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:
- In July 2017, the Company sponsored the Federation of American
Societies for Experimental Biology (FASEB) 2017 conference for NAD+
Metabolism and Signaling.
- In June 2017, the Company appointed Dr. Rudolph Tanzi,
Vice-Chair of Neurology and Director of the Genetics and Aging
Research Unit at Massachusetts General Hospital, and the Joseph P.
and Rose F. Kennedy Professor of Neurology at Harvard Medical
School, to the Scientific Advisory Board (SAB).
- In June 2017, the Company signed a new, exclusive patent
license and research agreement with The Scripps Research Institute
(TSRI), gaining access to groundbreaking, pre-clinical discoveries
by Dr. Brunie Felding.
- In June 2017, the Company announced that Charles Brenner, PhD,
the Roy J. Carver Chair and Head of Biochemistry at the University
of Iowa Carver College of Medicine and current ChromaDex Scientific
Advisory Board member, has been appointed Chief Scientific Advisor.
- In May 2017, the Company announced the first launch of NIAGEN®
nicotinamide riboside (NR) into the functional food
space.
- In May 2017, the Company announced the closing of the $16.4
million second tranche of the strategic investment of up to $25
million led by Hong Kong business leader Mr. Li
Ka-shing.
- 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.
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:
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U.S. Toll-Free
Number: |
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(866) 327-8118 |
International Dial-In
Number: |
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(678) 509-7526 |
Conference ID:
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65841215 |
Webcast link:
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http://edge.media-server.com/m/p/3mm48mw7/lan/en |
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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.
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Condensed
Consolidated Statements of Operations |
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For the Three
Month Periods Ended July 1, 2017 and July 2, 2016 |
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July 1, 2017 |
July 2, 2016 |
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Sales, net |
$ 5,306,855 |
$ 8,829,579 |
Cost of sales |
3,044,086 |
4,702,132 |
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Gross profit |
2,262,769 |
4,127,447 |
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Operating
expenses: |
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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 |
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Operating income (loss) |
(2,718,838) |
371,131 |
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Nonoperating income
(expense): |
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Interest expense, net |
(45,286) |
(144,786) |
Loss
on debt extinguishment |
- |
(313,099) |
Nonoperating expenses |
(45,286) |
(457,885) |
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Loss before taxes |
(2,764,124) |
(86,754) |
Provision for
taxes |
- |
4,087 |
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Net loss |
$ (2,764,124) |
$ (82,667) |
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Basic and diluted loss
per common share |
$ (0.07) |
$ (0.00) |
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Basic and diluted
weighted average common shares outstanding |
42,121,150 |
36,990,032 |
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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 August 10,
2017. |
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Condensed Consolidated Statements of Operations
(Unaudited) |
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Effects of Charges associated with Interest, Tax,
Depreciation, Amortization and Share-based Compensation
Expense |
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Condensed Consolidated Statements of Operations, Adjusted
EBITDA Excluding Interest, Tax, Depreciation, Amortization
and Share-based Compensation (Non-GAAP
Presentation) |
(US
GAAP) |
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For
the Three Month Periods Ended July 1, 2017 and July 2,
2016 |
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For
the Three Month Periods Ended July 1, 2017 and July 2,
2016 |
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For
the Three Month Periods Ended July 1, 2017 and July 2,
2016 |
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Q2 2017 |
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Q2 2016 |
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Q2 2017 |
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Q2 2016 |
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Q2 2017 |
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Q2 2016 |
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Sales |
|
$ |
5,306,855 |
$ |
8,829,579 |
|
Sales |
$ |
- |
|
$ |
- |
|
Sales |
$ |
5,306,855 |
$ |
8,829,579 |
Cost of sales |
|
|
3,044,086 |
|
4,702,132 |
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Cost of sales |
|
(98,375) |
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|
(67,409) |
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Cost of sales |
|
2,945,711 |
|
4,634,723 |
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Gross profit |
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2,262,769 |
|
4,127,447 |
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Gross profit |
|
98,375 |
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67,409 |
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Gross profit |
|
2,361,144 |
|
4,194,856 |
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Operating
expenses: |
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Operating
expenses: |
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|
|
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Operating
expenses: |
|
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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 |
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|
2,657,573 |
|
2,306,559 |
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General and administrative |
|
(502,218) |
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|
(370,161) |
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General and administrative |
|
2,155,355 |
|
1,936,398 |
Other |
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|
745,773 |
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- |
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Other |
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- |
|
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- |
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Other |
|
745,773 |
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- |
Operating expenses |
|
|
4,981,607 |
|
3,756,316 |
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Operating expenses |
|
(502,218) |
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|
(370,161) |
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Operating expenses |
|
4,479,389 |
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3,386,155 |
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|
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|
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|
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Operating income (loss) |
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|
(2,718,838) |
|
371,131 |
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Operating income |
|
600,593 |
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|
437,570 |
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Operating income (loss) |
|
(2,118,245) |
|
808,701 |
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Nonoperating income
(expense): |
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Nonoperating
income: |
|
|
|
|
|
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Nonoperating income
(expense): |
|
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|
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Interest expense, net |
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|
(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) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Loss before taxes |
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(2,764,124) |
|
(86,754) |
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Income before
taxes |
|
645,879 |
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|
582,356 |
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Income (loss) before
taxes |
|
(2,118,245) |
|
495,602 |
Provision for
taxes |
|
|
- |
|
4,087 |
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Provision for
taxes |
|
- |
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|
(4,087) |
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Provision for
taxes |
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- |
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- |
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Net income (loss) |
|
$ |
(2,764,124) |
$ |
(82,667) |
|
Effects of adjusted EBITDA |
$ |
645,879 |
|
$ |
578,269 |
|
Adjusted EBITDA |
$ |
(2,118,245) |
$ |
495,602 |
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Basic and diluted loss
per common share |
|
$ |
(0.07) |
$ |
(0.00) |
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Basic effects of
adjusted EBITDA per common share |
$ |
0.02 |
|
$ |
0.02 |
|
Basic adjusted EBITDA
per common share |
$ |
$ (0.05) |
$ |
0.01 |
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Weighted average common
shares outstanding |
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Weighted average common
shares outstanding |
|
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|
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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 |
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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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