Tru Niagen® net sales of $15.4 million for the
three months ended June 30, 2021, up 31% from the prior year
quarter, with total company net sales of $17.7 million and gross
margin of 61.1% for the quarter.
ChromaDex Corp. (NASDAQ:CDXC) today announced financial results
for the second quarter of 2021.
Second Quarter 2021 and Recent Highlights
- Total net sales were $17.7 million, up 16% from the prior year
quarter.
- Tru Niagen® net sales were $15.4 million, a 31% increase from
the prior year quarter.
- Gross margin was 61.1%, a 170 basis point increase from the
prior year quarter.
- Net loss was $(5.6) million or $(0.08) per share, down $0.02
per share from the prior year quarter.
- Adjusted EBITDA excluding total legal expense, a non-GAAP
measure, was a profit of $0.6 million, a $0.1 million improvement
from the prior year quarter.
- Launched Tru Niagen® in 3,800 Walmart stores across the United
States in June.
- Research on nicotinamide riboside (“NR”) continues to expand,
with 49 clinical studies currently registered.
“This was an excellent quarter for ChromaDex, financially and
strategically,” said ChromaDex Chief Executive Officer, Rob Fried.
“We delivered strong growth in our core e-Commerce business as well
as with existing partners. We launched Tru Niagen® in Walmart, our
first mass retail launch for the brand and delivered our first
shipment of Niagen® to a new partner, Ro. We achieved record sales
of $17.7 million and positive Adjusted EBITDA excluding legal of
$0.6 million. I am very proud of our team’s execution and believe
our long-term prospects look stronger than ever.”
Results of operations for the three months ended June 30,
2021
For the three months ended June 30, 2021 (“Q2 2021”), ChromaDex
reported net sales of $17.7 million, up $2.4 million or 16%
compared to the second quarter of 2020 (“Q2 2020”). The increase in
Q2 2021 revenues was largely driven by growth in sales of Tru
Niagen®, partially offset by lower Niagen® and other ingredient
sales.
Gross margin percentage improved by 170 basis points to 61.1% in
Q2 2021 compared to 59.4% in Q2 2020. The improvement in gross
margin percentage was driven by the positive impact of increased
Tru Niagen® consumer product sales and product cost savings
initiatives.
Operating expenses increased by $3.6 million to $16.4 million in
Q2 2021, compared to $12.8 million in Q2 2020. The increase in
operating expenses was driven by $1.3 million of higher selling and
marketing expenses and a $2.2 million increase in general and
administrative expense. The increase in general and administrative
expense was primarily driven by $2.3 million of higher legal
expense.
The net loss for Q2 2021 was $(5.6) million or $(0.08) per share
as reported compared to a net loss of $(3.7) million or $(0.06) per
share for Q2 2020 as reported. Adjusted EBITDA excluding total
legal expense, a non-GAAP measure, was a profit of $0.6 million for
Q2 2021, compared to a profit of $0.5 million for Q2 2020, a $0.1
million improvement. See “Reconciliation of Non-GAAP Financial
Measures” for a reconciliation of non-GAAP Adjusted EBITDA
excluding total legal expense to net loss, the most directly
comparable GAAP measure.
For Q2 2021, the net cash outflow from operating activities was
$(7.9) million, compared to $(1.6) million in Q2 2020.
2021 Full Year Outlook
Looking forward, for the full year, the Company expects
continued, steady revenue growth driven by its global e-commerce
business, as well as growth with existing and new strategic
partners. The Company expects slightly better than 60% gross margin
and slightly higher general and administrative expense, excluding
severance, restructuring and legal expense, for full year 2021. The
Company plans to increase investments and resources to drive brand
awareness and accelerate its research and development (R&D)
pipeline to capitalize on growth in the nicotinamide adenine
dinucleotide (NAD+) market globally. Accordingly, the Company
expects higher R&D expense and higher selling and marketing
expense as a percentage of net sales year-over-year.
Investor Conference Call
A live webcast will be held Tuesday, August 3, 2021 at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss ChromaDex’s
second-quarter financial results and provide a general business
update.
To listen to the webcast, or to view the earnings press release
and its accompanying financial exhibits, please visit the Investors
Relations section of ChromaDex’s website at
http://investors.chromadex.com. The dial-in information for this
call is 1-833-979-2703 (within the U.S.) and 236-714-2223 (outside
the U.S.) with Conference ID: 9972229.
The webcast will be recorded, and will be available for replay
via the website through 11:59 p.m. Eastern time on August 10, 2021.
The replay of the call can also be accessed by dialing
800-585-8367, using the replay ID: 9972229.
Important Note on Forward Looking Statements:
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, and Section
21E of the Securities and Exchange Act of 1934. 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. Such statements include the quotation
from ChromaDex’s Chief Executive Officer, and statements related to
the company’s 2021 financial outlook. 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, 2020, 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.
About ChromaDex:
ChromaDex Corporation is a global bioscience company dedicated
to healthy aging. The ChromaDex team, which includes world-renowned
scientists, is pioneering research on nicotinamide adenine
dinucleotide (NAD+), levels of which decline with age. ChromaDex is
the innovator behind NAD+ precursor nicotinamide riboside (NR),
commercialized as the flagship ingredient Niagen®. Nicotinamide
riboside and other NAD+ precursors are protected by ChromaDex’s
patent portfolio. ChromaDex delivers Niagen® as the sole active
ingredient in its consumer product Tru Niagen® available at
www.truniagen.com and through partnerships with global retailers
and distributors. Follow us on Twitter @ChromaDex and subscribe to
our latest news via our website accessible at www.chromadex.com to
which ChromaDex regularly posts copies of its press releases as
well as additional updates and financial information about the
Company.
ChromaDex Corporation and
Subsidiaries
Unaudited Condensed
Consolidated Statements of Operations
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(In thousands, except per share data)
Sales, net
$
17,699
$
15,287
$
32,382
$
29,632
Cost of sales
6,889
6,199
12,338
12,233
Gross profit
10,810
9,088
20,044
17,399
Operating expenses:
Sales and marketing
6,232
4,959
12,490
9,406
Research and development
1,004
895
1,791
1,704
General and administrative
9,128
6,921
18,679
15,866
Total operating expenses
16,364
12,775
32,960
26,976
Operating loss
(5,554
)
(3,687
)
(12,916
)
(9,577
)
Interest expense, net
(12
)
(24
)
(31
)
(36
)
Net loss
$
(5,566
)
$
(3,711
)
$
(12,947
)
$
(9,613
)
Basic and diluted loss per share
attributable to common stockholders:
$
(0.08
)
$
(0.06
)
$
(0.20
)
$
(0.16
)
Basic and diluted weighted average common
shares outstanding
67,986
60,906
66,086
60,344
See Notes to Consolidated Financial Statements in Part I Item 1
of ChromaDex’s Quarterly Report on Form 10-Q to be filed with
Securities and Exchange Commission on August 3, 2021.
ChromaDex Corporation and
Subsidiaries
Unaudited Condensed
Consolidated Balance Sheets
June 30, 2021
December 31, 2020
(In thousands except par values, unless
otherwise indicated)
Assets
Current assets:
Cash, including restricted cash of $0.2
million for both periods
$
38,778
$
16,697
Trade receivables, net of allowances of
$0.1 million and $0.2 million, respectively; Including receivables
from Related Party of: $2.2 million and $0.9 million,
respectively.
5,999
2,694
Inventories
12,183
11,683
Prepaid expenses and other assets
972
1,145
Total current assets
57,932
32,219
Leasehold improvements and equipment,
net
3,150
3,206
Intangible assets, net
961
1,082
Right-of-use assets
3,182
1,226
Other long-term assets
617
625
Total assets
$
65,842
$
38,358
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
9,970
$
9,445
Accrued expenses
5,569
6,133
Current maturities of operating lease
obligations
467
589
Current maturities of finance lease
obligations
13
31
Customer deposits
210
278
Total current liabilities
16,229
16,476
Deferred revenue
4,441
4,441
Operating lease obligations, less current
maturities
3,017
997
Finance lease obligations, less current
maturities
13
20
Total liabilities
23,700
21,934
Commitments and Contingencies
Equity
ChromaDex Corporation and subsidiaries
stockholders' equity:
Common stock, $0.001 par value; authorized
150,000 shares; 68,009 shares and 61,881 shares issued and
outstanding at June 30, 2021 and December 31, 2020,
respectively.
68
62
Additional paid-in capital
196,848
158,190
Accumulated deficit
(154,772
)
(141,825
)
Cumulative translation adjustments
(2
)
(3
)
Total stockholders’ equity
42,142
16,424
Total liabilities and stockholders’
equity
$
65,842
$
38,358
See Notes to Consolidated Financial Statements in Part I Item 1
of ChromaDex’s Quarterly Report on Form 10-Q to be filed with
Securities and Exchange Commission on August 3, 2021.
ChromaDex Corporation and
Subsidiaries
Unaudited Reconciliation of
Non-GAAP Financial Measures
Adjusted EBITDA
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
(In thousands)
Net loss, as reported
$
(5,566
)
$
(7,381
)
$
(6,097
)
$
(4,215
)
$
(3,711
)
Adjustments:
Interest expense, net
12
19
16
19
24
Depreciation
226
221
219
220
218
Amortization of intangibles
61
60
61
60
60
Amortization of right of use assets
128
126
115
97
95
Share-based compensation
1,616
1,284
1,778
1,574
1,711
Severance and restructuring
13
(10
)
329
224
284
Adjusted EBITDA
$
(3,510
)
$
(5,681
)
$
(3,579
)
$
(2,021
)
$
(1,319
)
Total legal expense
4,150
5,010
2,468
1,896
1,844
Adjusted EBITDA excluding total legal
expense
$
640
$
(671
)
$
(1,111
)
$
(125
)
$
525
Non-GAAP Financial Information:
ChromaDex discloses adjusted EBITDA excluding (a) interest, (b)
depreciation, (c) amortization, (d) non-cash share-based
compensation costs, (e) severance and restructuring expense and (f)
total legal expense. ChromaDex uses this non-GAAP measure when
evaluating its financial results as well as for internal resource
management, planning and forecasting purposes. ChromaDex believes
the presentation of its non-GAAP financial measure provides
important supplemental information to management and investors and
enhances the overall understanding of the company’s historical and
current financial operating performance. The company believes
disclosure of adjusted EBITDA has substance because the excluded
expenses are infrequent in nature, are variable in nature or do not
represent current cash expenditures. Non-GAAP measures should not
be viewed in isolation from or as a substitute for ChromaDex’s
financial results in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210803005375/en/
Investor Relations Brianna Gerber Vice President of
Finance and Investor Relations 949-419-0288 ext. 127
briannag@chromadex.com
Media Relations Alex Worsham Vice President of Global
Marketing & Communications 310-388-6706 ext. 689
alexw@chromadex.com
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