Total net sales of $67.4 million for the full
year, up 14% from the prior year, with $56.7 million from Tru
Niagen® and gross margin of 61.5%. Total net sales of $17.8 million
for the three months ended December 31, 2021, up 15% from the prior
year quarter.
ChromaDex Corp. (NASDAQ:CDXC) today announced fourth quarter and
fiscal year 2021 financial results.
Fourth Quarter 2021 and Recent Highlights
- Total net sales were $17.8 million, up 15% year over year.
- Tru Niagen® net sales were $14.1 million, a 14% increase year
over year.
- Gross margin was 61.2%, up 20 basis points year over year.
- Net loss was $5.3 million or $0.08 loss per share, an
improvement of $0.02 per share year over year.
- In January 2022, announced a supply agreement with Designs for
Health to sell Niagen® in specially-formulated products, available
exclusively through the company’s extensive healthcare practitioner
network.
- The ChromaDex External Research Program (CERP) celebrates 100
published peer-reviewed studies on Niagen® and other ingredients.
This research conducted by independent investigators has expanded
the understanding of nicotinamide riboside (NR) in key health areas
including Ataxia-telangiectasia, skeletal muscle, liver health, and
heart failure.
- Clinical study published in Cell Metabolism finds that NR
supplementation significantly increased cerebral NAD levels, and
decreased levels of inflammatory cytokines in Parkinson’s Disease
(PD) patients, building on positive preclinical research supporting
NR’s positive impact on neurodegenerative diseases. Further studies
are underway to understand the role of NR supplementation in
Parkinson’s patients.
- New U.S. continuation patent reinforces ChromaDex’s
intellectual property portfolio of over 40 patents on NR and other
NAD precursors by adding protection of a novel manufacturing
process of NR and its various salt forms.
Full Year 2021 Highlights
- Delivered on latest financial outlook to investors across all
metrics. Slightly better than target on research and development,
general and administrative expense.
- Total net sales of $67.4 million, up 14% from $59.3 million
year over year.
- Tru Niagen® net sales of $56.7 million, a 20% increase from
$47.1 million year over year.
- Gross margins of 61.5%, a 200 basis point increase year over
year.
- Announced strategic supply agreements with Health &
Happiness Group (H&H), a global leader in premium health, human
and pet nutrition and personal care brands, and healthcare
technology company, Ro, to sell Niagen® in exclusively formulated
Swisse™ and Roman products, respectively. Roman Life launched in
September 2021.
- Launched Tru Niagen® in 3,800 Walmart stores across the United
States in June.
- Announced partnership with Sinopharm Xingsha, a subsidiary of
one of China’s largest pharmaceutical companies, to conduct
cross-border sales of Tru Niagen in mainland China, and collaborate
to secure health food registration.
“ChromaDex achieved solid net sales growth in 2021 and recent
scientific developments continue to validate the market opportunity
for Tru Niagen®,” said Rob Fried, ChromaDex Chief Executive
Officer. “In 2022, we expect to introduce a new Tru Niagen®
product, strengthen our presence in the Asia-Pacific region, and
continue to grow the industry-leading ChromaDex External Research
Program.”
Results of operations for the three months ended December 31,
2021 compared to the prior year quarter
Net Sales for ChromaDex increased 15%, or $2.3 million,
to $17.8 million. The increase in net sales was largely driven by
growth in sales of Tru Niagen® (primarily e-commerce sales) paired
with growth in Niagen® and other ingredient sales.
Gross Margin improved 20 basis points to 61.2% primarily
driven by the positive impact of increased Tru Niagen® consumer
product sales and product cost savings initiatives.
Operating Expense increased 4%, or $0.7 million, to $16.2
million.
- Selling and marketing (S&M) expense increased 37%, or $2.3
million, largely due to brand building activities and efforts to
increase consumer awareness and demand.
- Increases were partially offset by a 22% decrease, or $1.8
million decline, in general and administrative (G&A) expense
primarily related to lower legal expense.
Net Loss was $5.3 million, or $0.08 loss per share,
compared to a net loss of $6.1 million or $0.10 loss per share for
the fourth quarter of 2020.
Adjusted EBITDA excluding total legal expense, a non-GAAP
measure, was a loss of $1.8 million, an increase of $0.7 million
from a loss of $1.1 million for the fourth quarter of 2020. 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.
Operating Activities had a net cash outflow of $4.9
million compared to break-even operating activities for the fourth
quarter of 2020 largely due to changes in working capital.
Results of operations for the year ended December 31, 2021
compared to the prior year
Net Sales for ChromaDex increased 14%, or $8.2 million,
to $67.4 million. The increase in net sales was largely driven by
growth in sales of Tru Niagen® (primarily e-commerce sales and the
launch in U.S. Walmart stores) partially offset by lower Niagen®
and other ingredient sales.
Gross Margin improved 200 basis points to 61.5% as scale,
product mix, and cost savings initiatives more than offset
inflationary pressures across global supply chains.
Operating Expense increased 24%, or $13.4 million, to
$68.6 million.
- S&M expense increased 35%, or $7.4 million, largely due to
brand building activities and efforts to increase consumer
awareness and demand.
- G&A expense increased 18%, or $5.6 million, primarily due
to increased litigation activity which is now largely behind the
Company.
- Research and development expense increased 12%, or $0.4
million, driven by increased investments and timing of
projects.
Net Loss was $27.1 million, or $0.40 loss per share,
compared to a net loss of $19.9 million or $0.33 loss per share for
fiscal year 2020.
Adjusted EBITDA excluding total legal expense, a non-GAAP
measure, was a loss of $2.5 million, an increase of $1.5 million,
compared to a loss of $1.0 million for fiscal year 2020 primarily
driven by higher selling and marketing expense, partially offset by
higher sales and increased gross margins. 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.
Operating Activities had a net cash outflow of $24.2
million compared to $10.6 million for fiscal year 2020 largely due
to increases in legal expenditures and changes in working
capital.
Cash and cash equivalents totaled $28.2 million at
December 31, 2021 compared to $16.7 million at December 31,
2020.
2022 Outlook
Looking forward, for the full year, the Company expects 15-20%
revenue growth, driven by its global e-commerce business, as well
as growth with existing and new strategic partners. The outlook
does not include revenue upside from potential new partnerships in
the pipeline. The outlook contemplates continued COVID-19 headwinds
for international partners. The Company expects slightly better
than 60% gross margin and a reduction in general and administrative
expense of $5.0 to $6.0 million, as reported, for full year 2022,
driven by lower legal expense. The Company expects to increase
investments and resources to drive brand awareness and accelerate
its research and development pipeline to capitalize on growth in
the nicotinamide adenine dinucleotide (NAD+) market globally.
Accordingly, the Company expects an increase in research and
development expense of approximately $2.0 million. Selling and
marketing expense is expected to be up in absolute dollars, but
down slightly as a percentage of net sales, year-over-year.
Investor Conference Call
A live webcast will be held Wednesday, March 9, 2022 at 4:30
p.m. Eastern time (1:30 p.m. Pacific time) to discuss ChromaDex’s
fourth-quarter and fiscal year 2021 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 Investor
Relations section of ChromaDex’s website at www.chromadex.com. The
toll-free dial-in information for this call is 1-888-510-2008 with
Conference ID: 4126168.
The webcast will be recorded, and will be available for replay
via the website from 7:30 p.m. Eastern time on March 9, 2022 to
11:59 p.m. Eastern time on March 16, 2022. The replay of the call
can also be accessed by dialing 800-770-2030, using the Replay ID:
4126168.
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 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. Forward-looking statements include
statements regarding our intentions, beliefs, projections, outlook,
analyses or current expectations concerning, among other things:
the quotation from ChromaDex’s Chief Executive Officer, and
statements related to the company’s 2022 financial outlook,
including but not limited to revenue growth, gross margin,
expenses, and investment plans. Other risks that contribute to the
uncertain nature of the forward-looking statements include: the
impact of the COVID-19 pandemic on our business and the global
economy; our history of operating losses and need to obtain
additional financing; the growth and profitability of our product
sales; our ability to maintain sales, marketing and distribution
capabilities; changing consumer perceptions of our products; our
reliance on a single or limited number of third-party suppliers;
and the risks and uncertainties associated with our business and
financial condition in general, described in our filings with the
Securities and Exchange Commission (SEC), including, without
limitation, our most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q as filed with the SEC. 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+) an essential coenzyme which is found in every
cell of human bodies and 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
Consolidated Statements of
Operations
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(In thousands, except per share data)
Sales, net
$
17,759
$
15,445
$
67,449
$
59,257
Cost of sales
6,891
6,024
25,959
23,983
Gross profit
10,868
9,421
41,490
35,274
Operating expenses:
Sales and marketing
8,641
6,319
28,352
20,948
Research and development
1,045
870
3,832
3,415
General and administrative
6,498
8,313
36,379
30,765
Total operating expenses
16,184
15,502
68,563
55,128
Operating loss
(5,316
)
(6,081
)
(27,073
)
(19,854
)
Interest expense, net
(9
)
(16
)
(55
)
(71
)
Net loss
$
(5,325
)
$
(6,097
)
$
(27,128
)
$
(19,925
)
Basic and diluted loss per share
attributable to common stockholders:
$
(0.08
)
$
(0.10
)
$
(0.40
)
$
(0.33
)
Basic and diluted weighted average common
shares outstanding
68,297
61,869
67,185
61,067
ChromaDex Corporation and
Subsidiaries
Consolidated Balance
Sheets
December 31,
2021
2020
(In thousands except par values, unless
otherwise indicated)
Assets
Current assets:
Cash and cash equivalents, including
restricted cash of $0.2 million for both periods presented
$ 28,219
$ 16,697
Trade receivables, net of allowances of
$65 and $189, respectively; Including receivables from Related
Party of $2.1 million and $0.9 million, respectively.
5,226
2,694
Inventories
13,601
11,683
Prepaid expenses and other assets
1,859
1,145
Total current assets
48,905
32,219
Leasehold improvements and equipment,
net
3,003
3,206
Intangible assets, net
857
1,082
Right-of-use assets
4,352
1,226
Other long-term assets
723
625
Total assets
$ 57,840
$ 38,358
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$ 10,423
$ 9,445
Accrued expenses
6,481
6,133
Current maturities of operating lease
obligations
528
589
Current maturities of finance lease
obligations
20
31
Customer deposits
161
278
Total current liabilities
17,613
16,476
Deferred revenue
4,346
4,441
Operating lease obligations, less current
maturities
4,154
997
Finance lease obligations, less current
maturities
—
20
Total liabilities
26,113
21,934
Commitments and Contingencies
Equity
ChromaDex Corporation and subsidiaries
stockholders' equity:
Common stock, $0.001 par value; authorized
150,000 shares; 68,126 shares and 61,881 shares issued and
outstanding at December 31, 2021 and December 31, 2020,
respectively.
68
62
Additional paid-in capital
200,614
158,190
Accumulated deficit
(168,953)
(141,825)
Cumulative translation adjustments
(2)
(3)
Total stockholders’ equity
31,727
16,424
Total liabilities and stockholders’
equity
$ 57,840
$ 38,358
ChromaDex Corporation and
Subsidiaries
Unaudited Reconciliation of
Non-GAAP Financial Measures
Adjusted EBITDA
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Full Year 2021
(In thousands)
Net loss, as reported
$
(7,381
)
$
(5,566
)
$
(8,856
)
$
(5,325
)
$
(27,128
)
Adjustments:
Interest expense, net
19
12
15
9
55
Depreciation
221
226
232
211
890
Amortization of intangibles
60
61
53
51
225
Amortization of right of use assets
126
128
131
126
511
Share-based compensation
1,284
1,616
1,822
1,473
6,195
Severance and restructuring
(10
)
13
342
6
351
Adjusted EBITDA
$
(5,681
)
$
(3,510
)
$
(6,261
)
$
(3,449
)
$
(18,901
)
Total legal expense
5,010
4,150
5,640
1,626
16,426
Adjusted EBITDA excluding total legal
expense
$
(671
)
$
640
$
(621
)
$
(1,823
)
$
(2,475
)
Adjusted EBITDA
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Full Year 2020
(In thousands)
Net loss, as reported
$
(5,902
)
$
(3,711
)
$
(4,215
)
$
(6,097
)
$
(19,925
)
Adjustments:
Interest expense, net
12
24
19
16
71
Depreciation
214
218
220
219
871
Amortization of intangibles
62
60
60
61
243
Amortization of right of use assets
92
95
97
115
399
Share-based compensation
1,873
1,711
1,574
1,778
6,936
Severance and restructuring
953
284
224
329
1,790
Adjusted EBITDA
$
(2,696
)
$
(1,319
)
$
(2,021
)
$
(3,579
)
$
(9,615
)
Total legal expense
2,380
1,844
1,896
2,468
8,588
Adjusted EBITDA excluding total legal
expense
$
(316
)
$
525
$
(125
)
$
(1,111
)
$
(1,027
)
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 its historical and current
financial operating performance. ChromaDex 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/20220309005768/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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