ChromaDex® Reports 32% Increase in First Quarter Revenue as Ingredient Sales Grow 97%
IRVINE, Calif., May 8, 2014 /PRNewswire/ -- ChromaDex® Corp. (OTCQB: CDXC), an innovative natural products company that provides proprietary, ingredients and science-based solutions to the dietary supplement, food and beverage, animal health, cosmetic and pharmaceutical industries, announced today the financial results for the quarter ended March 29, 2014.
For the three months ended March 29, 2014 ("Q1 2014"), the Company reported net sales of $3,074,138, an increase of approximately 32% as compared to $2,334,566 for the three months ended March 30, 2013 ("Q1 2013"). This increase was largely due to increased sales in the proprietary ingredient segment which grew to $1,136,309, an increase of 97% as compared to ingredient sales of $577,953 in Q1 2013. The net loss attributable to common stock holders for Q1 2014 was $1,848,016 or ($0.02) per share as compared to a net loss of $1,424,072 or ($0.02) per share for Q1 2013. The non-cash, stock-based compensation expense related to stock options and other stock-based compensation in Q1 2014 was $999,661. Excluding non-cash, share-based compensation expense, which is a "non-GAAP measure," would have the effect of decreasing the Company's net loss for the three months ended March 29, 2014 to $848,355. As of March 29, 2014, cash, cash equivalents and marketable securities totaled approximately $1,924,538.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "Over the past three years, we have spent considerable capital and resources to commercialize what we believe are valuable, patented ingredient technologies - such as our NIAGEN™ nicotinamide riboside and PURENERGY® caffeine alternative. The 97% increase in ingredient sales was largely a result of the first order we received from 5LINX® for NIAGEN™ and PURENERGY®. Based on visibility of sales activity from both our existing customers and our business development pipeline, we anticipate steady growth in our ingredient segment to continue for the foreseeable future."
Jaksch continued, "Media outlets are starting to highlight peer reviewed research studies from esteemed institutions on the potential health benefits of NAD+ precursors, such as nicotinamide riboside ("NR"). We expect new research will continue to be published which will further validate the health benefits of NR. We plan to add to that research by beginning our first clinical study on NIAGEN™ in the second quarter."
Recent Company highlights include:
- In January 2014, the Company announced it entered into a four year ingredient supply and brand licensing agreement valued at approximately $62 million, with 5LINX®, one of the largest and fastest-growing direct marketing companies in the world. 5LINX® was granted marketing rights for ChromaDex's patented NIAGEN™ nicotinamide riboside ingredient for use in dietary supplements exclusively in the network marketing sales channel in the United States, Canada and Philippines. Under the terms of the agreement, 5LINX® must purchase from ChromaDex $2.1 million of NIAGEN™ in 2014, and an aggregate of $46 million of NIAGEN™ from 2015 through 2017. 5LINX® was also granted marketing rights for ChromaDex's recently launched patented PURENERGY™ for use in dietary supplements, with select exclusively in the network marketing sales channel in the U.S., Canada and Philippines. Under the exclusive network marketing channel agreement, 5LINX® must purchase from ChromaDex $520,000 of PURENERGY™ in 2014 and an aggregate of $14 million of PURENERGY™ from 2015 through 2017. The first shipment pursuant to these agreements was made in Q1 5LINX® plans on launching several new innovative health and wellness products that feature ChromaDex's NIAGEN™ nicotinamide riboside and patented PURENERGY® ingredients at its upcoming international event in Atlantic City, NJ. The event will be held May 14-17, 2014 and is expected to be attended by thousands of 5LINX® sales associates.
- In January 2014, the Company announced the appointment of former Nestle executive, Steve Allen as an independent director. Allen retired from Nestle in December 2009 after a 30-year career in sales, marketing and general management.
- In the first quarter, the Company entered into separate material transfer agreements with Groningen Biomolecular Sciences & Biotechnology Institute and University of Copenhagen, whereby ChromaDex will provide each with quantities of its NIAGEN™ nicotinamide riboside for research purposes.
- In April 2014, the Company entered into a joint collaboration agreement with the Brazilian Biosciences National Laboratory to evaluate the Company's natural product libraries.
- In April 2014, a collaboration formed by the University of Mississippi's Division of Technology Management, the USDA Agricultural Research Service's Natural Products Utilization Research Unit and ChromaDex won a national award for excellence in technology transfer. The three organizations have won a Federal Laboratory Consortium 2014 Excellence in Technology Transfer Award for their work to develop, study and bring to market pterostilbene, a compound found in blueberries, grapes and other small fruits. In studies, pterostilbene has demonstrated promise for improving cardiovascular health, glucose levels and cognitive function.
About ChromaDex®:
ChromaDex® is an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its unique business model that utilizes its wholly owned synergistic business units, including ingredient technologies, natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (as Spherix Consulting). The company provides seamless science-based solutions to the nutritional supplement, food and beverage, animal health, cosmetic and pharmaceutical industries. The ChromaDex ingredient technologies unit includes products backed with extensive scientific research and intellectual property. Its ingredient portfolio includes pTeroPure® pterostilbene; ProC3G™, a natural black rice containing cyanidin-3-glucoside; PURENERGY™, a caffeine-pTeroPure co-crystal; and NIAGEN™, its recently launched branded nicotinamide riboside, a novel next-generation B vitamin. To learn more about ChromaDex, 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. 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. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2013, the Company's Quarter Reports on Form 10-Q and other filings submitted by the Company 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. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
ChromaDex Contact:
Laura Kelly, Executive Assistant
949-419-0288
[email protected]
| ChromaDex Corporation and Subsidiaries |
||
| Condensed Consolidated Statements of Operations (Unaudited) |
||
| For the Three Month Periods Ended March 29, 2014 and March 30, 2013 |
||
| March 29, 2014 |
March 30, 2013 |
|
| Sales, net |
$ 3,074,138 |
$ 2,334,566 |
| Cost of sales |
2,089,130 |
1,661,726 |
| Gross profit |
985,008 |
672,840 |
| Operating expenses: |
||
| Sales and marketing |
464,567 |
729,424 |
| General and administrative |
2,337,663 |
1,359,901 |
| Loss from investment in affiliate |
21,543 |
- |
| Operating expenses |
2,823,773 |
2,089,325 |
| Operating loss |
(1,838,765) |
(1,416,485) |
| Nonoperating income (expense): |
||
| Interest income |
640 |
204 |
| Interest expense |
(9,891) |
(7,791) |
| Nonoperating expenses |
(9,251) |
(7,587) |
| Net loss |
$ (1,848,016) |
$ (1,424,072) |
| Basic and Diluted loss per common share |
$ (0.02) |
$ (0.02) |
| Basic and Diluted weighted average common shares outstanding |
106,076,361 |
94,626,120 |
| See Notes to Consolidated Financial Statements. |
||
Quantitative Reconciliation of the differences between the non-GAAP measure and the associated comparable GAAP measure
| Consolidated Statements of Operations |
Effects of Non-cash Charges associated with |
Consolidated Statements of Operations |
|||||||||
| (US GAAP) |
Share-based Compensation Expense |
Excluding Share-based Compensation (Non-GAAP Presentation) |
|||||||||
| For the Three Months Ended March 29, 2014 and March 30, 2013 |
For the Three Months Ended March 29, 2014 and March 30, 2013 |
For the Three Months Ended March 29, 2014 and March 30, 2013 |
|||||||||
| March 29, 2014 |
March 30, 2013 |
March 29, 2014 |
March 30, 2013 |
March 29, 2014 |
March 30, 2013 |
||||||
| Sales, net |
$ 3,074,138 |
$ 2,334,566 |
Sales |
$ - |
$ - |
Sales |
$ 3,074,138 |
$ 2,334,566 |
|||
| Cost of sales |
2,089,130 |
1,661,726 |
Cost of sales |
- |
- |
Cost of sales |
2,089,130 |
1,661,726 |
|||
| Gross profit |
985,008 |
672,840 |
Gross profit |
- |
- |
Gross profit |
985,008 |
672,840 |
|||
| Operating expenses: |
Operating expenses: |
Operating expenses: |
|||||||||
| Sales and marketing |
464,567 |
729,424 |
Sales and marketing |
- |
- |
Sales and marketing |
464,567 |
729,424 |
|||
| General and administrative |
2,337,663 |
1,359,901 |
General and administrative |
(999,661) |
(351,590) |
General and administrative |
1,338,002 |
1,008,311 |
|||
| Loss from investment in affiliate |
21,543 |
- |
Loss from investment in affiliate |
- |
- |
Loss from investment in affiliate |
21,543 |
- |
|||
| Operating expenses |
2,823,773 |
2,089,325 |
Operating expenses |
(999,661) |
(351,590) |
Operating expenses |
1,824,112 |
1,737,735 |
|||
| Operating loss |
(1,838,765) |
(1,416,485) |
Operating income |
999,661 |
351,590 |
Operating loss |
(839,104) |
(1,064,895) |
|||
| Nonoperating income (expense): |
Nonoperating income: |
Nonoperating income (expense): |
|||||||||
| Interest income |
640 |
204 |
Interest income |
- |
- |
Interest income |
640 |
204 |
|||
| Interest expense |
(9,891) |
(7,791) |
Interest expense |
- |
- |
Interest expense |
(9,891) |
(7,791) |
|||
| Nonoperating expense |
(9,251) |
(7,587) |
Nonoperating income |
- |
- |
Nonoperating expense |
(9,251) |
(7,587) |
|||
| Net loss |
$ (1,848,016) |
$ (1,424,072) |
Net income |
$ 999,661 |
$ 351,590 |
Net loss |
$ (848,355) |
$ (1,072,482) |
|||
| Basic and Diluted loss per common share |
$ (0.02) |
$ (0.02) |
Basic and Diluted income per common share |
$ 0.01 |
$ 0.00 |
Basic and Diluted loss per common share |
$ (0.01) |
$ (0.01) |
|||
| Basic and Diluted weighted |
Basic and Diluted weighted |
Basic and Diluted weighted |
|||||||||
| average common shares outstanding |
106,076,361 |
94,626,120 |
average common shares outstanding |
106,076,361 |
94,626,120 |
average common shares outstanding |
106,076,361 |
94,626,120 |
|||
SOURCE ChromaDex
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