IRVINE, Calif., Aug. 13, 2015 (GLOBE NEWSWIRE) -- ChromaDex Corp. (OTCQX:CDXC), an innovator of proprietary health, wellness, and nutritional ingredients that creates science-based solutions for dietary supplements, food and beverage, skin care, sports nutrition, and pharmaceutical products announced today record revenue for the second quarter ended July 4, 2015. The report marks the fifth consecutive quarter of record revenues for the Company.
For the three months ended July 4, 2015 ("Q2 2015"), ChromaDex reported record net sales of $6.1 million, an increase of 58% as compared to $3.9 million for the three months ended June 28, 2014 ("Q2 2014"), and a sequential increase of 16% as compared to the three months ended April 4, 2015 ("Q1 2015"). This increase was largely due to increased sales in its ingredients business segment, led by its NIAGEN® branded nicotinamide riboside. The ingredients segment generated record net sales of $3.4 million for Q2 2015, an increase of 98%, compared to $1.7 million for Q2 2014, and a sequential increase of 27% as compared to Q1 2015.
The core standards and services segment also posted its largest quarterly sales ever of $2.4 million for Q2 2015, an increase of 28% compared to $1.9 million for Q2 2014. Net sales for the scientific and regulatory consulting segment were $318K, an increase of 15% as compared to $277K for Q2 2014.
The net loss attributable to common stock holders for Q2 2015 was $315K or ($0.00) per share as compared to a net loss of $1.7 million or ($0.02) per share for Q2 2014. The non-cash, stock based compensation expense related to stock options and other stock-based compensation in Q2 2015 was $507K. Excluding non-cash, share-based compensation expense, which is a "non-GAAP measure," would have the effect of the Company posting a net income of $192K for Q2 2015. As of July 4, 2015, cash, cash equivalents and marketable securities totaled approximately $5.7 million.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "Posting our 5th consecutive quarter of record revenue demonstrations the continued momentum we are experiencing in all business segments. Interest from consumer product companies in our patented NIAGEN® nicotinamide riboside is accelerating and we expect to see new products featuring NIAGEN® showing up on shelves of major U.S. retailers in the very near future."
"Given the exciting recent results of the first human clinical study of NR, we are planning a second human clinical NR study to both further validate NR as an effective NAD+ precursor as well as to begin evaluating the therapeutic benefits of increasing NAD+. We also continue to review pharmaceutical indications in which NR alone, or in combination with other actives, may be effective in treating or preventing disease."
Jaksch continued, "Lastly, I am also happy to report that we are in discussions with no less than three Fortune 500 companies with respect to the possibility of several of our patented ingredients, including NIAGEN® nicotinamide riboside and pTeroPure® pterostilbene, being included and featured in a number of branded consumer products within extremely large product categories."
Recent Company highlights include:
- In April 2015, ChromaDex announced a published study showing that topical treatment with pterostilbene has the capacity to protect hairless mice against UVB radiation-induced skin damage and carcinogenesis.
- In April 2015, the Company appointed former GlaxoSmithKline executive Jeff Baxter to its Board of Directors. Baxter has extensive pharma experience including management roles at GSK in R&D, commercial, manufacturing, and finance. Since 2009, Mr. Baxter has served as President and CEO and a Director of VBI Vaccines, Inc.
- In April 2015, ChromaDex announced that Washington University Medical School scientists publish results of a pre-clinical study showing nicotinamide riboside may be effective in rescuing neurons subjected to trauma and disease. The study showed axon degeneration and cell death are blocked by supplementation with the cell-permeable NAD+ precursor, nicotinamide riboside.
- In May 2015, ChromaDex announced an exclusive worldwide license and supply agreement for anothcyanin-rich Suntava® Purple Corn. ChromaDex will use Suntava® to produce a highly concentrated anthocyanin ingredient at a price point that should appeal to mass markets.
- In June 2015, ChromaDex announced that Healthy Directions, a direct-to-consumer nutritional supplement retailer and wholly-owned subsidiary of Helen of Troy Limited, is launching a new dietary supplement product— NRG AdvantageTM. The unique formula features ChromaDex's patented ingredient NIAGEN®, nicotinamide riboside (NR).
- In June 2015, the Company announced that it expanded its patent rights to pterostilbene licensed from the University of Mississippi. The newly licensed patent relates to potential anti-obesity effects of pterostilbene.
- In June 2015, ChromaDex announced a collaborative human clinical study on NIAGEN® with the University of Colorado Boulder. The Integrative Physiology of Aging Laboratory, headed by Dr. Douglas Seals, will investigate the effects of NIAGEN® on physical function and metabolism in healthy adults aged 45-79 Years.
- In July 2015, the Company appointed business & media executive and Academy Award winning producer, Rob Fried, to its Board of Directors. Fried has extensive experience in media, marketing and branding, including several executive roles at Columbia Pictures and Twentieth Century Fox.
- In July 2015, ChromaDex announced the launch of Sync Health Solutions' new branded lifestyle energy product, Älsa™ Energy. The energy burst from Älsa™ Energy is derived from ChromaDex's patented PURENERGY® ingredient. www.alsaenergy.com
- In July 2015, the Company announced it had received the 2014 Nutrition Business Journal ("NBJ") Business Achievement Award for Mid-Sized Growth companies.
- In August, the Company announced results from the first human clinical study demonstrated ChromaDex's NIAGEN® nicotinamide riboside effectively increases the co-enzyme NAD+ and is safe.
Investor Conference Call
ChromaDex management will host an investor conference call to discuss the quarterly results and provide a general business update on Wednesday, August 19th, at 11am EDT. Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:
U.S. toll free: 1-866-327-8118
Outside the U.S.: 1-678-509-7526
Conference ID for this call is: 98596925
A webcast replay will be available beginning two hours after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com, and will be archived for a year.
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 (known as Spherix 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; ProC3G®, a natural black rice containing cyanidin-3-glucoside; IMMULINA™, a spirulina extract; and Suntava® Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins. To learn more about ChromaDex, please visit www.chromadex.com.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the earnings release contains non-GAAP financial measures adjusted for non-cash, share-based compensation. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company's ongoing business performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of non-GAAP net income (loss) to the Company's reported GAAP net income (loss).
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 January 3, 2015, the Company's Quarterly Reports on Form 10-Q, the Company's Current Reports on Form 8-K 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 Corporation and Subsidiaries | ||
| Condensed Consolidated Statements of Operations (Unaudited) | ||
| For the Three Month Periods Ended July 4, 2015 and June 28, 2014 | ||
| July 4, 2015 | June 28, 2014 | |
| Sales, net | $ 6,101,380 | $ 3,856,154 |
| Cost of sales | 3,630,688 | 2,457,388 |
| Gross profit | 2,470,692 | 1,398,766 |
| Operating expenses: | ||
| Sales and marketing | 639,748 | 571,548 |
| General and administrative | 2,015,004 | 2,468,646 |
| Operating expenses | 2,654,752 | 3,040,194 |
| Operating loss | (184,060) | (1,641,428) |
| Nonoperating income (expense): | ||
| Interest income | 645 | 305 |
| Interest expense | (131,777) | (12,019) |
| Nonoperating expenses | (131,132) | (11,714) |
| Net loss | $ (315,192) | $ (1,653,142) |
| Basic and Diluted loss per common share | $ (0.00) | $ (0.02) |
| Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 |
| See Notes to Condensed Consolidated Financial Statements. | ||
|
Consolidated Statements of Operations (US GAAP) |
Effects of Non-cash Charges associated with Share-based Compensation Expense |
Consolidated Statements of Operations Excluding Share-based Compensation (Non-GAAP Presentation) |
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| For the Three Month Periods Ended July 4, 2015 and June 28, 2014 | For the Three Month Periods Ended July 4, 2015 and June 28, 2014 | For the Three Month Periods Ended July 4, 2015 and June 28, 2014 | ||||||
|
July 4, 2015 |
June 28, 2014 |
July 4, 2015 |
June 28, 2014 |
July 4, 2015 |
June 28, 2014 | |||
| Sales | $ 6,101,380 | $ 3,856,154 | Sales | $ -- | $ -- | Sales | $ 6,101,380 | $ 3,856,154 |
| Cost of sales | 3,630,688 | 2,457,388 | Cost of sales | -- | -- | Cost of sales | 3,630,688 | 2,457,388 |
| Gross profit | 2,470,692 | 1,398,766 | Gross profit | -- | -- | Gross profit | 2,470,692 | 1,398,766 |
| Operating expenses: | Operating expenses: | Operating expenses: | ||||||
| Sales and marketing | 639,748 | 571,548 | Sales and marketing | -- | -- | Sales and marketing | 639,748 | 571,548 |
| General and administrative | 2,015,004 | 2,468,646 | General and administrative | (507,268) | (1,036,608) | General and administrative | 1,507,736 | 1,432,038 |
| Operating expenses | 2,654,752 | 3,040,194 | Operating expenses | (507,268) | (1,036,608) | Operating expenses | 2,147,484 | 2,003,586 |
| Operating loss | (184,060) | (1,641,428) | Operating income | 507,268 | 1,036,608 | Operating income (loss) | 323,208 | (604,820) |
| Nonoperating income (expense): | Nonoperating income: | Nonoperating income (expense): | ||||||
| Interest income | 645 | 305 | Interest income | -- | -- | Interest income | 645 | 305 |
| Interest expense | (131,777) | (12,019) | Interest expense | -- | -- | Interest expense | (131,777) | (12,019) |
| Nonoperating expense | (131,132) | (11,714) | Nonoperating income | -- | -- | Nonoperating expense | (131,132) | (11,714) |
| Net loss | $ (315,192) | $ (1,653,142) | Net income | $ 507,268 | $ 1,036,608 | Net income (loss) | $ 192,076 | $ (616,534) |
| Basic and Diluted loss per common share | $ (0.00) | $ (0.02) | Basic and Diluted income per common share | $ 0.00 | $ 0.01 | Basic and Diluted loss per common share | $ 0.00 | $ (0.01) |
| Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 | Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 | Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 |