-Company Reports Revenue of $5.3 Million for Q2 2017-
- Continued Progress on Building a Consumer Products Platform Around TruNiagen®-
IRVINE, Calif., Aug. 10, 2017 (GLOBE NEWSWIRE) -- 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:
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:U.S. Toll-Free Number: (866) 327-8118International Dial-In Number: (678) 509-7526Conference ID: 65841215Webcast link: http://edge.media-server.com/m/p/3mm48mw7/lan/en
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.
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.
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.Condensed Consolidated Statements of Operations For the Three Month Periods Ended July 1, 2017 and July 2, 2016 July 1, 2017July 2, 2016 Sales, net $ 5,306,855 $ 8,829,579 Cost of sales 3,044,086 4,702,132 Gross profit 2,262,769 4,127,447 Operating expenses: 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 Operating income (loss) (2,718,838) 371,131 Nonoperating income (expense): Interest expense, net (45,286) (144,786) Loss on debt extinguishment - (313,099) Nonoperating expenses (45,286) (457,885) Loss before taxes (2,764,124) (86,754) Provision for taxes - 4,087 Net loss $ (2,764,124) $ (82,667) Basic and diluted loss per common share $ (0.07) $ (0.00) Basic and diluted weighted average common shares outstanding 42,121,150 36,990,032 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.
Condensed Consolidated Statements of Operations (Unaudited) Effects of Charges associated with Interest, Tax, Depreciation, Amortization and Share-based Compensation Expense Condensed Consolidated Statements of Operations, Adjusted EBITDA Excluding Interest, Tax, Depreciation, Amortization and Share-based Compensation (Non-GAAP Presentation) (US GAAP) For the Three Month Periods Ended July 1, 2017 and July 2, 2016 For the Three Month Periods Ended July 1, 2017 and July 2, 2016 For the Three Month Periods Ended July 1, 2017 and July 2, 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Sales $5,306,855 $8,829,579 Sales $ - $ - Sales$ 5,306,855 $ 8,829,579 Cost of sales 3,044,086 4,702,132 Cost of sales (98,375) (67,409) Cost of sales 2,945,711 4,634,723 Gross profit 2,262,769 4,127,447 Gross profit 98,375 67,409 Gross profit 2,361,144 4,194,856 Operating expenses: Operating expenses: Operating expenses: 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 2,657,573 2,306,559 General and administrative (502,218) (370,161) General and administrative 2,155,355 1,936,398 Other 745,773 - Other - - Other 745,773 - Operating expenses 4,981,607 3,756,316 Operating expenses (502,218) (370,161) Operating expenses 4,479,389 3,386,155 Operating income (loss) (2,718,838) 371,131 Operating income 600,593 437,570 Operating income (loss) (2,118,245) 808,701 Nonoperating income (expense): Nonoperating income: Nonoperating income (expense): Interest expense, net (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) Loss before taxes (2,764,124) (86,754) Income before taxes 645,879 582,356 Income (loss) before taxes (2,118,245) 495,602 Provision for taxes - 4,087 Provision for taxes - (4,087) Provision for taxes - - Net income (loss) $ (2,764,124) $ (82,667) Effects of adjusted EBITDA $ 645,879 $ 578,269 Adjusted EBITDA$ (2,118,245) $ 495,602 Basic and diluted loss per common share $ (0.07) $ (0.00) Basic effects of adjusted EBITDA per common share $ 0.02 $ 0.02 Basic adjusted EBITDA per common share$ $ (0.05) $ 0.01 Weighted average common shares outstanding Weighted average common shares outstanding 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