IRVINE, Calif., May 14, 2015 (GLOBE NEWSWIRE) -- ChromaDex Corp. (OTCQX:CDXC), an innovative natural products company that provides proprietary, ingredients and science-based solutions to the dietary supplement, food and beverage, cosmetic and pharmaceutical industries, announced today record revenue for the first quarter ended April 4, 2015. The report marks the fourth consecutive quarter of record revenues.
For the three months ended April 4, 2015 ("Q1 2015"), ChromaDex reported record net sales of $5.3 million, an increase of 71% as compared to $3.1 million for the three months ended March 29, 2014 ("Q1 2014"), and a sequential increase of 24% as compared to Q4 2014. 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 $2.7 million for Q1 2015, an increase of 136%, compared to $1.1 million for Q1 2014, and a sequential increase of 36% as compared to Q4 2014.
The core standards and services segment also posted its largest quarterly increase ever of 32%, as it generated record net sales of $2.3 million for Q1 2015, compared to $1.7 million for Q1 2014. Net sales for the scientific and regulatory consulting segment were $281K, an increase of 39% as compared to $202K for Q1 2014.
The net loss attributable to common stock holders for Q1 2015 was $1.0 million or ($0.01) per share as compared to a net loss of $1.8 million or ($0.02) per share for Q1 2014. The non-cash, stock based compensation expense related to stock options and other stock-based compensation in Q1 2015 was $716K. 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 Q1 2015 to $310K. As of April 4, 2015, cash, cash equivalents and marketable securities totaled $3.2 million.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "Our net sales over the last four quarters clearly illustrate the momentum we have been experiencing in our business model. While the growing interest in NIAGEN® continues to be a key revenue driver, I am thrilled with the strong growth we are also experiencing in our core standards and services sector. As a result of the recent NY attorney general actions regarding supplement labels, we anticipate increased demand for programs and services that address quality concerns in supplements."
A key milestone in Q1 was ChromaDex's announcement in February that the initial results of the first human clinical study for the company's NIAGEN® nicotinamide riboside (NR) had met its primary endpoint. The results demonstrated that a single dose of NR resulted in statistically significant increases in the co-enzyme nicotinamide adenine dinucleotide (NAD+) in healthy human volunteers. The study shows for the first time a similar conversion of NR into NAD+ as has been shown in prior animal studies.
Jaksch continued, "Based on the success of the first human clinical study of NR, we are planning additional human NR studies in 2015. Separately, numerous preclinical studies conducted recently by independent researchers have consistently indicated that NR has a beneficial effect in a variety of disease conditions through its effectiveness in increasing NAD+. As a result, we are reviewing pharmaceutical indications in which NR alone, or in combination, may be effective in treating or preventing disease. "
Recent Company highlights include:
- In February 2015, ChromaDex announced that sports nutrition supplier BPI Sports had contracted with ChromaDex for third-party verification of BPI Sports' protein products.
- In March 2015, the Company announced that it appointed former Nestle executive Steve Allen as Chairman of the Board. Allen had a 30-year career at Nestle in sales, marketing and general management, including seven years as a member of Nestle's Mergers and Acquisitions group.
- 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. (Nasdaq: VBIV)
- In April 2015, ChromaDex announced that Washington University Medical School scientists publish results of 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.
Investor Conference Call
ChromaDex management will host an investor conference call to discuss the quarterly results and provide a general business update on Monday, May18th, 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: 43212437 |
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 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.
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 April 4, 2015 and March 29, 2014 | ||
| April 4, 2015 | March 29, 2014 | |
| Sales, net | $ 5,260,971 | $ 3,074,138 |
| Cost of sales | 3,333,347 | 2,089,130 |
| Gross profit | 1,927,624 | 985,008 |
| Operating expenses: | ||
| Sales and marketing | 585,777 | 464,567 |
| General and administrative | 2,247,931 | 2,337,663 |
| Loss from investment in affiliate | -- | 21,543 |
| Operating expenses | 2,833,708 | 2,823,773 |
| Operating loss | (906,084) | (1,838,765) |
| Nonoperating income (expense): | ||
| Interest income | 718 | 640 |
| Interest expense | (120,149) | (9,891) |
| Nonoperating expenses | (119,431) | (9,251) |
| Net loss | $ (1,025,515) | $ (1,848,016) |
| Basic and Diluted loss per common share | $ (0.01) | $ (0.02) |
| Basic and Diluted weighted average common shares outstanding | 107,198,597 | 106,076,361 |
| See Notes to Condensed Consolidated Financial Statements. | ||
| 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 Month Periods Ended April 4, 2015 and March 29, 2014 | For the Three Month Periods Ended April 4, 2015 and March 29, 2014 | For the Three Month Periods Ended April 4, 2015 and March 29, 2014 | ||||||
| April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | |||
| Sales | $ 5,260,971 | $ 3,074,138 | Sales | $ -- | $ -- | Sales | $ 5,260,971 | $ 3,074,138 |
| Cost of sales | 3,333,347 | 2,089,130 | Cost of sales | -- | -- | Cost of sales | 3,333,347 | 2,089,130 |
| Gross profit | 1,927,624 | 985,008 | Gross profit | -- | -- | Gross profit | 1,927,624 | 985,008 |
| Operating expenses: | Operating expenses: | Operating expenses: | ||||||
| Sales and marketing | 585,777 | 464,567 | Sales and marketing | -- | -- | Sales and marketing | 585,777 | 464,567 |
| General and administrative | 2,247,931 | 2,337,663 | General and administrative | (715,909) | (999,661) | General and administrative | 1,532,022 | 1,338,002 |
| Loss from investment in affiliate | -- | 21,543 | Loss from investment in affiliate | -- | -- | Loss from investment in affiliate | -- | 21,543 |
| Operating expenses | 2,833,708 | 2,823,773 | Operating expenses | (715,909) | (999,661) | Operating expenses | 2,117,799 | 1,824,112 |
| Operating loss | (906,084) | (1,838,765) | Operating income | 715,909 | 999,661 | Operating loss | (190,175) | (839,104) |
| Nonoperating income (expense): | Nonoperating income: | Nonoperating income (expense): | ||||||
| Interest income | 718 | 640 | Interest income | -- | -- | Interest income | 718 | 640 |
| Interest expense | (120,149) | (9,891) | Interest expense | -- | -- | Interest expense | (120,149) | (9,891) |
| Nonoperating expense | (119,431) | (9,251) | Nonoperating income | -- | -- | Nonoperating expense | (119,431) | (9,251) |
| Net loss | $ (1,025,515) | $ (1,848,016) | Net income | $ 715,909 | $ 999,661 | Net loss | $ (309,606) | $ (848,355) |
| Basic and Diluted loss per common share | $ (0.01) | $ (0.02) | Basic and Diluted income per common share | $ 0.01 | $ 0.01 | Basic and Diluted loss per common share | $ (0.00) | $ (0.01) |
| Basic and Diluted weighted average common shares outstanding | 107,198,597 | 106,076,361 | Basic and Diluted weighted average common shares outstanding | 107,198,597 | 106,076,361 | Basic and Diluted weighted average common shares outstanding | 107,198,597 | 106,076,361 |