ChromaDex® Reports 2012 Full-Year Results and Closes Strategic Sale of Its BluScience™ Consumer Product Line

IRVINE, Calif., March 29, 2013 /PRNewswire/ -- ChromaDex® Corporation (OTCQB: CDXC) ("ChromaDex" or the "Company"), an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries, announced today both the financial results for the year ended December 29, 2012 as well as the closing of the sale of its BluScience™ consumer product line to NeutriSci International Inc. ("NeutriSci"). The sale of the BluScience line will allow ChromaDex to focus on growing sales in its ingredient business, as well as accelerate the development of its novel ingredients pipeline.

(Logo: http://photos.prnewswire.com/prnh/20110830/LA59283LOGO)

On March 28, 2013, ChromaDex closed on the previously announced planned strategic sale of the ongoing business and assets of its BluScience consumer product line of dietary supplements to NeutriSci. The total sale transaction value was approximately $6.2 million, which consisted of $250,000 cash upon execution of the LOI; $250,000 cash paid at closing; a $500,000 cash payment due on or before 60 days after closing; a $2.5 million senior secured note payable in six equal quarterly cash payments of $416,667 each, commencing on August 15, 2013; and 669,708 shares of Series I Preferred Shares that are convertible into 2,678,832 Class "A" Common Shares in the capital of NeutriSci (the "NSI Shares"), representing an aggregate of 19 percent of the NSI Shares. The transaction documents contain certain equity blockers which preclude ChromaDex from exceeding 9.99 percent and 19 percent ownership levels without obtaining certain waivers from NeutriSci. ChromaDex will continue to generate revenue related to BluScience through both a 6 percent royalty on future net sales of BluScience products as well as a supply agreement with NeutriSci for its patented pTeroPure® pterostilbene, which will continue to be the key active ingredient in the BluScience product line. ChromaDex retained all rights and ownership to its pTeroPure pterostilbene.

2012 Company highlights include:

For the year ended December 29, 2012 ("FY 2012"), ChromaDex reported revenue of $11,610,494, an increase of 43 percent as compared to $8,112,610 for the year ended December 31, 2011 ("FY 2011"). The increase in revenue was largely due to an increase in sales of the Company's BluScience line of dietary supplements. The net loss attributable to common stock holders for FY 2012, which included an operating loss of $3,443,791 in the BluScience business segment, was $11,662,426 or ($0.13) per share as compared to a net loss of $7,894,984 or ($0.12) per share for FY 2011. The non-cash, stock-based compensation expense related to stock options and other stock-based compensation in FY 2012 was $2,703,253. 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 year ended December 29, 2012 to $8,959,173. As of December 29, 2012, cash, cash equivalents and marketable securities totaled approximately $520,000.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "The sale of our BluScience line will allow us to focus our management and capital resources on our ingredient business as well as eliminate expenses associated with managing BluScience. NeutriSci has strong consumer product marketing expertise and the ability to take the BluScience brand to the next level. The structure of the BluScience sale provides ChromaDex with additional cash as well as meaningful participation in the future of BluScience."

Mr. Jaksch continued, "Throughout 2012, we continued to execute on our business strategy of identifying novel ingredient technologies, securing intellectual property rights, developing commercially viable production processes, validating with clinical proof and most importantly, executing on a commercialization and licensing strategy. Our first human clinical study for pTeroPure pterostilbene showed statistically significant results for lowering blood pressure. Moreover, we were able to acquire what we believe is the most relevant and valuable IP pertaining to the commercialization of nicotinamide riboside, an ingredient that may prove to be one of the best opportunities yet for ChromaDex to create shareholder value."

About ChromaDex®:

ChromaDex® is an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its unique business model which 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 dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries. Our ingredient technologies unit includes products backed with extensive scientific research and intellectual property. The ingredient portfolio includes pTeroPure® pterostilbene; ProC3G™, a natural black rice containing cyanidine-3-glucoside; PURENERGY™, a caffeine-pTeroPure co-crystal; nutraGac™, a gac fruit powder; curcumin, and nicotinamide riboside, a novel next-generation B-vitamin currently under development. To learn more about ChromaDex please visit www.chromadex.com.

Forward-Looking Statements:

Any statements that are not historical facts contained in this release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in the companies' filings with the Securities and Exchange Commission, and risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products and treatments. In addition, forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the companies do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

ChromaDex Investor Contact:                      

The Del Mar Consulting Group, Inc.
Robert B. Prag, President
858-794-9500
bprag@delmarconsulting.com

or

Alex Partners, LLC
Scott Wilfong, President
425-242-0891
Scott@alexpartnersllc.com

ChromaDex Contact:

Laura Carney, Executive Assistant
949-419-0288
laurac@chromadex.com

ChromaDex Corporation and Subsidiaries






Consolidated Statements of Operations



Years Ended December 29, 2012 and December 31, 2011







2012

2011




Sales

$      11,610,494

$        8,112,610

Cost of sales

9,335,057

5,640,791




Gross profit

2,275,437

2,471,819




Operating expenses:



Sales and marketing

5,520,141

2,539,252

General and administrative

8,391,730

7,796,806

Operating expenses

13,911,871

10,336,058




Operating loss

(11,636,434)

(7,864,239)




Nonoperating income (expense):



Interest income

3,014

1,397

Interest expense

(29,006)

(32,142)

Nonoperating expenses

(25,992)

(30,745)




Net loss

$    (11,662,426)

$       (7,894,984)







Basic and Diluted loss per common share

$               (0.13)

$              (0.12)







Basic and Diluted weighted average common shares outstanding

90,268,802

68,306,812







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 Year Ended December 29, 2012 and December 31, 2011


For the Year Ended December 29, 2012 and December 31, 2011


For the Year Ended December 29, 2012 and December 31, 2011













2012

2011



2012

2011



2012

2011












Sales

$   11,610,494

$     8,112,610


Sales

$                 -

$                 -


Sales

$ 11,610,494

$   8,112,610

Cost of sales

9,335,057

5,640,791


Cost of sales

-

-


Cost of sales

9,335,057

5,640,791












Gross profit

2,275,437

2,471,819


Gross profit

-

-


Gross profit

2,275,437

2,471,819












Operating expenses:




Operating expenses:




Operating expenses:



Sales and marketing

5,520,141

2,539,252


Sales and marketing

-

-


Sales and marketing

5,520,141

2,539,252

General and administrative

8,391,730

7,796,806


General and administrative

(2,703,253)

(2,969,150)


General and administrative

5,688,477

4,827,656

Operating expenses

13,911,871

10,336,058


Operating expenses

(2,703,253)

(2,969,150)


Operating expenses

11,208,618

7,366,908












Operating loss 

(11,636,434)

(7,864,239)


Operating loss 

2,703,253

2,969,150


Operating loss 

(8,933,181)

(4,895,089)












Nonoperating income (expense):




Nonoperating income (expense):




Nonoperating income (expense):



Interest income

3,014

1,397


Interest income

-

-


Interest income

3,014

1,397

Interest expense

(29,006)

(32,142)


Interest expense

-

-


Interest expense

(29,006)

(32,142)

Nonoperating expense

(25,992)

(30,745)


Nonoperating expense

-

-


Nonoperating expense

(25,992)

(30,745)












Net loss

$ (11,662,426)

$   (7,894,984)


Net loss

$   2,703,253

$   2,969,150


Net loss

$  (8,959,173)

$  (4,925,834)












Basic and Diluted loss per common

 share

$            (0.13)

$            (0.12)


Basic and Diluted loss per

common share

$            0.03

$            0.04


Basic and Diluted loss per

common share

$           (0.10)

$           (0.07)












Basic and Diluted weighted




Basic and Diluted weighted




Basic and Diluted weighted



  average common shares outstanding

90,268,802

68,306,812


  average common shares outstanding

90,268,802

68,306,812


average common shares outstanding

90,268,802

68,306,812












SOURCE ChromaDex Corporation



RELATED LINKS
https://chromadex.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.