ChromaDex® Reports Results for the Second Quarter 2013

IRVINE, Calif., Aug. 13, 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 financial results for the second quarter ended June 29, 2013.

For the three months ended June 29, 2013, ChromaDex reported revenue of $2,706,896, an increase of 1% as compared to $2,670,611 for the same period in 2012.  The core standards, contract services and ingredients segment generated net sales of $2,504,372 for the three months ended June 29, 2013.  This is an increase of 16%, compared to $2,150,585 for the same period in 2012.  This increase was largely due to increased sales of analytical testing and contract services.  The retail dietary supplement products segment did not have any sales for the three months ended June 29, 2013 as the Company sold its BluScience product line on March 28, 2013.  For the same period in 2012, the retail dietary supplement products segment generated net sales of $520,026.  The scientific and regulatory consulting segment, which is operated by the Company's subsidiary Spherix Consulting, Inc., generated net sales of $202,524 for the three months ended June 29, 2013.  We did not have the scientific and regulatory consulting segment for the same period in 2012.  The net loss attributable to common stockholders for the quarter ended June 29, 2013 was $989,722, or $0.01 per basic and diluted share, as compared to a net loss of $3,993,957, or $0.04 per basic and diluted share, for the same period in 2012.  The net loss for the quarter ended June 29, 2013 is largely due to the share-based compensation expense.  The non-cash, share-based compensation expense related to stock options and other share-based compensation for the second quarter of 2013 was $376,759. 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 quarter ended June 29, 2013 to $612,963.  As of June 29, 2013, cash, cash equivalents and marketable securities totaled approximately $826,631.

Recent Company highlights include:

  • In May, the Company launched its novel, patented NIAGEN™, the first and only commercially available nicotinamide riboside, a precursor to NAD+.    NIAGEN™ has the potential to be a next generation Niacin (Vitamin B3) and become part of the portfolio of B-vitamin ingredients that are included in products serving multi-billion dollar markets such as multi-vitamins, nutraceuticals, weight-loss, energy drinks, sports nutrition, meal replacements, infant formula, food and beverage products.  
  • In June, High Performance Nutrition introduced a new product N(R)™, featuring NIAGEN™ to support neuroprotection in contact sports.  N(R)™ is a nutritional supplement designed to protect against axon degeneration damage or trauma sustained in the course of playing contact sports.  N(R)™ in one of the first commercially available products to feature the ingredient NIAGEN™.
  • In July, the Company entered into an agreement with The Scripps Research Institute ("TSRI") whereby the Company will provide TSRI with quantities of Niagen™ nicotinamide riboside for research purposes. TSRI's studies will add to the growing amount of research showing many of the important health benefits of nicotinamide riboside, and portends possible pharmaceutical uses for Niagen™.
  • In July, the Company entered in a three-year supply agreement with Thorne Research, Inc. ("Thorne") pursuant to which Thorne shall purchase and market the Company's patented nicotinamide riboside which is branded as NIAGEN™.  Under the terms of the agreement, Thorne received marketing rights for NIAGEN™ for use in nutritional supplements exclusively for the direct to healthcare-practitioner channel in the United States and Canada, provided that Thorne purchases a minimum of $3.5 million of NIAGEN™ product over the next three years.
  • In July, the Company entered into an agreement with Beckman Research Institute of City of Hope ("BRICOH") to provide BRICOH with quantities of its branded pTeroPure™ pterostilbene to be used in preclinical in vitro and mouse model experiments to study its potential therapeutic use for treatment of ovarian, uterine and breast cancer.
  • In August, the Company licensed from Green Molecular S.L. exclusive worldwide patent rights related to the use of pterostilbene for the prevention or treatment of skin diseases, damages, or injuries, as well as the combined use with quercetin for the production of melanoma skin cancer treatment medicine.  The acquisition brings the total number of patents and patents pending relating to pterostilbene owned by ChromaDex to eight.
  • In August, the fast-growing sports nutritional company, MusclePharm, announced that the new formulation of its award-winning pre-workout product, ASSAULT™, includes ChromaDex's PURENERGY™

Upcoming Milestones:

  • The Company expects to announce results of its previously announced first human clinical study in the U.S. for its PURENERGY™, a patented co-crystal ingredient comprised of caffeine and ChromaDex's pTeroPure® pterostilbene that forms a unique crystalline structure having benefits as compared to the two individual components alone. The human study is intended to confirm an earlier animal study which showed PURENERGY had a significantly longer half-life as compared to caffeine alone. 
  • The Company expects to initiate in October 2013 its first human clinical study on NIAGEN nicotinamide riboside.  The pharmacokinetics (PK) study on NIAGEN will measure its effectiveness as a precursor to NAD+, a coenzyme that has crucial roles in many biochemical and biologic processes.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "After years of planning and substantial investment, our unique business strategy of identifying and commercializing novel, patented ingredient technologies is beginning to show dramatic results. We have commercialized and branded four novel, patented ingredients – NIAGEN nicotinamide riboside, PURENERGY, pTeroPure® pterostilbene and ProC3G – each of which have the prospects of becoming significant value drivers for our shareholders. The interest level in our ingredient portfolio from consumer product companies, ingredient companies, pharmaceutical companies and esteemed universities has exceeded our expectations."

Mr. Jaksch continued, "The initial interest in PURENERGY has been significant given the recent regulatory, political and media concerns surrounding added caffeine in consumer products. Separately, our first human trial on NIAGEN could have meaningful consequences given the significant level of research and interest in NAD+ precursors."

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 cyanidin-3-glucoside; PURENERGY™, a caffeine-pTeroPure co-crystal; nutraGac™, a gac fruit powder; curcumin, and Niagen™, its recently launched branding nicotinamide riboside, a novel next-generation B-vitamin.  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





Condensed Consolidated Statements of Operations (Unaudited)

For the Three Month Periods Ended June 29, 2013 and June 30, 2012





June 29, 2013

June 30, 2012




Sales

$  2,706,896

$        2,670,611

Cost of sales

1,746,158

1,905,916




    Gross profit

960,738

764,695




Operating expenses:



Sales and marketing

631,559

1,868,418

General and administrative

1,342,280

2,883,728

    Operating expenses

1,973,839

4,752,146




    Operating loss

(1,013,101)

(3,987,451)




Nonoperating income (expense):



Interest income

31,440

1,056

Interest expense

(8,061)

(7,562)

    Nonoperating income (expenses)

23,379

(6,506)




    Net loss

$   (989,722)

$      (3,993,957)




Basic and Diluted net loss per common share

$         (0.01)

$               (0.04)




Basic and Diluted weighted average common shares outstanding

99,833,963

91,362,664




See Notes to Consolidated Financial Statements.



 

Quantitative Reconciliation of the differences between the non-GAAP measure and the associated comparable GAAP measure












Condensed Consolidated Statements of Operations


Effects of Non-cash Charges associated with 


Condensed Consolidated Statements of Operations 


 (Unaudited, US GAAP)


Share-based Compensation Expense


Excluding Share-based Compensation (Non-GAAP Presentation) 

For the Three Month Periods Ended June 29, 2013 and June 30, 2012


For the Three Month Periods Ended June 29, 2013 and June 30, 2012


For the Three Month Periods Ended June 29, 2013 and June 30, 2012













June 29, 2013

June 30, 2012



June 29, 2013

June 30, 2012



June 29, 2013

June 30, 2012












Sales

$  2,706,896

$  2,670,611


Sales

$                 -

$                 -


Sales

$  2,706,896

$  2,670,611

Cost of sales

1,746,158

1,905,916


Cost of sales

-

-


Cost of sales

1,746,158

1,905,916












  Gross profit

960,738

764,695


  Gross profit

-

-


   Gross profit

960,738

764,695












Operating expenses:




Operating expenses:




Operating expenses:



Sales and marketing

631,559

1,868,418


Sales and marketing

-

-


Sales and marketing

631,559

1,868,418

General and administrative

1,342,280

2,883,728


General and administrative

(376,759)

(1,198,537)


General and administrative

965,521

1,685,191

   Operating expenses

1,973,839

4,752,146


   Operating expenses

(376,759)

(1,198,537)


   Operating expenses

1,597,080

3,553,609












   Operating loss

(1,013,101)

(3,987,451)


   Operating income

376,759

1,198,537


  Operating loss

(636,342)

(2,788,914)












Nonoperating income (expense):




Nonoperating income:




Nonoperating income (expense):



Interest income

31,440

1,056


Interest income

-

-


Interest income

31,440

1,056

Interest expense

(8,061)

(7,562)


Interest expense

-

-


Interest expense

(8,061)

(7,562)

  Nonoperating income (expenses)

23,379

(6,506)


   Nonoperating income

-

-


  Nonoperating income (expenses)

23,379

(6,506)












  Net loss

$   (989,722)

$ (3,993,957)


  Net income

$     376,759

$  1,198,537


  Net loss

$   (612,963)

$ (2,795,420)












Basic and Diluted net loss per common share

$         (0.01)

$          (0.04)


Basic and Diluted net income per common share

$           0.00

$           0.01


Basic and Diluted net loss per common share

$         (0.01)

$          (0.03)












Basic and Diluted weighted average common shares outstanding




Basic and Diluted weighted average common shares outstanding




Basic and Diluted weighted average common shares outstanding



99,833,963

91,362,664


99,833,963

91,362,664


99,833,963

91,362,664

 

SOURCE ChromaDex Corporation



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