Summary of Niagen Bioscience Conference Call Company Overview - **Company**: Niagen Bioscience - **Industry**: Bioscience focused on healthy aging and NAD+ (nicotinamide adenine dinucleotide) research - **CEO**: Rob Fried - **Key Product**: TRU NIAGEN, a dietary supplement aimed at elevating NAD levels in the body [1][2][4] Core Points and Arguments - **NAD's Role**: NAD is crucial for energy metabolism and cell repair, with levels declining as one ages. Elevating NAD levels can have therapeutic benefits [3][5][6] - **Clinical Studies**: The company has 40 peer-reviewed clinical studies demonstrating the safety and efficacy of TRU NIAGEN, with another 40 ongoing. These studies cover various health conditions, including Parkinson's disease and aging-related diseases [4][7][12][35] - **Market Position**: TRU NIAGEN is the most successful dietary supplement launch in the last 50 years, with a 37% year-over-year growth rate and over $60 million in cash on the balance sheet [9][17][18] - **Product Expansion**: The company is expanding into IV and injectable markets (NIAGEN plus) and exploring topical applications for skincare [10][13][27] Financial Performance - **Revenue Growth**: The company reported a 37% year-over-year growth rate and has maintained a compounded growth rate of over 70% over the last decade [18] - **Debt-Free**: Niagen Bioscience has no debt, indicating a strong financial position [17] Product Offerings - **Current Products**: The primary product is TRU NIAGEN, with recent expansions into immune support and beauty formulations [24][25] - **Target Demographics**: The company is targeting both older adults concerned with aging and younger consumers interested in fitness and fertility [26][25] Clinical Research and Future Prospects - **Parkinson's Study**: A significant Phase 3 clinical study on Parkinson's disease has been completed, with results expected in October. Positive results could lead to further commercial opportunities [11][36][37] - **Potential Drug Development**: The company is exploring the development of a drug based on its NAD-elevating molecules, separate from its dietary supplement offerings [39] Competitive Landscape - **Market Differentiation**: Niagen emphasizes that many NAD products on the market are ineffective. Only products containing Niagen are trusted to elevate NAD levels effectively [42][43][45] - **Regulatory Engagement**: The company is working with regulatory bodies to address false claims in the dietary supplement industry [46] Marketing Strategy - **Authentic Marketing**: The company employs a conservative marketing strategy focused on authenticity rather than celebrity endorsements, aiming to build consumer trust [47][48][50] - **Consumer Awareness**: As awareness of NAD's benefits grows, the company expects continued growth in its consumer base [54] Tariff Impact - **Manufacturing Location**: The company manufactures its products in the U.S., thus avoiding tariff impacts. Business in Hong Kong is also unaffected [53] Conclusion - Niagen Bioscience is positioned as a leader in the NAD+ market with a strong financial foundation, a robust pipeline of clinical studies, and a commitment to authentic marketing. The company is poised for significant growth as consumer awareness of NAD's health benefits increases [54][55]

Financial Data and Key Metrics Changes - The company reported a record revenue of $31.1 million for Q2 2025, representing a 37% increase year over year, and a net income of $3.6 million compared to virtually breakeven a year ago [7][20]. - The cash position at the end of the quarter was $60.5 million with no debt [24]. - Gross margin improved to 65%, up from 60.2% a year ago, driven by lower cost inventory and higher e-commerce sales [22]. Business Line Data and Key Metrics Changes - E-commerce business generated $18.1 million in net sales, a 39% increase year over year [7][21]. - The food grade and pharmaceutical grade Niagen ingredient business grew 135% year over year, with revenue of $7.4 million [8][21]. - TRU NIAGEN revenue increased by 22% to $22.7 million, primarily driven by e-commerce revenues [21]. Market Data and Key Metrics Changes - The company is expanding its presence in wellness clinics, onboarding over 800 clinics nationwide to offer the Niagen Plus product line [8]. - The partnership with Watsons in Hong Kong is contributing to steady revenues, with plans for joint marketing efforts to grow brand presence [22]. Company Strategy and Development Direction - The company is focusing on expanding its Niagen Plus product line and exploring telehealth functionality on its website [9][8]. - A worldwide exclusive license agreement was signed with Haukeland University Hospital for the development of nicotinamide riboside as a potential therapy for Parkinson's disease [17]. - The company aims to maintain its position as the gold standard in NAD science and is committed to scientific innovation in the dietary supplement industry [14][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and strategic goals, highlighting the strong demand for NAD products [19][20]. - The company raised its revenue growth expectation for the full year from 20%-25% to a range of 22%-27% year over year [27]. - Management noted ongoing scrutiny from California regarding outsourcing facility practices but remains optimistic about the partnership with Wells Pharmacy Network [9][10]. Other Important Information - The company has been featured in major media outlets and events, increasing awareness of its products [10][12]. - There is ongoing research into the effects of NAD supplementation on long COVID and fertility, with studies expected to be published soon [15][16][51]. Q&A Session Summary Question: Regarding the initiative for Parkinson's disease - Management indicated that if the NOPARC trial results are positive, they may pivot to nicotinamide riboside triacetate for FDA approval in the U.S. [30][32]. Question: Volume and pricing for NIAGEN IV in clinics - Management noted that while clinics are currently charging high prices for IV experiences, they believe prices need to come down to increase accessibility and volume [36][39]. Question: Steps for treating long COVID - The key milestone to watch is the publication of the Harvard study on NAD supplementation for long COVID, which could lead to a marketing campaign if results are positive [49][54].

Financial Performance - Q2 2025 - Total company net sales reached $31.1 million, a 37% year-over-year increase[10] - Tru Niagen® net sales were $22.7 million, representing a 22% year-over-year increase[10] - Niagen® ingredient sales surged to $7.4 million, marking a 135% year-over-year increase[10] - Gross margin improved to 65.0%, up 480 basis points year-over-year[10] - Net income was $3.6 million, or $0.05 earnings per share, a $3.6 million year-over-year increase[10] - Adjusted EBITDA reached $5.0 million, a $3.5 million year-over-year increase[10] Financial Position - Cash provided from operations year-to-date was $9.1 million, with a cash balance of $60.5 million and no debt[10] Sales Mix - Q2 2025 - E-commerce accounted for 57% of net sales, while Watson's & Other B2B represented 25%[26] - Food-grade Niagen® contributed 14% to net sales, and Analytical Reference Standards & Services accounted for 3%[26] - Other Ingredients made up 1% of net sales[26] 2025 Outlook - The company anticipates net sales growth between 22% and 27% year-over-year[10] - Sales and marketing expenses are expected to increase in absolute dollars but decrease as a percentage of net sales year-over-year[10]

LOS ANGELES, CA - August 6, 2025 - Niagen Bioscience, Inc. (NASDAQ:NAGE) today announced financial results for the second quarter of 2025. Second Quarter 2025 Financial Highlights Compared to Prior Year Period Recent Operational Highlights "We delivered an excellent second quarter, with $31.1 million in net sales, up 37% year-over-year, and $3.6 million in net income," said Niagen Bioscience CEO Rob Fried. "As the pioneers of this blossoming NAD+ market, we continue to invest in the future while maintaining ...

[PART I - Financial Information (unaudited)](index=3&type=section&id=PART%20I%20-%20Financial%20Information%20(unaudited)) This section presents the company's unaudited interim financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Niagen Bioscience, Inc. reported significant financial improvements for the three and six months ended June 30, 2025, transitioning from net losses to net income, supported by increased assets and positive cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at period-end Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | Cash and cash equivalents | $60,474 | $44,660 | $15,814 | 35.4% | | Total current assets | $86,679 | $64,102 | $22,577 | 35.2% | | Total assets | $91,525 | $68,278 | $23,247 | 34.0% | | Total current liabilities | $22,327 | $17,948 | $4,379 | 24.4% | | Total liabilities | $27,330 | $22,184 | $5,146 | 23.2% | | Total stockholders' equity | $64,195 | $46,094 | $18,101 | 39.3% | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement outlines the company's financial performance, presenting net sales, costs, and net income or loss over specific reporting periods Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------- | :------------------------------- | :------------ | | Net Sales | $31,117 | $22,739 | 36.8% | $61,598 | $44,892 | 37.2% | | Cost of Sales | $10,891 | $9,046 | 20.4% | $22,041 | $17,743 | 24.2% | | Gross Profit | $20,226 | $13,693 | 47.7% | $39,557 | $27,149 | 45.7% | | Operating Income (Loss) | $3,185 | $(256) | N/A | $7,957 | $(987) | N/A | | Net Income (Loss) | $3,609 | $(15) | N/A | $8,672 | $(507) | N/A | | Basic EPS | $0.05 | $0.00 | N/A | $0.11 | $(0.01) | N/A | | Diluted EPS | $0.04 | $0.00 | N/A | $0.10 | $(0.01) | N/A | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This statement tracks the changes in the company's equity accounts, including stock issuance, compensation, and net income, over the reporting period Changes in Stockholders' Equity (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :------------------------------------------------- | :----- | | Balance, January 1, 2025 | $46,094 | | Issuance of common stock from stock option exercise | $6,866 | | Share-based compensation | $2,563 | | Net income | $8,672 | | Balance, June 30, 2025 | $64,195 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash generated and used by the company across its operating, investing, and financing activities for the reporting periods Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :----------------- | :-------- | :------ | :-------- | | Operating | $9,133 | $31 | $9,102 | | Investing | $(167) | $(53) | $(114) | | Financing | $6,848 | $582 | $6,266 | | Net Increase | $15,814 | $560 | $15,254 | | End of Period Cash | $60,474 | $27,885 | $32,589 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes offer essential supplementary information and detailed explanations for the figures presented in the condensed consolidated financial statements [Note 1. Nature of Business](index=8&type=section&id=Note%201.%20Nature%20of%20Business) This note describes Niagen Bioscience, Inc. as a global bioscience company focused on healthy aging through NAD+ research and commercialization - Niagen Bioscience, Inc. is a global bioscience company focused on healthy aging, pioneering research on nicotinamide adenine dinucleotide (NAD+), an essential coenzyme whose levels decline with age[21](index=21&type=chunk) - The company is the innovator behind the NAD+ precursor nicotinamide riboside chloride (NRC), commercialized as Niagen® (food and pharmaceutical grades) and its dietary supplement consumer product line, Tru Niagen®[22](index=22&type=chunk) - Niagen Bioscience also offers NAD+ test kits to healthcare practitioners, supplies proprietary ingredients as raw materials, and provides natural product fine chemicals and R&D services[22](index=22&type=chunk) [Note 2. Basis of Presentation and Significant Accounting Policies](index=8&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note details the preparation of unaudited financial statements in accordance with GAAP and SEC regulations, outlining significant accounting policies - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC regulations, including all necessary adjustments for fair presentation[23](index=23&type=chunk) - The financial statements are consolidated, eliminating all significant intercompany balances and transactions[24](index=24&type=chunk) - There have been no material changes to the company's significant accounting policies described in its 2024 Annual Report on Form 10-K[25](index=25&type=chunk) - The company is evaluating the impact of recently issued accounting standards, including ASU 2023-06 (Disclosure Improvements), ASU 2023-09 (Income Tax Disclosures), ASU 2024-02 (Codification Improvements), and ASU 2024-03 (Expense Disaggregation Disclosures)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 3. Liquidity](index=9&type=section&id=Note%203.%20Liquidity) This note assesses the company's ability to meet its financial obligations over the next twelve months, considering cash balances and operational cash flow - Management evaluated conditions that raised substantial doubt about the company's ability to meet obligations over the next twelve months, citing a history of recurring operating losses and negative cash flows from operating activities[30](index=30&type=chunk) - As of June 30, 2025, the company had unrestricted cash and cash equivalents of **$60.3 million**[30](index=30&type=chunk) - Management anticipates that current unrestricted cash and cash generated from net sales will be sufficient to meet financial obligations for at least the next twelve months, but may seek additional capital for longer-term strategic objectives[31](index=31&type=chunk) [Note 4. Income (Loss) Per Share Applicable to Common Stockholders](index=10&type=section&id=Note%204.%20Income%20(Loss)%20Per%20Share%20Applicable%20to%20Common%20Stockholders) This note provides the calculation of basic and diluted income or loss per common share, including the impact of potentially dilutive securities Income (Loss) Per Share (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $3,609 | $(15) | $8,672 | $(507) | | Weighted average common shares (basic) | 79,249 | 75,559 | 78,534 | 75,394 | | Weighted average common shares (diluted) | 86,241 | 75,559 | 84,877 | 75,394 | | Basic income (loss) per common share | $0.05 | $0.00 | $0.11 | $(0.01) | | Diluted income (loss) per common share | $0.04 | $0.00 | $0.10 | $(0.01) | - Options and restricted stock units totaling **478 thousand** and **1,805 thousand shares** were anti-dilutive for the three and six months ended June 30, 2025, respectively, and thus excluded from diluted EPS calculations[34](index=34&type=chunk) [Note 5. Business Segments](index=10&type=section&id=Note%205.%20Business%20Segments) This note presents disaggregated financial information for the company's Consumer Products, Ingredients, and Analytical Reference Standards and Services segments - The company operates in three reportable segments: Consumer Products, Ingredients, and Analytical Reference Standards and Services[35](index=35&type=chunk)[36](index=36&type=chunk) Net Sales by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Consumer Products | $22,699 | $18,647 | $44,200 | $35,998 | | Ingredients | $7,619 | $3,301 | $15,788 | $7,389 | | Analytical Reference Standards & Services | $799 | $791 | $1,610 | $1,505 | | **Total Net Sales** | **$31,117** | **$22,739** | **$61,598** | **$44,892** | Disaggregated Revenue by Product (Three Months Ended June 30, 2025, in thousands) | Product Category | Consumer Products Segment | Ingredients Segment | Analytical Reference Standards and Services Segment | Total | | :----------------------- | :------------------------ | :------------------ | :-------------------------------------------------- | :---- | | Tru Niagen®, Consumer Product | $22,699 | — | — | $22,699 | | Food-grade Niagen® | — | $5,994 | — | $5,994 | | Pharmaceutical-grade Niagen® | — | $1,390 | — | $1,390 | | Other Ingredients | — | $235 | — | $235 | | Reference Standards | — | — | $772 | $772 | | Consulting and Other | — | — | $27 | $27 | | **Total Net Sales** | **$22,699** | **$7,619** | **$799** | **$31,117** | - As of June 30, 2025, approximately **71.7%** of total trade receivables (**$9.7 million**) were concentrated among four major customers: A.S. Watson Group (**24.1%**), Amazon Marketplaces (**12.2%**), Life Extension (**22.0%**), and Wells Pharma of Houston (**13.4%**)[43](index=43&type=chunk)[45](index=45&type=chunk) [Note 6. Related Party Transactions](index=15&type=section&id=Note%206.%20Related%20Party%20Transactions) This note details transactions with related parties, including sales to the A.S. Watson Group before it ceased to be a related party - A.S. Watson Group ceased to be a related party as of August 20, 2024, following a change in ownership[47](index=47&type=chunk) Net Sales to A.S. Watson Group (Former Related Party, in millions) | Period | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Three Months Ended June 30, | $0 | $3.7 | | Six Months Ended June 30, | $0 | $6.7 | [Note 7. Inventories](index=16&type=section&id=Note%207.%20Inventories) This note outlines the composition and valuation of the company's inventory, categorized by consumer products, bulk ingredients, and reference standards Inventory Balances (in thousands) | Inventory Class | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Consumer Products - Finished Goods | $4,651 | $5,811 | | Consumer Products - Work in Process | $7,194 | $2,130 | | Bulk ingredients | $2,117 | $757 | | Reference standards | $444 | $494 | | **Total Inventory** | **$14,406** | **$9,192** | [Note 8. Leases](index=16&type=section&id=Note%208.%20Leases) This note describes the company's operating lease arrangements, including right-of-use assets, lease liabilities, and future minimum lease payments - The company amended its Longmont, Colorado lease in Q1 2025, resulting in a remeasurement of ROU assets and lease liabilities, with an estimated fair value increase of approximately **$1.1 million**[51](index=51&type=chunk) Operating Lease Balances and Terms | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Right-of-use assets | $2.5 million | $1.7 million | | Operating lease liabilities | $3.3 million | $2.6 million | | Weighted-average remaining lease term | 3.8 years | N/A | | Weighted-average discount rate | 7.8% | N/A | Future Minimum Lease Payments Under Operating Leases (as of June 30, 2025, in thousands) | Year | Amount | | :-------------------------------- | :----- | | 2025 (Remainder) | $669 | | 2026 | $1,183 | | 2027 | $782 | | 2028 | $657 | | 2029 | $338 | | 2030 | $263 | | **Total** | **$3,892** | | Less present value discount | $(606) | | Present value of total operating lease liabilities | $3,286 | [Note 9. Share-Based Compensation](index=17&type=section&id=Note%209.%20Share-Based%20Compensation) This note details the company's share-based compensation plans, including stock options, RSUs, and PSUs, and the associated expense recognition - Stockholders approved an amendment to the 2017 Equity Incentive Plan in June 2025, increasing available shares by **4.75 million**, with approximately **6.2 million shares** remaining for issuance as of June 30, 2025[56](index=56&type=chunk) Total Share-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Cost of sales | $67 | $85 | $126 | $172 | | Sales and marketing | $215 | $248 | $421 | $440 | | Research and development | $149 | $194 | $272 | $436 | | General and administrative | $1,057 | $658 | $1,744 | $1,121 | | **Total** | **$1,488** | **$1,185** | **$2,563** | **$2,169** | - As of June 30, 2025, the company expects to recognize future share-based compensation expense of approximately **$8.1 million** for unvested stock options, **$0.4 million** for unvested RSUs, and **$4.5 million** for unvested PSUs[65](index=65&type=chunk) [Note 10. Commitments and Contingencies](index=20&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note outlines the company's significant commitments and contingencies, including legal proceedings and material purchase obligations - The California Action legal dispute with Elysium Health, LLC was resolved through a binding settlement agreement on December 24, 2024, requiring Elysium to pay **$2,650,000** to Niagen Bioscience in two equal installments, which were received by March 28, 2025[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - In the Delaware Patent Infringement Action against Elysium, the court granted Elysium's motion for attorneys' fees and costs of **$9.2 million** plus judgment interest on October 28, 2024, with Niagen Bioscience appealing this final judgment on November 25, 2024, and estimating a contingent liability of approximately **$10.4 million** if the appeal is unsuccessful[83](index=83&type=chunk)[84](index=84&type=chunk) - On July 25, 2025, the company executed a Sales Agreement with W. R. Grace & Co.-Conn for the exclusive supply of Nicotinamide-beta-Riboside Chloride (NRCL) through April 30, 2029, with minimum purchase commitments of approximately **$32.6 million** in inventory through July 31, 2026[86](index=86&type=chunk)[87](index=87&type=chunk) [Note 11. Employee Retention Tax Credit](index=24&type=section&id=Note%2011.%20Employee%20Retention%20Tax%20Credit) This note provides information on the Employee Retention Tax Credit, including amounts collected and the status of IRS processing - The company collected **$0.3 million** related to the Employee Retention Tax Credit (ERTC) during the three months ended June 30, 2025[91](index=91&type=chunk) - As of June 30, 2025, the Consolidated Balance Sheets include an ERTC benefit of **$0.6 million** and associated commissions payable of **$0.1 million**[91](index=91&type=chunk) - The IRS halted processing new ERTC claims in September 2023 but continues to process existing claims at a reduced pace with increased scrutiny[92](index=92&type=chunk) [Note 12. Deferred Revenue - NHSc](index=25&type=section&id=Note%2012.%20Deferred%20Revenue%20-%20NHSc) This note details deferred revenue related to the exclusive supply agreement with Société des Produits Nestlé SA (NHSc) for NRCL - The company has an amended and restated supply agreement with Société des Produits Nestlé SA (NHSc) for the exclusive purchase of NRCL, with a five-year term subject to automatic extensions based on minimum purchases[94](index=94&type=chunk) - Deferred revenue is recognized using the output method based on the percentage of NRCL kilograms delivered compared to total forecasted kilograms over the contract term[95](index=95&type=chunk) Deferred Revenue (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Revenue (reversed) recognized from deferred revenue (3 months) | $(95) | — | | Deferred revenue balance | $2,674 | $2,579 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial performance, highlighting strong sales growth, improved profitability, and a solid liquidity position for the reporting periods [Company Overview](index=26&type=section&id=Company%20Overview) This section provides an overview of Niagen Bioscience as a global bioscience company focused on healthy aging through NAD+ research and commercialization - Niagen Bioscience is a global bioscience company dedicated to healthy aging, pioneering research on NAD+, an essential coenzyme whose levels decline with age[99](index=99&type=chunk) - The company commercialized food-grade Niagen® in 2013, launched Tru Niagen® in 2017, and introduced Niagen Plus (featuring pharmaceutical-grade Niagen®) for healthcare practitioners in 2024[100](index=100&type=chunk) - NRC is a well-studied and efficient NAD+ precursor, protected by patents, with regulatory approvals in multiple regions and over 300 research partnerships through its ChromaDex External Research Program (CERP™)[101](index=101&type=chunk)[103](index=103&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) This section outlines key recent corporate developments, including a new supply agreement, lease amendments, and executive compensation adjustments - On July 25, 2025, the company executed a Sales Agreement with W. R. Grace & Co.-Conn for the exclusive supply of NRCL through April 30, 2029, with a minimum purchase commitment of approximately **$32.6 million** in inventory through July 31, 2026[105](index=105&type=chunk)[106](index=106&type=chunk) - During Q1 2025, the company amended its Longmont, Colorado lease, resulting in a remeasurement of ROU assets and lease liabilities, with an estimated fair value increase of approximately **$1.1 million**[108](index=108&type=chunk) - On February 25, 2025, the CEO, Robert Fried, was granted **1,518,600 market performance stock units (PSUs)**, and his base salary and target performance bonus opportunity increased to **$650,000** and **75% of base salary**, respectively[109](index=109&type=chunk) [Financial Condition and Results of Operations](index=28&type=section&id=Financial%20Condition%20and%20Results%20of%20Operations) This section presents a consolidated overview of the company's financial health and operational results, including cash position and segment performance - As of June 30, 2025, cash and cash equivalents totaled approximately **$60.5 million**, with **$60.3 million unrestricted**, anticipated to be sufficient for financial obligations over the next twelve months[111](index=111&type=chunk) - The company operates three segments: Consumer Products (dietary supplements, NAD+ test kits), Ingredients (proprietary ingredient technologies like Niagen®), and Analytical Reference Standards and Services (phytochemicals, R&D services)[112](index=112&type=chunk) Consolidated Financial Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $31,117 | $22,739 | $61,598 | $44,892 | | Net income (loss) | $3,609 | $(15) | $8,672 | $(507) | | Basic income (loss) per common share | $0.05 | $0.00 | $0.11 | $(0.01) | | Diluted income (loss) per common share | $0.04 | $0.00 | $0.10 | $(0.01) | [Net Sales](index=29&type=section&id=Net%20Sales) This section analyzes net sales performance, detailing revenue growth across the Consumer Products, Ingredients, and Analytical Reference Standards segments Net Sales by Reportable Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------- | :------------------------------- | :------------ | | Consumer Products | $22,699 | $18,647 | 22% | $44,200 | $35,998 | 23% | | Ingredients | $7,619 | $3,301 | 131% | $15,788 | $7,389 | 114% | | Analytical reference standards and services | $799 | $791 | 1% | $1,610 | $1,505 | 7% | | **Total net sales** | **$31,117** | **$22,739** | **37%** | **$61,598** | **$44,892** | **37%** | - Tru Niagen® sales increased by **$4.1 million** (3 months) and **$8.2 million** (6 months) due to e-commerce channel performance, reflecting increased customer acquisition and retention[116](index=116&type=chunk) - Total ingredient sales increased by **$4.3 million** (3 months) and **$8.4 million** (6 months), primarily driven by higher sales to food-grade Niagen® partners and the launch of pharmaceutical-grade Niagen®[116](index=116&type=chunk) [Cost of Sales](index=29&type=section&id=Cost%20of%20Sales) This section examines the cost of sales, highlighting improvements in operational efficiency and favorable product mix across segments Cost of Sales by Reportable Segment (in thousands, as % of net sales) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Consumer Products | $7,453 (33%) | $6,785 (36%) | $14,860 (34%) | $12,939 (36%) | | Ingredients | $2,808 (37%) | $1,545 (47%) | $5,909 (37%) | $3,382 (46%) | | Analytical reference standards and services | $630 (79%) | $716 (91%) | $1,272 (79%) | $1,422 (94%) | | **Total cost of sales** | **$10,891 (35%)** | **$9,046 (40%)** | **$22,041 (36%)** | **$17,743 (40%)** | - Total cost of sales, as a percentage of net sales, improved by **480 basis points** (3 months) and **370 basis points** (6 months) due to enhanced operational efficiency and favorable product mix shifts[118](index=118&type=chunk) - Ingredients segment cost of sales as a percentage of net sales improved by approximately **1,000 basis points** (3 months) and **900 basis points** (6 months), driven by enhanced labor/overhead utilization, lower-cost inventory, and favorable product mix from pharmaceutical-grade Niagen® launch[119](index=119&type=chunk) [Gross Profit](index=31&type=section&id=Gross%20Profit) This section analyzes the company's gross profit performance, showcasing significant increases across all reportable segments Gross Profit by Reportable Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------- | :------------------------------- | :------------ | | Consumer Products | $15,246 | $11,862 | 29% | $29,340 | $23,059 | 27% | | Ingredients | $4,811 | $1,756 | 174% | $9,879 | $4,007 | 147% | | Analytical reference standards and services | $169 | $75 | 125% | $338 | $83 | 307% | | **Total gross profit** | **$20,226** | **$13,693** | **48%** | **$39,557** | **$27,149** | **46%** | [Operating Expenses - Sales and Marketing](index=32&type=section&id=Operating%20Expenses-Sales%20and%20Marketing) This section reviews sales and marketing expenses, noting increases in absolute terms but improvements as a percentage of net sales due to efficiency Total Sales and Marketing Expenses (in thousands, as % of net sales) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total sales and marketing expenses | $8,207 (26%) | $6,969 (31%) | $16,324 (27%) | $13,709 (31%) | - Total sales and marketing expenses increased by **$1.2 million** (3 months) and **$2.6 million** (6 months) but improved as a percentage of net sales by **420 basis points** (3 months) and **400 basis points** (6 months), reflecting improved sales efficiency and disciplined investment[120](index=120&type=chunk) - Consumer products segment sales and marketing expenses increased by **$1.3 million** (3 months) and **$2.6 million** (6 months), primarily due to higher advertising, marketing, and selling expenses to support brand growth[120](index=120&type=chunk) [Operating Expenses - Research and Development](index=34&type=section&id=Operating%20Expenses-Research%20and%20Development) This section details research and development expenses, noting fluctuations driven by professional fees, employee wages, and product line investments Research and Development Expenses (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------- | :------------------------------- | :------------ | | Consumer Products | $1,169 | $1,135 | 3% | $2,081 | $2,830 | (26)% | | Ingredients | $398 | $181 | 120% | $744 | $581 | 28% | | **Total R&D expenses** | **$1,567** | **$1,316** | **19%** | **$2,825** | **$3,411** | **(17)%** | - R&D expenses increased by **$0.3 million** (3 months) due to higher professional/consulting fees and employee wage expenses, but declined by **$0.6 million** (6 months) due to elevated investments in Q1 2024 for the Niagen Plus product line launch[121](index=121&type=chunk) [Operating Expenses - General and Administrative](index=34&type=section&id=Operating%20Expenses-General%20and%20Administrative) This section analyzes general and administrative expenses, attributing changes to employee-related costs, professional fees, and credit loss adjustments General and Administrative Expenses (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------- | :------------------------------- | :------------ | | General and administrative | $7,267 | $5,664 | 28% | $12,451 | $11,016 | 13% | - The increase in G&A expenses for the six months ended June 30, 2025, reflects higher employee-related expenses (**$1.1 million**) and professional/consulting fees (**$1.2 million**), partially offset by a **$1.3 million** reduction in credit loss expense due to a recovery[122](index=122&type=chunk) [Income Taxes](index=35&type=section&id=Income%20Taxes) This section outlines the company's income tax expense and the maintenance of a full valuation allowance against deferred tax assets - The company recorded income tax expense of **$128,000** (3 months) and **$296,000** (6 months) for 2025, representing **3.4%** and **3.3%** of earnings before income taxes, respectively[125](index=125&type=chunk) - A full valuation allowance is maintained against the entire deferred income tax balance, as future realization of deferred tax assets is uncertain[124](index=124&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is not anticipated to have a significant impact on the company's consolidated income tax position, effective tax rate, or valuation allowance[127](index=127&type=chunk) [Depreciation and Amortization](index=35&type=section&id=Depreciation%20and%20Amortization) This section provides a breakdown of non-cash expenses, including depreciation of assets, amortization of intangibles, and noncash lease expenses Depreciation and Amortization Expenses (Six Months Ended June 30, in thousands) | Expense Type | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Depreciation of leasehold improvements and equipment | $316 | $348 | | Amortization of intangible assets | $75 | $75 | | Noncash lease expense | $332 | $337 | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, historical losses, and future capital requirements, including purchase and lease obligations - From inception through June 30, 2025, the company incurred aggregate losses of approximately **$173.2 million**, primarily due to operational expansion and intellectual property protection costs[131](index=131&type=chunk) - As of June 30, 2025, the company had **$60.5 million** in cash and cash equivalents (including **$152,000 restricted cash**) and no outstanding borrowings under its line of credit[133](index=133&type=chunk) - The company had purchase obligations of **$32.6 million** for inventory through July 31, 2026, and future minimum lease obligations of **$3.9 million** over approximately five years[133](index=133&type=chunk) Net Cash Flow Activities (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :----------------- | :------ | :------ | :-------- | | Operating | $9,133 | $31 | $9,102 | | Investing | $(167) | $(53) | $(114) | | Financing | $6,848 | $582 | $6,266 | [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) This section confirms that there have been no material changes to the company's critical accounting estimates from its prior annual report - There have been no material changes to critical accounting estimates from those disclosed in the company's 2024 Form 10-K[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this item is not applicable for the reporting period - The company states that quantitative and qualitative disclosures about market risk are not applicable[140](index=140&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, under CEO and CFO supervision, evaluated disclosure controls and procedures, concluding they were effective as of June 30, 2025 - Management, under the supervision of the CEO and CFO, concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[141](index=141&type=chunk) - There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the second fiscal quarter[142](index=142&type=chunk) [PART II - Other Information](index=37&type=section&id=PART%20II%20-%20Other%20Information) This section provides disclosures on legal proceedings, comprehensive risk factors, other pertinent information, and a list of filed exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10, Commitments and Contingencies, in the Notes to the Unaudited Condensed Consolidated Financial Statements for a detailed description of the company's legal proceedings - For a description of legal proceedings, refer to Note 10, Commitments and Contingencies, Legal Proceedings in the Notes to the Unaudited Condensed Consolidated Financial Statements[144](index=144&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Investing in Niagen Bioscience's common stock involves substantial risks, including the company's history of operating losses, dependence on key products and customers, intense competition, and reliance on a single supplier for a critical ingredient [Summary of Risk Factors](index=37&type=section&id=Summary%20of%20Risk%20Factors) This section summarizes the principal risks associated with investing in the company, covering operational, financial, and market-related challenges - The company has a history of operating losses and may need additional financing to meet future long-term capital requirements[151](index=151&type=chunk) - Interruptions in relationships or declines in business with major customers could materially harm the business and financial results[151](index=151&type=chunk) - Future success largely depends on sales of the Tru Niagen® product[151](index=151&type=chunk) - The company relies on a single supplier, W.R. Grace, for NRC and a limited number of third-party suppliers for raw materials[151](index=151&type=chunk) - The ability to protect intellectual property and proprietary technology through patents and other means is uncertain and may be inadequate[151](index=151&type=chunk) - Changes in government regulation or practices relating to the pharmaceutical, dietary supplement, food, and cosmetic industries could affect compliance and demand for products[152](index=152&type=chunk) [Risks Related to our Company and our Business](index=40&type=section&id=Risks%20Related%20to%20our%20Company%20and%20our%20Business) This section details risks inherent to the company's business model, including operating losses, customer dependency, competition, and economic conditions - The company has a history of operating losses and an accumulated deficit of approximately **$173.2 million** as of June 30, 2025, and may need additional financing, which may not be available on favorable terms or at all[154](index=154&type=chunk)[155](index=155&type=chunk) - Interruptions in relationships or declines in business with major customers could materially harm the business and financial results[156](index=156&type=chunk) - Global, market, and economic conditions, including inflation, interest rates, and geopolitical issues, may negatively impact the business, financial condition, and share price[157](index=157&type=chunk)[158](index=158&type=chunk) - The company's future success largely depends on sales of its Tru Niagen® product, and market acceptance is critical[159](index=159&type=chunk) - The company faces significant competition from larger companies with greater resources, and competitive pricing or misleading marketing practices could harm its business[162](index=162&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - Substantial, complex, or extended litigation could cause significant costs and distract management, potentially leading to financial exposure beyond recorded reserves[170](index=170&type=chunk) [Risks Related to our Operations](index=43&type=section&id=Risks%20Related%20to%20our%20Operations) This section outlines operational risks such as fluctuating results, sales and marketing capabilities, cybersecurity threats, and key personnel dependency - Operating results may fluctuate significantly due to factors such as order timing, costs, supply chain disruptions, tariffs, new product introductions, competition, and economic conditions, making future results difficult to predict[171](index=171&type=chunk)[175](index=175&type=chunk) - The inability to maintain or develop adequate sales, marketing, and distribution capabilities, or effective arrangements with third parties, could prevent the company from generating product revenue and achieving profitability[173](index=173&type=chunk)[174](index=174&type=chunk) - Cyber security incidents or threats, including those enhanced by AI, could disrupt operations, lead to data loss, intellectual property theft, financial losses, litigation, and reputational damage[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - The company's dependence on key personnel means the loss of senior leadership or specialized team members could negatively affect the business[183](index=183&type=chunk) - Failure to comply with financial and operating covenants in the Credit Agreement could limit borrowing availability, accelerate debt maturity, and materially adversely impact liquidity[188](index=188&type=chunk)[189](index=189&type=chunk) [Risks Related to Our Products](index=48&type=section&id=Risks%20Related%20to%20Our%20Products) This section addresses product-specific risks, including reliance on single suppliers, manufacturing outsourcing, product liability, and development delays - The company relies on a single supplier, W.R. Grace, for NRC and a limited number of third-party suppliers for raw materials, posing risks of supply interruptions, delays, and increased costs[190](index=190&type=chunk) - Failure by outsourcing facilities that produce pharmaceutical-grade Niagen® to adequately perform their obligations could harm the business or financial results, including issues with quality control, manufacturing capacity, and regulatory compliance[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - Unfavorable publicity or consumer perception regarding the safety, efficacy, or quality of the company's products or dietary supplements generally could materially adversely affect demand and business[196](index=196&type=chunk)[197](index=197&type=chunk) - The company may incur material product liability claims or class action litigation, which could increase costs, damage reputation, and adversely affect revenues and operating income[199](index=199&type=chunk) - Delays in the development of additional products or an inability to commercialize them could occur due to regulatory hurdles, clinical trial outcomes, manufacturing challenges, or market acceptance issues[201](index=201&type=chunk) [Risks Related to our Intellectual Property](index=51&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) This section details risks related to the protection and enforcement of the company's intellectual property, including patent challenges and infringement claims - The company's ability to protect its intellectual property and proprietary technology through patents and other means is uncertain and may be inadequate, potentially leading to a material adverse effect on the business[206](index=206&type=chunk)[208](index=208&type=chunk) - Patents and licenses may be subject to challenge on validity grounds, and patent applications may be rejected, reducing or eliminating competitive advantages[209](index=209&type=chunk) - The company may become subject to claims of infringement or misappropriation of others' intellectual property rights, which could prohibit product development, require costly licenses, or result in substantial monetary damages[210](index=210&type=chunk)[211](index=211&type=chunk) - The prosecution and enforcement of patents licensed from third parties are not within the company's control, and their failure to maintain these rights could lead to infringement claims or loss of competitive advantage[212](index=212&type=chunk) [Risks Related to Regulatory Approval of Our Products and Other Government Regulations](index=53&type=section&id=Risks%20Related%20to%20Regulatory%20Approval%20of%20Our%20Products%20and%20Other%20Government%20Regulations) This section covers risks arising from evolving government regulations, privacy laws, and the need for regulatory approvals in the company's industries - Changes in government regulation, priorities, or practices relating to the pharmaceutical, dietary supplement, food, and cosmetic industries could affect the company's ability to comply and the demand for its products and services[214](index=214&type=chunk) - Compliance with stringent and changing global privacy and data security laws and regulations could result in additional costs and liabilities, inhibit global data processing, and lead to government enforcement actions or litigation[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - The company is subject to regulation by various federal, state, and foreign agencies; failure to comply could lead to fines, penalties, product recalls, and restrictions on operations[224](index=224&type=chunk)[225](index=225&type=chunk) - Changes in government regulation related to regulatory approvals to market and sell goods could adversely affect the ability to generate revenues, as regulatory clearance is often a prerequisite and can be lengthy and expensive[227](index=227&type=chunk)[228](index=228&type=chunk) [Risks Related to the Securities Markets and Ownership of our Equity Securities](index=56&type=section&id=Risks%20Related%20to%20the%20Securities%20Markets%20and%20Ownership%20of%20our%20Equity%20Securities) This section discusses risks pertinent to the company's common stock, including market price volatility, dividend policy, and potential dilution - The market price of the company's common stock may be volatile and adversely affected by various factors, including operating results, new product announcements, media coverage, litigation, and economic conditions[229](index=229&type=chunk)[230](index=230&type=chunk) - The company has not paid cash dividends in the past and does not expect to in the foreseeable future, meaning any return on investment will be limited to the value appreciation of common stock[231](index=231&type=chunk) - A significant number of outstanding options, unvested restricted stock units, and market performance stock units could lead to future sales and adversely affect the market price of common stock[232](index=232&type=chunk) - The ability to use net operating loss (NOL) carryforwards and certain other tax attributes may be limited due to ownership changes or state-level restrictions, potentially increasing future tax liability[233](index=233&type=chunk) - The company's bylaws designate the Court of Chancery of the State of Delaware as the exclusive forum for certain disputes, which could limit stockholders' ability to obtain a favorable judicial forum[234](index=234&type=chunk)[236](index=236&type=chunk) [General Risks](index=58&type=section&id=General%20Risks) This section addresses broader risks such as litigation, internal control deficiencies, ESG matters, tax law changes, and market liquidity - The company may become involved in securities class action litigation, which could be expensive, divert management's attention, and harm the business[237](index=237&type=chunk)[238](index=238&type=chunk) - Failure to establish and maintain effective internal control over financial reporting could result in material misstatements, failure to meet reporting obligations, and loss of investor confidence[239](index=239&type=chunk) - Environmental, social, and governance (ESG) matters may impact the business and reputation, potentially leading to increased costs, scrutiny, or damage to brand image[240](index=240&type=chunk)[241](index=241&type=chunk) - Changes in tax laws or regulations that are applied adversely to the company or its customers may have a material adverse effect on business, cash flow, financial condition, or results of operations[242](index=242&type=chunk) - The company has a limited operating history in China, and its ability to develop successful channels there is subject to legal, political, economic, and social uncertainties[243](index=243&type=chunk)[244](index=244&type=chunk) - The company's common stock may be thinly traded, potentially making it difficult for stockholders to sell shares at or near ask prices or at all[245](index=245&type=chunk) [Item 5. Other information](index=60&type=section&id=Item%205.%20Other%20information) This section confirms that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the last fiscal quarter - No director or officer, as defined in Rule 16a-1(f), adopted or terminated a 'Rule 10b5-1 trading arrangement' or a 'non-Rule 10b5-1 trading arrangement' during the last fiscal quarter[247](index=247&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, equity incentive plans, a sales agreement, and certifications - The exhibits include the Amended and Restated Certificate of Incorporation, Certificate of Amendment, Amended and Restated Bylaws, and Form of Stock Certificate[248](index=248&type=chunk) - Key agreements listed are the Niagen Bioscience, Inc. 2017 Equity Incentive Plan, Employee Stock Purchase Plan, and a Sales Agreement with W. R. Grace & Co.-Conn[248](index=248&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(A) and 18 U.S.C. Section 1350 are included[248](index=248&type=chunk) [Signatures](index=62&type=section&id=Signatures) The report was duly signed on behalf of Niagen Bioscience, Inc. by Ozan Pamir, Chief Financial Officer, on August 6, 2025 - The report was signed by Ozan Pamir, Chief Financial Officer, on August 6, 2025[252](index=252&type=chunk)

Financial Highlights - ChromaDex's total net sales reached $83.5 million in 2023, with Tru Niagen® sales contributing $69.5 million[14] - Tru Niagen® sales experienced a 52% Compound Annual Growth Rate (CAGR)[11] - E-commerce net sales reached $51.2 million in 2023, demonstrating an 85% CAGR[16] - Gross margin increased from 49.4% to 60.8% following a strategic shift towards Tru Niagen®[17] - ChromaDex reported a positive Adjusted EBITDA of $1.9 million in 2023[11, 12] Market and Product - ChromaDex identifies as the global authority on NAD+ with a Total Addressable Market (TAM) exceeding $500 billion across human and pet nutrition, cosmetics, and pharmaceuticals[11] - Tru Niagen® is identified as a proprietary NAD+ boosting supplement[11] - Approximately 60% of ChromaDex's business is attributed to e-commerce[15] - North America accounts for 75% of Tru Niagen® net sales, followed by APAC with 22%[56] Research and Development - ChromaDex has invested in over $100 million of third-party research supporting the benefits of its proprietary ingredient[11] - ChromaDex holds a strong intellectual property portfolio, including over 80 patents for Niagen® and other NAD+ precursors[11]

Company Overview - ChromaDex is a global authority on NAD+ with a strong intellectual property portfolio for Niagen® and other NAD precursors[8] - The company has strategic partnerships with blue chip companies and a strong financial position, with $4 million LTM Adjusted EBITDA and $28 million in cash as of June 30, 2024[8] - ChromaDex's LTM revenue ended June 2024 was $856 million, with a net loss of $14 million and non-GAAP Adjusted EBITDA of $4 million[25] Consumer Health (Tru Niagen®) - Tru Niagen® has proven to be a proprietary NAD+ boosting supplement with LTM sales of over $80 million[8] - E-commerce represents approximately 60% of the Tru Niagen® business[34] - Annual e-commerce net sales have grown at a CAGR of 85% from 2017 to 2023[35], reaching $512 million in 2023[35] - Gross margin increased from 494% to 608% since the strategic pivot to focus on the consumer product, Tru Niagen®[36] IV & Injectables (Niagen®+) - The company estimates the incumbent NAD+ IV retail market in North America is worth at least $100 million[49] - Niagen®+ IV offers competitive advantages over NAD+ IV, including 75% faster infusion time and minimal side effects[50] Pharmaceutical - ChromaDex is pioneering the development of Parkinson's Disease treatment, with a Phase III study underway involving 400 participants supplemented with NR for 12 months at a 1000mg daily dose, with results expected in 2025[59, 60] Financial Outlook - The company projects net sales growth between 10%-15% year-over-year for 2024[69]

Summary of Niagen Bioscience Conference Call Company Overview - Niagen Bioscience is focused on the development and commercialization of nicotinamide riboside (Niagen), a molecule that elevates NAD levels in cells, which is crucial for energy metabolism and cellular repair [5][7][8] - The company has over 90 patents protecting its core molecule and has built a strong scientific foundation with extensive research [8][14] Core Points and Arguments - **Scientific Research and Clinical Studies**: Niagen has conducted 40 peer-reviewed clinical studies demonstrating the safety and efficacy of its product, particularly in age-related conditions [7][18][24] - **Unique Positioning**: Unlike many dietary supplement companies, Niagen is rooted in scientific research and intellectual property, which differentiates it from competitors that primarily engage in marketing [11][14][17] - **Regulatory Challenges**: The company faces strict regulations that prevent it from making health claims typically associated with drugs, which influences its marketing strategy [23][24] - **Market Strategy**: Niagen relies on word-of-mouth and expert endorsements rather than direct consumer claims to build trust and credibility [24][25] Recent Developments - **Product Launches**: The company launched the Niagen Plus line, which includes IV products and at-home injectables, generating significant media attention and interest from celebrities and influencers [34][35][40] - **Clinical Trials**: A phase three clinical study on Parkinson's disease with 400 participants is nearing completion, which could significantly impact the company's valuation and credibility in the biotech space [18][54] - **Financial Health**: Niagen is cash flow positive, has no debt, and does not require additional capital for its operations, which is atypical for biotech companies [52][54] Potential Risks and Concerns - **Market Competition**: The rise of fraudulent companies claiming to offer NAD products poses a risk to the overall market perception and could impact Niagen's reputation [27][29] - **Consumer Education**: There is a need to educate consumers about the differences between Niagen and other NAD products, particularly regarding bioavailability and efficacy [27][37] Future Outlook - **Injectable Products**: The company plans to introduce a self-injection product within the next year, tapping into the growing trend of self-administered health solutions [49][50] - **Pharmaceutical Opportunities**: Niagen is exploring drug indications beyond dietary supplements, which could enhance its market position and attract sophisticated investors [54] Conclusion - Niagen Bioscience is well-positioned in the NAD market with a strong scientific foundation, innovative products, and a clear strategy to navigate regulatory challenges while maintaining financial stability. The company's focus on research and quality sets it apart from competitors, and its future product developments could significantly expand its market reach and impact.

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenues of $30,500,000, representing a 38% year-over-year increase [8][18] - Net income for the quarter was $5,100,000, compared to a net loss of $500,000 in Q1 2024 [21] - Cash generated from operations was $7,900,000, a significant increase from $300,000 in the same period last year [22] - The company ended the quarter with $55,600,000 in cash and no debt, maintaining strong liquidity [21] Business Line Data and Key Metrics Changes - E-commerce sales grew by 31% year-over-year, contributing significantly to revenue growth [9][18] - The food grade and pharmaceutical grade Niagen ingredient business saw a 95% increase, reaching $8,000,000 [9][18] - Gross margin improved to 63.4%, up from 60.7% a year ago, driven by a favorable product mix and cost savings [18] Market Data and Key Metrics Changes - The demand for NAD-boosting products is surging, with increasing consumer awareness of Niagen as a trusted solution [12][14] - The company aims to expand its presence in clinics, targeting 1,000 clinics by the end of 2025, with a potential addressable market of 2,000 to 3,000 clinics [42] Company Strategy and Development Direction - The company is focused on reinforcing Niagen as the leading NAD-boosting solution, aligning its brand with its mission of promoting healthy aging [15][16] - The pharmaceutical application of nicotinamide riboside (NR) is a key strategic initiative, with ongoing studies and FDA dialogues [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained momentum across e-commerce and ingredient businesses, raising the full-year growth outlook to 20% to 25% [22][23] - The company is committed to operational discipline and efficiency, with a focus on long-term profitability [26] Other Important Information - The company announced a new composition of matter patent granted in March, broadening its patent portfolio [11] - Management highlighted the importance of maintaining integrity and scientific rigor in the NAD supplement market [13][14] Q&A Session Summary Question: What are the emerging tailwinds for NIAGEN IV product adoption? - Management noted significant interest from clinics and physicians, with 600 clinics currently offering NIAGEN IV and expectations for increased sales [28][32] Question: Are there new promotional strategies for e-commerce? - Management indicated a focus on profitability and efficiency, with plans to increase presence on platforms like TikTok and engage with influencers [35][37] Question: What is the potential market for NIAGEN plus? - Management aims to onboard 1,000 clinics by year-end, with a larger addressable market identified [42] Question: What is the status of the injectable NIAGEN plus? - Management confirmed that an at-home version is in development, expected to be available by Q4 2025 [72][73] Question: What is the status of the FDA discussions regarding ataxia telangiectasia? - Active discussions are ongoing with the FDA, with a pre-IND submission made and feedback received [90][91]

Financial Data and Key Metrics Changes - In Q1 2025, Niagen Bioscience reported revenues of $30.5 million, a 38% year-over-year increase, and net income of $5.1 million, compared to a net loss of $0.5 million in Q1 2024 [7][22] - The company generated $7.9 million in cash from operations, a significant increase from $0.3 million in the same period last year [22][23] - Gross margin improved to 63.4%, up from 60.7% a year ago, driven by a favorable product mix and supply chain cost savings [19][22] Business Line Data and Key Metrics Changes - E-commerce sales grew by 31% year-over-year, contributing significantly to revenue growth [8][18] - The food grade and pharmaceutical grade Niagen ingredient business saw a 95% increase, reaching $8 million [8][18] - The Niagen plus product line, which includes intravenous and injection forms, is a key focus area, with availability in nearly 600 clinics nationwide [8][10] Market Data and Key Metrics Changes - The demand for NAD-boosting products is surging, with increasing consumer awareness of Niagen as a trusted solution [12][14] - The company is actively monitoring the competitive landscape, noting that many NAD supplements on the market do not meet label claims [14] Company Strategy and Development Direction - Niagen Bioscience aims to position itself as the leader in NAD-boosting solutions, emphasizing scientific rigor, transparency, and integrity [16] - The company is focused on expanding its pharmaceutical applications, particularly in ongoing clinical studies for Parkinson's disease and ataxia telangiectasia [10][11] - The recent rebranding from ChromaDex to Niagen Bioscience aligns with its mission to promote healthy aging [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained momentum across e-commerce and ingredient businesses, raising the full-year growth outlook from approximately 18% to a range of 20% to 25% [24][25] - The company is committed to operational discipline and efficiency, with expectations of steady gross margins and sustained profitability [25][26] Other Important Information - Niagen Bioscience has established a primarily U.S.-based supply chain, which remains unaffected by recent tariffs [20] - The company has received a new composition of matter patent, broadening its intellectual property portfolio [11] Q&A Session Summary Question: What are the emerging tailwinds for the adoption of the NIAGEN IV product lineup? - Management noted significant interest from clinics and physicians, with 600 clinics currently offering NIAGEN IV and positive feedback on its benefits compared to traditional NAD IV [28][29] Question: What new promotional strategies are expected for the e-commerce business? - Management indicated a focus on profitability and efficiency, with plans to increase presence on platforms like TikTok and engage with influencers, but no aggressive campaigns are planned [33][34][36] Question: How many clinics are expected to adopt NIAGEN plus by the end of the year? - Management aims to have NIAGEN plus in 1,000 clinics by year-end, with a potential addressable market of 2,000 to 3,000 clinics [41][42] Question: What is the status of the injectable NIAGEN plus product? - The injectable product is currently offered in many clinics, with plans for an at-home version expected by Q4 2025 [72][73] Question: What is the status of discussions with the FDA regarding ataxia telangiectasia? - Active discussions are ongoing with the FDA, with a pre-IND submission made and feedback received, indicating progress [88][89]