Investor Presentation Rob Fried Chief Executive Officer Kevin Farr Chief Financial Officer TRU NIAGEN Nasdaq: CDXC | June 2020 1 SAFE HARBOR STATEMENT This presentation and other written or oral statements made from time to time by representatives of ChromaDex contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect the current view about future events. Statemen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 Commission File Number: 001-37752 CHROMADEX CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 26-2940963 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 10900 Wilshire Blvd. Suite 600 Los Angeles, California 9002 ...

Financial Performance - ChromaDex's total revenues for the fiscal year ended December 31, 2019, were approximately $46.3 million, up from $31.6 million in 2018, representing a growth of 46.5%[30] - Net sales of TRU NIAGEN® increased by $17.6 million, from $18.5 million in 2018 to $36.1 million in 2019, offsetting a 28% decrease in the ingredients segment net sales[26] - ChromaDex's ingredients segment net sales decreased from $8.6 million in 2018 to $6.2 million in 2019, reflecting a strategic reduction in NIAGEN® resellers[26] - The company incurred net losses of approximately $32.1 million and $33.3 million for the years ended December 31, 2019, and December 31, 2018, respectively, with an accumulated deficit of approximately $121.9 million as of December 31, 2019[93] - Cash and cash equivalents totaled approximately $18.8 million as of December 31, 2019, with expectations that current cash and operations will suffice for projected plans through at least the next twelve months[94] - Working capital at the end of years 2019 and 2018 was approximately $4.1 million and $3.1 million, respectively[82] Market Expansion and Strategy - The global dietary supplements market size was estimated at $123 billion in 2019 and is expected to grow at a CAGR of 8.2% to about $232 billion by 2027, indicating a favorable market environment for ChromaDex[36] - ChromaDex received a positive opinion from the European Food Safety Authority on nicotinamide riboside (NR) as a novel food ingredient in 2019, facilitating international market expansion[27] - The company plans to expand its TRU NIAGEN® products into new international markets, focusing on obtaining additional regulatory approvals[38] - The company has successfully launched TRU NIAGEN® in Hong Kong, Macau, Singapore, New Zealand, and Canada, and is currently selling in China, the UK, Canada, and Japan[50] Research and Development - The company has approximately 190 partnerships with leading universities and research institutions globally, enhancing its research capabilities in the NAD space[22] - The company is conducting additional clinical trials to validate the health benefits associated with NIAGEN® and TRU NIAGEN®[42] - Research and development costs for the fiscal years ended December 31, 2019, and December 31, 2018, were approximately $4.4 million and $5.5 million, respectively[79] - The company completed a second human clinical trial on its proprietary ingredient NIAGEN®, demonstrating that NAD+ levels rose in response to the dose of NIAGEN®[78] Sales and Marketing - The company employs various sales and marketing strategies for TRU NIAGEN®, including social media, internet advertising, and partnerships with influencers[45] - Major customers accounted for more than 10% of total sales, with A.S. Watson Group contributing 15.8% in 2019[62] Competition and Market Risks - The company faces competition from Elysium Health in the consumer products segment and various ingredient suppliers in the ingredients segment[64] - The company faces significant competition, with many competitors having greater financial and operational resources, which could lead to the development of superior technologies that may harm the company's market position[132] - The markets for the company's products are highly price competitive, and failure to respond to price competition could lead to reduced sales revenues and increased losses[133] Intellectual Property and Regulatory Risks - The company protects its intellectual property through patents, trademarks, and copyrights, aiming for long-term royalty payments from proprietary ingredients[68] - The ability to protect intellectual property rights is uncertain, and failure to do so could have a material adverse effect on the company's business[145] - Regulatory approval may be required in the future for the company's goods, which could delay revenue generation until such approval is obtained[190] - The company cannot ensure that any developed goods will meet all regulatory requirements necessary for marketing clearance, which could hinder commercialization efforts[192] Financial and Operational Challenges - The company may seek to raise additional capital within the next twelve months to meet projected operating plans and fund long-term strategic objectives, which could lead to dilution for existing stockholders[97] - The company has no commitments for additional financing and may not be able to obtain it on favorable terms, which could adversely affect future performance[94] - The company may face significant costs and reputational damage from product liability claims, which could adversely affect its business and financial condition[119] - The company bears financial risk if contracts are under-priced or if cost estimates are exceeded, which could adversely affect business operations and cash flows[164] Future Outlook - Future revenue is expected to significantly depend on the market acceptance of the TRU NIAGEN® product, which is critical for the company's continued success[105] - The company anticipates that operating expenses will continue to increase due to the expansion of product launches and hiring of additional personnel[107] - The company's future revenue and operating results are difficult to forecast due to various uncontrollable factors, including competition and economic conditions[131] Legal and Compliance Issues - The company is currently engaged in litigation with Elysium Health, which represented 19% of net sales for the year ended December 31, 2016, and has not made purchases since August 9, 2016[99] - The company has written off approximately $2.7 million as uncollectible expense due to Elysium's failure to pay for previous purchase orders[100] - The company may become involved in securities class action litigation due to extreme fluctuations in stock price, diverting management's attention[208]

Financial Performance - For the three months ended September 30, 2019, net sales increased by 48% to $12.1 million compared to $8.1 million for the same period in 2018[124]. - The company reported a net loss of $7.2 million for the three months ended September 30, 2019, an improvement from a net loss of $8.6 million for the same period in 2018[124]. - The ingredients segment experienced a 33% decline in sales for the three months ended September 30, 2019, primarily due to the focus on expanding the consumer products business[127]. - The analytical reference standards and services segment saw a 5% increase in sales for the three months ended September 30, 2019, attributed to increased regulatory consulting services[128]. Consumer Products Segment - Consumer products segment sales grew by 86% to $9.7 million for the three months ended September 30, 2019, up from $5.2 million in the same period last year[126]. - The gross profit margin for the consumer products segment was 60% for the three months ended September 30, 2019, reflecting better margins due to TRU NIAGEN® sales[133]. - The consumer products segment reported a gross profit of $5.8 million for the three months and $15.4 million for the nine months ending September 30, 2019, reflecting a 79% and 110% increase year-over-year respectively[138]. - The company anticipates continued growth in consumer product sales over the next twelve months following its strategic shift towards this segment[126]. Expenses and Costs - The cost of sales as a percentage of net sales decreased by 2% for the three months ended September 30, 2019, compared to the same period in 2018[132]. - Total sales and marketing expenses decreased by 4% to $4.6 million for the three months ending September 30, 2019, but increased by 10% to $13.1 million for the nine months, driven by increased staffing and direct marketing expenses[143]. - Research and development expenses totaled $1.0 million for the three months and $3.3 million for the nine months, reflecting a 23% and 22% decrease year-over-year as the company realigns its R&D priorities[146]. - General and administrative expenses increased by 18% to $8.0 million for the three months and by 20% to $24.2 million for the nine months, largely due to higher legal expenses and royalties[148]. Cash Flow and Financing - The company had approximately $18.9 million in cash and cash equivalents as of September 30, 2019, sufficient to meet projected operating plans for at least the next twelve months[118]. - Net cash used in operating activities was approximately $19.8 million for the nine months ended September 30, 2019, compared to $15.8 million for the same period in 2018[164]. - Net cash provided by financing activities was approximately $16.6 million for the nine months ended September 30, 2019, significantly up from approximately $47,000 used in financing activities for the same period in 2018[167]. - The company anticipates that its current cash and cash equivalents will be sufficient to meet projected operating plans for at least the next twelve months, but may require additional financing[162]. - The company closed a financing transaction on August 15, 2019, raising approximately $6.8 million through the issuance of 1.6 million shares of common stock[119]. - The company recorded debt discounts of approximately $0.8 million related to the issuance of convertible promissory notes totaling $10.0 million[152]. Segment Performance - The ingredients segment experienced a gross profit decrease of 31% for the three months and 34% for the nine months, attributed to a decline in sales as the company transitions to a consumer-driven nutraceutical model[139]. - The analytical reference standards and services segment saw a 45% increase in gross profit for the three months, but an 8% decrease for the nine months, primarily due to increased sales of regulatory consulting services[140]. Other Financial Information - No material changes in contractual obligations during the nine months ended September 30, 2019[168]. - No material off-balance sheet arrangements reported for the nine months ended September 30, 2019[169]. - No applicable quantitative and qualitative disclosures about market risk[171].

Financial Position - As of June 30, 2019, ChromaDex had approximately $19.8 million in cash and cash equivalents, sufficient to meet projected operating plans for at least the next twelve months[116]. - The company anticipates that its current cash and cash equivalents will be sufficient to meet projected operating plans for at least the next twelve months, but may require additional financing[156]. - The company incurred net cash used in operating activities of approximately $12.1 million for the six months ended June 30, 2019, compared to $10.5 million for the same period in 2018[157]. - Net cash provided by financing activities was approximately $9.6 million for the six months ended June 30, 2019, primarily from the sale of convertible notes[161]. - The company has incurred aggregate losses of approximately $106.0 million from inception through June 30, 2019, mainly due to operational expansion expenses[153]. Sales Performance - Net sales for the three months ending June 30, 2019, were $11.1 million, a 42% increase from $7.8 million in the same period in 2018[121]. - The consumer products segment, driven by TRU NIAGEN®, saw net sales of $8.7 million for the three months ending June 30, 2019, representing a 134% increase from $3.7 million in the same period in 2018[123]. - The ingredients segment experienced a 52% decrease in net sales, totaling $1.4 million for the three months ending June 30, 2019, down from $2.9 million in the same period in 2018[123]. - The analytical reference standards and services segment saw a 19% decrease in net sales for the three months ending June 30, 2019, totaling $970,000[123]. - The company anticipates continued growth in consumer product sales over the next twelve months[124]. - The company expects sales and gross profit for the consumer products segment to continue to grow over the next twelve months[133]. Profitability - Total net loss for the three months ending June 30, 2019, was $7.8 million, compared to a net loss of $8.1 million in the same period in 2018[121]. - Total gross profit increased to $6.3 million for the three months and $11.6 million for the six months ending June 30, 2019, reflecting a 63% and 65% increase year-over-year[133]. - The consumer products segment reported a gross profit of $5.2 million for the three months and $9.6 million for the six months ending June 30, 2019, representing a 142% and 135% increase, respectively, compared to the same periods in 2018[133]. - The cost of sales as a percentage of net sales decreased by 7% for the three months ended June 30, 2019, compared to the same period in 2018[128]. - The cost of sales for the consumer products segment was 40% of net sales for the three months ending June 30, 2019, indicating better margins due to TRU NIAGEN® sales[129]. Expenses - Sales and marketing expenses for the consumer products segment rose to $4.1 million for the three months and $8.0 million for the six months ending June 30, 2019, marking a 21% and 31% increase, respectively[138]. - Research and development expenses decreased to $1.1 million for the three months and $2.2 million for the six months ending June 30, 2019, a decline of 24% and 22% compared to the same periods in 2018[141]. - General and administrative expenses increased to $7.9 million for the three months and $16.3 million for the six months ending June 30, 2019, reflecting a 20% and 21% increase year-over-year[143]. Internal Controls - The company's disclosure controls and procedures are designed to provide reasonable assurance of effective information reporting as of June 30, 2019[166]. - No changes in internal control over financial reporting occurred during the second fiscal quarter that materially affected the company's internal controls[167]. Financing Activities - ChromaDex closed a financing transaction in May 2019, issuing convertible promissory notes totaling $10.0 million[117].

Financial Performance - For the three months ended March 31, 2019, total net sales increased by 53% to $10.048 million compared to $6.567 million for the same period in 2018 [101]. - The company reported a net loss of $8.337 million for the three months ended March 31, 2019, compared to a net loss of $8.443 million for the same period in 2018 [101]. - Gross profit for the consumer products segment was $4.383 million, representing a 128% increase from $1.923 million in the prior year [112]. - The cost of sales as a percentage of net sales decreased by 5% to 47% for the three-month period ended March 31, 2019, compared to 52% for the same period in 2018 [107]. - The company has incurred aggregate losses of approximately $98.1 million since inception through March 31, 2019 [131]. Sales and Segment Performance - Consumer products segment sales rose by 146% to $7.454 million, while ingredient sales decreased by 37% to $1.494 million [103]. - The decrease in sales for the ingredients segment is attributed to the company's strategic shift towards expanding its consumer products business [104]. - The company expects sales for the consumer products segment to continue to grow over the next twelve months [103]. Cash and Liquidity - As of March 31, 2019, the company had approximately $19.3 million in cash and cash equivalents, sufficient to meet projected operating plans for at least the next twelve months [97]. - Net cash used in operating activities decreased to approximately $3.0 million in Q1 2019 from approximately $4.0 million in Q1 2018 [134]. - Net cash used in investing activities was approximately $0.3 million for Q1 2019, compared to $0.2 million in Q1 2018 [137]. - Net cash provided by financing activities was approximately $0.1 million in Q1 2019, compared to $0.2 million used in Q1 2018 [138]. Expenses and Investments - Sales and marketing expenses for consumer products increased by 44% to $3,917,000 for the three months ending March 31, 2019, compared to $2,727,000 in the same period in 2018 [117]. - Total research and development expenses decreased by 19% to $1,168,000 for the three months ending March 31, 2019, down from $1,439,000 in the same period in 2018 [120]. - General and administrative expenses rose by 22% to $8,331,000 for the three months ending March 31, 2019, compared to $6,828,000 in the same period in 2018 [122]. - Share-based compensation increased to approximately $1.8 million in Q1 2019 from approximately $1.1 million in Q1 2018 [122]. Research and Development - The company has approximately 170 partnerships with leading universities and research institutions globally, enhancing its research capabilities in the NAD space [94]. - The company plans to continue increasing marketing, research, and development efforts for its flagship ingredient, NIAGEN® nicotinamide riboside, and its consumer branded product TRU NIAGEN® [101]. Other Financial Metrics - Interest income improved to $35,000 in Q1 2019 from a net expense of $44,000 in Q1 2018 [125]. - The effective tax rate remained approximately 0% for both Q1 2019 and Q1 2018 due to a full valuation allowance against the deferred income tax balance [126].

Financial Performance - ChromaDex's total revenues for the fiscal year ended December 31, 2018, were approximately $31.6 million, up from $21.2 million in 2017, representing a growth of 49%[33] - Net sales of TRU NIAGEN® increased by $13.0 million, from $5.5 million in 2017 to $18.5 million in 2018, offsetting a 23% decline in the ingredients segment[27] - The ingredients segment net sales decreased from $11.1 million in 2017 to $8.6 million in 2018, a decline of 23%[27] - The company incurred net losses of approximately $33.3 million and $11.4 million for the years ended December 31, 2018, and December 30, 2017, respectively, with an accumulated deficit of approximately $90 million as of December 31, 2018[99] - Cash and cash equivalents totaled approximately $22.6 million as of December 31, 2018, with expectations that current cash and operations will suffice for projected plans over the next twelve months[100] - As of December 31, 2018, the company's working capital was approximately $3.1 million, down from $7.4 million in 2017, indicating a need for increased working capital as segments grow[88] Market Trends and Opportunities - The global anti-aging market is projected to grow at a CAGR of 5.8% through 2021, reaching approximately $330 billion[28] - The worldwide market for vitamins and dietary supplements was approximately $106 billion in 2018, expected to grow at a CAGR of 3.0% to about $123 billion by 2023[38] - ChromaDex plans to continue expanding its TRU NIAGEN® brand internationally, having launched in Hong Kong, Macau, Singapore, New Zealand, and Canada[29] - The company aims to enhance its proprietary ecommerce platforms and expand its marketing and distribution in new international markets[41] Research and Development - Research and development costs for the fiscal years ended December 31, 2018, and December 30, 2017, were approximately $5.5 million and $4.0 million, respectively[85] - The company completed a second human clinical trial on NIAGEN® in 2018, showing that NAD levels rose in response to doses, with elevated levels sustained throughout the eight-week treatment period[84] - The company plans to explore cost-saving processes for existing products through its research and development laboratory in Longmont, Colorado[85] Regulatory and Compliance - The company is subject to various U.S. federal regulations, including those from the FDA and FTC, which govern production activities and advertising claims[58][63] - The company is focusing on obtaining additional regulatory approvals to expand TRU NIAGEN® marketing and distribution in new international markets[55] - The company protects its intellectual property through patents, trademarks, and licenses, anticipating long-term royalty payments from proprietary ingredients[74] - The company is evaluating strategic joint ventures to rapidly expand distribution in Asia[55] Competition and Market Risks - The company faces direct competition from Elysium Health in the consumer products segment, while its ingredients segment has little direct competition due to exclusive intellectual property[69][70] - Global economic conditions may adversely affect sales, particularly for discretionary nutritional products, impacting financial results[114] - The company faces significant competitive risks due to price competition, which could lead to reduced sales revenues and increased losses if competitors lower their prices[143] - Adverse changes in consumer perception regarding nutritional supplements could materially affect demand for the company's products[126] Customer Dependency and Sales - Major customers included A.S. Watson Group, accounting for 19.4% of total sales in 2017, and Thorne Research at 10.2%[68] - One customer accounted for approximately 10% of the company's sales for the year ended December 31, 2018, indicating a significant dependency on key customers[108] - NIAGEN® sales accounted for approximately 60% of the ingredient segment's total sales in 2018, equating to 16% of overall revenue, highlighting the importance of this product[112] - The company has minimal backlog orders for its consumer products and ingredients segments, with a small backlog of approximately $25,000 for analytical reference standards[91] Legal and Litigation - The company is engaged in litigation with Elysium, which represented 19% of net sales for the year ended December 31, 2016, and has not made purchases since August 2016[105] - The company is involved in ongoing litigation with Elysium Health, which includes claims of breach of supply agreements and misappropriation of trade secrets[214] - The Patent Trial and Appeal Board upheld a claim of the '086 Patent, preventing Elysium from raising invalidity arguments in ongoing litigation[216] - The company is currently in discovery regarding allegations made by Elysium Health[215] Operational Challenges - The company relies on key personnel, and the loss of any could negatively impact business operations[137] - The company relies on a limited number of third-party suppliers for raw materials, which poses risks related to pricing, availability, and quality[173] - The company may need to contract with third parties for marketing and distribution, which could lower product revenue and increase costs[178] - Cyber security threats pose risks to the company's operations, potentially leading to disrupted operations and increased costs[180] Future Outlook and Strategic Plans - The company intends to consider acquisitions of similar or complementary businesses or products, but there is no assurance of success in identifying attractive candidates or completing acquisitions on favorable terms[175] - The company expects operating expenses to continue increasing due to the expansion of product launches and hiring additional personnel[117] - The success of the consumer product business is linked to the effectiveness of marketing efforts, which will significantly influence future growth and profitability[123] - The company has made forward-looking statements regarding future operating results, which may not be met, potentially affecting stock price[205]