ChromaDex (CDXC) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this natural products company would post a loss of $0.03 per share when it actually produced a loss of $0.01, delivering a surprise of 66.67%. Over the last four quarters, the company ha ...

ChromaDex Corporation Reports Second Quarter 2024 Financial Results Total net sales of $22.7 million, up 12% year-over-year, gross margin of 60.2%, lower operating expenses, resulting in approximately breakeven net loss and positive Adjusted EBITDA of $1.6 million for the three months ended June 30, 2024. LOS ANGELES, CA - August 7, 2024 - ChromaDex Corp. (NASDAQ:CDXC) today announced financial results for the second quarter of 2024. Second Quarter 2024 Financial and Recent Operational Highlights • Total ne ...

Financial Performance - Net sales for the three months ended June 30, 2024, increased by 12% to $22.7 million compared to $20.3 million in the same period in 2023[117][118] - Net loss for the three months ended June 30, 2024, improved to $15,000 from a net loss of $2.2 million in the same period in 2023[117] - Total cost of sales for the three months ended June 30, 2024, was $9.0 million, representing 40% of net sales, consistent with the same period in 2023[121] - Total gross profit increased by 11% to $13.69 million for the three months ended June 30, 2024, and by 5% to $27.15 million for the six months ended June 30, 2024[124] - Net cash provided by operating activities was $31,000 for the six months ended June 30, 2024, a significant decrease from $6.1 million in the same period in 2023[135] - Cash used in investing activities was $53,000 for the six months ended June 30, 2024, compared to $96,000 in the same period in 2023[136] - Cash provided by financing activities was $0.6 million for the six months ended June 30, 2024, driven by proceeds from the exercise of stock options[137] Segment Performance - Consumer Products segment sales grew by 10% to $18.6 million for the three months ended June 30, 2024, driven by higher sales to distributor partners and e-commerce[118] - Ingredients segment sales increased by 22% to $3.3 million for the three months ended June 30, 2024, primarily due to timing of sales and increased demand for Niagen®[118][119] - Analytical Reference Standards and Services segment sales remained stable at $791,000 for the three months ended June 30, 2024, with a slight 9% increase compared to the same period in 2023[118] - Gross profit for the consumer products segment increased by 9% to $11.86 million for the three months ended June 30, 2024, and by 4% to $23.06 million for the six months ended June 30, 2024[124] - Cost of sales as a percentage of net sales remained relatively stable for the three and six months ended June 30, 2024, compared to the same periods in 2023, with the analytical reference standards and services segment showing a 1,600 basis points improvement[123] Expenses and Costs - Sales and marketing expenses for the consumer products segment improved by 300 basis points for the six months ended June 30, 2024, compared to the same period in 2023[125] - R&D expenses increased by 33% to $3.41 million for the six months ended June 30, 2024, driven by strategic initiatives including Niagen+ development[127] - General and administrative expenses decreased by 22% to $5.66 million for the three months ended June 30, 2024, and by 20% to $11.02 million for the six months ended June 30, 2024[128] Cash and Liquidity - Cash and cash equivalents as of June 30, 2024, totaled $27.9 million, with $27.7 million being unrestricted, sufficient to meet financial obligations for the next twelve months[114] - The company anticipates seeking additional capital within the next twelve months to fund projected operating plans and long-term strategic objectives[114] - The company had cash and cash equivalents of $27.9 million as of June 30, 2024, with no outstanding borrowings under its line of credit[134] Research and Development - The company has over 275 research partnerships through its ChromaDex External Research Program (CERP®), advancing the understanding of NAD+ in health and aging[111] - Niagen+ product line, launched in 2024, has not yet had a material impact on the company's results of operations[108] Internal Controls and Legal Proceedings - The company's disclosure controls and procedures were evaluated and found effective at the reasonable assurance level as of June 30, 2024[140] - No changes in internal control over financial reporting occurred during the company's second fiscal quarter that materially affected or are likely to materially affect the internal control[141] - Legal proceedings are described in Note 10, Commitments and Contingencies, Legal Proceedings in the Notes to the Unaudited Condensed Consolidated Financial Statements[142]

A great deal has happened since my last ChromaDex Corporation (NASDAQ:CDXC) article, where I highlighted how the company is a leader in the development of nicotinamide adenine dinucleotide (NAD+) for healthy aging utilizing their product, Tru Niagen. I also discussed how ChromaDex was reporting strong growth, improving gross margins, and had an attractive 1.3x price-to-sales valuation. As a result, I put CDXC on my watch list for inclusion in the "Bio Boom" speculative portfolio. Unfortunately, market condi ...

ChromaDex's (CDXC) shares jumped 11.9% on Jun 7 after the company announced that the FDA has granted the Orphan Drug Designation (ODD) and Rare Pediatric Disease (RPD) Designation to its investigational candidate, nicotinamide riboside chloride (NRC), to treat ataxia telangiectasia (AT). The company is currently gearing up to file an investigational new drug (IND) application for NRC with the FDA to treat AT. Subject to IND clearance, ChromaDex will begin evaluating the candidate in human clinical studies. ...

Financial Data and Key Metrics - Q1 2024 revenue was $22 2 million, a 2% decline compared to Q1 2023, primarily driven by a 17% reduction in combined Watsons and other B2B sales [19] - Gross margins increased by 80 basis points to 60 7% compared to 59 9% in Q1 2023, driven by shifts in business mix with e-commerce sales constituting 58% of total net sales [20] - Adjusted EBITDA was positive at $0 7 million, marking the fourth consecutive quarter of positive adjusted EBITDA [13] - Net loss attributable to common stockholders for Q1 2024 was $0 5 million or a loss of $0 01 per share, compared to a net loss of $1 9 million and a loss of $0 03 per share in Q1 2023 [21] - The company ended Q1 with $27 6 million in cash and no debt [22] Business Line Data and Key Metrics - E-commerce sales grew 5% year-over-year in Q1 2024, continuing to be the largest and most reliable revenue source [14] - Tru Niagen sales declined 2% year-over-year, while Niagen ingredient sales grew moderately by $0 2 million, offset by a decline in sales of other ingredients [19] - The company is focusing on building a robust base of subscribers and optimizing influencer marketing, retention strategies, and social media presence [15] Market Data and Key Metrics - The company announced partnerships with Sprouts Farmers Market and Vitamin Shoppe, expanding Tru Niagen's availability to over 400 Sprouts locations and 700 Vitamin Shoppe locations [15] - Retail margins are lower than e-commerce margins, but pricing will be comparable [5] - The company expects a strong second half of 2024, with revenue ramping up due to new product launches and partnerships [23] Company Strategy and Industry Competition - The company is investing heavily in R&D, with Q1 R&D expenses increasing by $0 9 million year-over-year, primarily for new verticals and NAD precursor development [21] - ChromaDex positions itself as the gold standard in the NAD industry, with over 30 peer-reviewed human studies and 100 published scientific studies [16] - The company is exploring new verticals beyond dietary supplements, including skincare and pet supplements, with potential launches in the US [17] Management Commentary on Operating Environment and Future Outlook - Management reiterated full-year revenue growth guidance of at least 16%, driven by new verticals, partnerships, and product launches [1] - The company expects heavier investments in the first half of 2024, particularly in R&D, with moderation in the second half [23] - Management is optimistic about the momentum built in Q1 and new revenue opportunities expected later in 2024 [23] Other Important Information - The company is involved in ongoing litigation with Elysium, with a potential liability disclosed in the 10-Q report, though no significant impact is expected on 2024 financials [22] - ChromaDex is working on expanding cross-border sales of Tru Niagen into China, with potential partnerships and product expansions [28] Q&A Session Summary Question: Revenue Growth and New Product Launches - Management confirmed that new product revenue will ramp up in the second half of 2024, with no significant acceleration expected in Q2 [1][3] Question: Retail Partnerships and Margins - Retail margins are lower than e-commerce margins, but pricing will be comparable [5] - The company is focusing on specialty retailers like Vitamin Shoppe and Sprouts, which align well with the Tru Niagen customer base and require less advertising investment [4] Question: R&D Expenses and New Vertical Development - R&D expenses increased by $0 9 million year-over-year, primarily for new verticals and NAD precursor development, with similar heavy investments expected in Q2 [6] Question: Gross Margin Evolution and E-commerce Contribution - Gross margins are trending between 60% and 61%, with higher margins in quarters with a higher e-commerce mix [33] - E-commerce margins are in the low 70s, while B2B margins are in the low to mid-50s [33] Question: Higher Dosage Forms of Tru Niagen - The 1,000 milligram SKU has been successful, with demand from both existing and new customers, and is expected to be revenue accretive [34][60] Question: Legal Spending and Litigation Impact - The potential liability from the Elysium litigation is not expected to significantly impact 2024 legal spending [41] Question: Retention Rates for 1,000 Milligram SKU - Early indications suggest higher retention rates for the 1,000 milligram SKU compared to other SKUs, though it is still early in the product lifecycle [66] Question: Vitamin Shoppe and Sprouts Distribution - Tru Niagen will be available in 700 Vitamin Shoppe stores and over 400 Sprouts locations, with revenue recognized in Q1 2024 [68]

ChromaDex Corporation Reports First Quarter 2024 Financial Results Total net sales of $22.2 million, gross margin of 60.7%, a net loss of $0.5 million and a positive Adjusted EBITDA of $0.7 million for the three months ended March 31, 2024. Reiterated full year outlook including net sales growth of at least 16%. LOS ANGELES, CA - May 8, 2024 - ChromaDex Corp. (NASDAQ:CDXC) today announced financial results for the first quarter of 2024. First Quarter 2024 Financial and Recent Operational Highlights • Total ...

Notes to the Unaudited Condensed Consolidated Financial Statements Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by type of goods or services for each of its segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Disaggregated revenues are as follows: | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------- ...

ChromaDex Corporation (NASDAQ:CDXC) Q4 2023 Earnings Conference Call March 6, 2024 4:30 PM ET Company Participants Kendall Knysch - Director, Media Relations Rob Fried - CEO Brianna Gerber - CFO Andrew Shao - Senior Vice President of Scientific and Regulatory Affairs Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Mitchell Pinheiro - Sturdivant & Company Sean McGowan - ROTH MKM Matthew Dhane - Tieton Capital Management Operator Ladies and gentlemen, thank you for standing by and welcome to C ...

| --- | |-------------------------------------| | | | Net income (loss), as reported | | Adjustments | | Interest (income) expense | | Depreciation | | Amortization of intangibles | | Amortization of right of use assets | | Share-based compensation | | | | Severance and restructuring | 2021 – 2023 Net Sales Summary 2. Q4 2023 Net Sales Q4 2023 Net Sales ($ in millions) Other Ingredients $17.6 YoY % (vs Q4 2022) +20% | --- | --- | |-------|-------| | | (14)% | | | | | | | | | (30)% | | | (19)% | +16% Total + ...