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: | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - For the full year 2023, total net sales reached $83.6 million, representing a 16% year-over-year increase [40] - Gross margins improved to 60.8%, with selling and marketing expenses down approximately 770 basis points as a percentage of net sales [40] - Positive operating cash flow of $7.1 million was achieved, compared to a cash use of $15.1 million in the prior year [49][63] Business Line Data and Key Metrics Changes - In Q4 2023, total net sales were $21.2 million, with a 9% increase in Tru Niagen sales driven by a 20% growth in e-commerce [45][81] - Niagen ingredient net sales were down 30% year-over-year, largely due to the absence of a $2 million upfront minimum purchase from Nestle Health Science in the prior year [46] - Gross margins for Q4 improved by 380 basis points to 61%, attributed to a shift in business and customer mix [47] Market Data and Key Metrics Changes - E-commerce sales for Q4 were up 20% year-over-year, indicating strong performance in this channel [81] - The company continues to cultivate partnerships, including with Nestle Health Science and Zesty Paws, to expand its market presence [65][82] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and entering new market verticals, with expectations for new product launches in 2024 [8][42] - Investments in R&D are expected to increase year-over-year as the company prepares for new innovations and market entries [11][12] - The company aims to maintain financial discipline while pursuing growth opportunities, projecting revenue growth above 16% for 2024 [7][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook for 2024, anticipating stronger top and bottom-line performance [13] - The first half of 2024 is expected to involve heavier investments in R&D, with revenue ramping in the second half [13] - Management acknowledged challenges in the market but remains optimistic about ongoing initiatives and partnerships [16] Other Important Information - The company recorded its highest quarterly revenue in Q1 2023 but does not expect Q1 2024 to be the highest of the year [14] - The company is actively pursuing litigation related to patent infringement and expects to collect on owed amounts [37][38] Q&A Session Summary Question: Can you provide insights on Tru Niagen Pro and its margin profile? - Management noted that Tru Niagen Pro sold out quickly, with many new customers, and margins are similar to existing products, though slightly lower as they encourage trade-ups [19][22] Question: What are the expectations for marketing efficiency in 2024? - Management indicated that marketing efficiency is expected to improve, with stable selling and marketing expenses as a percentage of net sales [29][97] Question: Will the new product launch impact margins? - Management stated that while R&D and marketing expenses will increase in Q1 2024, they do not expect a meaningful impact on overall margins for the year [69][102]

| --- | |-------------------------------------| | | | 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 + ...

FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 For the transition period from to . Delaware 26-2940963 (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) or Commission file number 001-37752 10900 Wilshire Blvd. Suite 600, Los Angeles, CA 90024 (Address of Principal Executive Offices and Zip Code) This Annual Report on Form 10-K (Form 10-K) contains "forward-looking statements" withi ...

LOS ANGELES--(BUSINESS WIRE)--ChromaDex Corp. (NASDAQ:CDXC) (“the Company”), a global bioscience company dedicated to healthy aging, announced that it will hold a conference call on Wednesday, March 6, 2024 at 4:30 p.m. ET to discuss its financial results for the fourth quarter, which ended December 31, 2023. The financial results will be reported in a press release after the close of regular stock market trading hours on the same day as the conference call. Investor Conference Call: ChromaDex managemen ...

LOS ANGELES--(BUSINESS WIRE)--ChromaDex Corp. (NASDAQ:CDXC), the global authority on nicotinamide adenine dinucleotide (NAD+) and healthy aging research, announced today that it will be participating in Renmark Financial Communications Inc.’s live Virtual Non-Deal Roadshow Series to discuss its latest investor presentation on Monday, February 12, 2024, at 11:00 AM PST. ChromaDex welcomes stakeholders, investors, and other individual followers to register and attend this live event. The presentation will fe ...