Core Insights - ChromaDex (CDXC) reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, and showing improvement from a loss of $0.01 per share a year ago, resulting in a 100% earnings surprise [1] - The company achieved revenues of $25.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.93% and increasing from $19.5 million year-over-year [2] - ChromaDex shares have increased approximately 150.4% year-to-date, significantly outperforming the S&P 500's gain of 21.9% [3] Earnings Outlook - The future performance of ChromaDex's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $26.1 million, and for the current fiscal year, it is $0.01 on revenues of $94.7 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which ChromaDex belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Performance - Total net sales reached $25.6 million, a 31% increase year-over-year, with $18.1 million from Tru Niagen®[1] - Net income was $1.9 million, or $0.02 per share, compared to a net loss of $1.0 million or $(0.01) per share in Q3 2023[10] - Adjusted EBITDA reached a record $2.9 million, up from $0.5 million in the same quarter last year[11] - Net income for Q3 2024 was reported at $1,878,000, a significant improvement from a loss of $959,000 in Q3 2023[23] - Adjusted EBITDA for Q3 2024 reached $2,888,000, compared to $504,000 in Q3 2023, reflecting a year-over-year increase of 472.2%[23] Sales and Marketing - Niagen® ingredient sales, including food-grade and pharmaceutical-grade, surged to $6.7 million, up 368% YoY[2] - Sales and marketing expense as a percentage of net sales improved to 27.5%, a 350 basis point improvement from the prior year[2] - The company expects approximately 15% revenue growth year-over-year for the full year 2024, driven by e-commerce and the Niagen+ product line launch[13] - ChromaDex expanded the availability of Niagen+ to over 100 wellness clinics, with further expansion expected[4] Assets and Liabilities - Total current assets increased to $52,134,000 as of September 30, 2024, compared to $49,534,000 at December 31, 2023, representing a growth of 3.2%[21] - Cash and cash equivalents at the end of the period were $32,398,000, up from $27,325,000, marking an increase of 18.8%[22] - Total liabilities decreased to $22,153,000 as of September 30, 2024, down from $26,496,000 at December 31, 2023, indicating a reduction of 16.5%[21] - Current liabilities decreased to $17,699,000, down from $20,622,000, representing a decrease of 14.0%[21] - The company’s total stockholders' equity increased to $34,369,000 as of September 30, 2024, compared to $28,456,000 at December 31, 2023, reflecting a growth of 20.7%[21] Operating Expenses - Operating expenses increased by 12% to $14.6 million, with selling and marketing expenses rising but improving as a percentage of net sales[9] - Cash flows from operating activities had a net inflow of $3.5 million for the nine months ended September 30, 2024[12] - The company reported a net cash provided by operating activities of $3,526,000 for the nine months ended September 30, 2024, compared to $6,468,000 for the same period in 2023[22] Inventory and Receivables - Trade receivables increased to $7,096,000, up from $5,234,000, which is a rise of 35.6%[21] - Inventories decreased to $10,544,000 from $14,525,000, showing a decline of 27.4%[21]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Commission File Number: 001-37752 CHROMADEX CORPORATION (Exact Name of Registrant as Specified in its Charter) | --- | --- | --- | |----------------------------------------------------------------------------------|----------------------------|---------------------------------------------- ...

Core Viewpoint - Investors are expected to focus on the sales performance of ChromaDex Corp.'s marketed product, Niagen, and updates on the pipeline during the third-quarter 2024 results report on October 31, with revenue estimates at $23.70 million and earnings at 1 cent per share [1][4]. Group 1: Product Performance - ChromaDex markets Niagen as a superior-quality NAD+ booster available in several countries, including the United States, and it is the sole active ingredient in its dietary supplement, Tru Niagen [3]. - Revenues in the last reported quarter increased year over year, driven by higher sales of Tru Niagen and steady e-commerce performance, a trend expected to continue in the upcoming quarter [4]. Group 2: Pipeline Developments - The FDA granted Orphan Drug Designation and Rare Pediatric Disease Designation to ChromaDex's investigational candidate, nicotinamide riboside chloride (NRC), for treating ataxia telangiectasia, a rare neurodegenerative disease [5]. - Updates on the planned investigational new drug application for NRC are anticipated during the third-quarter earnings call, with human clinical studies to begin pending FDA clearance [6]. Group 3: Financial Performance and Expectations - ChromaDex shares have increased by 156.6% year-to-date, contrasting with a 3.9% decrease in the industry [7]. - The company has a strong earnings surprise history, beating estimates in each of the last four quarters with an average surprise of 83.34% [7]. - ChromaDex has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate at 1 cent per share, and currently holds a Zacks Rank of 2 [9].

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ChromaDex (CDXC) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. ChromaDex is a member of our Medical group, which includes 1025 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sec ...

Core Insights - ChromaDex (CDXC) has significantly outperformed the Medical sector with a year-to-date return of approximately 164.3%, compared to the sector's average gain of 8.9% [4] - The Zacks Rank for ChromaDex is 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3] - The consensus estimate for ChromaDex's full-year earnings has increased by 142.9% over the past 90 days, reflecting strong analyst sentiment [4] Company Performance - ChromaDex is part of the Medical - Biomedical and Genetics industry, which consists of 495 companies and currently ranks 84 in the Zacks Industry Rank [6] - The Medical - Biomedical and Genetics industry has experienced an average loss of 1.9% this year, highlighting ChromaDex's superior performance within its industry [6] Comparison with Peers - Clover Health Investments, Corp. (CLOV) has also outperformed the Medical sector with a return of 203.5% year-to-date [5] - Clover Health's consensus EPS estimate has risen by 38.1% over the past three months, and it holds a Zacks Rank of 2 (Buy) [5] - The Medical Info Systems industry, to which Clover Health belongs, has seen an average decline of 8.5% this year, indicating that both companies are performing well against their respective industry benchmarks [6]

Financial Data and Key Metrics - The company reported $22.7 million in revenue for Q2 2024, a 12% year-over-year increase, with a near breakeven net income of a $15,000 net loss [6] - Adjusted EBITDA was $1.6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [6] - The company ended the quarter with $27.9 million in cash and no debt [7] - Gross margins remained strong at 60.2%, slightly down from 60.8% in Q2 2023 [26] - Operating loss improved to $0.3 million from $2.3 million in Q2 2023, driven by higher net sales and lower operating expenses [28] Business Line Data and Key Metrics - E-commerce revenue remained stable at $13 million, continuing to be the largest and most consistent revenue source [16] - TRU Niagen sales increased by 10%, while combined Watsons and other B2B sales grew by 44% [25] - Niagen Plus product line was launched, featuring pharmaceutical-grade Niagen in IV and injectable forms, targeting a global market valued at over $2 billion [8][9] - The company introduced the Niagen Plus NAD test kit, exclusively for healthcare practitioners to measure NAD levels [10] Market Data and Key Metrics - The NAD IV market in the U.S. is estimated to be between $100 million and $150 million, with the company targeting more than 50% market share [46][47] - The company is expanding its presence in China, where NMN sales have dropped dramatically, but TRU Niagen has not yet seen significant growth [59][60] Company Strategy and Industry Competition - The company is focusing on innovation, with the launch of Niagen Plus and the development of new NAD precursors [10][27] - ChromaDex is committed to maintaining fiscal discipline while supporting upcoming launches and key initiatives [6] - The company is addressing competition from brands promoting NAD-boosting products that do not meet their claims, emphasizing Niagen's superior quality [19] Management Commentary on Operating Environment and Future Outlook - Management highlighted the potential of Niagen IV to expand the NAD IV market due to its superior tolerability and faster infusion times [8][42] - The company anticipates 10% to 15% year-over-year growth for 2024, driven by e-commerce, partnerships, and the launch of Niagen IV [29] - Management expressed optimism about the potential therapeutic benefits of NR in treating Parkinson's disease and Ataxia Telangiectasia [12][13][83] Other Important Information - The company received orphan drug designation from the U.S. FDA for NR as a candidate for treating Ataxia Telangiectasia [12] - A new patent was granted in Europe for the use of nicotinamide riboside in the treatment of Parkinson's disease [13] - The company is collaborating with Nestle Health Science to integrate Niagen into their brands, including the launch of NR Longevity [21] Q&A Session Summary Question: Adoption of Niagen Plus and Market Share Expectations - The company expects to capture more than 50% market share due to Niagen's superior product quality, but supply chain challenges have delayed the rollout [34][39] - Initial shipments of Niagen IV are limited, with a larger batch expected in October [39] Question: Pricing and Gross Margin Impact of Niagen IV - Niagen IV is priced slightly higher than existing NAD IV products, with margins higher than the company's corporate margin, expected to positively impact gross margins [57] Question: Timing and Impact of Niagen Plus Rollout - The delay in Niagen Plus rollout is not expected to impact the company's mid-2025 expectations for revenue or spending [64] Question: Market Expansion Potential for Niagen IV - The existing NAD IV market has not been growing, but the company believes Niagen IV could expand the market due to its superior product experience [66][68] Question: Regulatory Process for Ataxia Telangiectasia (AT) and Cockayne Syndrome - The regulatory process for AT is further along than Cockayne Syndrome, with human clinical studies already conducted for AT [48][49] Question: B2B Sales Growth and Order Patterns - B2B sales growth of 44% is partly driven by a customer aggressively marketing a combination product featuring Niagen on Amazon [52][53] Question: Green Hat Approval in China - The company has not seen any changes in the outlook for Green Hat approval in China, despite the decline in NMN sales [75] Question: Launch Timeline for Injectable Products - Injectable products for clinics are expected to be available in 2-3 months, with at-home injectable products potentially launching by the end of 2024 or early 2025 [78] Question: Addressable Market for Parkinson's Disease - If the Phase III NO-PARK study yields positive results, the company sees a significant opportunity to market Niagen as a dietary supplement to Parkinson's patients, with a global addressable market of approximately 10 million patients [83][85]

| --- | --- | |-----------------------|-------| | | | | ChromaDex | | | | | | | | | Earnings Presentation | | | Second Quarter 2024 | | Rob Fried Chief Executive Officer James Lee Interim Chief Financial Officer Andrew Shao SVP Scientific & Regulatory Affairs Nasdaq: CDXC | August 7, 2024 SAFE HARBOR STATEMENT 2 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 ...

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 ...

Financial Performance - Total net sales for Q2 2024 were $22.7 million, representing a 12% increase year-over-year, with $18.6 million from Tru Niagen®[1] - Gross margin was 60.2%, with operating expenses reduced by $0.7 million to $13.9 million compared to the prior year quarter[1][5] - Adjusted EBITDA improved to $1.6 million from $0.2 million in Q2 2023, indicating a significant operational improvement[1][5] - The net loss was approximately breakeven, improving by $2.2 million from a net loss of $2.2 million or $0.03 per share in Q2 2023[1][5] - Net income (loss) for Q2 2024 was $(15,000), an improvement from $(492,000) in Q1 2024[15] - Adjusted EBITDA for Q2 2024 was $1,575,000, compared to $670,000 in Q1 2024, indicating a significant increase in operational performance[15] - The company emphasizes the importance of Adjusted EBITDA as a key performance indicator for evaluating financial performance and planning[16] Product Development - ChromaDex received U.S. FDA Orphan Drug Designation for nicotinamide riboside chloride for treating Ataxia Telangiectasia, with plans to file an Investigational New Drug application[2] - The company launched Niagen+, a new product line featuring pharmaceutical-grade Niagen®, available in IV and injectable forms at clinics[3] - Niagen IV offers a 75% shorter infusion time and a higher rise in NAD+ blood levels compared to common alternatives[3] Future Outlook - For the full year 2024, the company expects revenue growth of 10% to 15% year-over-year, driven by e-commerce and new partnerships[7] - Selling and marketing expenses are projected to increase in absolute dollars but remain stable as a percentage of net sales[7] - General and administrative expenses are expected to decrease by $1.5 million year-over-year[7] Assets and Liabilities - Total current assets as of June 30, 2024, were $49,302,000, a slight decrease from $49,534,000 on December 31, 2023[13] - Cash and cash equivalents increased to $27,885,000 at the end of the period from $27,325,000 at the beginning of the period[14] - Trade receivables increased to $7,818,000 as of June 30, 2024, from $5,234,000 at the end of 2023[13] - Total liabilities decreased to $17,867,000 as of June 30, 2024, down from $20,622,000 at the end of 2023[13] - The company reported a net increase in cash and cash equivalents of $560,000 for the six months ended June 30, 2024[14] - Total stockholders' equity increased to $30,718,000 as of June 30, 2024, compared to $28,456,000 at the end of 2023[13] Employee Compensation - The company had $1,185,000 in share-based compensation for Q2 2024, reflecting ongoing investment in employee incentives[15]