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 + ...

Financial Performance - For the year ended December 31, 2023, the company incurred a net loss of approximately $4.9 million, with aggregate losses from inception through December 31, 2023, totaling $190.5 million[294]. - Net cash provided by operating activities was approximately $7.1 million for the year ended December 31, 2023, compared to a net cash use of $15.1 million for the year ended December 31, 2022, reflecting a positive change of $22.2 million[295]. - In 2023, ChromaDex Corporation reported net sales of approximately $83.6 million, a 16% increase from $72.1 million in 2022[322]. - The Consumer Products Segment generated $69.5 million in sales for 2023, up from $60.1 million in 2022, reflecting a growth of 15.9%[323]. - The Ingredients Segment saw sales rise to $11.1 million in 2023 from $8.7 million in 2022, marking a 27.5% increase[323]. - Total sales and marketing expense for the year ended December 31, 2023, was approximately $26.4 million, a decrease of 6.7% from $28.3 million in 2022[352]. Assets and Liabilities - The company's total assets as of December 31, 2023, were $54.964 million, compared to $54.057 million as of December 31, 2022[315]. - The company's additional paid-in capital increased from $214.094 million in 2022 to $218.845 million in 2023[315]. - Accrued expenses rose from $7.337 million in 2022 to $9.493 million in 2023, contributing to the overall increase in current liabilities[315]. - The company’s working capital as of December 31, 2023, was approximately $9.5 million, down from $13.5 million in 2022, indicating a reduction of 29.6%[356]. Cash Flow and Inventory Management - Trade receivables decreased from $8.482 million in 2022 to $5.234 million in 2023, indicating improved cash flow management[315]. - The company’s cash and cash equivalents increased from $20.441 million in 2022 to $27.325 million in 2023[315]. - The company maintains sufficient inventory for its ingredients segment, resulting in minimal backlog orders[384]. - As of December 31, 2023, there were no significant backlog orders from distributors for the consumer products segment, and backlog orders to consumers were minimal[372]. Research and Development - The company has established over 275 research partnerships globally, enhancing its position in the NAD+ research space[303]. - Research and development expenses for 2023 were approximately $5.0 million, compared to $4.8 million in 2022, indicating a slight increase in investment in innovation[335]. - Over 375 peer-reviewed studies have been published on the science behind Nicotinamide Riboside (NR), with 75% of peer-reviewed clinical NR publications produced by CERP™[353]. Market Position and Competition - ChromaDex's major customer, A.S. Watson Group, accounted for approximately 15.4% of total net sales in 2023, up from 13.9% in 2022[324]. - The company faces direct competition from Elysium Health and other NAD+ boosting supplement providers, as well as strong indirect competition from alternative ingredient suppliers[354]. - The success of ChromaDex's consumer product and ingredient business is closely tied to the growth rate of the vitamin, mineral, and dietary supplement market[378]. Regulatory and Compliance - The company is in the process of obtaining regulatory approvals for its products in international markets, including the "Blue Hat" registration in China, which would enhance sales opportunities[333]. - The company is subject to various U.S. federal regulations, including those from the FDA and FTC, which govern product safety, testing, and advertising[357]. - For the years ended December 31, 2023 and 2022, expenses related to compliance with Good Manufacturing Practices totaled approximately $2.5 million and $2.1 million, respectively[383]. - The company incurs various expenses for compliance with environmental laws, which are not expected to increase significantly in the future[383]. Employee Relations and Corporate Culture - ChromaDex had 106 full-time employees as of December 31, 2023, with no unionized employees, indicating good employee relations[386]. - The company continues to invest in recruiting, developing, and rewarding talented employees to attract and retain top candidates[374]. - ChromaDex emphasizes diversity, inclusion, and fairness within its workforce, promoting open dialogue among employees[386]. Strategic Initiatives - The company is focused on obtaining regulatory approvals for international expansion and enhancing marketing strategies for its products[306]. - ChromaDex emphasizes product quality and scientific rigor to differentiate itself in a competitive market, focusing on innovation and new product development[336]. - ChromaDex's strategic manufacturing relationships help mitigate capital investment and enable cost control against larger competitors[382].

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 ...

LOS ANGELES--(BUSINESS WIRE)--ChromaDex Corp. (NASDAQ:CDXC), the global authority on nicotinamide adenine dinucleotide (NAD+) and healthy aging research, today announced that its Chief Executive Officer, Rob Fried, and Chief Financial Officer, Brianna Gerber, will be participating in the Lytham Partners 2024 Investor Select Conference. Mr. Fried and Mrs. Gerber will participate in virtual one-on-one meetings throughout the event on Thursday, February 1, 2024. To arrange a meeting with the ChromaDex mana ...

MirageC/Moment via Getty Images In the volatile arena of healthcare investments, investors are constantly seeking opportunities that not only offer lucrative returns but also align with the developing trends in the sector. One such promising industry that has been gaining traction is the nutraceuticals and supplement industry. As the global population becomes increasingly health-conscious, there is a surge in demand for products that promote well-being. Nutraceuticals and supplements, which include vita ...

(3) | --- | --- | |--------------------|-------| | | | | ChromaDex | | | | | | | | | | | | Third Quarter 2023 | | Rob Fried Chief Executive Officer Brianna Gerber Chief Financial Officer Andrew Shao SVP Scientific & Regulatory Affairs Nasdaq: CDXC | November 8, 2023 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 Act of 1933, as amende ...