ChromaDex(CDXC)2024-08-07 20:01Financial Performance - Net sales for the three months ended June 30, 2024, increased by 12% to 20.3 million in the same period in 2023[117][118] - Net loss for the three months ended June 30, 2024, improved to 2.2 million in the same period in 2023[117] - Total cost of sales for the three months ended June 30, 2024, was 13.69 million for the three months ended June 30, 2024, and by 5% to 31,000 for the six months ended June 30, 2024, a significant decrease from 53,000 for the six months ended June 30, 2024, compared to 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 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 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 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 27.7 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]