ChromaDex(CDXC) - 2024 Q2 - Quarterly Results

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]