ChromaDex(US:CDXC)2019-05-09 20:02Financial Performance - For the three months ended March 31, 2019, total net sales increased by 53% to $10.048 million compared to $6.567 million for the same period in 2018 [101]. - The company reported a net loss of $8.337 million for the three months ended March 31, 2019, compared to a net loss of $8.443 million for the same period in 2018 [101]. - Gross profit for the consumer products segment was $4.383 million, representing a 128% increase from $1.923 million in the prior year [112]. - The cost of sales as a percentage of net sales decreased by 5% to 47% for the three-month period ended March 31, 2019, compared to 52% for the same period in 2018 [107]. - The company has incurred aggregate losses of approximately $98.1 million since inception through March 31, 2019 [131]. Sales and Segment Performance - Consumer products segment sales rose by 146% to $7.454 million, while ingredient sales decreased by 37% to $1.494 million [103]. - The decrease in sales for the ingredients segment is attributed to the company's strategic shift towards expanding its consumer products business [104]. - The company expects sales for the consumer products segment to continue to grow over the next twelve months [103]. Cash and Liquidity - As of March 31, 2019, the company had approximately $19.3 million in cash and cash equivalents, sufficient to meet projected operating plans for at least the next twelve months [97]. - Net cash used in operating activities decreased to approximately $3.0 million in Q1 2019 from approximately $4.0 million in Q1 2018 [134]. - Net cash used in investing activities was approximately $0.3 million for Q1 2019, compared to $0.2 million in Q1 2018 [137]. - Net cash provided by financing activities was approximately $0.1 million in Q1 2019, compared to $0.2 million used in Q1 2018 [138]. Expenses and Investments - Sales and marketing expenses for consumer products increased by 44% to $3,917,000 for the three months ending March 31, 2019, compared to $2,727,000 in the same period in 2018 [117]. - Total research and development expenses decreased by 19% to $1,168,000 for the three months ending March 31, 2019, down from $1,439,000 in the same period in 2018 [120]. - General and administrative expenses rose by 22% to $8,331,000 for the three months ending March 31, 2019, compared to $6,828,000 in the same period in 2018 [122]. - Share-based compensation increased to approximately $1.8 million in Q1 2019 from approximately $1.1 million in Q1 2018 [122]. Research and Development - The company has approximately 170 partnerships with leading universities and research institutions globally, enhancing its research capabilities in the NAD space [94]. - The company plans to continue increasing marketing, research, and development efforts for its flagship ingredient, NIAGEN® nicotinamide riboside, and its consumer branded product TRU NIAGEN® [101]. Other Financial Metrics - Interest income improved to $35,000 in Q1 2019 from a net expense of $44,000 in Q1 2018 [125]. - The effective tax rate remained approximately 0% for both Q1 2019 and Q1 2018 due to a full valuation allowance against the deferred income tax balance [126].