ChromaDex(US:CDXC)2025-05-07 20:01Financial Performance - For the three months ended March 31, 2025, total net sales increased by approximately $8.3 million, reaching $30.5 million, a 38% increase compared to $22.2 million in the same period of 2024[107]. - Net income for the three months ended March 31, 2025, was $5.1 million, compared to a net loss of $0.5 million in the same period of 2024[107]. - Basic income per share increased to $0.07 for the three months ended March 31, 2025, compared to a loss of $0.01 per share in the prior year[107]. - Total gross profit for the three months ended March 31, 2025, was $19,331,000, a 44% increase from $13,456,000 in the same period of 2024[110]. Segment Performance - Consumer Products segment net sales grew by 24% to $21.5 million, driven by a $4.0 million increase in e-commerce sales reflecting strong consumer demand[108]. - Ingredients segment net sales doubled to $8.2 million, primarily due to $2.9 million in sales to food-grade Niagen® partners and $1.0 million from pharmaceutical-grade Niagen® launched in 2024[108]. - The consumer products segment gross profit increased by 26% to $14,094,000, while the ingredients segment saw a 125% increase to $5,068,000[110]. Operational Efficiency - Total cost of sales improved to $11.2 million, representing 37% of net sales, down from 39% in the same period of 2024, indicating enhanced operational efficiency[109]. - Sales and marketing expenses rose by $1.4 million, or 20%, to $8,117,000, but improved as a percentage of net sales by 380 basis points to approximately 27%[112]. - Research and development expenses decreased by 40% to $1,258,000, down from $2,095,000 in the prior year, reflecting normalized spending after the launch of the Niagen Plus product line[113]. - General and administrative expenses were relatively flat at $5,184,000, a 3% decrease from $5,352,000, primarily due to a reduction in credit loss expense[114]. Cash Flow and Financial Position - The company had cash and cash equivalents of approximately $55.6 million as of March 31, 2025, with $55.5 million being unrestricted[104]. - Net cash provided by operating activities was approximately $7.9 million for the three months ended March 31, 2025, compared to $0.3 million in the same period of 2024[125]. - Cash provided by financing activities was $3.1 million for the three months ended March 31, 2025, compared to a use of cash of $14,000 in the same period of 2024[128]. - The company anticipates that current cash and cash equivalents will be sufficient to meet financial obligations for at least the next twelve months[124]. Inventory and Lease Obligations - The company is obligated to purchase approximately $16.4 million of inventory under a rolling forecast with W.R. Grace between April 1, 2025, and September 30, 2025[101]. - The company amended its lease in Longmont, Colorado, resulting in an estimated increase in lease liability and right-of-use asset of approximately $1.1 million[100]. Research and Development - The company has over 300 research partnerships through its ChromaDex External Research Program (CERP™), enhancing its position in NAD+ research and development[98].