ChromaDex(US:CDXC)2025-11-04 21:01Financial Performance - For the three months ended September 30, 2025, net sales increased by 33% to $33.986 million compared to $25.580 million in the same period of 2024[119] - For the nine months ended September 30, 2025, net sales rose by 36% to $95.584 million from $70.472 million in the prior year[119] - The Consumer Products segment saw a 44% increase in net sales for the three months ended September 30, 2025, totaling $26.017 million compared to $18.123 million in 2024[120] - The Ingredients segment reported an 8% increase in net sales for the three months ended September 30, 2025, reaching $7.197 million, while the nine-month figure surged by 63% to $22.985 million[120] - Net income for the three months ended September 30, 2025, was $4.578 million, a significant increase from $1.878 million in the same period of 2024[119] - Basic income per common share for the three months ended September 30, 2025, was $0.06, compared to $0.02 in the prior year[119] Cash and Liquidity - As of September 30, 2025, cash and cash equivalents totaled approximately $64.3 million, with $64.1 million being unrestricted[117] - As of September 30, 2025, the Company had cash and cash equivalents of $64.3 million, including $152,000 of restricted cash, and no outstanding borrowings under its line of credit[138] - Net cash provided by operating activities was approximately $12.8 million for the nine months ended September 30, 2025, compared to approximately $3.5 million for the same period in 2024, an increase of approximately $9.3 million[140] - Cash used in investing activities was $191,000 for the nine months ended September 30, 2025, compared to $74,000 for the same period in 2024[142] - Cash provided by financing activities was $7.0 million for the nine months ended September 30, 2025, compared to $1.6 million for the same period in 2024, an increase of $5.4 million[143] - The Company anticipates that its current cash and cash equivalents will be sufficient to meet financial obligations for at least the next twelve months, but may seek additional funds for operating objectives[139] Expenses and Profitability - Total cost of sales for the three months ended September 30, 2025, was $12,058,000, representing 35.5% of net sales, an improvement of 100 basis points compared to 36.5% in 2024[123] - Gross profit for the Consumer Products segment rose to $17,457,000 for the three months ended September 30, 2025, a 50% increase from $11,611,000 in 2024[123] - Total gross profit for the nine months ended September 30, 2025, was $61,485,000, a 42% increase from $43,389,000 in 2024[123] - Total sales and marketing expenses increased by $1.7 million and $4.3 million during the three and nine months ended September 30, 2025, respectively, but improved as a percentage of net sales by 170 basis points and 310 basis points[125] - Research and development expenses for the Consumer Products segment increased by 55% to $1,400,000 for the three months ended September 30, 2025, compared to $901,000 in 2024[126] - General and administrative expenses increased by $0.8 million (13%) to $7.129 million for the three months ended September 30, 2025, and by $2.3 million (13%) to $19.580 million for the nine months ended September 30, 2025, compared to the same periods in 2024[127] - Selling expenses grew by $0.5 million during the three months ended September 30, 2025, and by $1.3 million during the nine months ended September 30, 2025, with selling expenses as a percentage of net sales improving to 10.7% from 12.3% in the corresponding periods in 2024[128] Tax and Deferred Income - The Company recorded income tax expense of $222,000 (4.6% of earnings before income taxes) and $518,000 (3.8% of earnings before income taxes) for the three and nine months ended September 30, 2025, respectively[130] - The Company maintained a full valuation allowance against the entire deferred income tax balance as of September 30, 2025, indicating uncertainty regarding the realization of deferred tax assets[129] Research and Development - The company has built over 300 research collaborations through its ChromaDex External Research Program (CERP®) with leading institutions, enhancing its position in NAD+ research[109] Inventory and Commitments - The company has a minimum purchase commitment of approximately $33.6 million in inventory through September 30, 2026, under the Grace Supply Agreement[112] - The amended lease in Longmont, Colorado, extends through October 31, 2030, with an estimated increase in lease liability and right-of-use asset of approximately $1.1 million[114] Segment Performance - Consumer Products segment sales increased by $7.9 million and $16.1 million for the three and nine months ended September 30, 2025, respectively, driven by e-commerce performance[122] - Total ingredient sales increased by $0.5 million and $8.9 million for the three and nine months ended September 30, 2025, respectively[122] - Sales through distributor partners increased by $2.0 million and $2.6 million for the three and nine months ended September 30, 2025, respectively[122] - Cost of sales as a percentage of net sales in the Ingredients segment increased by approximately 830 basis points for the three months ended September 30, 2025, primarily due to a shift in business mix[124] - Cost of sales as a percentage of net sales in the analytical reference standards and services segment improved by approximately 1,140 basis points for the three months ended September 30, 2025[124] Losses - The Company has incurred aggregate losses of approximately $168.7 million from inception through September 30, 2025, primarily due to operational development and intellectual property protection expenses[136]