ChromaDex(US:CDXC)2023-08-08 16:00Sales Performance - Tru Niagen® sales increased by $2.4 million and $5.1 million for the three and six months ended June 30, 2023, compared to the same periods in 2022, primarily driven by higher sales to A.S. Watson and strong e-commerce performance [161]. - Sales to A.S. Watson contributed approximately $1.5 million and $2.6 million to growth for the three and six months ended June 30, 2023, respectively, while e-commerce sales added approximately $1.0 million and $2.3 million [161]. - The company expects e-commerce sales to be the primary catalyst for growth throughout 2023 [161]. Research and Development - The company has established over 275 research partnerships through its ChromaDex External Research Program (CERP™) with leading institutions, enhancing the scientific foundation for its products [156]. - NAD+ levels in humans can decline by up to 65% between ages 30 and 70, with supplementation through NAD+ precursors being a focus of the company's research [155]. - The company is actively pursuing additional relationships to support its research and development efforts in the NAD+ and healthy aging space [156]. - The company emphasizes strong scientific rigor behind its products and aims to advance the understanding of NAD+ in health and aging [156]. Legal Matters - The company is involved in ongoing legal matters related to patent infringement, which may impact its business operations [167]. - The company does not anticipate that recent legal decisions will have a material impact on its NR business [170]. - The Company received a letter from a licensor claiming it owed $1.6 million plus interest for sublicense fees, but believes it does not owe any fees and does not expect this to materially affect its financials [175]. Financial Reporting - The financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may affect reported amounts [159]. - The Company recorded an aggregate benefit of approximately $2.1 million in Other income from the Employee Retention Tax Credit for eligible quarters in 2020 and 2021 [180]. - The Company has an 89% equity interest in a joint venture to commercialize Tru Niagen® and other products in Mainland China, with an initial term of 20 years [182]. - The fair value of the non-voting interest in the joint venture was determined to be based on a discounted cash flow model, with estimated future cash flows of $3.9 million and a terminal value of $5.6 million [184]. - There were no changes in internal control over financial reporting that materially affected the Company's financial reporting during the second fiscal quarter [207].