Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ChromaDex Corp. | cdxc8k_may112017.htm |
Exhibit 99.1
ChromaDex Reports First Quarter 2017 Financial Results
- Changes in Q1 and new investor set the foundation for success
with NIAGEN® -
IRVINE, Calif., May 11, 2017 – ChromaDex Corp.
(NASDAQ: CDXC), an innovator of
proprietary health, wellness and nutritional ingredients, that
creates science-based solutions to dietary supplement, food and
beverage, skin care, sports nutrition, and pharmaceutical products,
announced today the financial results for the quarter ended April
1, 2017.
“I
am very excited about the changes we have made the past few
months,” commented Frank Jaksch, Jr., CEO and co-founder of
ChromaDex. “As the science and research continues to validate
the effectiveness of NIAGEN®, we are
setting the foundation to take full advantage of this extraordinary
ingredient opportunity.”
“We fully recognize the value of NIAGEN® and its vital impact on energy metabolism and
aging,” said Rob Fried, President and Chief Strategy Officer
of ChromaDex. “This is an exciting time for ChromaDex as we
focus our strategy on bringing NIAGEN®
and our NAD+ precursor platform to
market.”
Results of operations for the three months ended April 1,
2017
For the
three months ended April 1, 2017 (“Q1 2017”), ChromaDex
reported net sales of $4.4 million, a decrease of 39% as compared
to $7.3 million for the three months ended April 2, 2016 (“Q1
2016”), largely due to decreased sales in its ingredients
business segment, as a result of dropping our largest customer for
fiscal year 2016. The ingredients segment generated net sales of
$2.1 million for Q1 2017, a decrease of 55%, compared to $4.6
million for Q1 2016.
The
core standards and services segment posted a 13% decline in net
sales to $2.4 million for Q1 2017, compared to $2.7 million for Q1
2016. Since the year ended December 31, 2016, ChromaDex has made
operational changes to merge its scientific and regulatory
consulting segment into the core standards and services
segment.
The net
loss attributable to common stock holders for Q1 2017 was $1.9
million or ($0.05) per share as compared to a net income of $0.3
million or $0.01 per share for Q1 2016. Adjusted EBITDA, a non-GAAP
measure, was ($1.4 million) for Q1 2017, compared to adjusted
EBITDA of $0.9 million for Q1 2016. The Basic and Diluted Adjusted
EBITDA per share for Q1 2017 was ($0.04) versus $0.02 for Q1
2016.
Recent Company highlights include:
●
In April 2017, the
Company announced that it entered into a
securities purchase agreement, pursuant to which the Company sold
$3.5 million of its common stock, with the possibility of selling
up to an additional $21.5 million of its common stock in future
tranches, in a private placement led by Hong Kong business leader
Mr. Li Ka-shing with Horizons
Ventures.
●
In March 2017, the
Company acquired all the outstanding equity interests of Healthspan
Research, LLC and its only product TRUNIAGEN. The product is a
standalone nicotinamide riboside NIAGEN® supplement
currently being sold direct-to-consumer (“DTC”) in the
US through the website www.truniagen.com.
●
In March 2017,
Robert Fried, a member of the Company’s board of directors
since July 2015, was appointed President and Chief Strategy Officer
for ChromaDex.
●
In March 2017, the
Company announced that Steven D. Rubin, J.D.
joined the Company's board of directors. Mr. Rubin has
served as OPKO Health’s Executive Vice President –
Administration since May 2007 and a director since February 2007.
Mr. Rubin is a member of The Frost Group, LLC, a private investment
firm.
●
In February 2017,
the Company announced that University of Iowa
researchers published a study in the prestigious Journal of the
International Association for the Study of Pain
(“PAIN”) showing that NIAGEN®
nicotinamide riboside
ameliorates chemotherapy-induced peripheral neuropathy
(“CIPN”) in an animal model. Results from this
study suggest that nicotinamide riboside may be an effective
therapy in relieving CIPN in humans.
●
In January 2017,
the Company opened a new
state-of-the-art research and development center in Longmont,
Colorado. The 10,000-square-foot research and development
center is an important milestone for ChromaDex to continue its
global leadership in the identification and development of NAD+
metabolites.
●
In December 2016,
the Company terminated the purchase agreements of one of its former
customers and filed suit to collect payment owed under the
agreements.
Investor Conference Call
ChromaDex
management will host an investor conference call to discuss the
year end results and provide a general business update on Thursday,
May 11, at 4:30 p.m. ET.
Participants
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
|
U.S. Toll-Free
Number:
|
(866)
327-8118
|
|
International
Dial-In Number:
|
(678)
509-7526
|
|
Conference
ID:
|
18237041
|
|
Webcast
link:
|
http://edge.media-server.com/m/p/t8in2vhy/lan/en
|
The
webcast replay will be available after the completion of the call
on the Investor Relations section of the Company website,
www.chromadex.com.
The
earnings press release, and its accompanying financial exhibits,
will be available on the Investor Relations section of the Company
website, www.chromadex.com.
About Non-GAAP Financial Measures
ChromaDex’s
non-GAAP financial measures exclude interest, tax, depreciation,
amortization and share-based compensation. ChromaDex used
these non-GAAP measures when evaluating its financial results as
well as for internal resource management, planning and forecasting
purposes. These non-GAAP measures should not be viewed in isolation
from or as a substitute for ChromaDex’s financial results in
accordance with GAAP. A reconciliation of GAAP to non-GAAP measures
is attached to this press release.
About ChromaDex:
ChromaDex leverages
its complementary business units to discover, acquire, develop and
commercialize patented and proprietary ingredient technologies that
address the dietary supplement, food, beverage, skin care and
pharmaceutical markets. In addition to our ingredient technologies
unit, we also have business units focused on natural product fine
chemicals (known as "phytochemicals"), chemistry and analytical
testing services, and product regulatory and safety consulting. As
a result of our relationships with leading universities and
research institutions, we are able to discover and license early
stage, IP-backed ingredient technologies. We then utilize our
in-house chemistry, regulatory and safety consulting business units
to develop commercially viable ingredients. Our ingredient
portfolio is backed with clinical and scientific research, as well
as extensive IP protection. Our portfolio of patented ingredient
technologies includes NIAGEN® nicotinamide
riboside; pTeroPure® pterostilbene;
PURENERGY®,
a caffeine-pTeroPure® co-crystal;
IMMULINA™,
a spirulina extract; and AnthOrigin™,
anthocyanins derived from a domestically-produced, water-extracted
purple corn. To learn more about ChromaDex, please
visit www.ChromaDex.com.
Forward-Looking Statements:
This
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities
and Exchange Act of 1934, as amended including statements related to
financial results, financial representations, statements related to
the anticipated proceeds to be received in the private placement,
success of Horizons Ventures’ investments, Horizons
Ventures’ ability to support future ChromaDex developments in
the global marketplace, the innovative qualities of
NIAGEN®,
results of the NIAGEN® studies
and their significance, whether nicotinamide riboside may be an
effective therapy in relieving CIPN in humans and the anti-aging
capabilities of nicotinamide riboside. Statements
that are not a description of historical facts constitute
forward-looking statements and may often, but not always, be
identified by the use of such words as "expects", "anticipates",
"intends", "estimates", "plans", "potential", "possible",
"probable", "believes", "seeks", "may", "will", "should", "could"
or the negative of such terms or other similar expressions. More
detailed information about ChromaDex and the risk factors
that may affect the realization of forward-looking statements is
set forth in ChromaDex's Annual Report on Form 10-K for
the fiscal year ended December 31,
2016, ChromaDex's Quarterly Reports on Form 10-Q and
other filings submitted by ChromaDex to the SEC,
copies of which may be obtained from the SEC's website
at www.sec.gov.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and actual results may differ materially from those suggested by
these forward-looking statements. All forward-looking statements
are qualified in their entirety by this cautionary statement and
ChromaDex undertakes no obligation to revise or update this release
to reflect events or circumstances after the date
hereof.
ChromaDex Investor Relations Contact:
Andrew
Johnson, Director of Investor Relations
949-419-0288
andrewj@chromadex.com
ChromaDex Public Relations Contact:
Breah
Ostendorf, Director of Marketing
949-537-4103
breaho@chromadex.com
END
###
ChromaDex Corporation and Subsidiaries
Condensed
Consolidated Statements of Operations (Unaudited)
For the Three Month Periods Ended April 1, 2017 and April 2,
2016
|
|
April 1, 2017
|
April
2, 2016
|
|
|
|
|
|
Sales,
net
|
$4,449,122
|
$7,331,945
|
|
Cost
of sales
|
2,696,469
|
3,880,526
|
|
|
|
|
|
Gross profit
|
1,752,653
|
3,451,419
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Sales
and marketing
|
596,162
|
544,722
|
|
Research
and development
|
664,190
|
464,072
|
|
General
and administrative
|
2,383,146
|
1,988,559
|
|
Operating expenses
|
3,643,498
|
2,997,353
|
|
|
|
|
|
Operating income (loss)
|
(1,890,845)
|
454,066
|
|
|
|
|
|
Nonoperating
income (expense):
|
|
|
|
Interest
income
|
2
|
794
|
|
Interest
expense
|
(37,912)
|
(188,495)
|
|
Nonoperating expenses
|
(37,910)
|
(187,701)
|
|
|
|
|
|
Income
(loss) before income taxes
|
(1,928,755)
|
266,365
|
|
Provision
for income taxes
|
-
|
(10,740)
|
|
|
|
|
|
Net income (loss)
|
$(1,928,755)
|
$255,625
|
|
|
|
|
|
Basic
earnings (loss) per common share
|
$(0.05)
|
$0.01
|
|
|
|
|
|
Diluted
earnings (loss) per common share
|
$(0.05)
|
$0.01
|
|
|
|
|
|
Basic
weighted average common shares outstanding
|
38,030,688
|
36,414,041
|
|
|
|
|
|
Diluted
weighted average common shares outstanding
|
38,030,688
|
37,472,579
|
See
Notes to Condensed Consolidated Financial Statements in Part I of
ChromaDex's Quarterly Report on Form 10-Q filed with Securities and
Exchange Commission on May 11, 2017.
|
Condensed Consolidated Statements of Operations
(Unaudited)
|
Effects of Charges associated with Interest, Tax,
Depreciation,
|
Condensed Consolidated Statements of Operations, Adjusted
EBITDA
|
||||||
|
(US GAAP)
|
Amortization and Share-based Compensation
Expense
|
Excluding Interest, Tax, Depreciation, Amortization
and
|
||||||
|
|
|
|
|
|
|
Share-based Compensation (Non-GAAP Presentation)
|
||
|
For the Three Month Periods Ended April 1, 2017 and April 2,
2016
|
For the Three Month Periods Ended April 1, 2017 and April 2,
2016
|
For the Three Month Periods Ended April 1, 2017 and April 2,
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
Q1 2016
|
|
Q1 2017
|
Q1 2016
|
|
Q1 2017
|
Q1 2016
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$4,449,122
|
$7,331,945
|
Sales
|
$-
|
$-
|
Sales
|
$4,449,122
|
$7,331,945
|
|
Cost
of sales
|
2,696,469
|
3,880,526
|
Cost
of sales
|
(95,008)
|
(73,703)
|
Cost
of sales
|
2,601,461
|
3,806,823
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
1,752,653
|
3,451,419
|
Gross profit
|
95,008
|
73,703
|
Gross profit
|
1,847,661
|
3,525,122
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
Operating
expenses:
|
|
|
Operating
expenses:
|
|
|
|
Sales
and marketing
|
596,162
|
544,722
|
Sales
and marketing
|
-
|
-
|
Sales
and marketing
|
596,162
|
544,722
|
|
Research
and development
|
664,190
|
464,072
|
Research
and development
|
-
|
-
|
Research
and development
|
664,190
|
464,072
|
|
General
and administrative
|
2,383,146
|
1,988,559
|
General
and administrative
|
(378,127)
|
(344,149)
|
General
and administrative
|
2,005,019
|
1,644,410
|
|
Operating expenses
|
3,643,498
|
2,997,353
|
Operating expenses
|
(378,127)
|
(344,149)
|
Operating expenses
|
3,265,371
|
2,653,204
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
(1,890,845)
|
454,066
|
Operating income
|
473,135
|
417,852
|
Operating income (loss)
|
(1,417,710)
|
871,918
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense):
|
|
|
Nonoperating
income:
|
|
|
Nonoperating
income (expense):
|
|
|
|
Interest
income
|
2
|
794
|
Interest
income
|
(2)
|
(794)
|
Interest
income
|
-
|
-
|
|
Interest
expense
|
(37,912)
|
(188,495)
|
Interest
expense
|
37,912
|
188,495
|
Interest
expense
|
-
|
-
|
|
Nonoperating expense
|
(37,910)
|
(187,701)
|
Nonoperating income
|
37,910
|
187,701
|
Nonoperating expense
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before taxes
|
(1,928,755)
|
266,365
|
Income
before taxes
|
511,045
|
605,553
|
Income
(loss) before taxes
|
(1,417,710)
|
871,918
|
|
Provision
for taxes
|
-
|
(10,740)
|
Provision
for taxes
|
-
|
10,740
|
Provision
for taxes
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$(1,928,755)
|
$255,625
|
Effects of adjusted EBITDA
|
$511,045
|
$616,293
|
Adjusted EBITDA
|
$(1,417,710)
|
$871,918
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per common share
|
$(0.05)
|
$0.01
|
Basic
effects of adjusted EBITDA per common share
|
$0.01
|
$0.02
|
Basic
adjusted EBITDA per common share
|
$(0.04)
|
$0.02
|
|
Diluted
earnings (loss) per common share
|
$(0.05)
|
$0.01
|
Diluted
effects of adjusted EBITDA per common share
|
$0.01
|
$0.02
|
Diluted
adjusted EBITDA per common share
|
$(0.04)
|
$0.02
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
Weighted average common shares outstanding
|
|
Weighted
average common shares outstanding
|
|
|||
|
Basic
|
38,030,688
|
36,414,041
|
Basic
|
38,030,688
|
36,414,041
|
Basic
|
38,030,688
|
36,414,041
|
|
Diluted
|
38,030,688
|
37,472,579
|
Diluted
|
38,030,688
|
37,472,579
|
Diluted
|
38,030,688
|
37,472,579
|