– Company Expects to Report Record Revenue for Q1 2016 –
– Led by NIAGEN®, Company Expects Strong Revenue Growth in 2016 –
IRVINE, Calif., March 17, 2016 (GLOBE NEWSWIRE) — ChromaDex Corp. (OTCQX: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, reported today record net revenue of $22.0 million for the year ended January 2, 2016 (“FY 2015”), an increase of 44% as compared to $15.3 million for the year ended January 2, 2015 (“FY 2014”).
The record net revenue was largely due to increased sales in its ingredients business segment, led by its NIAGEN® branded nicotinamide riboside (NR). The ingredients segment generated record net sales of $12.5 million for FY 2015, an increase of 83%, compared to $6.9 million for FY 2014. The core standards and services segment also posted a 12% growth as it generated record net sales of $8.4 million for FY 2015, compared to $7.5 million for FY 2014. Net sales for the scientific and regulatory consulting segment increased by 9%, from $1.0 million for FY 2014 to $1.1 million for FY 2015, as more consulting projects were completed during FY 2015. The net loss attributable to common stock holders for FY 2015 was $2.8 million or ($0.03) per share as compared to a net loss of $5.4 million or ($0.05) per share for FY 2014. The non-cash, stock based compensation expense related to stock options and other stock-based compensation in FY 2015 was $2.0 million. Net loss adjusted for share based compensation, which is a “non-GAAP measure,” would have the effect of decreasing the Company’s net loss for FY 2015 to $0.8 million. As of January 2, 2016, cash, cash equivalents and marketable securities totaled $5.5 million.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “2015 was breakout year for ChromaDex as all significant business units posted record revenue. This is the first year that the ingredient segment has accounted for the majority of the Company’s revenue. Activity in new business development remains robust. We expect to report record revenue in Q1 2016 as well as strong revenue growth for the full-year.”
Jaksch continued, “We are in the early innings of the commercialization and business development of our lead ingredient, NIAGEN® branded NR. Whereas business activity in 2015 was largely with direct-to-consumer supplement companies, we expect in 2016 nutritional supplement products featuring NIAGEN® to populate the shelves of tens of thousands of major branded retail locations throughout the U.S. Moreover, the recent regulatory qualifications, NDIN and GRAS, have opened the door for NIAGEN® to be included as a feature ingredient in a growing number of food, beverage and supplement products.”
“Perhaps the most unrealized value for ChromaDex shareholders may lie in NR’s pharmaceutical applications. We have been working closely with the NIH on a therapeutic indication for NR as a treatment of a rare pediatric orphan disease, Cockayne Syndrome. We expect to file for orphan designation as well as an IND with the FDA in 2016. Collaborators such as NIH, are currently performing pre-clinical studies on the use of NR to treat several other orphan diseases.”
“The excitement continues to build surrounding the peer-reviewed published research and commentary of NR’s potential health benefits as a precursor to the co-enzyme nicotinamide adenine dinucleotide (NAD+) . We continue to build upon our already significant patent portfolio surrounding NR and NAD+ precursors, putting us in the enviable position of ‘gatekeeper’ to the entire NAD+ precursor category. Our vision is that NIAGEN® will become part of an important NAD+ nutrient deficiency story similar to Vitamin C, Vitamin D, folic acid and Omega-3 fatty acids. A new vitamin of this magnitude is the type of opportunity that comes along once every 25+ years. All of the important pieces of the puzzle – peer reviewed science, media attention to NAD+ story, and the rise of the treatment of aging as disease – are creating a perfect storm for NIAGEN® to become the next billion dollar ingredient.”
2015 and recent 2016 Company highlights include:
- In March 2016, the Company announced the initiation of the second human clinical trial for its patented ingredient, NIAGEN® (Nicotinamide Riboside – NR).
- In February 2016, the Company announced an Obesity-Related Clinical Study of NIAGEN® in Collaboration With the University of Copenhagen and Aarhus University.
- In February 2016, the Company announced it has been named to the 2016 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.
- In January 2016, the Company announced a deal with BPI Sports to Result in the Launch of Several New Products Containing NIAGEN® at Thousands of Nationwide Retail Locations.
- In January 2016, Specialty Nutrition Group, Inc. announced the release of NIAGEN® in GNC stores nationwide.
- In January 2016, the Company announced that an independent scientific panel of experts determined that NIAGEN®, ChromaDex’s patented and proprietary lead ingredient, is Generally Recognized As Safe (GRAS).
- In November 2015, the Company announced that Jarrow Formulas, plans a national retail launch of a Nicotinamide Riboside dietary supplement product featuring NIAGEN®.
- In November 2015, the Company announced a Materials Cooperative Research and Development Agreement (MCRADA) with the National Institute on Aging (NIA), a part of the National Institutes of Health (NIH).
- In November 2015, the Company announced it has received New Dietary Ingredient (NDI) status from the FDA for its patented and proprietary lead ingredient, NIAGEN® nicotinamide riboside.
- In November 2015, the Company announced it had entered into a joint development agreement with The Procter & Gamble Company (NYSE: PG) (“P&G”), pursuant to which the Company will provide P&G exclusivity to its new proprietary ingredient for use in P&G branded products.
- In September 2015, the Company announced the launch of New Patented Ingredient – IMMULINA(TM) – a Powerful, Natural Ingredient That Boosts the Immune System
- In September 2015, the Company announced that a new dietary supplement product, NIAGEN® NR Age Defense, is now available at CVS Health stores.
- In August 2015, the Company announced results from the first human clinical study of ChromaDex’s NIAGEN® nicotinamide riboside, which demonstrated that NIAGEN® nicotinamide riboside effectively and safely increases the co-enzyme NAD+.
- In July 2015, the Company announced it had received the 2014 Nutrition Business Journal (“NBJ”) Business Achievement Award for Mid-Sized Growth companies.
- In July 2015, ChromaDex announced the launch of Sync Health Solutions’ new branded lifestyle energy product, Älsa™ Energy, derived from ChromaDex’s patented PURENERGY® ingredient.
- In June 2015, ChromaDex announced a collaborative human clinical study on NIAGEN® with the University of Colorado Boulder. The Integrative Physiology of Aging Laboratory, headed by Dr. Douglas Seals, will investigate the effects of NIAGEN® on physical function and metabolism in healthy adults aged 45-79 Years.
- In May 2015, ChromaDex announced an exclusive worldwide license and supply agreement for anothcyanin-rich Suntava® Purple Corn. ChromaDex will use Suntava® to produce a highly concentrated anthocyanin ingredient at a price point that should appeal to mass markets.
- In April 2015, ChromaDex announced that Washington University Medical School scientists publish results of pre-clinical study showing nicotinamide riboside may be effective in rescuing neurons subjected to trauma and disease. The study showed axon degeneration and cell death are blocked by supplementation with the cell-permeable NAD+ precursor, nicotinamide riboside.
- In April 2015, ChromaDex announced a published study showing that topical treatment with pterostilbene has the capacity to protect hairless mice against UVB radiation-induced skin damage and carcinogenesis.
Investor Conference Call
ChromaDex management will host an investor conference call to discuss the year end results and provide a general business update on Monday, March 21, at 11am EDT. Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:
U.S. toll free: 1-866-327-8118
Outside the U.S.: 1-678-509-7526
Conference ID for this call is: 69346049
The webcast replay will be available after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com.
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 (known as Spherix 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; ProC3G®, a natural black rice containing cyanidin-3-glucoside; IMMULINA™, a spirulina extract; and Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins. 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. 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. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013, the Company’s Quarter Reports on Form 10-Q and other filings submitted by the Company 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. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
Statements in this press release have not been evaluated by the Food and Drug Administration. Products or ingredients are not intended to diagnose, treat, cure or prevent any disease.
| ChromaDex Corporation and Subsidiaries | ||||||
| Consolidated Statements of Operations | ||||||
| Years Ended January 2, 2016 and January 3, 2015 | ||||||
| 2015 | 2014 | |||||
| Sales, net | $ | 22,014,140 | $ | 15,313,179 | ||
| Cost of sales | 13,533,132 | 9,987,514 | ||||
| Gross profit | 8,481,008 | 5,325,665 | ||||
| Operating expenses: | ||||||
| Sales and marketing | 2,326,788 | 2,136,584 | ||||
| Research and development | 891,601 | 513,671 | ||||
| General and administrative | 7,416,451 | 7,860,930 | ||||
| Loss from investment in affiliate | – | 45,829 | ||||
| Operating expenses | 10,634,840 | 10,557,014 | ||||
| Operating loss | (2,153,832 | ) | (5,231,349 | ) | ||
| Nonoperating income (expense): | ||||||
| Interest income | 3,325 | 2,013 | ||||
| Interest expense | (616,033 | ) | (158,849 | ) | ||
| Nonoperating expenses | (612,708 | ) | (156,836 | ) | ||
| Loss before income taxes | (2,766,540 | ) | (5,388,185 | ) | ||
| Provision for income taxes | (4,527 | ) | – | |||
| Net loss | $ | (2,771,067 | ) | $ | (5,388,185 | ) |
| Basic and Diluted loss per common share | $ | (0.03 | ) | $ | (0.05 | ) |
| Basic and Diluted weighted average common shares outstanding | 107,632,022 | 106,459,379 | ||||
| See Notes to Consolidated Financial Statements. | ||||||
| Consolidated Statements of Operations | Effects of Non-cash Charges associated with | Consolidated Statements of Operations | ||||||||||||||||||||
| (US GAAP) | Share-based Compensation Expense | Excluding Share-based Compensation (Non-GAAP Presentation) | ||||||||||||||||||||
| Years Ended January 2, 2016 and January 3, 2015 | Years Ended January 2, 2016 and January 3, 2015 | Years Ended January 2, 2016 and January 3, 2015 | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Sales | $ | 22,014,140 | $ | 15,313,179 | Sales | $ | – | $ | – | Sales | $ | 22,014,140 | $ | 15,313,179 | ||||||||
| Cost of sales | 13,533,132 | 9,987,514 | Cost of sales | – | – | Cost of sales | 13,533,132 | 9,987,514 | ||||||||||||||
| Gross profit | 8,481,008 | 5,325,665 | Gross profit | – | – | Gross profit | 8,481,008 | 5,325,665 | ||||||||||||||
| Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||
| Sales and marketing | 2,326,788 | 2,136,584 | Sales and marketing | – | – | Sales and marketing | 2,326,788 | 2,136,584 | ||||||||||||||
| Research and development | 891,601 | 513,671 | Research and development | – | – | Research and development | 891,601 | 513,671 | ||||||||||||||
| General and administrative | 7,416,451 | 7,860,930 | General and administrative | (1,977,611 | ) | (2,916,924 | ) | General and administrative | 5,438,840 | 4,944,006 | ||||||||||||
| Loss from investment in affiliate |
– | 45,829 | Loss from investment in affiliate |
– | – | Loss from investment in affiliate | – | 45,829 | ||||||||||||||
| Operating expenses | 10,634,840 | 10,557,014 | Operating expenses | (1,977,611 | ) | (2,916,924 | ) | Operating expenses | 8,657,229 | 7,640,090 | ||||||||||||
| Operating loss | (2,153,832 | ) | (5,231,349 | ) | Operating income | 1,977,611 | 2,916,924 | Operating loss | (176,221 | ) | (2,314,425 | ) | ||||||||||
| Nonoperating income (expense): | Nonoperating income: | Nonoperating income (expense): | ||||||||||||||||||||
| Interest income | 3,325 | 2,013 | Interest income | – | – | Interest income | 3,325 | 2,013 | ||||||||||||||
| Interest expense | (616,033 | ) | (158,849 | ) | Interest expense | – | – | Interest expense | (616,033 | ) | (158,849 | ) | ||||||||||
| Nonoperating expense | (612,708 | ) | (156,836 | ) | Nonoperating income | – | – | Nonoperating expense | (612,708 | ) | (156,836 | ) | ||||||||||
| Loss before income taxes | (2,766,540 | ) | (5,388,185 | ) | Income before income taxes | 1,977,611 | 2,916,924 | Loss before income taxes | (788,929 | ) | (2,471,261 | ) | ||||||||||
| Provision for income taxes | (4,527 | ) | – | Provision for income taxes | – | – | Provision for income taxes | (4,527 | ) | – | ||||||||||||
| Net loss | $ | (2,771,067 | ) | $ | (5,388,185 | ) | Net income | $ | 1,977,611 | $ | 2,916,924 | Net loss | $ | (793,456 | ) | $ | (2,471,261 | ) | ||||
| Basic and Diluted loss per common share | $ | (0.03 | ) | $ | (0.05 | ) | Basic and Diluted income per common share | $ | 0.02 | $ | 0.03 | Basic and Diluted loss per common share | $ | (0.01 | ) | $ | (0.02 | ) | ||||
| Basic and Diluted weighted | Basic and Diluted weighted | Basic and Diluted weighted | ||||||||||||||||||||
| average common shares outstanding | 107,632,022 | 106,459,379 | average common shares outstanding | 107,632,022 | 106,459,379 | average common shares outstanding | 107,632,022 | 106,459,379 | ||||||||||||||
CONTACT: ChromaDex Company Contact: Andrew Johnson Director of Investor Relations 949-419-0288 [email protected] ChromaDex Investor Contacts: The Del Mar Consulting Group, Inc. Robert B. Prag, President 858-794-9500 [email protected]