ChromaDex® Corp. (OTCQB: CDXC), an innovative natural products company that provides proprietary, ingredients and science-based solutions to the dietary supplement, food and beverage, animal health, cosmetic and pharmaceutical industries, announced today the financial results for the quarter ended June 28, 2014.
For the three months ended June 28, 2014 ("Q2 2014"), the Company reported net sales of $3,856,154, an increase of approximately 42% as compared to $2,706,896 for the three months ended June 29, 2013 ("Q2 2013"). This increase was largely due to increased sales in the proprietary ingredient segment which grew to $1,721,872, an increase of 155% as compared to the sales of $674,175 in Q2 2013 and a sequential increase of 52% as compared to ingredient sales of $1,136,309 in Q1 2014.
The net loss attributable to common stock holders for Q2 2014 was $1,653,142 or ($0.02) per share as compared to a net loss of $1,020,866 or ($0.01) per share for Q2 2013. The non-cash, stock-based compensation expense related to stock options and other stock-based compensation in Q2 2014 was $1,036,608. Excluding non-cash, share-based compensation expense, which is a "non-GAAP measure," would have the effect of decreasing the Company's net loss for the three months ended June 28, 2014 to $616,534. As of June 28, 2014, cash, cash equivalents and marketable securities totaled approximately $1,280,627.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, "We are pleased to report that the increase in sales we experienced in Q1 in our ingredient segment accelerated in the second quarter. We are beginning to see increased inclusion of our patented ingredients in a growing number of consumer products and we are happy to report that we expect this trend to continue. Based on visibility of sales activity from existing customers and our business development pipeline, we anticipate steady growth in our ingredient segment to continue for the foreseeable future."
Jaksch continued, "Also important is our recently announced initiation of separate clinical trials of both our NIAGEN™ nicotinamide riboside and PURENERGY™ caffeine alternative. Coupled with other active collaborations with numerous leading universities and research institutes studying the health benefits of NIAGEN™, we anticipate results from these studies will be an incredible driver with respect to building consumer awareness for the ingredient. These studies will also be very important for validating the potential of NIAGEN™ as a pharmaceutical candidate."
Recent Company highlights include:
- In April 2014, Thorne Research announced the launch of NiaCel™, an innovative nutritional supplement that supports endurance, energy, and healthy aging. NiaCel™ is one of the first commercially available products to feature the ingredient NIAGEN™ from ChromaDex. Paul Jacobson, the CEO of Thorne Research, stated "NIAGEN is one of the most innovative new ingredients developed in the past decade."
- In April 2014, ChromaDex provided an update on its previously announced $62 million, four-year ingredient supply and brand licensing agreement with 5LINX®, one of the largest and fastest-growing direct marketing companies in the world. ChromaDex's CEO stated, "early indications are that 5LINX® will likely easily exceed the first year minimum ingredient purchase requirements set out in our agreement".
- In May 2014, 5LINX® launched at its international training event in Atlantic City three new products which contain and feature NIAGEN™ and/or PURENERGY® - Hi5 Edge, Hi5 Boost, and Hi5 Lean.
- In May 2014, ChromaDex announced the initiation of the second human clinical study for PURENERGY®, its patented caffeine ingredient. The study will build on the results from the first PURENERGY® human study, which was performed in the summer of 2013. The new clinical trial will study the bioavailability and pharmacokinetics of PURENERGY® as compared to caffeine and pTeroPure® pterostilbene alone at repeated doses.
- In June 2014, ChromaDex announced it had licensed exclusive rights from Dartmouth College for several patents related to pharmaceutical use of nicotinamide riboside (NR). The new licensed patents include protection for human therapeutic uses of NR and build upon the patents licensed from Dartmouth in 2012 for other human uses and production methods of NR. Mr. Jaksch commented, "The acquisition of these additional Dartmouth patent rights allows for ChromaDex to commercialize NR as a drug. Together with our existing patent portfolio pertaining to NR, we believe our ownership of these new patent rights creates a significant and meaningful barrier to entry for would-be competitors in the entire NAD+ precursor market."
- During the second quarter, ChromaDex announced separate material transfer and research agreements for its patented ingredient technologies with St. Jude Children's Research Hospital, Wageningen University in the Netherlands, the Novo Nordisk Foundation Center for Basic Metabolic Research at University of Copenhagen, Denmark, and Brazilian Biosciences National Laboratory (LNBio).
- In July 2014, ChromaDex announced it had appointed Nobel Laureate Roger Kornberg to Chair the Company's newly formed Scientific Advisory Board. The SAB will be comprised of leading researchers, chemists, biochemists and nutritionists, with an emphasis on those having expertise in nicotinamide riboside.
- In July 2014, ChromaDex announced the initiation of the first human clinical study for NIAGEN™ which is designed to determine the pharmacokinetics (PK) and bioavailability of NR as well as provide information about an effective dose range in humans. Most importantly, this study aims to confirm earlier animal studies conducted by various universities and research institutes, which showed that oral dosing of the compound results in an increased level of nicotinamide adenine dinucleotide (NAD+) and NAD+ metabolites in the body.