ChromaDex® Announces Financial Results for the Second Quarter 2012
IRVINE, Calif., Aug. 9, 2012 /PRNewswire/ — ChromaDex(®) Corporation (OTCBB: CDXC) an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries, announced today financial results for the second quarter ended June 30, 2012.
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For the three months ended June 30, 2012, ChromaDex reported record revenue of $2,670,611, an increase of 37% as compared to $1,937,976 for the same period in 2011. The net loss attributable to common stockholders for the quarter ended June 30, 2012 was $3,993,957, or ($0.04) per share as compared to a net loss of $1,842,569, or ($0.03) per share for the same period in 2011. The net loss in the second quarter of 2012 was largely impacted by advertising and marketing expenses relating to the Company’s BluScience(TM) line of dietary supplements. The non-cash, share-based compensation expense related to stock options and other share-based compensation for the second quarter of 2012 was $1,198,537. The effect of excluding non-cash, share-based compensation expense, which is a “non-GAAP measure,” decreases the net loss for the second quarter of 2012 to $2,795,420. As of June 30, 2012, cash, cash equivalents and marketable securities totaled over $2.2 million and inventories totaled over $5.2 million.
The Company also reported its core ingredient and laboratory business posted record sales in the month of June. The increase in portfolio ingredient sales includes additional new customers who have adopted pTeroPure(®) and ProC3G(TM) into their formulations, as well as increased efforts in sales, marketing and trade relations. BluScience, which was launched earlier this year, continues to expand and is now available in more than 17,000 outlets in the U.S, including national drugstore chains, wholesalers, mass channel and internet distributors. The novel ingredient in BluScience is ChromaDex’s proprietary, patented pterostilbene, branded as pTeroPure, which was named the 2010 North American Most Promising Ingredient of the Year by the independent research company Frost & Sullivan.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “The first half of 2012 was extremely positive and productive for ChromaDex. The record monthly sales in June in our ingredient and laboratory business, as well as the current pipeline of our proprietary novel ingredients, gives us reason to be very enthusiastic about our business strategy of identifying early novel compounds, securing intellectual property, investing in clinical data, developing commercially viable production processes and executing a commercial business plan. In parallel, the successful launch of the BluScience line has achieved our goal of increasing the awareness of pTeroPure as a novel ingredient. We are currently looking at potential strategic partners for further development of the BluScience brand. Given these strategic initiatives, the Company should have sufficient capital to meet its operational needs through the foreseeable future.”
About ChromaDex(®):
ChromaDex, Inc. is an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries. ChromaDex’s pipeline of proprietary products include patented pTeroPure(®) pterostilbene, which was named the 2010 North American Most Promising Ingredient of the Year by the independent research company Frost & Sullivan. The company has also launched ProC3G(TM), a natural black rice extract containing 40% cyanidin-3-glucoside and is in the process of developing Nicotinamide Riboside, a novel next-generation B-vitamin. All products are backed with extensive scientific research and intellectual property. For more information about pTeroPure, visit www.pteropure.com or call 949-600-9694
Forward-Looking Statements:
Any statements that are not historical facts contained in this release are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in the companies’ filings with the Securities and Exchange Commission, and risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products and treatments. In addition, forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the companies do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
ChromaDex Investor Contact:
The Del Mar Consulting Group, Inc.
Robert B. Prag, President
858-794-9500
bprag@delmarconsulting.com
or
Alex Partners, LLC
Scott Wilfong, President
425-242-0891
Scott@alexpartnersllc.com
ChromaDex Contact:
Laura Carney, Executive Assistant
949-419-0288
laurac@chromadex.com
ChromaDex Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Three Month Periods Ended June 30, 2012 and July 2, 2011
June 30, 2012 July 2, 2011
------------- ------------
Sales $2,670,611 $1,937,976
Cost of sales 1,905,916 1,357,058
--------- ---------
Gross profit 764,695 580,918
------- -------
Operating expenses:
Sales and marketing 1,868,418 565,975
General and administrative 2,883,728 1,849,733
Operating expenses 4,752,146 2,415,708
--------- ---------
Operating loss (3,987,451) (1,834,790)
---------- ----------
Nonoperating income (expense):
Interest income 1,056 430
Interest expense (7,562) (8,209)
Nonoperating expenses (6,506) (7,779)
------ ------
Net loss $(3,993,957) $(1,842,569)
=========== ===========
Basic and Diluted loss per common share $(0.04) $(0.03)
Basic and Diluted weighted average
common shares outstanding 91,362,664 65,001,979
========== ==========
Quantitative Reconciliation of the differences between the non-GAAP measure and the associated comparable GAAP measure
Condensed Consolidated Statements of Operations Effects of Non-cash Charges associated with Condensed Consolidated Statements of Operations
(Unaudited, US GAAP) Share-based Compensation Expense Excluding Share-based Compensation (Non-GAAP Presentation)
For the Three Month Periods Ended June 30, 2012 and July 2, 2011 For the Three Month Periods Ended June 30, 2012 and July 2, For the Three Month Periods Ended June 30, 2012 and July 2,
2011 2011
June 30, 2012 July 2, 2011 June 30, 2012 July 2, 2011 June 30, 2012 July 2, 2011
------------- ------------ ------------- ------------ ------------- ------------
Sales $2,670,611 $1,937,976 Sales $ - $ - Sales $2,670,611 $1,937,976
Cost of sales 1,905,916 1,357,058 Cost of sales - - Cost of sales 1,905,916 1,357,058
--------- --------- --- --- --------- ---------
Gross profit 764,695 580,918 Gross profit - - Gross profit 764,695 580,918
------- ------- --- --- ------- -------
Operating expenses: Operating expenses: Operating expenses:
Sales and marketing 1,868,418 565,975 Sales and marketing - - Sales and marketing 1,868,418 565,975
General and administrative 2,883,728 1,849,733 General and administrative (1,198,537) (768,705) General and administrative 1,685,191 1,081,028
Operating expenses 4,752,146 2,415,708 Operating expenses (1,198,537) (768,705) Operating expenses 3,553,609 1,647,003
--------- --------- ---------- -------- --------- ---------
Operating loss (3,987,451) (1,834,790) Operating income 1,198,537 768,705 Operating loss (2,788,914) (1,066,085)
---------- ---------- --------- ------- ---------- ----------
Nonoperating income (expense): Nonoperating income: Nonoperating income (expense):
Interest income 1,056 430 Interest income - - Interest income 1,056 430
Interest expense (7,562) (8,209) Interest expense - - Interest expense (7,562) (8,209)
Nonoperating expense (6,506) (7,779) Nonoperating income - - Nonoperating expense (6,506) (7,779)
------ ------ --- --- ------ ------
Net loss $(3,993,957) $(1,842,569) Net income $1,198,537 $768,705 Net loss $(2,795,420) $(1,073,864)
=========== =========== ========== ======== =========== ===========
Basic and Diluted loss per common share $(0.04) $(0.03) Basic and Diluted income per common share $0.01 $0.01 Basic and Diluted loss per common share $(0.03) $(0.02)
Basic and Diluted weighted Basic and Diluted weighted Basic and Diluted weighted
average common shares outstanding 91,362,664 65,001,979 average common shares outstanding 91,362,664 65,001,979 average common shares outstanding 91,362,664 65,001,979
========== ========== ========== ========== ========== ==========
SOURCE ChromaDex
