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Last updated on April 16, 2014 at 11:09 EDT

ChromaDex® Reports Financial Results for the Third Quarter 2012

November 8, 2012

IRVINE, Calif., Nov. 8, 2012 /PRNewswire/ — ChromaDex(®) Corporation (OTCQB: 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, and marketer of its branded, patented pterostilbene, pTeroPure(®), announced today financial results for the third quarter ended September 29, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110830/LA59283LOGO)

For the three months ended September 29, 2012, ChromaDex reported record revenue of $3,632,244, an increase of 99% as compared to $1,827,568 for the same period in 2011. The increase in sales is largely due to an increase in sales of the Company’s BluScience(TM) line of dietary supplements. The net loss attributable to common stockholders for the quarter ended September 29, 2012 was $1,538,034, or ($0.02) per share as compared to a net loss of $2,404,912, or ($0.03) per share for the same period in 2011. The non-cash, share-based compensation expense related to stock options and other share-based compensation for the third quarter of 2012 was $925,393. 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 third quarter of 2012 to $612,641. As of September 29, 2012, cash, cash equivalents and marketable securities totaled approximately $1.2 million and inventories totaled approximately $5.4 million.

Third quarter highlights include:

  • In September, the Company’s nutritional ingredient pTeroPure (pterostilbene) was highlighted at the American Heart Association’s High Blood Pressure Research 2012 Scientific Sessions by investigators from the University of Mississippi Medical Center. The findings showed that, in a Phase 2/3 clinical trial, the ingredient showed statistically significant results for blood pressure in adults.
  • In July, the Company announced a distribution agreement for pTeroPure with Glanbia Nutritionals (NA), Inc., a global ingredient and micronutrient premix company, whereby Glanbia will serve as the exclusive distributor of pTeroPure in North America to the food, beverage and dietary supplement industries.
  • In July, the Company licensed from Dartmouth College exclusive rights to several patents related to the recently discovered vitamin found in milk, Nicotinamide Riboside (NR). The licensed intellectual property (IP) includes protection for human uses of NR as well as methods to produce NR. This license, coupled with previous IP rights for NR acquired from Cornell University, helps position ChromaDex as a leader in the commercialization of this novel ‘no flush’ version of niacin.

“The developments we saw transpire in the third quarter, including the acquisition of what we believe is the most relevant and valuable IP pertaining to the commercialization of NR, may prove to be one of the best opportunities yet for ChromaDex to create shareholder value,” said Frank Jaksch, Jr., CEO and co-founder of ChromaDex.

“On the heels of the positive clinical results for pTeroPure, we recently began a public relations and media tour to educate trade and consumers on its multiple health benefits. Moreover, with the presentation of the clinical results, we have initiated various discussions with respect to potential licensing and partnering opportunities for pTeroPure.”

Mr. Jaksch concluded, “We continue to execute on our unique business strategy of identifying novel ingredient technologies, securing intellectual property rights, developing commercially viable production processes, validating with clinical proof, and most importantly, executing on a commercialization and licensing strategy. Lastly, the pipeline of potential novel ingredient technologies remains active, and we anticipate being able to add to our current portfolio in the fourth quarter.”

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 includes 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 September 29, 2012 and October 1, 2011

                                                                          September 29, 2012              October 1, 2011
                                                                          ------------------              ---------------

    Sales                                                                                     $3,632,244                  $1,827,568
    Cost of sales                                                                              2,377,991                   1,361,101
                                                                                               ---------                   ---------

    Gross profit                                                                               1,254,253                     466,467
                                                                                               ---------                     -------

    Operating expenses:
    Sales and marketing                                                                          802,171                     650,516
    General and administrative                                                                 1,983,720                   2,213,636
    Operating expenses                                                                         2,785,891                   2,864,152
                                                                                               ---------                   ---------

    Operating loss                                                                            (1,531,638)                 (2,397,685)
                                                                                              ----------                  ----------

    Nonoperating income (expense):
    Interest income                                                                                  469                         295
    Interest expense                                                                              (6,865)                     (7,522)
    Nonoperating expenses                                                                         (6,396)                     (7,227)
                                                                                                  ------                      ------

    Net loss                                                                                 $(1,538,034)                $(2,404,912)
                                                                                             ===========                 ===========

    Basic and Diluted loss per common share                                                       $(0.02)                     $(0.03)

    Basic and Diluted weighted average
     common shares outstanding                                                                92,364,418                  70,625,913
                                                                                              ==========                  ==========

                                                                                                                              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 September 29, 2012 and October 1, 2011                                                    For the Three Month Periods Ended September                                               For the Three Month Periods Ended September 29,
                                                                                                                              29, 2012 and October 1, 2011                                                              2012 and October 1, 2011

                                                                     September 29, 2012           October 1, 2011                                                                           September 29, 2012                 October 1, 2011                                                                      September 29, 2012          October 1, 2011
                                                                     ------------------           ---------------                                                                           ------------------                 ---------------                                                                      ------------------          ---------------

    Sales                                                                             $3,632,244                 $1,827,568  Sales                                                                 $                -                $              -             Sales                                                             $3,632,244                 $1,827,568
    Cost of sales                                                                      2,377,991                  1,361,101  Cost of sales                                                                          -                               -             Cost of sales                                                      2,377,991                  1,361,101
                                                                                       ---------                  ---------                                                                                       ---                             ---                                                                                ---------                  ---------

    Gross profit                                                                       1,254,253                    466,467  Gross profit                                                                           -                               -             Gross profit                                                       1,254,253                    466,467
                                                                                       ---------                    -------                                                                                       ---                             ---                                                                                ---------                    -------

    Operating expenses:                                                                                                      Operating expenses:                                                                                                                  Operating expenses:
    Sales and marketing                                                                  802,171                    650,516  Sales and marketing                                                                    -                               -             Sales and marketing                                                  802,171                    650,516
    General and administrative                                                         1,983,720                  2,213,636  General and administrative                                                      (925,393)                       (964,104)            General and administrative                                         1,058,327                  1,249,532
    Operating expenses                                                                 2,785,891                  2,864,152  Operating expenses                                                              (925,393)                       (964,104)            Operating expenses                                                 1,860,498                  1,900,048
                                                                                       ---------                  ---------                                                                                  --------                        --------                                                                                ---------                  ---------

    Operating loss                                                                    (1,531,638)                (2,397,685) Operating income                                                                 925,393                         964,104             Operating loss                                                      (606,245)                (1,433,581)
                                                                                      ----------                 ----------                                                                                   -------                         -------                                                                                 --------                 ----------

    Nonoperating income (expense):                                                                                           Nonoperating income:                                                                                                                 Nonoperating income (expense):
    Interest income                                                                          469                        295  Interest income                                                                        -                               -             Interest income                                                          469                        295
    Interest expense                                                                      (6,865)                    (7,522) Interest expense                                                                       -                               -             Interest expense                                                      (6,865)                    (7,522)
    Nonoperating expense                                                                  (6,396)                    (7,227) Nonoperating income                                                                    -                               -             Nonoperating expense                                                  (6,396)                    (7,227)
                                                                                          ------                     ------                                                                                       ---                             ---                                                                                   ------                     ------

    Net loss                                                                         $(1,538,034)               $(2,404,912) Net income                                                                      $925,393                        $964,104             Net loss                                                           $(612,641)               $(1,440,808)
                                                                                     ===========                ===========                                                                                  ========                        ========                                                                                =========                ===========

    Basic and Diluted loss per common share                                               $(0.02)                    $(0.03) Basic and Diluted income per common share                                          $0.01                           $0.01             Basic and Diluted loss per common share                               $(0.01)                    $(0.02)

    Basic and Diluted weighted average                                                92,364,418                 70,625,913   Basic and Diluted weighted average common shares                             92,364,418                      70,625,913              Basic and Diluted weighted average common shares
     common shares outstanding                                                                                                outstanding                                                                                                                          outstanding                                                      92,364,418                 70,625,913
                                                                                      ==========                 ==========                                                                                ==========                      ==========                                                                               ==========                 ==========

SOURCE ChromaDex Corporation


Source: PR Newswire