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Last updated on April 16, 2014 at 5:31 EDT

ChromaDex® Reports Results for the First Quarter 2013

May 10, 2013

IRVINE, Calif., May 10, 2013 /PRNewswire/ — ChromaDex(®) Corporation (OTCQB: CDXC) (“ChromaDex” or the “Company”), 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 first quarter ended March 30, 2013.

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

For the three months ended March 30, 2013, ChromaDex reported revenue of $2,334,566, an increase of 31% as compared to $1,785,006 for the same period in 2012. The net income attributable to common stockholders for the quarter ended March 30, 2013 was $1,468,525, or $0.02 per basic share and $0.01 per diluted share, as compared to a net loss of $4,431,853, or $0.05 per basic and diluted share, for the same period in 2012. The net income for the quarter ended March 30, 2013 is largely due to a gain realized on the sale of the Company’s BluScience(TM) consumer product line to NeutriSci International Inc. (“NeutriSci”). The non-cash, share-based compensation expense related to stock options and other share-based compensation for the first quarter of 2013 was $351,590. Excluding non-cash, share-based compensation expense, which is a “non-GAAP measure,” would have the effect of increasing the Company’s net income for the quarter ended March 30, 2013 to $1,820,115. As of March 30, 2013, cash, cash equivalents and marketable securities totaled approximately $966,576.

Recent Company highlights include:

  • In April, The Company initiated the first human clinical study in the U.S. for its PURENERGY(TM), a patented co-crystal ingredient comprised of caffeine and ChromaDex’s pTeroPure® pterostilbene that forms a unique crystalline structure having benefits as compared to the two individual components alone. The human study is intended to confirm an earlier animal study which showed PURENERGY had a 6-8 times longer half-life as compared to caffeine alone.(1)
  • In March, the Company licensed from Washington University exclusive worldwide patent rights related to the recently discovered vitamin, Nicotinamide Riboside (“NR”). The patent rights cover the use of NR for the prevention or treatment of neuropathies caused by axon degeneration. The Company believes this license, coupled with the intellectual property rights for NR previously acquired from Cornell University and Dartmouth College, creates a significant and meaningful barrier to entry for would-be competitors in the NR market.
  • In March, the Company closed the sale of its BluScience(TM) consumer product line to NeutriSci. The total sale transaction value was approximately $6.0 million, which consisted of a combination of cash, senior secured debt and an ownership interest in NeutriSci. The sale of the BluScience line will allow ChromaDex to focus on growing sales in its ingredient business, as well as accelerate the development of its novel ingredients pipeline. The Company will continue to generate revenue through a royalty on 6% of future net sales of BluScience products as well as a supply agreement with NeutriSci for the Company’s patented pTeroPure pterostilbene.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “We continue to execute on our 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.”

Mr. Jaksch continued, “The recent launch of our PURENERGY ingredient may prove to be timely given that caffeinated energy products have been coming under increased regulatory and political scrutiny regarding the possible risks of excess caffeine consumption. Moreover, we have completed the acquisition of what we believe are the most relevant and valuable patents pertaining to the commercialization of Nicotinamide Riboside, an ingredient that we believe may prove to be one of the best opportunities yet for ChromaDex to create shareholder value.”

(1) Data on File

About ChromaDex(®):

ChromaDex® is an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its unique business model which utilizes its wholly-owned synergistic business units, including ingredient technologies, natural product fine chemicals (known as “phytochemicals”), chemistry and analytical testing services, and product regulatory and safety consulting (as Spherix Consulting). The Company provides seamless science-based solutions to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries. Our ingredient technologies unit includes products backed with extensive scientific research and intellectual property. The ingredient portfolio includes pTeroPure® pterostilbene; ProC3G(TM), a natural black rice containing cyanidin-3-glucoside; PURENERGY(TM), a caffeine-pTeroPure co-crystal; nutraGac(TM), a gac fruit powder; curcumin, and nicotinamide riboside, a novel next-generation B-vitamin currently under development. To learn more about ChromaDex please visit www.chromadex.com.

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 March 30, 2013 and March 31, 2012

                                                                    March 30, 2013          March 31, 2012
                                                                    --------------          --------------

    Sales                                                                       $2,334,566              $1,785,006

    Cost of sales                                                                1,661,726               2,389,220
                                                                                 ---------               ---------

    Gross profit (loss)                                                            672,840                (604,214)
                                                                                   -------                --------

    Operating expenses:

    Sales and marketing                                                            729,424               1,858,662

    General and administrative                                                   1,359,901               1,961,912

    Gain on sale of assets                                                      (2,891,917)                      -

    Operating expenses                                                            (802,592)              3,820,574
                                                                                  --------               ---------

    Operating income (loss)                                                      1,475,432              (4,424,788)
                                                                                 ---------              ----------

    Nonoperating income (expense):

    Interest income                                                                    884                   1,199

    Interest expense                                                                (7,791)                 (8,264)

    Nonoperating expenses                                                           (6,907)                 (7,065)
                                                                                    ------                  ------

    Net income (loss)                                                           $1,468,525             $(4,431,853)
                                                                                ==========             ===========

    Basic net income (loss) per common
     share                                                                           $0.02                  $(0.05)
                                                                                     =====                  ======

    Diluted net income (loss) per common
     share                                                                           $0.01                  $(0.05)
                                                                                     =====                  ======

    Basic weighted average common shares
     outstanding                                                                94,626,120              84,706,196
                                                                                ==========              ==========

    Diluted weighted average common shares
     outstanding                                                                97,924,457              84,706,196
                                                                                ==========              ==========

    See Notes to Consolidated Financial Statements.

    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 March 30, 2013 and March 31, 2012                                                                         For the Three Month Periods Ended March 30, 2013 and                              For the Three Month Periods Ended March 30, 2013 and
                                                                                                                                              March 31, 2012                                                                    March 31, 2012

                                                                  March 30, 2013                                 March 31, 2012                                                                      March 30, 2013                           March 31, 2012                                                                     March 30, 2013             March 31, 2012
                                                                  --------------                                 --------------                                                                      --------------                           --------------                                                                     --------------             --------------

    Sales                                                                            $2,334,566                                  $1,785,006  Sales                                                   $                       -                 $                          -           Sales                                                     $2,334,566                  $1,785,006

    Cost of sales                                                                     1,661,726                                   2,389,220  Cost of sales                                                                   -                                            -           Cost of sales                                              1,661,726                   2,389,220
                                                                                      ---------                                   ---------                                                                                ---                                          ---                                                                      ---------                   ---------

    Gross profit (loss)                                                                 672,840                                    (604,214) Gross profit                                                                    -                                            -           Gross profit (loss)                                          672,840                    (604,214)
                                                                                        -------                                    --------                                                                                ---                                          ---                                                                        -------                    --------

    Operating expenses:                                                                                                                      Operating expenses:                                                                                                                      Operating expenses:

    Sales and marketing                                                                 729,424                                   1,858,662  Sales and marketing                                                             -                                            -           Sales and marketing                                          729,424                   1,858,662

    General and administrative                                                        1,359,901                                   1,961,912  General and administrative                                               (351,590)                                     (65,987)          General and administrative                                 1,008,311                   1,895,925

    Gain on sale of assets                                                           (2,891,917)                                          -  Gain on sale of assets                                                          -                                            -           Gain on sale of assets                                    (2,891,917)                          -

    Operating expenses                                                                 (802,592)                                  3,820,574  Operating expenses                                                       (351,590)                                     (65,987)          Operating expenses                                        (1,154,182)                  3,754,587
                                                                                       --------                                   ---------                                                                           --------                                      -------                                                                     ----------                   ---------

    Operating income (loss)                                                           1,475,432                                  (4,424,788) Operating income                                                          351,590                                       65,987           Operating income (loss)                                    1,827,022                  (4,358,801)
                                                                                      ---------                                  ----------                                                                            -------                                       ------                                                                      ---------                  ----------

    Nonoperating income (expense):                                                                                                           Nonoperating income:                                                                                                                     Nonoperating income (expense):

    Interest income                                                                         884                                       1,199  Interest income                                                                 -                                            -           Interest income                                                  884                       1,199

    Interest expense                                                                     (7,791)                                     (8,264) Interest expense                                                                -                                            -           Interest expense                                              (7,791)                     (8,264)

    Nonoperating expenses                                                                (6,907)                                     (7,065) Nonoperating income                                                             -                                            -           Nonoperating expenses                                         (6,907)                     (7,065)
                                                                                         ------                                      ------                                                                                ---                                          ---                                                                         ------                      ------

    Net income (loss)                                                                $1,468,525                                 $(4,431,853) Net income                                                               $351,590                                      $65,987           Net income (loss)                                         $1,820,115                 $(4,365,866)
                                                                                     ==========                                 ===========                                                                           ========                                      =======                                                                     ==========                 ===========

    Basic net income (loss) per
     common share                                                                         $0.02                                      $(0.05) Basic net income per common share                                           $0.00                                        $0.00           Basic net income (loss) per common share                       $0.02                      $(0.05)

    Diluted net income (loss) per
     common share                                                                         $0.01                                      $(0.05) Diluted net income per common share                                         $0.00                                        $0.00           Diluted net income (loss) per common share                     $0.02                      $(0.05)
                                                                                          =====                                      ======                                                                              =====                                        =====                                                                          =====                      ======

    Basic weighted average common                                                    94,626,120                                  84,706,196   Basic weighted average common shares                                  94,626,120                                   84,706,196            Basic weighted average common shares
     shares outstanding                                                                                                                       outstanding                                                                                                                              outstanding                                              94,626,120                  84,706,196
                                                                                     ==========                                  ==========                                                                         ==========                                   ==========                                                                     ==========                  ==========

    Diluted weighted average                                                         97,924,457                                  84,706,196   Diluted weighted average common shares                                97,924,457                                   84,706,196            Diluted weighted average common shares
     common shares outstanding                                                                                                                outstanding                                                                                                                              outstanding                                              97,924,457                  84,706,196
                                                                                     ==========                                  ==========                                                                         ==========                                   ==========                                                                     ==========                  ==========

SOURCE ChromaDex Corporation


Source: PR Newswire