ChromaDex Corporation Reports Third Quarter 2024 Financial Results
Total net sales of
Third Quarter 2024 Financial and Recent Operational Highlights
-
Total net sales were
, with$25.6 million from Tru Niagen®, up$18.1 million 31% , and4% , respectively, from the prior year quarter. -
Total Niagen® ingredient sales, including food-grade and pharmaceutical-grade, reached
, up$6.7 million 368% YoY. -
Delivered strong gross margin of
63.5% , up 210 basis points from the prior year quarter. -
Sales and marketing expense as a percentage of net sales was
27.5% , an improvement of 350 basis points, compared to31.0% from the prior year quarter. -
Achieved net income of
or$1.9 million earnings per share, an improvement of$0.02 and$2.8 million per share from the prior year quarter.$0.03 -
Reached record Adjusted EBITDA, a non-GAAP measure, of
, up$2.9 million from the prior year quarter.$2.4 million -
In September 2024, ChromaDex expanded the availability of Niagen+, a product line containing pharmaceutical-grade Niagen®, to an additional 14 leading wellness clinics. These Niagen+ products, including Niagen® IV and Niagen® Injections, are compounded and distributed by
U.S. FDA-registered 503B outsourcing facilities and are available exclusively by prescription at participating wellness clinics. As of October 31, 2024, ChromaDex has expanded Niagen+ availability to over 100 wellness clinics, with further significant expansion expected in the coming weeks. - In September 2024, ChromaDex marked its 25th anniversary. Over the past 25 years, ChromaDex has built a reputation as the gold standard for scientific rigor and quality. With over 275 research agreements worldwide, more than 175 peer-reviewed publications, and over 30 human clinical studies on Niagen®, the ChromaDex External Research Program (CERP™) has played a pivotal role in advancing the scientific understanding of NAD+ and its role in age-related health conditions.
- ChromaDex has initiated discussions with the FDA and is working to schedule meetings as part of the Company’s efforts to pursue an Investigational New Drug (IND) application for the use of nicotinamide riboside (NR) in the treatment of Ataxia Telangiectasia (AT). AT is a rare, progressive disease that typically presents in early childhood and affects the function of the nervous system, the immune system, and several other body systems.
“We are proud to report our best quarter to date, achieving
Results of operations for the three months ended September 30, 2024 compared to the prior year quarter
Net Sales for ChromaDex increased
Gross Margin improved 210 basis points to
Operating Expense increased
-
Selling and marketing (S&M) expense increased
and improved 350 basis points as a percentage of net sales to$1.0 million 27.5% of net sales, reflecting greater efficiencies from the increased investments. -
General and administrative expense increased
8% , or , driven by higher legal expense of$0.5 million to support the Niagen+ launch and litigation matters.$0.5 million
Net Income was
Adjusted EBITDA, a non-GAAP measure, was
Cash Flows from Operating Activities had a net cash inflow of
2024 Full Year Outlook
Looking forward, for the full year, the Company expects approximately
Investor Conference Call
A live webcast will be held Thursday, October 31, 2024 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss ChromaDex’s third-quarter financial results and provide a general business update.
To listen to the webcast, or to view the earnings press release and its accompanying financial exhibits, please visit the Investors Relations section of ChromaDex’s website at https://investors.chromadex.com. The toll-free dial-in information for this call is 1-888-596-4144 with Conference ID: 8584242.
The webcast will be recorded, and will be available for replay via the website from 7:30 p.m. Eastern time on October 31, 2024 through 11:59 p.m. Eastern time on November 13, 2024. The replay of the call can also be accessed by dialing 800-770-2030, using the Replay ID: 8584242.
Important Note on Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. 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,” “predicts,” “projects,” “continue,” “would” or the negative of such terms or other similar expressions. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the quotation from ChromaDex’s Chief Executive Officer, statements related to the Company’s 2024 financial outlook including but not limited to revenue growth, gross margin, expenses, investment plans, and the statements regarding Niagen+. Risks that contribute to the uncertain nature of the forward-looking statements include: inflationary conditions and adverse economic conditions; our history of operating losses and need to obtain additional financing; the growth and profitability of our product sales; our ability to maintain and grow sales, marketing and distribution capabilities; changing consumer perceptions of our products; our reliance on a single or limited number of third-party suppliers; risks of conducting business in
About ChromaDex:
ChromaDex Corporation is a global bioscience company dedicated to healthy aging. The ChromaDex team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (NAD+), an essential coenzyme that is a key regulator of cellular metabolism and is found in every cell of the human body. NAD+ levels in humans have been shown to decline with age, among other factors, and may be increased through supplementation with NAD+ precursors. ChromaDex is the innovator behind the NAD+ precursor nicotinamide riboside chloride (“NRC” commonly referred to as “NR”), commercialized as the flagship ingredient Niagen®, available in both food and pharmaceutical grades. Nicotinamide riboside chloride and other NAD+ precursors are protected by ChromaDex’s patent portfolio.
The Company delivers Niagen® as the sole or principal dietary ingredient in its consumer product line Tru Niagen® available at www.TruNiagen.com and through partnerships with global retailers and distributors. The Company also develops and commercializes proprietary-based ingredient technologies, including food-grade Niagen® and pharmaceutical-grade Niagen®, and supplies these ingredients as raw materials to the manufacturers of consumer products and
ChromaDex Corporation and Subsidiaries Unaudited Condensed Consolidated Statements of Operations |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
||||||||
Sales, net |
$ |
25,580 |
|
$ |
19,495 |
|
|
$ |
70,472 |
|
$ |
62,374 |
|
||
Cost of sales |
|
9,340 |
|
|
|
7,526 |
|
|
|
27,083 |
|
|
|
24,531 |
|
Gross profit |
|
16,240 |
|
|
|
11,969 |
|
|
|
43,389 |
|
|
|
37,843 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
7,044 |
|
|
|
6,035 |
|
|
|
20,753 |
|
|
|
19,918 |
|
Research and development |
|
1,290 |
|
|
|
1,241 |
|
|
|
4,701 |
|
|
|
3,799 |
|
General and administrative |
|
6,304 |
|
|
|
5,840 |
|
|
|
17,320 |
|
|
|
19,557 |
|
Total operating expenses |
|
14,638 |
|
|
|
13,116 |
|
|
|
42,774 |
|
|
|
43,274 |
|
Operating income (loss) |
|
1,602 |
|
|
|
(1,147 |
) |
|
|
615 |
|
|
|
(5,431 |
) |
|
|
|
|
|
|
|
|
||||||||
Nonoperating income: |
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
276 |
|
|
|
188 |
|
|
|
756 |
|
|
|
379 |
|
Net income (loss) |
$ |
1,878 |
|
|
$ |
(959 |
) |
|
$ |
1,371 |
|
|
$ |
(5,052 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to ChromaDex Corporation: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
75,972 |
|
|
|
75,050 |
|
|
|
75,588 |
|
|
|
74,938 |
|
Diluted |
|
77,768 |
|
|
|
75,050 |
|
|
|
76,804 |
|
|
|
74,938 |
|
ChromaDex Corporation and Subsidiaries Unaudited Condensed Consolidated Balance Sheets |
|||||||
(In thousands except par values, unless otherwise indicated) |
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents, including restricted cash of |
$ |
32,398 |
|
$ |
27,325 |
||
Trade receivables, net of allowances of |
|
7,096 |
|
|
|
5,234 |
|
Inventories |
|
10,544 |
|
|
|
14,525 |
|
Prepaid expenses and other assets |
|
2,096 |
|
|
|
2,450 |
|
Total current assets |
|
52,134 |
|
|
|
49,534 |
|
|
|
|
|
||||
Leasehold improvements and equipment, net |
|
1,718 |
|
|
|
2,137 |
|
Intangible assets, net |
|
397 |
|
|
|
510 |
|
Right-of-use assets |
|
1,899 |
|
|
|
2,400 |
|
Other long-term assets |
|
374 |
|
|
|
383 |
|
Total assets |
$ |
56,522 |
|
|
$ |
54,964 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
6,903 |
|
|
$ |
10,232 |
|
Accrued expenses |
|
9,592 |
|
|
|
9,493 |
|
Current maturities of operating lease obligations |
|
1,008 |
|
|
|
691 |
|
Current maturities of finance lease obligations |
|
12 |
|
|
|
11 |
|
Customer deposits |
|
184 |
|
|
|
195 |
|
Total current liabilities |
|
17,699 |
|
|
|
20,622 |
|
Deferred revenue |
|
2,579 |
|
|
|
3,311 |
|
Operating lease obligations, less current maturities |
|
1,873 |
|
|
|
2,563 |
|
Finance lease obligations, less current maturities |
|
2 |
|
|
|
12 |
|
Total stockholders’ equity |
|
34,369 |
|
|
|
28,456 |
|
Total liabilities and stockholders’ equity |
$ |
56,522 |
|
|
$ |
54,964 |
|
ChromaDex Corporation and Subsidiaries Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||
|
Nine Months Ended September 30, |
||||||
(In thousands) |
2024 |
|
2023 |
||||
Net cash provided by / (used in): |
|
|
|
||||
Operating activities |
$ |
3,526 |
|
|
$ |
6,468 |
|
Investing activities |
|
(74 |
) |
|
|
(122 |
) |
Financing activities |
|
1,621 |
|
|
|
(14 |
) |
Net increase in cash and cash equivalents |
|
5,073 |
|
|
|
6,332 |
|
Cash and cash equivalents beginning of period |
|
27,325 |
|
|
|
20,441 |
|
Cash and cash equivalents at end of period |
$ |
32,398 |
|
|
$ |
26,773 |
|
ChromaDex Corporation and Subsidiaries Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||||||||||||||
(In thousands) |
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
||||||||||
Net income (loss), as reported |
$ |
1,878 |
|
|
$ |
(15 |
) |
|
$ |
(492 |
) |
|
$ |
114 |
|
|
$ |
(959 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest income, net |
|
(276 |
) |
|
|
(241 |
) |
|
|
(239 |
) |
|
|
(282 |
) |
|
|
(188 |
) |
Depreciation |
|
164 |
|
|
|
170 |
|
|
|
178 |
|
|
|
177 |
|
|
|
233 |
|
Amortization of intangibles |
|
38 |
|
|
|
37 |
|
|
|
38 |
|
|
|
39 |
|
|
|
39 |
|
Amortization of right of use assets |
|
164 |
|
|
|
163 |
|
|
|
174 |
|
|
|
157 |
|
|
|
176 |
|
Share-based compensation |
|
735 |
|
|
|
1,185 |
|
|
|
984 |
|
|
|
1,037 |
|
|
|
1,117 |
|
Severance and restructuring |
|
185 |
|
|
|
276 |
|
|
|
27 |
|
|
|
5 |
|
|
|
86 |
|
Adjusted EBITDA |
$ |
2,888 |
|
|
$ |
1,575 |
|
|
$ |
670 |
|
|
$ |
1,247 |
|
|
$ |
504 |
|
Non-GAAP Financial Information:
To supplement ChromaDex’s unaudited financial data presented in accordance with generally accepted accounting principles (GAAP), the Company has presented Adjusted EBITDA, a non-GAAP financial measure. ChromaDex believes the presentation of this non-GAAP financial measure provides important supplemental information to management and investors and enhances the overall understanding of the Company’s historical and current financial operating performance. The Company believes disclosure of the non-GAAP financial measure has substance because the excluded expenses are infrequent in nature, are variable in nature or do not represent current cash expenditures. Further, such non-GAAP financial measure is among the indicators the Company uses as a basis for evaluating the Company’s financial performance as well as for planning and forecasting purposes. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the Company’s economic performance year-over-year.
Adjusted EBITDA is defined as net income (loss) before (a) interest, (b) depreciation, (c) amortization, (d) non-cash share-based compensation costs and (e) severance and restructuring expense. While ChromaDex believes that this non-GAAP financial measure provides useful supplemental information to investors, there are limitations associated with the use of such measure. This measure is not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the method of calculation. Management compensates for these limitations by relying primarily on the Company’s GAAP results and by using Adjusted EBITDA only supplementally and by reviewing the reconciliation of the non-GAAP financial measure to its most comparable GAAP financial measure.
Non-GAAP financial measures are not prepared in accordance with, or an alternative for, generally accepted accounting principles in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031195705/en/
Investor Relations
Ben Shamsian
Lytham Partners
+1 (646) 829-9701
Shamsian@LythamPartners.com
Media Relations
Kendall Knysch
Director of Media Relations
+1 (310) 388-6706 Ext. 689
Kendall.Knysch@ChromaDex.com
Source: ChromaDex Corporation