The core standards and services segment posted sales of $2.1 million for Q3 2016, an increase of 9% as compared to $1.9 million for Q3 2015. Net sales for the scientific and regulatory consulting segment were $292,000, an increase of 10% as compared to $265,000 for Q3 2015. The scientific and regulatory consulting segment was able to complete more consulting projects for customers during the quarter.Operating loss for Q3 2016 was $947,000, as the Company incurred $773,000 in research and development expenses for Q3 2016, an increase of 310%, compared to $189,000 for Q3 2015. This R&D increase in Q3 2016 compared to Q3 2015 was a planned part of our short-term and long-term strategy. Included in this increase are human clinical trial fees and new ingredient development costs. Subject to available financial resources, the Company plans to continue to increase research and development efforts, with a focus on the ingredients segment. As a result, net loss attributable to common stock holders for Q3 2016 was ($954,000) or ($0.03) per share as compared to a net loss of ($4,000) or ($0.00) per share for Q3 2015. Adjusted EBITDA a non-GAAP measure, was ($575,000) for Q3 2016, compared to adjusted EBITDA of $695,000 for Q3 2015. ChromaDex defines Adjusted EBITDA as net income (loss) adjusted for income tax, interest, depreciation, amortization and non-cash stock compensation costs. The Basic and Diluted Adjusted EBITDA per share for Q3 2016 was ($0.02) versus $0.02 for Q3 2015. Recent Company and research highlights include:
- In July 2016, the Company announced that its human clinical trial of NIAGEN ® - NR is well underway having achieved 50% enrollment of its 140 total participants. Completion is expected late in 2016. In addition, the Company announced that an additional 8 human studies on NR are ongoing and another 5 human studies are being designed by various research institutions.
- In October 2016, the Company announced that published studies in humans and mice reveal how a superior vitamin B3 may play an important role in helping humans enjoy longer, healthier lives. Results from three studies, including its first human clinical trial, have been collectively published in the prestigious journal, Nature Communications.
- In October 2016, the Company announced that an additional study recently published in the prestigious journal, Nature Communications, explains why NAD+ precursors (boosters), NR and nicotinamide mononucleotide (NMN) demonstrate similar metabolic benefits in mammals. The study conducted by a team including leading NAD+ researcher, Dr. Charles Brenner, found that effective supplementation with NMN depends on conversion to NR.
- In August 2016, the Company announced that FDA has issued a generally recognized as safe (GRAS) No Objection Letter, in response to the NIAGEN ® NR GRAS filing, Notice No. GRN 000635.
- In August 2016, the Company announced that scientists found an important clue to restoring muscle function that is lost as we age. Results of a recent mouse study were published as the cover story of Cell Metabolism. The researchers describe how NR helps to reactivate a protective metabolic process in muscle that tends to be lost as aging occurs.
- In September 2016, the Company announced that leading supplement retailer, Vitamin Shoppe, featured NIAGEN ® NR in their Hot Ingredient Spotlight section in the Fall 2016 print edition of their Amazing Wellness magazine.
- In October 2016, the Company announced that it has added its new AnthOrigin ™ naturally extracted anthocyanins (=15%) product to its portfolio of industry-leading health and wellness ingredients.
- In October 2016, the Company announced that Kurt Gustafson has joined the Company's board of directors. Mr. Gustafson will also serve as chair of ChromaDex's audit committee.
Participants should dial in at least 10 minutes prior to the call. The dial-in information is as follows:
|U.S. Toll-Free Number:||(866) 327-8118|
|International Dial-In Number:||(678) 509-7526|
|ChromaDex Corporation and Subsidiaries|
|Condensed Consolidated Statements of Operations (Unaudited)|
|For the Three Month Periods Ended October 1, 2016 and October 3, 2015|
|October 1, 2016||October 3, 2015|
|Cost of sales||2,964,980||3,805,679|
|Sales and marketing||447,985||550,878|
|Research and development||772,799||188,690|
|General and administrative||1,768,402||1,564,932|
|Operating income (loss)||(946,716||)||177,130|
|Nonoperating income (expense):|
|Loss before taxes||(957,543||)||(3,716||)|
|Provision for taxes||3,153||-|
|Basic and diluted loss per common share||$||(0.03||)||$||(0.00||)|
|Basic and diluted weighted average common shares outstanding||37,868,672||35,814,305|
|See Notes to Condensed Consolidated Financial Statements.|
|Consolidated Statements of Operations||Effects of Charges associated with Interest, Tax, Depreciation,||Consolidated Statements of Operations, Adjusted EBITDA|
|(US GAAP)||Amortization and Share-based Compensation Expense||Excluding Interest, Tax, Depreciation, Amortization and|
|Share-based Compensation (Non-GAAP Presentation)|
|For the Three-Month Periods Ended October 1, 2016 and October 3, 2015||For the Three-Month Periods Ended October 1, 2016 and October 3, 2015||For the Three-Month Periods Ended October 1, 2016 and October 3, 2015|
|Oct. 1, 2016||Oct. 3, 2015||Oct. 1, 2016||Oct. 3, 2015||Oct. 1, 2016||Oct. 3, 2015|
|Cost of sales||2,964,980||3,805,679||Cost of sales||(66,251||)||(64,263||)||Cost of sales||2,898,729||3,741,416|
|Gross profit||2,042,470||2,481,630||Gross profit||66,251||64,263||Gross profit||2,108,721||2,545,893|
|Operating expenses:||Operating expenses:||Operating expenses:|
|Sales and marketing||447,985||550,878||Sales and marketing||-||-||Sales and marketing||447,985||550,878|
|Research and development||772,799||188,690||Research and development||-||-||Research and development||772,799||188,690|
|General and administrative||1,768,402||1,564,932||General and administrative||(305,877||)||(453,234||)||General and administrative||1,462,525||1,111,698|
|Operating expenses||2,989,186||2,304,500||Operating expenses||(305,877||)||(453,234||)||Operating expenses||2,683,309||1,851,266|
|Operating income (loss)||(946,716||)||177,130||Operating income||372,128||517,497||Operating income (loss)||(574,588||)||694,627|
|Nonoperating income (expense):||Nonoperating income:||Nonoperating income (expense):|
|Interest income||565||976||Interest income||(565||)||(976||)||Interest income||-||-|
|Interest expense||(11,392||)||(181,822||)||Interest expense||11,392||181,822||Interest expense||-||-|
|Nonoperating expense||(10,827||)||(180,846||)||Nonoperating income||10,827||180,846||Nonoperating expense||-||-|
|Loss before taxes||(957,543||)||(3,716||)||Income before taxes||382,955||698,343||Income before taxes||(574,588||)||694,627|
|Provision for taxes||3,153||-||Provision for taxes||(3,153||)||-||Provision for taxes||-||-|
|Net loss||$||(954,390||)||$||(3,716||)||Effects of adjusted EBITDA||$||379,802||$||698,343||Adjusted EBITDA||$||(574,588||)||$||694,627|
|Basic and diluted loss per common share||$||(0.03||)||$||(0.00||)||Effects of adjusted EBITDA per common share||$||0.01||$||0.02||Basic and diluted adjusted EBITDA per common share||$||(0.02||)||$||0.02|
|Weighted average common shares outstanding||Weighted average common shares outstanding||Weighted average common shares outstanding|
|Basic and diluted||37,868,672||35,814,305||Basic and diluted||37,868,672||35,814,305||Basic and diluted||37,868,672||35,814,305|
ChromaDex Media Contact:Breah OstendorfMarketing Director949-537-4103BreahO@chromadex.comChromaDex Investor Contact:Andrew JohnsonDirector of Investor Relations949-419-0288AndrewJ@chromadex.com