ChromaDex Corp. (OTCQB: CDXC), an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food and beverage, animal health, cosmetic and pharmaceutical industries, announced financial results for the second quarter ended June 29, 2013.
For the three months ended June 29, 2013, ChromaDex reported revenue of $2,706,896, an increase of 1 percent as compared to $2,670,611 for the same period in 2012. The core standards, contract services and ingredients segment generated net sales of $2,504,372 for the three months ended June 29, 2013. This is an increase of 16 percent, compared to $2,150,585 for the same period in 2012. This increase was largely due to increased sales of analytical testing and contract services. The retail dietary supplement products segment did not have any sales for the three months ended June 29, 2013 as the Company sold its BluScience product line on March 28, 2013.
For the same period in 2012, the retail dietary supplement products segment generated net sales of $520,026. The scientific and regulatory consulting segment, which is operated by the Company's subsidiary Spherix Consulting, Inc., generated net sales of $202,524 for the three months ended June 29, 2013. We did not have the scientific and regulatory consulting segment for the same period in 2012. The net loss attributable to common stockholders for the quarter ended June 29, 2013 was $989,722, or $0.01 per basic and diluted share, as compared to a net loss of $3,993,957, or $0.04 per basic and diluted share, for the same period in 2012. The net loss for the quarter ended June 29, 2013 is largely due to the share-based compensation expense.
The non-cash, share-based compensation expense related to stock options and other share-based compensation for the second quarter of 2013 was $376,759. 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 quarter ended June 29, 2013 to $612,963. As of June 29, 2013, cash, cash equivalents and marketable securities totaled approximately $826,631.
Recent company highlights:
- In May, the Company launched its novel, patented NIAGEN(TM), the first and only commercially available nicotinamide riboside, a precursor to NAD+. NIAGEN has the potential to be a next generation Niacin (vitamin B3) and become part of the portfolio of B-vitamin ingredients that are included in products serving multi-billion dollar markets such as multi-vitamins, nutraceuticals, weight-loss, energy drinks, sports nutrition, meal replacements, infant formula, food and beverage products.
- In June, High Performance Nutrition introduced a new product N(R)(TM), featuring NIAGEN to support neuroprotection in contact sports. N(R) is a nutritional supplement designed to protect against axon degeneration damage or trauma sustained in the course of playing contact sports. N(R) in one of the first commercially available products to feature the ingredient NIAGEN.
- In July, the Company entered into an agreement with The Scripps Research Institute (TSRI) whereby the Company will provide TSRI with quantities of Niagen nicotinamide riboside for research purposes. TSRI's studies will add to the growing amount of research showing many of the important health benefits of nicotinamide riboside, and portends possible pharmaceutical uses for Niagen.
- In July, the Company entered in a three-year supply agreement with Thorne Research Inc. (Thorne) pursuant to which Thorne shall purchase and market the Company's patented nicotinamide riboside which is branded as NIAGEN. Under the terms of the agreement, Thorne received marketing rights for NIAGEN for use in nutritional supplements exclusively for the direct to healthcare-practitioner channel in the United States and Canada, provided that Thorne purchases a minimum of $3.5 million of NIAGEN product over the next three years.
- In July, the Company entered into an agreement with Beckman Research Institute of City of Hope ("BRICOH") to provide BRICOH with quantities of its branded pTeroPure pterostilbene to be used in preclinical in vitro and mouse model experiments to study its potential therapeutic use for treatment of ovarian, uterine and breast cancer.
- In August, the Company licensed from Green Molecular S.L. exclusive worldwide patent rights related to the use of pterostilbene for the prevention or treatment of skin diseases, damages, or injuries, as well as the combined use with quercetin for the production of melanoma skin cancer treatment medicine. The acquisition brings the total number of patents and patents pending relating to pterostilbene owned by ChromaDex to eight.
- In August, the fast-growing sports nutritional company, MusclePharm, announced that the new formulation of its award-winning pre-workout product, ASSAULT, includes ChromaDex's PURENERGY.
- The Company expects to announce results of its previously announced first human clinical study in the U.S. for its PURENERGY, a patented co-crystal ingredient comprised of caffeine and ChromaDex's pTeroPure(R) 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 significantly longer half-life as compared to caffeine alone.
- The Company expects to initiate in October 2013 its first human clinical study on NIAGEN nicotinamide riboside. The pharmacokinetics (PK) study on NIAGEN will measure its effectiveness as a precursor to NAD+, a coenzyme that has crucial roles in many biochemical and biologic processes.
Frank Jaksch, Jr., CEO and cofounder of ChromaDex, commented, "After years of planning and substantial investment, our unique business strategy of identifying and commercializing novel, patented ingredient technologies is beginning to show dramatic results. We have commercialized and branded four novel, patented ingredients—NIAGEN nicotinamide riboside, PURENERGY, pTeroPure(R) pterostilbene and ProC3G—each of which have the prospects of becoming significant value drivers for our shareholders. The interest level in our ingredient portfolio from consumer product companies, ingredient companies, pharmaceutical companies and esteemed universities has exceeded our expectations."
Mr. Jaksch continued, "The initial interest in PURENERGY has been significant given the recent regulatory, political and media concerns surrounding added caffeine in consumer products. Separately, our first human trial on NIAGEN could have meaningful consequences given the significant level of research and interest in NAD+ precursors."