Exhibit 99.1
ChromaDex Corporation Reports First Quarter 2021 Financial
Results
Tru Niagen® Revenue for the Three-Month Period Ended March 31,
2021 Totals $12.4 Million, up 12% Year-over-Year, with Total
Company Revenue of $14.7 Million and Gross Margin of
62.9%.
LOS ANGELES, May 6, 2021 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC)
today
reported first quarter 2021 financial results.
First Quarter 2021 and Recent Highlights
●
Total net sales of $14.7 million, up 2% from $14.3 million in the
year ago quarter.
●
Tru Niagen® net sales of $12.4 million, a 12% increase from
the year ago quarter.
●
Gross margin of 62.9%, a 500 basis point increase from the year ago
quarter.
●
Net loss was ($7.4) million or ($0.12) per share, down $0.02 per
share year-over-year.
●
Adjusted EBITDA
excluding total legal expense, a non-GAAP measure, was a loss of
($0.7) million, a $0.4 million decline year-over-year.
●
Announced retail
distribution of Tru Niagen® in Walmart™ stores across
the United States beginning in June 2021.
●
Announced strategic
supply agreement with Health & Happiness Group (H&H), a
global leader in premium health, human and pet nutrition and
personal care brands to sell Niagen® in its exclusively
formulated Swisse™ products.
●
Announced strategic
supply agreement with Ro, a healthcare technology company, to sell
Niagen® in specially-formulated Roman products.
●
Appointed former
Nestlé
executive, Fadi Karam as Chief Marketing
Officer.
●
Appointed Dr. David
L. Katz, a globally recognized authority on lifestyle medicine, to
the ChromaDex Scientific Advisory Board.
“This
has been an incredible year for ChromaDex strategically,”
said ChromaDex CEO, Rob Fried. “We signed three
important deals with Walmart, H&H, and Ro. We also
strengthened our balance sheet with a $25 million capital raise and
announced the results of exciting scientific research on
Niagen®. We had some short-term supply chain disruptions
that impacted first quarter sales, but the long-term prospects look
stronger than ever.”
Results of operations for the three months ended March 31,
2021
For the
three months ended March 31, 2021 (“Q1 2021”),
ChromaDex reported net sales of $14.7 million, up 2% compared to
$14.3 million in the first quarter of 2020 ("Q1 2020"). The
increase in Q1 2021 revenues was driven by growth in sales of Tru
Niagen®, largely offset by lower
Niagen® and other ingredient sales.
Gross
margin percentage improved by 500 basis points to 62.9% in Q1 2021
compared to 57.9% in Q1 2020. The improvement in gross margin
percentage was driven by the positive impact of increased Tru
Niagen® consumer
product sales and product cost savings initiatives.
Operating
expenses increased by $2.4 million to $16.6 million in Q1 2021,
compared to $14.2 million in Q1 2020. The increase in operating
expenses was driven by $1.8 million of higher selling and marketing
expenses, and an increase of $0.7 million in general and
administrative expense, partially offset by $0.1 million of lower
research and development expense. The increase in general and
administrative expense was driven by $2.6 million of higher legal
expense, partially offset by $1.0 million of lower severance and
restructuring expenses and $0.8 million of lower shares-based
compensation expense.
The net
loss for Q1 2021 was ($7.4) million or ($0.12) per share as
reported compared to a net loss of ($5.9) million or ($0.10) per
share for Q1 2020 as reported. Adjusted EBITDA excluding total
legal expense, a non-GAAP measure, was a loss of ($0.7) million for
Q1 2021, compared to a loss of ($0.3) million for Q1 2020, a $0.4
million decline.
ChromaDex
defines Adjusted EBITDA excluding total legal expense as net income
or (loss) which is adjusted for interest, income tax, depreciation,
amortization, non-cash stock compensation costs, severance and
restructuring expense, bad debt expense related to Elysium Health
and total legal expense.
For Q1
2021, the net cash flow from operating activities was ($5.4)
million, versus ($5.2) million in Q1 2020.
Looking
forward, for the full year, the Company expects continued, steady
revenue growth driven by its global ecommerce business, as well as
growth with existing and new strategic partners, and that the
growth rate will accelerate beginning in the second quarter.
The Company expects continued gross margin improvement to slightly
better than 60%, roughly flat R&D expense and slightly higher
selling and marketing expense as a percentage of net sales
year-over-year. The Company expects slightly higher general and
administrative expense, excluding severance, restructuring and
legal expense. The Company plans to increase investments and
resources to drive brand awareness and accelerate its R&D
pipeline to capitalize on growth in the NAD+ market
globally.
Investor Conference Call
ChromaDex management will host an investor conference call to
discuss the first quarter results and provide a general business
update on Thurs., May 6, at 4:30 p.m. ET.
Participants should call in at least 10 minutes prior to the call.
The dial-in information is as follows:
Date: Thurs., May 6, 2021
Time: 4:30 p.m. ET (1:30 p.m. Pacific
time)
Toll-free dial-in number: 1-833-979-2703
International dial-in number: 236-714-2223
Conference ID: 8991456
Webcast link: ChromaDex First
Quarter 2021 Earnings Conference Call
The conference call will be broadcast live and available for
replay here and
via the investor relations section of the Company’s website
at www.chromadex.com.
A replay of the conference call will be available after 7:30
p.m. ET.
Toll-free replay number: 800-585-8367
Replay ID: 8991456
The
earnings press release, and its accompanying financial exhibits,
will be available on the Investor Relations section of the Company
website, www.chromadex.com.
About Non-GAAP Financial Measures:
Adjusted
EBITDA excluding total legal expense excludes interest, income tax,
depreciation, amortization, non-cash share-based compensation
costs, severance and restructuring expense and total legal expense.
ChromaDex uses these non-GAAP measures when evaluating its
financial results as well as for internal resource management,
planning and forecasting purposes. ChromaDex believes the
presentation of its non-GAAP financial measures enhances the
overall understanding of the company’s historical financial
performance. These non-GAAP measures should not be viewed in
isolation from or as a substitute for ChromaDex’s financial
results in accordance with GAAP. Reconciliation of GAAP to non-GAAP
measures are attached to this press release.
About ChromaDex:
ChromaDex
Corp. 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+),
levels of which decline with age. ChromaDex is the innovator behind
NAD+ precursor nicotinamide riboside (NR), which is protected by
ChromaDex’s patent portfolio along with other NAD+
precursors. ChromaDex maintains a website at www.chromadex.com to
which ChromaDex regularly posts copies of its press releases as
well as additional and financial information about the
Company.
Important Note on Forward Looking Statements:
This
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. Because
such statements are subject to risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. Such statements include the
quotation from ChromaDex’s Chief Executive Officer, and
statements related to the company’s 2021 financial outlook.
Other risks that contribute to the uncertain nature of the
forward-looking statements are reported in our most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K as
filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof, and actual results may differ materially from
those suggested by these forward-looking statements. All
forward-looking statements are qualified in their entirety by this
cautionary statement and ChromaDex undertakes no obligation to
revise or update this release to reflect events or circumstances
after the date hereof.
ChromaDex Investor Relations Contact:
Brianna
Gerber, Vice President of Finance and Investor
Relations
949-419-0288
ext. 127
briannag@chromadex.com
ChromaDex Media Contact:
Alex
Worsham, Vice President of Global Marketing &
Communications
310-388-6706
ext. 689
alexw@chromadex.com
ChromaDex
Corporation
ChromaDex Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Month Periods Ended March 31, 2021 and March 31,
2020
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Sales,
net
|
$14,683
|
$14,345
|
|
Cost
of sales
|
5,449
|
6,034
|
|
|
|
|
|
Gross profit
|
9,234
|
8,311
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Sales
and marketing
|
6,258
|
4,447
|
|
Research
and development
|
824
|
919
|
|
General
and administrative
|
9,514
|
8,835
|
|
Operating expenses
|
16,596
|
14,201
|
|
|
|
|
|
Operating loss
|
(7,362)
|
(5,890)
|
|
|
|
|
|
Nonoperating
expense:
|
|
|
|
Interest
expense, net
|
(19)
|
(12)
|
|
Nonoperating expense
|
(19)
|
(12)
|
|
|
|
|
|
Net loss
|
$(7,381)
|
$(5,902)
|
|
|
|
|
|
Basic
and diluted loss per common share
|
$(0.12)
|
$(0.10)
|
|
|
|
|
|
|
|
|
|
Basic
and diluted weighted average common shares outstanding
|
64,164
|
59,782
|
See
Notes to Consolidated Financial Statements in Part I Item 1 of
ChromaDex's Quarterly Report on Form 10-Q to be filed with
Securities and Exchange Commission on May 6, 2021.
ChromaDex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, 2021 and December 31, 2020
(In thousands, except per share data)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
Cash,
including restricted cash of $0.2 million and $0.2 million,
respectively
|
$44,691
|
$16,697
|
Trade receivables, net of allowances of $0.2 million and $0.2
million, respectively;
|
|
|
Receivables
from Related Party: $1.3 million and $0.9 million,
respectively
|
4,647
|
2,694
|
|
Inventories
|
12,762
|
11,683
|
|
Prepaid
expenses and other assets
|
1,119
|
1,145
|
|
Total current assets
|
63,219
|
32,219
|
|
|
|
|
|
Leasehold
Improvements and Equipment, net
|
3,058
|
3,206
|
|
Intangible
Assets, net
|
1,022
|
1,082
|
|
Right
of Use Assets
|
1,100
|
1,226
|
|
Other
Long-term Assets
|
594
|
625
|
|
|
|
|
|
Total assets
|
$68,993
|
$38,358
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$11,693
|
$9,445
|
|
Accrued
expenses
|
7,328
|
6,133
|
|
Current
maturities of operating lease obligations
|
485
|
589
|
|
Current
maturities of finance lease obligations
|
19
|
31
|
|
Customer
deposits
|
231
|
278
|
|
Total current liabilities
|
19,756
|
16,476
|
|
|
|
|
|
Deferred
Revenue
|
4,441
|
4,441
|
|
Operating
Lease Obligations, Less Current Maturities
|
947
|
997
|
|
Finance
Lease Obligations, Less Current Maturities
|
17
|
20
|
|
|
|
|
|
Total liabilities
|
25,161
|
21,934
|
|
|
|
|
|
Commitments
and Contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common
stock, $.001 par value; authorized 150,000 shares;
|
|
|
|
issued
and outstanding March 31, 2021 67,702 shares and
|
|
|
|
December
31, 2020 61,881 shares
|
68
|
62
|
|
Additional
paid-in capital
|
192,972
|
158,190
|
|
Accumulated
deficit
|
(149,206)
|
(141,825)
|
|
Cumulative
translation adjustments
|
(2)
|
(3)
|
|
Total stockholders' equity
|
43,832
|
16,424
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$68,993
|
$38,358
|
See
Notes to Consolidated Financial Statements in Part I Item 1 of
ChromaDex's Quarterly Report on Form 10-Q to be filed with
Securities and Exchange Commission on May 6, 2021.
ChromaDex
Corporation and Subsidiaries
Reconciliation
of Non-GAAP Financial Measures
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020
|
Q2 2020
|
Q3 2020
|
Q4 2020
|
Q1 2021
|
|
(In
thousands)
|
|
|
|
|
|
|
Net loss, as
reported
|
$(5,902)
|
$(3,711)
|
$(4,215)
|
$(6,097)
|
$(7,381)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest
expense, net
|
12
|
24
|
19
|
16
|
19
|
|
Depreciation
|
214
|
218
|
220
|
219
|
221
|
|
Amortization
of intangibles
|
62
|
60
|
60
|
61
|
60
|
|
Amortization
of right of use assets
|
92
|
95
|
97
|
115
|
126
|
|
Share-based
compensation
|
1,873
|
1,711
|
1,574
|
1,778
|
1,284
|
|
Severance
and restructuring
|
953
|
284
|
224
|
329
|
(10)
|
|
Adjusted
EBITDA
|
$(2,696)
|
$(1,319)
|
$(2,021)
|
$(3,579)
|
$(5,681)
|
|
|
|
|
|
|
|
|
Total
legal expense
|
2,380
|
1,844
|
1,896
|
2,468
|
5,010
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
excluding total legal expense
|
$(316)
|
$525
|
$(125)
|
$(1,111)
|
$(671)
|
