ChromaDex Corp. (OTCQX:CDXC), an innovator of proprietary health, wellness and nutritional ingredients, that creates science-based solutions to dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, reported record net revenue of $22.0 million for the year ended January 2, 2016 (“FY 2015”), an increase of 44% as compared to $15.3 million for the year ended January 2, 2015 (“FY 2014”).
The record net revenue was largely due to increased sales in its ingredients business segment, led by its NIAGEN® branded nicotinamide riboside (NR). The ingredients segment generated record net sales of $12.5 million for FY 2015, an increase of 83%, compared to $6.9 million for FY 2014. The core standards and services segment also posted a 12% growth as it generated record net sales of $8.4 million for FY 2015, compared to $7.5 million for FY 2014. Net sales for the scientific and regulatory consulting segment increased by 9%, from $1.0 million for FY 2014 to $1.1 million for FY 2015, as more consulting projects were completed during FY 2015. The net loss attributable to common stock holders for FY 2015 was $2.8 million or ($0.03) per share as compared to a net loss of $5.4 million or ($0.05) per share for FY 2014. The non-cash, stock based compensation expense related to stock options and other stock-based compensation in FY 2015 was $2.0 million. Net loss adjusted for share based compensation, which is a “non-GAAP measure,” would have the effect of decreasing the Company’s net loss for FY 2015 to $0.8 million. As of January 2, 2016, cash, cash equivalents and marketable securities totaled $5.5 million.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “2015 was breakout year for ChromaDex as all significant business units posted record revenue. This is the first year that the ingredient segment has accounted for the majority of the Company’s revenue. Activity in new business development remains robust. We expect to report record revenue in Q1 2016 as well as strong revenue growth for the full-year.”
Jaksch continued, “We are in the early innings of the commercialization and business development of our lead ingredient, NIAGEN® branded NR. Whereas business activity in 2015 was largely with direct-to-consumer supplement companies, we expect in 2016 nutritional supplement products featuring NIAGEN® to populate the shelves of tens of thousands of major branded retail locations throughout the U.S. Moreover, the recent regulatory qualifications, NDIN and GRAS, have opened the door for NIAGEN® to be included as a feature ingredient in a growing number of food, beverage and supplement products.”
“Perhaps the most unrealized value for ChromaDex shareholders may lie in NR’s pharmaceutical applications. We have been working closely with the NIH on a therapeutic indication for NR as a treatment of a rare pediatric orphan disease, Cockayne Syndrome. We expect to file for orphan designation as well as an IND with the FDA in 2016. Collaborators such as NIH, are currently performing pre-clinical studies on the use of NR to treat several other orphan diseases.”
“The excitement continues to build surrounding the peer-reviewed published research and commentary of NR’s potential health benefits as a precursor to the co-enzyme nicotinamide adenine dinucleotide (NAD+) . We continue to build upon our already significant patent portfolio surrounding NR and NAD+ precursors, putting us in the enviable position of ‘gatekeeper’ to the entire NAD+ precursor category. Our vision is that NIAGEN® will become part of an important NAD+ nutrient deficiency story similar to Vitamin C, Vitamin D, folic acid and Omega-3 fatty acids. A new vitamin of this magnitude is the type of opportunity that comes along once every 25+ years. All of the important pieces of the puzzle – peer reviewed science, media attention to NAD+ story, and the rise of the treatment of aging as disease – are creating a perfect storm for NIAGEN® to become the next billion dollar ingredient.”