ChromaDex Corporation reported a 1% rise in overall revenues in the second quarter of 2013 while cutting losses to under $1 million.
The company made significant structural shifts in 2013, which affected results. It sold its BluScience consumer products line in March while retaining some rights to that line’s active ingredient, pTeroPure, a synthetic form of pterostilbene. And it acquired Spherix Consulting, adding scientific and regulatory consulting to its range of capabilities.
ChromaDex continued to execute on its business plan to identify, develop and commercialize high potential ingredients. In March, the company introduced Niagen, its branded form nicotinamide riboside, which the company says has the potential to become the “next generation niacin.” In June came the first launch of the ingredient in a consumer product from High Performance Nutrition to support neuroprotection in contact sports. In July, ChromaDex entered into an agreement with Thorne Research to supply the ingredient for future products. And the company has inked deals to supply Niagen and pTeroPure for university research.
"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,” said Frank Jaksch, CEO of ChromaDex. “The interest level in our ingredient portfolio from consumer product companies, ingredient companies, pharmaceutical companies and esteemed universities has exceeded our expectations."
Wafer-thin revenue increase
For the three months ended June 29, 2013, ChromaDex reported revenue of $2.7 million, an increase of 1% as compared to $2.67 million for the same period in 2012. The core standards, contract services and ingredients segment generated net sales of $2.5 million. This is an increase of 16%, compared to $2.2 million for the same period in 2012. This increase was largely due to increased sales of analytical testing and contract services, the company said.
The retail dietary supplement products segment did not have any sales because of the divestiture mentioned above. The BluScience line had generated $520,000 in sales for the same period in 2012. Spherix Consulting, in its second quarter on the company’s books, contributed $203,000 in sales.
Net loss recedes
The net loss attributable to common stockholders for the quarter was just under $1 million, or $0.01 per basic and diluted share, as compared to a net loss of $4 million 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 $380,000. 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 $600,000. As of June 29, 2013, cash, cash equivalents and marketable securities totaled approximately $830,000.