ChromaDex reports Q2 loss, expansion plans continue

12-Aug-2008 - Last updated on 13-Aug-2008 at 12:00 GMT

ChromaDex, which develops analytical standards for nutraceutical ingredients, has recorded a second quarter loss, but the firm maintains that the period was important for the developments it has made in order to expand its business.

Revenue during the second quarter ended June 28 2008 stood at $1.2m as compared to $997,087 for the same period in 2007.

According to Frank Jaksch, CEO of ChromaDex, the second quarter of 2008 was “significant” for the firm. He highlighted the recent moves the company has made in order to expand and meet the growing needs of customers.

"We successfully completed a reverse merger acquisition of Cody Resources, Inc. a publicly quoted company on the OTCBB. We did this in order to reap the benefits of public ownership including the ability to enhance our visibility with customers and prospective customers and access to potential new avenues for capital formation,” he said.

Merger

The reverse merger, which was completed last month, saw ChromaDex essentially merge into the 'shell' firm Cody Resources, whose shares are publically traded but which is not an operating business. The new entity took on the name of ChromaDex.

The group hoped that public ownership would enable it to raise extra funds to make key investments in its business, in order to expand its reference base for botanical standards.

aJaksch told NutraIngredients-USA.com that the additional resources would allow the firm to invest in more equipment, more people and larger facilities, and also increase its research program to expand its services.

More funds

Last week, the firm said it had completed another phase in its expansion plan with the closing of a private placement, which has yielded gross profits of $4.67m.

As part of the group’s growth strategy, the extra funds are expected to contribute to the expansion of analytical standards for nutraceutical ingredients.

Reference standards

The firm's major focus is the development of reference standards for botanicals, supplement ingredients and functional food ingredients. It currently has standards for over 3000 products.

These include: a P57 standard for the appetite suppressant ingredient hoodia; a punicalagins standard for pomegranate; and a range of standards for the sweetener compound stevia.

Moving forward

ChromaDex yesterday said that in the second half of 2008 it will focus on expanding its range of products and services to the market.

As of June 28, 2008, cash, cash equivalents, and marketable securities totaled approximately $2.4m.