ChromaDex dips into loss but innovation continues
The phytochemical reference standards and contract testing services company recorded a loss of $303,529 for the thirteen weeks ended July 3, 2010 as compared to a net loss of $291,100 for the same period in 2009.
ChromaDex said the loss was a result of higher share based compensation costs as well as the launch of a new investor relations program.
However, ChromaDex CEO Frank Jaksch said the firm still plans to take advantage of new products and technologies it has acquired and will continue with the development of new ingredients for dietary supplements and foods.
“By continuing to license technology that ChromaDex believes has a strong future potential to be marketed to many industry segments, we will be able to offer our customers and consumers significant new options in the field of natural products,” he said.
Sales up, profits down
Sales in the second quarter this year were up for the firm, with revenue coming in at $2,033,861 as compared to $1,342,716 for the same period in 2009.
However, hefty general and administrative expenses of over $1m pushed the firm into an operating loss.
“The net loss in the second quarter of 2010 was attributable an increase in share based compensation expenses of $230,858 as compared to a $50,830 versus the same period in 2009, and an adoption of a formal investor relations program to increase market and shareholder awareness,” said ChromaDex in a statement.
The second quarter loss follows a strong first quarter for the company, which had seen revenue increase by 34 percent. The increase had been partly a result of higher sales as well as a cut-back in employee and other overhead costs as a percentage of sales.
But last year ChromaDex reported a net loss of $0.9m for the 2009 financial year, which it said was primarily due to business expansion costs.
Investment and expansion
However, in December, the company secured a $1m investment from Hong Kong firm Jinke Group, allowing it to continue its expansion plans. And early this financial year, ChromaDex received a major boost when it won a five-year contract to supply federal agencies with scientific services.
The company is also placing significant emphasis on its new pterostilbene antioxidant product, which it launched earlier this year after obtaining commercial rights to the biological compound from the University of Mississippi and the US Agriculture Research Service (ARS).
The ingredient – pTeroPure – is said to have similar properties to resveratrol. It is made with the compound pterostilbene, which is found in blueberries, grapes and other small fruits.