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ChromaDex Reports Third Quarter 2017 Financial Results

- Company Reports Third Quarter 2017 Revenue of $6.1 Million, Up 55% Compared to Last Year -
- Continued Progress on Building a Consumer Products Platform Around TRU NIAGEN-

IRVINE, Calif., Nov. 09, 2017 (GLOBE NEWSWIRE) -- ChromaDex Corp. (NASDAQ:CDXC), a science-based, fully integrated nutraceutical company devoted to extending human healthspan, announced today the financial results for the quarter ended September 30, 2017.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex commented, “The science continues to build and we are now well positioned with cash on our balance sheet to execute our growth strategy.”

“Six months into our strategic shift, we are doing better than expected,” said Rob Fried, President and Chief Strategy Officer of ChromaDex. “Our revenue growth in the quarter was led by sales of TRU NIAGEN."

Results of operations for the three months ended September 30, 2017

For the three months ended September 30, 2017, ChromaDex reported net sales of $6.1 million from continuing operations, which was up 55% as compared to $3.9 million for the third quarter of 2016. For the quarter, net sales of NIAGEN® related revenues were $4.5 million, which represented 73% of third quarter net sales.

Gross profit improved in the third quarter of 2017 to 47.9%, as compared to 47.3% for the same period in 2016. We experienced slightly better gross margins due to the positive impact of NIAGEN® related sales, which we anticipate continuing.

Operating expenses were $6.1 million, as compared to $2.8 million for the third quarter of 2016, as we made incremental investments of $3.3 million in sales and marketing, research and development, and general and administrative expense to support revenue growth.

The net loss from continuing operations attributable to common shareholders was $3.2 million, as compared to $2.3 million for the third quarter of 2016, as we also made investments in the third quarter of 2017 to accelerate our future growth trajectory. Loss per share from continuing operations for the third quarter of 2017 was ($0.07). Looking forward, we expect to continue to invest ahead of growth to capture the global opportunity for NIAGEN®.

Adjusted EBITDA, a non-GAAP measure, was $2.9 million for the third quarter of 2017, compared to adjusted EBITDA of ($0.6) million for the third quarter of 2016. The Basic and Diluted Adjusted EBITDA per share for the third quarter of 2017 was $0.06 versus ($0.02) for the third quarter of 2016.

We also ended the quarter with a solid balance sheet with quarter-end cash of $24 million.

In the third quarter of 2017, ChromaDex completed the sale of its operating assets that were related to ChromaDex’s quality verification program testing and analytical chemistry business for food and food related products. As result of the sale, ChromaDex posted income of $5.4 million from discontinued operations or $0.12 per share.

Recent Company highlights include:


Investor Conference Call


ChromaDex management will host an investor conference call to discuss the year end results and provide a general business update on Thursday, Nov. 9, 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:

U.S. Toll-Free Number: (866) 327-8118
International Dial-In Number: (678) 509-7526
Conference ID: 2486749
Conference ID: https://edge.media-server.com/m6/p/h4svziad

The earnings press release, accompanying financial exhibits and webcast replay will all be available on the Investor Relations section of the Company website, www.chromadex.com.

About Non-GAAP Financial Measures

ChromaDex’s non-GAAP financial measures exclude interest, tax, depreciation, amortization and share-based compensation. ChromaDex used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for ChromaDex’s financial results in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is attached to this press release.

About ChromaDex:

ChromaDex discovers, acquires, develops and commercializes patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as "phytochemicals"), and product regulatory and safety consulting. As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house research and development laboratory, regulatory and safety consulting teams to develop commercially viable ingredients. Our ingredient portfolio, including NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; IMMULINA, a spirulina extract; and AnthOrigin®, anthocyanins derived from a domestically-produced, water-extracted purple corn husk, is backed with clinical and scientific research, as well as extensive IP protection.

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 including statements related to financial results, financial representations, the future performance of ChromaDex’s consumer product, whether ChromaDex has cash on its balance sheet to execute its growth strategy, whether gross profit will continue to improve, and whether ChromaDex will continue to invest to capture the global opportunity for NIAGEN®. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified using such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. More detailed information about ChromaDex and the risk factors that may affect the realization of forward-looking statements is set forth in ChromaDex's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, ChromaDex's Quarterly Reports on Form 10-Q and other filings submitted by ChromaDex to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. 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:
Andrew Johnson, Director of Investor Relations
949-419-0288
andrewj@chromadex.com

ChromaDex Public Relations Contact:
Breah Ostendorf, Director of Marketing
949-537-4103
breaho@chromadex.com

ChromaDex Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Month Periods Ended September 30, 2017 and October 1, 2016
Sep. 30, 2017Oct. 1, 2016
Sales, net$ 6,084,690 $3,937,286
Cost of sales 3,169,321 2,074,325
Gross profit 2,915,369 1,862,961
Operating expenses:
Sales and marketing 1,103,157 286,941
Research and development 1,040,561 772,799
General and administrative 3,948,435 1,727,383
Operating expenses 6,092,153 2,787,123
Operating loss (3,176,784) (924,162)
Nonoperating expense:
Interest expense, net (44,508) (2,260)
Nonoperating expenses (44,508) (2,260)
Loss from continuing operations (3,221,292) (926,422)
Loss before taxes from discontinued operations (108,899) (31,121)
Gain on sale of discontinued operations 5,467,268 -
Provision for taxes - 3,153
Income (loss) from discontinued operations, net 5,358,369 (27,968)
Net income (loss)$ 2,137,077 $(954,390)
Basic earnings (loss) per common share:
Loss from continuing operations$ (0.07)$(0.02)
Earnings (loss) from discontinued operations$ 0.12 $(0.01)
Basic earnings (loss) per common share$ 0.05 $(0.03)
Diluted earnings (loss) per common share:
Loss from continuing operations$ (0.07)$(0.02)
Earnings (loss) from discontinued operations$ 0.11 $(0.01)
Diluted earnings (loss) per common share$ 0.04 $(0.03)
Basic weighted average common shares outstanding 47,065,009 37,868,672
Diluted weighted average common shares outstanding 47,556,697 37,868,672
See Notes to Condensed Consolidated Financial Statements in Part I of ChromaDex's Quarterly Report
on Form 10-Q filed with Securities and Exchange Commission on November 9, 2017.

ChromaDex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2017 and December 31, 2016
Sep. 30, 2017Dec. 31, 2016
Assets
Current Assets
Cash$ 23,999,633 $1,642,429
Trade receivables, net of allowances of $0.5 million and $1.1 million, respectively;
Receivables from related party: $1.5 million and $0, respectively 4,919,768 5,852,030
Inventories 6,615,245 7,912,630
Prepaid expenses and other assets 724,388 311,539
Current assets held for sale - 18,315
Total current assets 36,259,034 15,736,943
Leasehold Improvements and Equipment, net 2,690,527 1,778,171
Deposits 392,342 377,532
Receivable held at escrow 750,000 -
Intangible assets, net 1,709,609 486,226
Longterm investment - 20,318
Noncurrent assets held for sale - 1,352,878
Total assets$ 41,801,512 $19,752,068
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable$ 4,346,700 $5,978,288
Accrued expenses 2,129,583 2,170,172
Current maturities of capital lease obligations 190,892 255,461
Customer deposits and other 321,119 389,010
Deferred rent, current 120,894 76,219
Due to officer 100,000 -
Total current liabilities 7,209,188 8,869,150
Capital lease obligations, less current maturities 360,748 343,589
Deferred rent, less current 493,735 380,205
Noncurrent liabilities held for sale - 184,766
Total liabilities 8,063,671 9,777,710
Commitments and contingencies
Stockholders' Equity
Common stock, $.001 par value; authorized 150,000,000 shares;
issued and outstanding September 30, 2017 47,650,252 shares and
December 31, 2016 37,544,531 shares 47,650 37,545
Additional paid-in capital 81,469,567 55,160,387
Accumulated deficit (47,779,376) (45,223,574)
Total stockholders' equity 33,737,841 9,974,358
Total liabilities and stockholders' equity$ 41,801,512 $19,752,068
See Notes to Condensed Consolidated Financial Statements in Part I of ChromaDex's Quarterly Report
on Form 10-Q filed with Securities and Exchange Commission on November 9, 2017.

Condensed Consolidated Statements of Operations (Unaudited) Effects of Charges associated with Interest, Tax, Depreciation, Condensed Consolidated Statements of Operations, Adjusted EBITDA
(US GAAP) Amortization and Share-based Compensation Expense Excluding Interest, Tax, Depreciation, Amortization and
Share-based Compensation (Non-GAAP Presentation)
For the Three Month Periods Ended September 30, 2017 and October 1, 2016 For the Three Month Periods Ended September 30, 2017 and October 1, 2016 For the Three Month Periods Ended September 30, 2017 and October 1, 2016
Q3 2017Q3 2016 Q3 2017Q3 2016 Q3 2017Q3 2016
Sales, net$6,084,690 $3,937,286 Sales$ - $- Sales$6,084,690 $3,937,286
Cost of sales 3,169,321 2,074,325 Cost of sales (47,746) (8,066) Cost of sales 3,121,575 2,066,259
Gross profit 2,915,369 1,862,961 Gross profit 47,746 8,066 Gross profit 2,963,115 1,871,027
Operating expenses: Operating expenses: Operating expenses:
Sales and marketing 1,103,157 286,941 Sales and marketing - - Sales and marketing 1,103,157 286,941
Research and development 1,040,561 772,799 Research and development - - Research and development 1,040,561 772,799
General and administrative 3,948,435 1,727,383 General and administrative (589,747) (303,039) General and administrative 3,358,688 1,424,344
Operating expenses 6,092,153 2,787,123 Operating expenses (589,747) (303,039) Operating expenses 5,502,406 2,484,084
Operating loss (3,176,784) (924,162) Operating income 637,493 311,105 Operating loss (2,539,291) (613,057)
Nonoperating expense: Nonoperating income: Nonoperating expense:
Interest expense, net (44,508) (2,260) Interest expense, net 44,508 2,260 Interest expense, net - -
Nonoperating expenses (44,508) (2,260) Nonoperating income 44,508 2,260 Nonoperating expense - -
Loss from continuing operations (3,221,292) (926,422) Income from continuing operations 682,001 313,365 Loss from continuing operations (2,539,291) (613,057)
Loss before taxes from discontinued operations (108,899) (31,121) Income before taxes from discontinued operations 48,978 69,590 Income (loss) before taxes from discontinued operations (59,921) 38,469
Gain on sale of discontinued operations 5,467,268 - Gain on sale of discontinued operations - - Gain on sale of discontinued operations 5,467,268 -
Provision for taxes - 3,153 Provision for taxes - (3,153) Provision for taxes - -
Income (loss) from discontinued operations, net 5,358,369 (27,968) Income from discontinued operations, net 48,978 66,437 Income from discontinued operations, net 5,407,347 38,469
Net income (loss)$2,137,077 $(954,390) Effects of adjusted EBITDA$730,979 $379,802 Adjusted EBITDA$2,868,056 $(574,588)
Basic earnings (loss) per common share: Basic earnings per common share: Basic earnings (loss) per common share:
Loss from continuing operations$(0.07)$(0.02) Earnings from continuing operations$0.01 $0.01 Loss from continuing operations$(0.05)$(0.02)
Earnings (loss) from discontinued operations$0.12 $(0.01) Earnings from discontinued operations$0.00 $0.00 Earnings from discontinued operations$0.11 $0.00
Basic earnings (loss) per common share$0.05 $(0.03) Basic earnings per common share$0.02 $0.01 Basic earnings (loss) per common share$0.06 $(0.02)
Diluted earnings (loss) per common share: Diluted earnings per common share: Diluted earnings (loss) per common share:
Loss from continuing operations$(0.07)$(0.02) Earnings from continuing operations$0.01 $0.01 Loss from continuing operations$(0.05)$(0.02)
Earnings (loss) from discontinued operations$0.11 $(0.01) Earnings from discontinued operations$0.00 $0.00 Earnings from discontinued operations$0.11 $0.00
Diluted earnings (loss) per common share$0.04 $(0.03) Diluted earnings per common share$0.02 $0.01 Diluted earnings (loss) per common share$0.06 $(0.02)
Basic weighted average common shares outstanding 47,065,009 37,868,672 Basic weighted average common shares outstanding 47,065,009 37,868,672 Basic weighted average common shares outstanding 47,065,009 37,868,672
Diluted weighted average common shares outstanding 47,556,697 37,868,672 Diluted weighted average common shares outstanding 47,556,697 37,868,672 Diluted weighted average common shares outstanding 47,556,697 37,868,672



Source:ChromaDex Corporation