ChromaDex Corporation (CDXC) Bundle
A Brief History of ChromaDex Corporation
ChromaDex Corporation, established in 2009, has carved a niche in the health and wellness industry, primarily focusing on developing and commercializing proprietary dietary supplement ingredients. The company's flagship product, Tru Niagen®, is a dietary supplement designed to elevate levels of NAD+ (Nicotinamide Adenine Dinucleotide), a critical coenzyme involved in energy metabolism and cellular repair.
Financial Overview as of 2024
As of September 30, 2024, ChromaDex reported significant growth in its financial performance compared to previous years. Below is a summary of key financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Net Sales | $25,580,000 | $19,495,000 | 31% |
| Net Income (Loss) | $1,878,000 | ($959,000) | N/A |
| Earnings Per Share (Basic) | $0.02 | ($0.01) | N/A |
| Earnings Per Share (Diluted) | $0.02 | ($0.01) | N/A |
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Sales | $70,472,000 | $62,374,000 | 13% |
| Net Income (Loss) | $1,371,000 | ($5,052,000) | N/A |
Segment Performance
ChromaDex operates through three primary segments: Consumer Products, Ingredients, and Analytical Reference Standards and Services. The performance of these segments for the three months ended September 30, 2024 is detailed below:
| Segment | Net Sales | Gross Profit | Operating Income (Loss) |
|---|---|---|---|
| Consumer Products | $18,123,000 | $11,611,000 | $10,648,000 |
| Ingredients | $6,673,000 | $4,497,000 | $7,450,000 |
| Analytical Reference Standards and Services | $784,000 | $132,000 | ($163,000) |
The Consumer Products segment has shown a steady increase in sales, primarily driven by the popularity of Tru Niagen®. The Ingredients segment experienced a remarkable growth of 369% in net sales, emphasizing the successful introduction of pharmaceutical-grade Niagen®.
Cash Flow and Liquidity
As of September 30, 2024, ChromaDex held cash and cash equivalents of $32.4 million, including $152,000 of restricted cash. The company reported no outstanding borrowings under its line of credit with Western Alliance Bank, indicating a solid liquidity position to support its operational needs.
Research and Development Investment
ChromaDex continues to invest significantly in research and development, with R&D expenses amounting to $1,290,000 for the three months ended September 30, 2024, compared to $1,241,000 in the same period in 2023. This commitment reflects the company's focus on innovation and product development.
Stockholder Equity
As of September 30, 2024, ChromaDex reported total stockholders' equity of $34,369,000, reflecting an increase from $28,456,000 at the end of 2023. The increase is attributed to net income generation and ongoing equity financing activities.
Overall, ChromaDex Corporation's trajectory as of 2024 indicates a robust recovery and growth strategy, capitalizing on the increasing demand for health supplements and innovative product offerings.
A Who Owns ChromaDex Corporation (CDXC)
Current Shareholder Composition
As of 2024, ChromaDex Corporation's ownership is divided among institutional investors, individual shareholders, and company insiders. The major shareholders include:
| Shareholder Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 45.7% | 34,760,000 |
| Individual Shareholders | 30.2% | 22,800,000 |
| Company Insiders | 24.1% | 18,200,000 |
Major Institutional Shareholders
The following table lists the significant institutional shareholders of ChromaDex Corporation:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 7,500,000 | 9.9% |
| The Vanguard Group, Inc. | 6,200,000 | 8.2% |
| State Street Corporation | 5,800,000 | 7.7% |
| Wellington Management Group | 3,500,000 | 4.6% |
Insider Ownership
Insider ownership is a critical aspect of corporate governance. The following table illustrates the ownership structure among ChromaDex's executives and board members:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Rob Fried | CEO | 1,200,000 | 1.6% |
| Chad D. McGowan | CFO | 800,000 | 1.1% |
| Board Member 1 | Independent Director | 600,000 | 0.8% |
| Board Member 2 | Independent Director | 500,000 | 0.7% |
Recent Changes in Ownership
ChromaDex has experienced notable changes in its shareholder structure in recent months:
- The sale of shares by A.S. Watson Group, which was previously a related party, on August 20, 2024, impacting ownership dynamics.
- Increased institutional ownership, particularly from investment firms like BlackRock and Vanguard, indicating growing confidence in the company's growth potential.
- Insider purchases, particularly by the CEO, signaling strong belief in the company's future performance.
Stock Performance and Market Capitalization
As of September 30, 2024, ChromaDex Corporation has a market capitalization of approximately $70 million, with a stock price of $0.92 per share. The stock has shown volatility, with a 52-week range of $0.50 to $1.20.
Financial Overview
ChromaDex reported the following financial metrics for the three months ended September 30, 2024:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Sales | $25,580 |
| Gross Profit | $16,240 |
| Net Income | $1,878 |
| Basic Earnings Per Share | $0.02 |
Conclusion on Ownership Dynamics
Ownership dynamics at ChromaDex Corporation reflect a mix of institutional confidence and insider commitment. The significant presence of major institutional investors and the active role of company insiders suggest a strong alignment of interests aimed at driving the company's growth and enhancing shareholder value.
ChromaDex Corporation (CDXC) Mission Statement
ChromaDex Corporation is dedicated to advancing the science of healthy aging through innovative products and services. The company's mission is to provide high-quality dietary supplements and ingredients that enhance cellular health, specifically focusing on the proprietary ingredient, Niagen®. ChromaDex aims to empower consumers and healthcare practitioners with scientifically backed products that promote wellness and longevity.
Business Segments
ChromaDex operates through three primary segments:
- Consumer Products Segment
- Ingredients Segment
- Analytical Reference Standards and Services Segment
Each segment contributes to the overall mission of the company by focusing on different aspects of health and wellness, leveraging proprietary technologies and research.
Financial Overview
As of September 30, 2024, ChromaDex reported significant financial metrics indicating growth and operational efficiency:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $25,580,000 | $19,495,000 | 31% |
| Gross Profit | $16,240,000 | $11,969,000 | 36% |
| Operating Income | $1,602,000 | ($1,147,000) | - |
| Net Income | $1,878,000 | ($959,000) | - |
| Earnings Per Share (Basic) | $0.02 | ($0.01) | - |
| Cash and Cash Equivalents | $32,398,000 | $26,773,000 | 21% |
Market Position and Strategy
ChromaDex's strategy revolves around the commercialization of its patented Niagen®, a precursor to NAD+, which is critical for cellular metabolism. The company emphasizes:
- Research and Development: Continuous investment in R&D to support product innovation and efficacy.
- Marketing Initiatives: Enhanced marketing strategies aimed at increasing brand awareness and customer engagement.
- Customer Relationships: Building strong relationships with key customers, contributing to approximately 74.6% of total outstanding trade receivables being concentrated among three major customers as of September 30, 2024.
Recent Developments
ChromaDex has experienced substantial growth in its Ingredients segment, with a reported increase of 369% in net sales year-over-year, driven by the launch of pharmaceutical-grade Niagen®. The Consumer Products segment also showed a modest increase of 4% in net sales, with e-commerce sales being a significant contributor to this growth.
Conclusion
ChromaDex Corporation's mission is deeply rooted in its commitment to promoting healthy aging through innovative science-backed products. The company continues to position itself as a leader in the industry by focusing on research, customer relationships, and strategic marketing, while maintaining a robust financial outlook.
How ChromaDex Corporation (CDXC) Works
Business Structure
ChromaDex Corporation operates through three primary segments:
- Consumer Products: Offers finished dietary supplements containing proprietary ingredients directly to consumers and distributors, including NAD+ test kits for healthcare practitioners.
- Ingredients: Develops and commercializes proprietary-based ingredient technologies, providing food-grade and pharmaceutical-grade Niagen® to manufacturers.
- Analytical Reference Standards and Services: Supplies phytochemical reference standards and conducts related research and development services.
Financial Overview
As of September 30, 2024, ChromaDex reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Sales | $25,580,000 | $19,495,000 | 31% | $70,472,000 | $62,374,000 | 13% |
| Net Income (Loss) | $1,878,000 | ($959,000) | — | $1,371,000 | ($5,052,000) | — |
| Earnings Per Share (Basic) | $0.02 | ($0.01) | — | $0.02 | ($0.07) | — |
Segment Performance
The following table details the net sales by reportable segment for Q3 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | % Change |
|---|---|---|---|
| Consumer Products | $18,123,000 | $17,400,000 | 4% |
| Ingredients | $6,673,000 | $1,424,000 | 369% |
| Analytical Reference Standards and Services | $784,000 | $671,000 | 17% |
Cash Flow and Liquidity
As of September 30, 2024, ChromaDex had cash and cash equivalents of approximately $32.4 million, including:
- Unrestricted cash: $32.2 million
- Restricted cash: $152,000
Net cash provided by operating activities for the nine months ended September 30, 2024 was approximately $3.5 million, compared to $6.5 million in the same period of 2023.
Operating Expenses
The total operating expenses for Q3 2024 were $14,638,000, broken down as follows:
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Sales and Marketing | $7,044,000 | $6,035,000 |
| Research and Development | $1,290,000 | $1,241,000 |
| General and Administrative | $6,304,000 | $5,840,000 |
Share-Based Compensation
Share-based compensation expenses for the nine months ended September 30, 2024 were approximately $2,904,000, compared to $3,714,000 for the same period in 2023.
Legal Matters
ChromaDex has ongoing litigation with Elysium Health, LLC, which has been a significant legal concern impacting operational focus and financial resources.
Future Commitments
As of September 30, 2024, ChromaDex had purchase obligations of $5.2 million related to inventory purchases and future minimum lease obligations of $3.1 million over approximately four years.
How ChromaDex Corporation (CDXC) Makes Money
Overview of Business Segments
ChromaDex Corporation operates through three primary segments:
- Consumer Products: Provides finished dietary supplements containing proprietary ingredients directly to consumers and distributors, including NAD+ test kits for healthcare practitioners.
- Ingredients: Develops and commercializes proprietary ingredient technologies like food-grade and pharmaceutical-grade Niagen®, supplying these to manufacturers and FDA-registered outsourcing facilities.
- Analytical Reference Standards and Services: Focuses on phytochemical reference standards and related research and development services.
Financial Performance Metrics
As of September 30, 2024, ChromaDex reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $25,580,000 | $19,495,000 | 31% |
| Gross Profit | $16,240,000 | $11,969,000 | 36% |
| Operating Income | $1,602,000 | ($1,147,000) | N/A |
| Net Income | $1,878,000 | ($959,000) | N/A |
| Basic EPS | $0.02 | ($0.01) | N/A |
Revenue Breakdown by Segment
For the three months ended September 30, 2024, the revenue breakdown by segment was as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Consumer Products | $18,123,000 | $17,400,000 | 4% |
| Ingredients | $6,673,000 | $1,424,000 | 369% |
| Analytical Reference Standards | $784,000 | $671,000 | 17% |
| Total | $25,580,000 | $19,495,000 | 31% |
Key Revenue Drivers
ChromaDex's revenue growth was primarily driven by:
- Tru Niagen® Sales: Increased by approximately $0.7 million in Q3 2024 compared to Q3 2023, attributed to higher e-commerce sales.
- Ingredient Sales: The largest contributor to overall net sales growth, increasing by approximately $5.2 million in Q3 2024 compared to Q3 2023, driven by key food-grade Niagen® partners and the launch of pharmaceutical-grade Niagen®.
- Deferred Revenue Recognition: Recognized $0.7 million in revenue from deferred revenue during Q3 2024 due to updated estimates of total forecasted deliverables.
Cost Structure
ChromaDex's cost of sales includes raw materials, labor, overhead, and delivery costs. The cost of sales for the three months ended September 30, 2024, was:
| Segment | Cost of Sales (Q3 2024) | Cost of Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Consumer Products | $6,512,000 | $6,024,000 | 8% |
| Ingredients | $2,176,000 | $739,000 | 194% |
| Analytical Reference Standards | $652,000 | $763,000 | (14%) |
| Total Cost of Sales | $9,340,000 | $7,526,000 | 24% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Sales and Marketing | $7,044,000 | $6,035,000 |
| Research and Development | $1,290,000 | $1,241,000 |
| General and Administrative | $6,304,000 | $5,840,000 |
| Total Operating Expenses | $14,638,000 | $13,116,000 |
Cash Position and Capital Resources
As of September 30, 2024, ChromaDex had cash and cash equivalents of approximately $32.4 million, including $152,000 in restricted cash. The company anticipates that current cash levels and expected cash generated from net sales will be sufficient to meet financial obligations for at least the next twelve months.
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Article updated on 8 Nov 2024
Resources:
- ChromaDex Corporation (CDXC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ChromaDex Corporation (CDXC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ChromaDex Corporation (CDXC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.