ChromaDex(US:CDXC)2021-05-05 16:00Financial Performance - For the three-month period ending March 31, 2021, net sales were $14.683 million, a 2% increase compared to $14.345 million for the same period in 2020[137]. - The consumer products segment, primarily driven by TRU NIAGEN®, saw sales increase by 12% to $12.437 million from $11.144 million year-over-year[142]. - The ingredients segment experienced a 47% decline in sales, dropping to $1.315 million from $2.475 million, largely due to the loss of a key customer[142][146]. - The net loss for the three-month period ending March 31, 2021, was $7.381 million, compared to a net loss of $5.902 million for the same period in 2020[137]. - Total gross profit for the company increased by 11% to $9.2 million compared to $8.3 million in the prior year[153]. Cost and Expenses - Cost of sales as a percentage of net sales decreased by 5% to 37% for the three-month period ending March 31, 2021, compared to 42% for the same period in 2020[149]. - The cost of sales for the consumer products segment decreased by 5% as a percentage of net sales, attributed to product mix and cost savings initiatives[149]. - The analytical reference standards and services segment saw a 20% decrease in cost of sales as a percentage of net sales, reflecting improved labor and overhead utilization[151]. - Sales and marketing expenses rose by 41% to $6.3 million from $4.4 million, driven by increased direct marketing efforts and staffing in the consumer products segment[159]. - Research and development expenses decreased by 10% to $0.8 million from $0.9 million, reflecting a realignment of ongoing projects[163]. - General and administrative expenses increased by 8% to $9.5 million, largely due to a rise in legal expenses from $2.4 million to $5.0 million[164]. Cash Flow and Financing - As of March 31, 2021, the company had approximately $44.7 million in cash and cash equivalents, with an additional line of credit of up to $7.0 million available[135]. - The company successfully raised $24.9 million through the sale of approximately 3.8 million shares at $6.50 per share in February 2021[133]. - Net cash used in operating activities was approximately $5.4 million for the three months ended March 31, 2021, compared to $5.2 million in the same period in 2020[177]. - Net cash provided by financing activities was approximately $33.4 million for the three months ended March 31, 2021, significantly higher than $37,000 in the prior year[181]. Operational Challenges - The company maintains adequate inventory levels to support growth despite supply chain disruptions caused by COVID-19[130]. - The ingredients segment experienced a gross profit decline of 47%, down to $0.8 million from $1.4 million year-over-year, primarily due to lower sales[156]. - The company has incurred aggregate losses of approximately $149.2 million since inception, primarily due to operational expansion and litigation-related expenses[171]. Tax and Internal Control - The effective tax rate for the three-month periods ended March 31, 2021, and March 31, 2020, was approximately 0% due to a full valuation allowance against deferred tax assets[166]. - No changes in internal control over financial reporting occurred during the Company's first fiscal quarter that materially affected or are likely to materially affect internal control[191]. - A material weakness in internal control over financial reporting was addressed during the last fiscal quarter[190].