cdcx-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

Commission File Number: 001-37752


			CHROMADEX CORPORATION
			(Exact Name of Registrant as Specified in its Charter)


Delaware						26-2940963
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

10900 Wilshire Blvd. Suite 600, Los Angeles, California						90024
(Address of Principal Executive Offices)						(Zip Code)

Registrant's telephone number, including area code: (310) 388-6706

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of Each exchange on which registered
Common Stock, $0.001 par value per share	CDXC	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☑

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer, non-accelerated filer, smaller reporting company or emerging growth company. See definition of “large accelerated filer, accelerated filer, smaller reporting company and emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☑

Smaller reporting company

☑

Emerging growth company

☐

If an emerging growth company, indicate if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Yes

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

Yes

☑

As of May 8, 2023 there were 74,966,125 shares of the registrant’s common stock issued and outstanding.

CHROMADEX CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


PART I - Financial Information (unaudited)			Pg.

Item 1. Financial Statements (unaudited):			3

Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022			3

Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and March 31, 2022			4

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and March 31, 2022			5

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and March 31, 2022			6

Notes to Condensed Consolidated Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22

Item 3. Quantitative and Qualitative Disclosures About Market Risk			30

Item 4. Controls and Procedures			30

PART II - Other Information

Item 1. Legal Proceedings			30

Item 1A. Risk Factors			32









Item 6. Exhibits			52

Signatures			53

PART I

Item 1. FINANCIAL STATEMENTS (unaudited)

ChromaDex Corporation and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(In thousands except par values, unless otherwise indicated)


	March 31, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents, including restricted cash of $152 for both periods presented	$	23,141	$	20,441
Trade receivables, net of allowances of $499 and $122, respectively; Including receivables from Related Party of: $3.5 million and $3.1 million, respectively	9,221		8,482
Inventories	11,908		14,677
Prepaid expenses and other assets	2,295		2,967
Total current assets	46,565		46,567

Leasehold improvements and equipment, net	2,689		2,799
Intangible assets, net	630		671
Right-of-use assets, net	3,352		3,523
Other long-term assets	532		497
Total assets	$	53,768	$	54,057
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	8,951	$	9,679
Accrued expenses	8,610		7,337
Current maturities of operating lease obligations	697		680
Current maturities of finance lease obligations	17		16
Customer deposits	148		157
Total current liabilities	18,423		17,869
Deferred revenue	3,955		3,955
Operating lease obligations, less current maturities	3,353		3,539
Finance lease obligations, less current maturities	20		22
Total liabilities	25,751		25,385

Commitments and Contingencies (Note 10)

Stockholders' Equity
Common stock, $0.001 par value; authorized 150,000 shares; 74,666 shares and 74,567 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	74		74
Additional paid-in capital	215,367		214,094
Accumulated deficit	(187,424)		(185,493)
Cumulative translation adjustments	—		(3)


Total stockholders' equity	28,017		28,672
Total liabilities and stockholders' equity	$	53,768	$	54,057

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

ChromaDex Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share data)


	Three Months Ended March 31,
		2023		2022

Sales, net		$	22,556	$	17,259
Cost of sales		9,038		6,727
Gross profit		13,518		10,532

Operating expenses:
Sales and marketing		7,874		8,237
Research and development		1,193		1,078
General and administrative		6,419		8,949
Total operating expenses		15,486		18,264
Operating loss		(1,968)		(7,732)

Nonoperating income (expenses):

Interest income (expense), net		66		(8)
Net loss		$	(1,902)	$	(7,740)





Basic and diluted loss per common share attributable to ChromaDex Corporation		$	(0.03)	$	(0.11)

Basic and diluted weighted average common shares outstanding		74,796		68,314

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

ChromaDex Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Stockholders' Equity

(In thousands, unless otherwise indicated)


	Three Months Ended March 31, 2023
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Cumulative Translation Adjustments		Total Stockholders' Equity
	Shares	Amount
Balance, January 1, 2023	74,567	$	74	$	214,094	$	(185,493)	$	(3)	$	28,672


Issuance of restricted stock	99	—		—		—		—		—
Share-based compensation	—	—		1,273		—		—		1,273
Translation adjustment	—	—		—		—		3		3

Adjustment to retained earnings: Cumulative effect of initially adopting ASC 326	—	—		—		(29)		—		(29)
Net loss	—	—		—		(1,902)		—		(1,902)
Balance, March 31, 2023	74,666	$	74	$	215,367	$	(187,424)	$	—	$	28,017


	Three Months Ended March 31, 2022
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Cumulative Translation Adjustments	Total Stockholders' Equity
	Shares	Amount
Balance, January 1, 2022	68,126	$	68	$	200,614	$	(168,953)	$

SEC Form 10-Q filed by ChromaDex Corporation