cdcx-20220331

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, 2022

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 10, 2022 there were 68,334,586 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, 2022 and December 31, 2021			3

Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and March 31, 2021.			4

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2022 and March 31, 2021			5

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and March 31, 2021			6

Notes to Condensed Consolidated Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21



Item 4. Controls and Procedures			28

PART II - Other Information

Item 1. Legal Proceedings			28

Item 1A. Risk Factors			30









Item 6. Exhibits			51

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)


	Mar 31, 2022		Dec 31, 2021

Assets
Current assets
Cash, including restricted cash of $0.2 million as of both dates	$	20,993	$	28,219
Trade receivables, net of allowances of $54 and $65, respectively; Including receivables from Related Party of: $2.3 million and $2.1 million, respectively.	6,310		5,226
Inventories	15,307		13,601
Prepaid expenses and other assets	1,913		1,859
Total current assets	44,523		48,905

Leasehold improvements and equipment, net	2,940		3,003
Intangible assets, net	808		857
Right-of-use assets	4,053		4,352
Other long-term assets	606		723
Total assets	$	52,930	$	57,840
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	9,780	$	10,423
Accrued expenses	8,126		6,481
Current maturities of operating lease obligations	630		528
Current maturities of finance lease obligations	17		20
Customer deposits	141		161
Total current liabilities	18,694		17,613
Deferred revenue	4,346		4,346
Operating lease obligations, less current maturities	4,013		4,154

Total liabilities	27,053		26,113

Commitments and Contingencies (Note 10)

Stockholders' Equity
Common stock, $0.001 par value; authorized 150,000 shares; 68,149 shares and 68,126 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively.	68		68
Additional paid-in capital	202,502		200,614
Accumulated deficit	(176,693)		(168,953)
Cumulative translation adjustments	—		(2)
Total stockholders' equity	25,877		31,727
Total liabilities and stockholders' equity	$	52,930	$	57,840

See accompanying notes to 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,
	2022		2021

Sales, net	$	17,259	$	14,683
Cost of sales	6,727		5,449
Gross profit	10,532		9,234

Operating expenses:
Sales and marketing	8,237		6,258
Research and development	1,078		787
General and administrative	8,949		9,551
Total operating expenses	18,264		16,596
Operating loss	(7,732)		(7,362)

Interest expense, net	(8)		(19)
Net loss	$	(7,740)	$	(7,381)

Basic and diluted loss per common share	$	(0.11)	$	(0.12)

Basic and diluted weighted average common shares outstanding	68,314		64,164

See accompanying notes to condensed consolidated financial statements.

ChromaDex Corporation and Subsidiaries

Unaudited Condensed Consolidated Statement of Stockholders' Equity

(In thousands, unless otherwise indicated)


	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)	$	(2)	$	31,727


Issuance of restricted stock	23	—		—						—
Share-based compensation	—	—		1,888		—		—		1,888
Translation adjustment	—	—		—		—		2		2
Net loss	—	—		—		(7,740)		—		(7,740)
Balance, March 31, 2022	68,149	$	68	$	202,502	$	(176,693)	$	—	$	25,877


	Three Months Ended March 31, 2021
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Cumulative Translation Adjustments		Total Stockholders' Equity
	Shares	Amount
Balance, January 1, 2021	61,881	$	62	$	158,190	$	(141,825)	$	(3)	$	16,424
Issuance of common stock, net of offering costs of $0.1 million	3,846	4		24,867						24,871
Issuance of common stock resulting from the exercise of stock options	1,975	2		8,631		—		—		8,633
Share-based compensation	—	—		1,284		—		—		1,284
Translation adjustment	—	—		—		—		1		1
Net loss	—	—		—		(7,381)		—		(7,381)
Balance, March 31, 2021	67,702	$	68	$	192,972	$	(149,206)	$	(2)	$	43,832

See accompanying notes to condensed consolidated financial statements.

ChromaDex Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands, unless otherwise indicated)


	Three Months Ended March 31,
	2022		2021

Cash Flows From Operating Activities
Net loss	$	(7,740)	$	(7,381)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of leasehold improvements and equipment	201		221
Amortization of intangibles	49		60
Amortization of right of use assets	299		126
Share-based compensation expense	1,888		1,284
Provision for doubtful trade receivables	10		14
Non-cash financing costs	18		28
Changes in operating assets and liabilities:
Trade receivables	(1,094)		(1,967)
Inventories	(1,706)		(1,079)
Implementation costs for cloud computing arrangement	(114)		(28)
Prepaid expenses and other assets	46		74
Accounts payable	(643)		2,248
Accrued expenses	1,645		1,196

Customer deposits and other	(18)		(47)
Operating lease liabilities	(39)		(154)
Net cash used in operating activities	(7,198)		(5,405)

Cash Flows From Investing Activities
Purchases of leasehold improvements and equipment	(25)		(46)


Net cash used in investing activities	(

SEC Form 10-Q filed by ChromaDex Corporation