cdxc_10q.htm

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, 2021

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 ☒ No ☐

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 ☒ No ☐

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. (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by checkmark 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2021 there were 67,932,548 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)

ITEM 1	FINANCIAL STATEMENTS (UNAUDITED):	5
	Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020	5
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and March 31, 2020	6
	Condensed Consolidated Statements of Stockholders Equity for the three months ended March 31, 2021 and March 31, 2020	7
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and March 31, 2020	8
	Notes to Condensed Consolidated Financial Statements	9

ITEM 2	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	24
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32
ITEM 4	CONTROLS AND PROCEDURES	33

PART II - OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	34
ITEM 1A	RISK FACTORS	34
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	54
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	54
ITEM 4	MINE SAFETY DISCLOSURES	54
ITEM 5	OTHER INFORMATION	54
ITEM 6	EXHIBITS	55

SIGNATURES		57

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements that involve risks and uncertainties. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other comparable terminology. These forward-looking statements include, but are not limited to, statements relating to our business, business strategy, products and services we may offer in the future, the outcome and impact of litigation, the timing and results of future regulatory filings, the timing and results of future clinical trials, our ability to collect from major customers, sales and marketing strategy and capital outlook.

Any forward-looking statements in this Quarterly Report reflect our current views with respect to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under Part II, Item 1A, “Risk Factors” of this Quarterly Report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Unless the context otherwise indicates, references in this Quarterly Report to the terms “ChromaDex”, “the Company”, “we,” “our, and “us” refer to ChromaDex Corporation.

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SUMMARY OF RISK FACTORS

An investment in shares of our common stock involves a high degree of risk. Below is a list of the more significant risks associated with our business. This summary does not address all of the risks that we face. Additional discussion of the risks listed in this summary, as well as other risks that we face, are set forth under Part I, Item 1A, “Risk Factors” in this Quarterly Report. Some of the material risks associated with our business include the following:

	·	The COVID-19 pandemic has adversely affected, and is expected to continue to pose risks to our business, results of operations, financial condition and cash flows, and other epidemics or outbreaks of infectious diseases may have a similar impact.

	·	We have a history of operating losses, may need additional financing to meet our future long-term capital requirements and may be unable to raise sufficient capital on favorable terms or at all.

	·	Our ability to protect our intellectual property and proprietary technology through patents and other means is uncertain and may be inadequate, which would pose risks to our business, results of operations, financial condition and cash flows.

	·	We are currently engaged in substantial and complex litigation with Elysium Health, Inc. and Elysium Health LLC (collectively, “Elysium”), the outcome of which could materially harm our business, results of operations, financial condition and cash flows.

	·	Our TRU NIAGEN® products are not approved by the United States Food and Drug Administration or any foreign regulatory authority to mitigate, prevent, treat, diagnose or cure COVID-19 or any other disease or condition.

	·	The future growth and profitability of our consumer product business will depend in large part upon the effectiveness and efficiency of our marketing efforts and our ability to select effective markets and media in which to market and advertise.

	·	Unfavorable publicity or consumer perception of our products and any similar products distributed by other companies could have a material adverse effect on our business, results of operations, financial condition and cash flows.

	·	Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control.

	·	We rely on single or a limited number of third-party suppliers for the raw materials required to produce our products.

	·	Any inability to maintain sales, marketing and distribution capabilities or maintain arrangements with third parties to sell, market and distribute our products, would pose risks to our business, results of operations, financial condition and cash flows.

	·	Our failure to establish and maintain effective internal control over financial reporting could result in material misstatements in our financial statements, our failure to meet our reporting obligations and cause investors to lose confidence in our reported financial information, which in turn could cause the trading price of our common stock to decline.

	·	Government regulations of our customer’s business are extensive and are constantly changing. Changes in these regulations can significantly affect customer demand for our products and services.

	·	The market price of our common stock may be volatile and adversely affected by several factors.

	·	We have not paid cash dividends in the past and do not expect to pay cash dividends in the foreseeable future. Any return on investment may be limited to the value of our common stock.

	·	We have a significant number of outstanding options. Future sales of these shares could adversely affect the market price of our common stock.

	·	We may become involved in securities class action litigation that could divert management’s attention and harm our business, results of operations, financial condition and cash flows.

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PART I - FINANCIAL INFORMATION (UNAUDITED)

Item 1. Financial Statements (UNAUDITED)

ChromaDex Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

March 31, 2021 and December 31, 2020

(In thousands, except per share data)

	Mar. 31, 2021			Dec. 31, 2020
Assets

Current Assets
Cash, including restricted cash of $0.2 million and $0.2 million, respectively	$	44,691		$	16,697
Trade receivables, net of allowances of $0.2 million and $0.2 million, respectively;
Receivables from Related Party: $1.3 million and $0.9 million, respectively		4,647			2,694
Inventories		12,762			11,683
Prepaid expenses and other assets		1,119			1,145
Total current assets		63,219			32,219

Leasehold Improvements and Equipment, net		3,058			3,206
Intangible Assets, net		1,022			1,082
Right of Use Assets		1,100			1,226
Other Long-term Assets		594			625

Total assets	$	68,993		$	38,358

Liabilities and Stockholders' Equity

Current Liabilities
Accounts payable	$	11,693		$	9,445
Accrued expenses		7,328			6,133
Current maturities of operating lease obligations		485			589
Current maturities of finance lease obligations		19			31
Customer deposits		231			278
Total current liabilities		19,756			16,476

Deferred Revenue		4,441			4,441
Operating Lease Obligations, Less Current Maturities		947			997
Finance Lease Obligations, Less Current Maturities		17			20

Total liabilities		25,161			21,934

Commitments and Contingencies

Stockholders' Equity
Common stock, $.001 par value; authorized 150,000 shares; issued and outstanding March 31, 2021 67,702 shares and December 31, 2020 61,881 shares		68			62
Additional paid-in capital		192,972			158,190
Accumulated deficit		(149,206	)		(141,825	)
Cumulative translation adjustments		(2	)		(3	)
Total stockholders' equity		43,832			16,424

Total liabilities and stockholders' equity	$	68,993		$	38,358

See Notes to Consolidated Financial Statements.

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ChromaDex Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three Month Periods Ended March 31, 2021 and March 31, 2020

(In thousands, except per share data)

	Mar. 31, 2021			Mar. 31, 2020

Sales, net	$	14,683		$	14,345
Cost of sales		5,449			6,034

Gross profit		9,234			8,311

Operating expenses:
Sales and marketing		6,258			4,447
Research and development		824			919
General and administrative		9,514			8,835
Operating expenses		16,596			14,201

Operating loss		(7,362	)		(5,890	)

Nonoperating expense:
Interest expense, net		(19	)		(12	)
Nonoperating expense		(19	)		(12	)

Net loss	$	(7,381	)	$	(5,902	)

Basic and diluted loss per common share	$	(0.12	)	$	(0.10	)

Basic and diluted weighted average common shares outstanding		64,164			59,782

See Notes to Consolidated Financial Statements.

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ChromaDex Corporation and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

For the Three Month Periods Ended March 31, 2021 and March 31, 2020

(In thousands)

	Common Stock				Additional					Cumulative			Total
	Shares		Amount		Paid-in Capital		Accumulated Deficit			Translation Adjustments			Stockholders' Equity

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

Exercise of stock options		1,975		2		8,631		-			-			8,633

Share-based compensation		-		-		1,284		-			-			1,284

Net loss		-		-		-		(7,381	)		1			(7,380	)

Balance, March 31, 2021		67,702	$	68	$	192,972	$	(149,206	)	$	(2	)	$	43,832

	Common Stock				Additional					Cumulative		Total
	Shares		Amount		Paid-in Capital		Accumulated Deficit			Translation Adjustments		Stockholders' Equity

Balance, January 1, 2020		59,562	$	60	$	142,285	$	(121,900	)	$	-	$	20,445

Exercise of stock options		43		-		132		-			-		132

Share-based compensation		-		-		1,873		-			-		1,873

Net loss		-		-		-		(5,902	)				(5,902	)

Balance, March 31, 2020		59,605	$	60	$	144,290	$	(127,802	)	$	-	$	16,548

See Notes to Consolidated Financial Statements.

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ChromaDex Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Three Month Periods Ended March 31, 2021 and March 31, 2020

(In thousands)

	Mar. 31, 2021			Mar. 31, 2020

Cash Flows From Operating Activities
Net loss	$	(7,381	)	$	(5,902	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of leasehold improvements and equipment		221			214
Amortization of intangibles		60			62
Amortization of right of use assets		126			92
Share-based compensation expense		1,284			1,873
Allowance for doubtful trade receivables		14			(2,708	)
Non-cash financing costs		28			23
Changes in operating assets and liabilities:
Trade receivables		(1,967	)		1,326
Inventories		(1,079	)		255
Implementation costs for cloud computing arrangement		(28	)		-
Prepaid expenses and other assets		74			252
Accounts payable		2,248			(1,467	)
Accrued expenses		1,196			833
Customer deposits and other		(47	)		69
Principal payments on operating leases		(154	)		(143	)
Net cash used in operating activities		(5,405	)		(5,221	)

Cash Flows From Investing Activities
Purchases of leasehold improvements and equipment		(46	)		(15	)
Investment in other long-term assets		-			(5	)
Net cash used in investing activities		(46	)		(20	)

Cash Flows From Financing Activities
Proceeds from issuance of common stock, net		24,871			-
Proceeds from exercise of stock options		8,633			132
Payment of debt issuance costs		(44	)		(15	)
Principal payments on finance leases		(15	)		(80	)
Net cash provided by financing activities		33,445			37

Net increase (decrease) in cash		27,994			(5,204	)

Cash Beginning of Period, including restricted cash of $0.2 million for both 2021 and 2020		16,697			18,812

Cash Ending of Period, including restricted cash $0.2 million for both 2021 and 2020	$	44,691		$	13,608

Supplemental Disclosures of Cash Flow Information
Cash payments for interest on finance leases	$	1		$	6

Supplemental Schedule of Noncash Investing Activity
Financing lease obligation incurred for purchase of computer equipment and software	$	-		$	47

See Notes to Consolidated Financial Statements.

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Note 1. Interim Financial Statements

The accompanying financial statements of ChromaDex Corporation and its wholly owned subsidiaries, ChromaDex, Inc., ChromaDex Analytics, Inc., ChromaDex Asia Limited and ChromaDex Europa B.V. (collectively referred to herein as “ChromaDex” or the “Company” or, in the first person as “we”, “us” and “our”) include all adjustments, consisting of normal recurring adjustments and accruals, that, in the opinion of the management of the Company, are necessary for a fair presentation of the Company’s financial position as of March 31, 2021 and results of operations and cash flows for the three months ended March 31, 2021 and March 31, 2020. These unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2020 appearing in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “Commission”) on March 12, 2021. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results to be achieved for the full year ending on December 31, 2021. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

Note 2. Nature of Business

ChromaDex is a global bioscience company dedicated to healthy aging. The ChromaDex team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (“NAD+”), levels of which decline with age. ChromaDex is the innovator behind NAD+ precursor nicotinamide riboside (“NR”), commercialized as the flagship ingredient NIAGEN®. Nicotinamide riboside and other NAD+ precursors are protected by ChromaDex’s patent portfolio. ChromaDex delivers NIAGEN® as the sole active ingredient in its consumer product TRU NIAGEN®. The Company also has analytical reference standards and services segment, which focuses on natural product fine chemicals (known as “phytochemicals”) and related chemistry services.

Note 3. Liquidity

The Company's net cash outflow from operating activities was approximately $5.4 million for the three-month period ended March 31, 2021. As of March 31, 2021, cash and cash equivalents totaled approximately $44.7 million, which includes restricted cash of approximately $0.2 million.

The Company anticipates that its current cash, cash equivalents, and available line of credit up to $7.0 million from Western Alliance Bank will be sufficient to meet its projected operating plans through at least the next twelve months from the issuance date of these financial statements. The Company may, however, seek additional capital within the next twelve months, both to meet its projected operating plans within the next twelve months and/or to fund its longer-term strategic objectives. In June 2020, we filed a $125.0 million registration statement on Form S-3 with the Commission, utilizing a “shelf” registration process. Under this shelf registration process, we may sell securities from time to time, including up to $50.0 million pursuant to the At Market Issuance Sales Agreement, dated as of June 12, 2020, with B. Riley FBR, Inc. and Raymond James & Associates, Inc. (the “ATM Facility”). As of March 31, 2021, we have not sold any securities pursuant to the ATM Facility.

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Note 4. Significant Accounting Policies

Basis of presentation: The financial statements and accompanying notes have been prepared on a consolidated basis and reflect the consolidated financial position of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated from these financial statements. The Company’s fiscal year ends on December 31.

Recent accounting standards: In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard’s main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. The new guidance represents significant changes to accounting for credit losses: (i) full lifetime expected credit losses will be recognized upon initial recognition of an asset in scope; (ii) the current incurred loss impairment model that recognizes losses when a probable threshold is met will be replaced with the expected credit loss impairment method without recognition threshold; and (iii) the expected credit losses estimate will be based upon historical information, current conditions, and reasonable and supportable forecasts. ASU 2016-13 introduces two distinctive credit loss impairment models: (i) current expected credit loss impairment model (Subtopic 326-20) applicable to financial assets measured at amortized cost; and (ii) available-for-sale debt securities impairment model (Subtopic 326-30). ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Public entities that qualify as a smaller reporting company can elect to defer compliance effective for fiscal years beginning after December 15, 2022. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements.

Note 5. Earnings Per Share Applicable to Common Stockholders

The following table sets forth the computations of earnings per share amounts applicable to common stockholders for the three months ended March 31, 2021 and March 31, 2020:

	Three Months Ended
(In thousands, except per share data)	Mar. 31, 2021			Mar. 31, 2020

Net loss	$	(7,381	)	$	(5,902	)

Basic and diluted loss per common share	$	(0.12	)	$	(0.10	)

Basic and diluted weighted average common shares outstanding (1):		64,164			59,782

Potentially dilutive securities (2):
Stock options		10,157			12,194
Restricted stock units		92			-

______________

(1) Includes approximately 0.2 million and 0.2 million nonvested shares of restricted stock for the periods ending Mar. 31, 2021 and Mar. 31, 2020, respectively, which are participating securities that feature voting and dividend rights.

(2) Excluded from the computation of loss per share as their impact is antidilutive.

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Note 6. Related Party Transactions

Sale of consumer products

Net sales
Three months ended
Mar. 31, 2021

Net sales
Three months ended
Mar. 31, 2020

Trade receivable at
Mar. 31,

2021

Trade receivable at
Dec. 31,

2020

A.S. Watson Group

$1.6 million

$1.8 million

$1.3 million

$0.9 million

*A.S. Watson Group is a related party through common ownership of an enterprise that beneficially owns more than 10% of the common stock of the Company.

Note 7. Inventories

The amounts of major classes of inventory as of March 31, 2021 and December 31, 2020 are as follows:

(In thousands)	Mar. 31, 2021		Dec. 31, 2020
Consumer Products - Finished Goods	$	3,839	$	2,358
Consumer Products - Work in Process		4,620		5,718
Bulk ingredients		3,758		3,065
Reference standards		545		542
	$	12,762	$	11,683

Note 8. Stock Issuance

On February 20, 2021, the Company entered into a Securities Purchase Agreement with EverFund (the "Financing”) pursuant to which the Company agreed to sell and issue approximately 3.8 million of common stock at a price of $6.50 per share. On February 23, 2021, the Company closed the Financing and received proceeds of $24.9 million, net of offering costs.

Note 9. Leases

Operating Leases

As of March 31, 2021, the Company had right of use assets stemming from operating leases of approximately $1.1 million, and corresponding operating lease liabilities of approximately $1.4 million. For the three months ended March 31, 2021 and March 31, 2020, the following were expenses incurred in connection with our operating leases:

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(In thousands)	For the Three Months Ended Mar. 31, 2021		For the Three Months Ended Mar. 31, 2020
Operating leases
Operating lease expense	$	154	$	120
Variable lease expense		40		69
Operating lease expense		194		189
Short-term lease rent expense		62		64
Total expense	$	256	$	253

At Mar. 31,

2021

Weighted-average remaining lease term (years) operating leases

2.5

Weighted-average discount rate operating leases

7.0

Minimum future lease payments under operating leases as of March 31, 2021 are as follows:

(In thousands)
Nine Months Ending December 31, 2021	$	474
Year Ending December 31, 2022		299
Year Ending December 31, 2023		308
Year Ending December 31, 2024		310
Year Ending December 31, 2025		263
Total		1,654
Less present value discount		222
Operating lease liabilities		1,432
Less current portion		485
Long-term obligations under operating leases	$	947

Note 10. Share-Based Compensation

Equity Plans

At the discretion of the compensation committee of the Board of Directors (the “Compensation Committee”), the Company may grant options to purchase the Company’s common stock, restricted stock units and other equity awards to certain individuals from time to time. Management and the Compensation Committee determine the terms of awards which include the exercise price, vesting conditions and expiration dates at the time of grant. Expiration dates for stock options are not to exceed 10 years from their date of issuance.

The Company grants awards to recipients through the 2017 Equity Incentive Plan, as amended (the “2017 Plan”), which was approved by stockholders and the Board of Directors. As of March 31, 2021, under the 2017 Plan, the Company is authorized to issue shares subject to awards that total no more than the sum of (i) 14,500,000 new shares, (ii) approximately 384,000 unallocated shares remaining available for the grant of new awards under the Second Amended and Restated 2007 Equity Incentive Plan, (iii) any returning shares such as forfeited, cancelled, or expired shares and (iv) 500,000 shares pursuant to an inducement award. The remaining number of shares available for issuance under the 2017 Plan totaled approximately 5.6 million shares at March 31, 2021.

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General Vesting Conditions

The stock option and restricted stock unit awards are generally subject to a one-year cliff vesting period after which 1/3 of the shares vest with the remaining shares vesting ratably over a two-year period subject to the passage of time. However, some stock option awards are market or performance based and vest based on certain triggering events established by the Compensation Committee.

The fair value of the Company’s stock options that are not market based is estimated at the date of grant using the Black-Scholes option pricing model. The table below outlines the weighted average assumptions for options granted during the three months ended March 31, 2021.

Three months Ended March 31, 2021
Expected term	6 years
Expected volatility		73	%
Risk-free rate		1	%
Expected dividends		0	%

Service Period Based Stock Options

The following table summarizes activity of service period-based stock options at March 31, 2021 and changes during the three months then ended (in thousands except per-share data and remaining contractual term):

				Weighted Average
						Remaining				Aggregate
	Number of			Exercise		Contractual		Fair		Intrinsic
	Shares			Price		Term (Years)		Value		Value
Outstanding at Dec. 31, 2020		10,833		$	3.96		6.8

Options Granted		593			10.29		10.0	$	6.56
Options Exercised		(1,935	)		4.37					$	12,393
Options Forfeited		(375	)		4.34
Outstanding at Mar. 31, 2021		9,116		$	4.27		7.0			$	47,278	*

Exercisable at Mar. 31, 2021		5,666		$	3.63		5.6			$	32,326	*

*The aggregate intrinsic values in the table above are based on the Company’s stock price of $9.34, which is the closing price of the Company’s stock on the last day of business for the period ended March 31, 2021.

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Performance Based Stock Options

The Company also grants stock option awards that are performance based and vest based on the achievement of certain criteria established from time to time by the Compensation Committee. If these performance criteria are not met, the compensation expenses are not recognized and the expenses that have been recognized will be reversed.

The following table summarizes performance based stock options activity at March 31, 2021 and changes during the three months then ended (in thousands except per share data and remaining contractual term):

				Weighted Average
						Remaining			Aggregate
	Number of			Exercise		Contractual		Fair	Intrinsic
	Shares			Price		Term (Years)		Value	Value
Outstanding at Dec. 31, 2020		81		$	4.34		3.1

Options Granted		-			-
Options Exercised		(40	)		4.34				$	401
Options Forfeited		-			-
Outstanding at Mar. 31, 2021		41		$	4.34		2.8		$	205	*

Exercisable at Mar. 31, 2021		41		$	4.34		2.8		$	205	*

Total Remaining Unamortized Compensation for Stock Options

As of March 31, 2021, there was approximately $10.0 million of total unrecognized compensation expense related to non-vested stock options granted under the plans. That cost is expected to be recognized over a weighted average period of 2 years.

Restricted Stock Units

Restricted stock unit awards are generally subject to a one-year cliff vesting period after which 1/3 of the shares vest with the remaining shares vesting ratably over a two-year period subject to the passage of time. The following table summarizes activity of restricted stock unit awards granted at March 31, 2021 and changes during the three months then ended (in thousands except per share fair value):

			Weighted Average
	Shares		Fair Value
Unvested shares at Dec. 31, 2020		-	$	-
Granted		92		11.83
Vested		-		-
Forfeited		-		-
Unvested shares at Mar. 31, 2021		92	$	11.83

SEC Form 10-Q filed by ChromaDex Corporation