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ChromaDex Reports 2015 Record Revenue as Ingredient Sales Grew 83%

- Company Expects to Report Record Revenue for Q1 2016 -

- Led by NIAGEN®, Company Expects Strong Revenue Growth in 2016 -

IRVINE, Calif., March 17, 2016 (GLOBE NEWSWIRE) -- ChromaDex Corp. (OTCQX:CDXC), an innovator of proprietary health, wellness and nutritional ingredients, that creates science-based solutions to dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, reported today record net revenue of $22.0 million for the year ended January 2, 2016 (“FY 2015”), an increase of 44% as compared to $15.3 million for the year ended January 2, 2015 (“FY 2014”).

The record net revenue was largely due to increased sales in its ingredients business segment, led by its NIAGEN® branded nicotinamide riboside (NR).  The ingredients segment generated record net sales of $12.5 million for FY 2015, an increase of 83%, compared to $6.9 million for FY 2014.  The core standards and services segment also posted a 12% growth as it generated record net sales of $8.4 million for FY 2015, compared to $7.5 million for FY 2014.  Net sales for the scientific and regulatory consulting segment increased by 9%, from $1.0 million for FY 2014 to $1.1 million for FY 2015, as more consulting projects were completed during FY 2015.  The net loss attributable to common stock holders for FY 2015 was $2.8 million or ($0.03) per share as compared to a net loss of $5.4 million or ($0.05) per share for FY 2014.  The non-cash, stock based compensation expense related to stock options and other stock-based compensation in FY 2015 was $2.0 million. Net loss adjusted for share based compensation, which is a “non-GAAP measure,” would have the effect of decreasing the Company’s net loss for FY 2015 to $0.8 million.  As of January 2, 2016, cash, cash equivalents and marketable securities totaled $5.5 million.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “2015 was breakout year for ChromaDex as all significant business units posted record revenue.  This is the first year that the ingredient segment has accounted for the majority of the Company’s revenue.  Activity in new business development remains robust.  We expect to report record revenue in Q1 2016 as well as strong revenue growth for the full-year."

Jaksch continued, “We are in the early innings of the commercialization and business development of our lead ingredient, NIAGEN® branded NR. Whereas business activity in 2015 was largely with direct-to-consumer supplement companies, we expect in 2016 nutritional supplement products featuring NIAGEN® to populate the shelves of tens of thousands of major branded retail locations throughout the U.S.  Moreover, the recent regulatory qualifications, NDIN and GRAS, have opened the door for NIAGEN® to be included as a feature ingredient in a growing number of food, beverage and supplement products.”

“Perhaps the most unrealized value for ChromaDex shareholders may lie in NR’s pharmaceutical applications.  We have been working closely with the NIH on a therapeutic indication for NR as a treatment of a rare pediatric orphan disease, Cockayne Syndrome.  We expect to file for orphan designation as well as an IND with the FDA in 2016.  Collaborators such as NIH, are currently performing pre-clinical studies on the use of NR to treat several other orphan diseases.” 

"The excitement continues to build surrounding the peer-reviewed published research and commentary of NR’s potential health benefits as a precursor to the co-enzyme nicotinamide adenine dinucleotide (NAD+) . We continue to build upon our already significant patent portfolio surrounding NR and NAD+ precursors, putting us in the enviable position of ‘gatekeeper’ to the entire NAD+ precursor category. Our vision is that NIAGEN® will become part of an important NAD+ nutrient deficiency story similar to Vitamin C, Vitamin D, folic acid and Omega-3 fatty acids.  A new vitamin of this magnitude is the type of opportunity that comes along once every 25+ years.  All of the important pieces of the puzzle – peer reviewed science, media attention to NAD+ story, and the rise of the treatment of aging as disease - are creating a perfect storm for NIAGEN® to become the next billion dollar ingredient.”

2015 and recent 2016 Company highlights include:

             
Investor Conference Call

ChromaDex management will host an investor conference call to discuss the year end results and provide a general business update on Monday, March 21, at 11am EDT.  Participants should call in at least 10 minutes prior to the call.  The dial-in information is as follows:

U.S. toll free: 1-866-327-8118
Outside the U.S.: 1-678-509-7526
Conference ID for this call is: 69346049

The webcast replay will be available after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com.

About ChromaDex:

ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (known as Spherix Consulting). As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house chemistry, regulatory and safety consulting business units to develop commercially viable ingredients. Our ingredient portfolio is backed with clinical and scientific research, as well as extensive IP protection. Our portfolio of patented ingredient technologies includes NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; ProC3G®, a natural black rice containing cyanidin-3-glucoside; IMMULINA, a spirulina extract; and Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins. To learn more about ChromaDex, please visit www.ChromaDex.com

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013, the Company’s Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.

Statements in this press release have not been evaluated by the Food and Drug Administration. Products or ingredients are not intended to diagnose, treat, cure or prevent any disease.

ChromaDex Corporation and Subsidiaries    
Consolidated Statements of Operations    
Years Ended January 2, 2016 and January 3, 2015    
     
    2015     2014  
     
Sales, net $   22,014,140   $ 15,313,179  
Cost of sales     13,533,132     9,987,514  
     
Gross profit     8,481,008     5,325,665  
     
Operating expenses:    
Sales and marketing     2,326,788     2,136,584  
Research and development     891,601     513,671  
General and administrative     7,416,451     7,860,930  
Loss from investment in affiliate     -     45,829  
Operating expenses     10,634,840     10,557,014  
     
Operating loss     (2,153,832 )   (5,231,349 )
     
Nonoperating income (expense):    
Interest income     3,325     2,013  
Interest expense     (616,033 )   (158,849 )
Nonoperating expenses     (612,708 )   (156,836 )
     
Loss before income taxes     (2,766,540 )   (5,388,185 )
Provision for income taxes     (4,527 )   -  
     
Net loss $   (2,771,067 ) $ (5,388,185 )
     
Basic and Diluted loss per common share $   (0.03 ) $ (0.05 )
     
Basic and Diluted weighted average common shares outstanding     107,632,022     106,459,379  
     
See Notes to Consolidated Financial Statements.    


Consolidated Statements of Operations    Effects of Non-cash Charges associated with
  Consolidated Statements of Operations
 (US GAAP)    Share-based Compensation Expense    Excluding Share-based Compensation (Non-GAAP Presentation)
Years Ended January 2, 2016 and January 3, 2015
  Years Ended January 2, 2016 and January 3, 2015
  Years Ended January 2, 2016 and January 3, 2015
                     
    2015     2014         2015     2014         2015     2014  
                     
Sales $   22,014,140    $ 15,313,179     Sales $   -    $ -     Sales $   22,014,140   $ 15,313,179  
Cost of sales     13,533,132      9,987,514     Cost of sales     -      -     Cost of sales     13,533,132     9,987,514  
                     
Gross profit     8,481,008     5,325,665     Gross profit     -      -     Gross profit     8,481,008     5,325,665  
                     
Operating expenses:       Operating expenses:       Operating expenses:    
Sales and marketing     2,326,788     2,136,584     Sales and marketing     -      -     Sales and marketing     2,326,788     2,136,584  
Research and development     891,601     513,671     Research and development     -      -     Research and development     891,601     513,671  
General and administrative     7,416,451     7,860,930     General and administrative     (1,977,611 )   (2,916,924 )   General and administrative     5,438,840     4,944,006  
Loss from investment in
affiliate
    -     45,829     Loss from investment in
affiliate
    -      -     Loss from investment in affiliate     -      45,829  
Operating expenses     10,634,840      10,557,014     Operating expenses     (1,977,611 )   (2,916,924 )   Operating expenses     8,657,229     7,640,090  
                     
Operating loss     (2,153,832 )   (5,231,349 )   Operating income     1,977,611     2,916,924     Operating loss     (176,221 )   (2,314,425 )
                     
Nonoperating income (expense):       Nonoperating income:       Nonoperating income (expense):    
Interest income     3,325     2,013     Interest income     -      -     Interest income     3,325     2,013  
Interest expense     (616,033 )   (158,849 )   Interest expense     -      -     Interest expense     (616,033 )   (158,849 )
Nonoperating expense     (612,708 )   (156,836 )   Nonoperating income     -      -     Nonoperating expense     (612,708 )   (156,836 )
                     
Loss before income taxes     (2,766,540 )   (5,388,185 )   Income before income taxes     1,977,611     2,916,924     Loss before income taxes     (788,929 )   (2,471,261 )
Provision for income taxes     (4,527 )   -     Provision for income taxes     -      -     Provision for income taxes     (4,527 )   -  
                     
Net loss $   (2,771,067 ) $ (5,388,185 )   Net income $   1,977,611   $ 2,916,924     Net loss $   (793,456 ) $ (2,471,261 )
                     
Basic and Diluted loss per common share $   (0.03 ) $ (0.05 )   Basic and Diluted income per common share $   0.02   $ 0.03     Basic and Diluted loss per common share $   (0.01 ) $ (0.02 )
                     
Basic and Diluted weighted       Basic and Diluted weighted       Basic and Diluted weighted    
average common shares outstanding     107,632,022      106,459,379     average common shares outstanding     107,632,022     106,459,379     average common shares outstanding     107,632,022     106,459,379  


ChromaDex Company Contact:

Andrew Johnson
Director of Investor Relations
949-419-0288
andrewj@chromadex.com

ChromaDex Investor Contacts:                                            

The Del Mar Consulting Group, Inc.
Robert B. Prag, President
858-794-9500
bprag@delmarconsulting.com

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ChromaDex, Inc.