Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q2 2021 Earnings Presentation
25 slides from Niagen Bioscience's earnings presentation, Aug 3, 2021
Slide 1: ChromaDex Earnings Conference Call Second Quarter 2021
1 ChromaDex Earnings Conference Call Second Quarter 2021 Rob Fried Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | August 3, 2021
Slide 2: Safe Harbor Statement
2SAFE HARBOR STATEMENT This presentation and other written or oral statements made from time to time by representatives of ChromaDex contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
Slide 3: Q2 2021 & Recent Highlights
3 Strong quarter financially and strategically, with growth in existing Tru Niagen® business and sales to new partners setting foundation for future growth. Demonstrated continued financial discipline while making investments to protect intellectual property. ✓ Tru Niagen® and total company net sale
Slide 4: Management Team
4 Management Team Rob Fried Chief Executive Officer E-Commerce & entertainment industry executive Savoy Pictures, Columbia Pictures, Fried Films, FeeIn, WHN, Healthspan Research Frank Jaksch Executive Chairman Co-founded ChromaDex in 2000 Kevin Farr Chief Financial Officer Former CFO, Mattel PriceWa
Slide 5: Scientific Update
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) Scientific Update
Slide 6: Scientific Advisory Board
6 Scientific Advisory Board Charles Brenner, Ph.D. Alfred E Mann Family Foundation Chair, Department of Diabetes & Cancer Metabolism City of Hope World's Foremost Authority on NAD Metabolism Roger Kornberg, Ph.D. Chairman Professor of Structural Biology Stanford University Nobel Prize Winner, Chemis
Slide 7: Niagen human clinical research areas
7 Note: Based on Niagen® nicotinamide riboside (NR) trials listed on clinicaltrials.gov and ChromaDex Material Transfer Agreements – studies in progress or in planning. Most prominent human clinical research areas for Niagen® are vitality, locomotion, cognition, and sensory VITALITY (incl. Cardiovas
Slide 8: NR Research Impact is Accelerating
8 NR Research Impact* is Accelerating 0 200 400 600 800 1000 1200 1400 1600 2013 2014 2015 2016 2017 2018 2019 2020 2021 C u m u la ti v e I m p a c t F a c to r Vitality Locomotion Cognition Sensory Psychological Pharmacokinetic/Safety Basic Research Vitality Cognition SensoryPsychological Locomoti
Slide 9: New human studies on nicotinamide riboside
9 • Two new human studies on nicotinamide riboside registered since prior update:(1) • Maastricht University Medical Center (May 2021) • The objective is to explore whether combined treatment with NR and exercise imposes greater improvements in skeletal muscle mitochondrial metabolism in older adult
Slide 10: Recent Peer-Reviewed Publications
10 • Advanced Science – Altay et al., 2021 – “Combined Metabolic Activators Accelerates Recovery in Mild-to-Moderate COVID-19.” – June 2021 • Randomized, double-blinded, placebo-controlled Phase 2 and Phase 3 clinical study on patients with mild-to-moderate COVID-19 in Turkey • In Phase 3, researche
Slide 11: Financial Highlights
Financial Highlights The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019)
Slide 12: Q2 2021 Net Sales Mix
12 e-Commerce 53% Watson's & Other B2B 23% Niagen® Ingredient 13% Analytical Reference Standards & Services (1) 5% Other Ingredients 6% $15.3MM e-Commerce 60% Watson's & Other B2B 27% Niagen® Ingredient 7% Analytical Reference Standards & Services (1) 5%Other Ingredients 1% $17.7MM Q2 2021Q2 2020 ➢
Slide 13: Q2 2021 Net Sales
13 Growth Rates YoY % (vs Q2 2020) Q2 2021 Net Sales ($ in millions) QoQ % (vs Q1 2021) $15.4 +31% +11% +32% +67% -36% +7% +13% -14% -74% +96% +16% +21%Total 0.2 0.8 1.3 4.8 10.6 Other Ingredients Analytical Reference Standards & Services (1) Niagen® Ingredient Watson's & Other B2B e-Commerce TRU NI
Slide 14: Year-to-Date 2021 Net Sales
14 0.3 1.7 2.5 7.6 20.2 Other Ingredients Analytical Reference Standards & Services (1) Niagen® Ingredient Watson's & Other B2B e-Commerce YTD 2021 Net Sales ($ in millions) Total Strong growth in Tru Niagen® and Analytical Reference Standards & Services business partially offset by lower sales in N
Slide 15: 2018 – 2021 YTD Net Sales Summary
15 2018 – 2021 YTD Net Sales Summary Note – Other B2B previously referred to as International / Other (In millions) 2018 2019 2020 2021 Q2 '21 vs Q1 '21 Description Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Ecommerce 1.8 3.5 4.4 5.2 15.0 5.9 6.5 7.1 7.9 27.5 8.2 8.1 8.7 9.5 34.5 9.6 10.6 Wa
Slide 16: Q2 2021 vs Q1 2021 Results
16 (in thousands) Q2 2021 Q1 2021 Notes Net Sales $ 17,699 $ 14,683 Tru Niagen® business up 24% driven by global e-Commerce growth and higher Watson’s sales. Launched in U.S. Walmart™ stores in Q2 2021. Gross Profit % of Net Sales 10,810 61.1% 9,234 62.9% Down 180bps largely due to business mix (hig
Slide 17: Q2 2021 vs Q2 2020 Results
17 (in thousands) Q2 2021 Q2 2020 Notes Net Sales $ 17,699 $ 15,287 Tru Niagen® business up 31% driven by global e-Commerce growth and higher Watson’s sales, partially offset by absence of sale to Horizon Ventures. Launched in U.S. Walmart™ stores in Q2 2021. Gross Profit % of Net Sales 10,810 61.1%
Slide 18: Q2 2021 Adjusted EBITDA Summary
18 Q2 2021 Adjusted EBITDA, excluding legal expense, was positive $0.6 million, an improvement of $1.3 million sequentially driven by higher sales, partially offset by higher operating expenses Adjusted EBITDA Summary (1) Q4 2019 includes $2.2 million of bad debt expense related to the write-off of
Slide 19: Q2 2021 Operating Loss vs Q2 2020
19 Q2 2021 Operating Loss vs Q2 2020 (in millions) +$2.4M -$4.3MM
Slide 20: Strengthened the balance sheet, continued to manage working capital
20 Strengthened the balance sheet, continued to manage working capital (in thousands) 12/31/18 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 Key Drivers Cash $ 22,616 $ 18,812 $13,608 $18,890 $15,478 $16,697 $44,691 $38,778 $25 million capital raise plus stock option exercise by employee
Slide 21: Quarterly Cash Flow
21 (1) Includes $4 million deferred revenue related to the upfront payment from Nestlé. (2) Includes $10 million issuance of convertible notes, net of $565,000 of issuance costs. (3) Includes $7 million issuance of common stock, net of $226,000 of issuance costs. (4) Includes $2.2 million write-off
Slide 22: 2021 Financial Outlook
22 2021 Financial Outlook (in thousands) 2019 Actual 2020 Actual 2021 Full Year (“FY”) Outlook Key Drivers (Current FY Outlook) Net Sales $46,291 $59,257 • Continued steady revenue growth (No change) • Global e-Commerce business • Existing + new strategic partnerships Gross Margin % (as a % of net s
Slide 23: 2020 Adjusted EBITDA excluding legal expense
23 2020 Adjusted EBITDA excluding legal expense was a loss of ($1.0) million, a $7.8 million improvement YoY. The YoY improvement was driven by higher sales, higher gross margins, and marketing efficiency. Adjusted EBITDA 2019 vs 2020 (1) 2019 includes $2.2 million of bad debt expense related to the
Slide 24: Delivered a strong second quarter
24 Delivered a strong second quarter and continued to demonstrate financial discipline while making important investments to protect our intellectual property. • Total net sales of $17.7 million in Q2 2021 (+16% YoY, 21% versus Q1 2021) • Q2 2020 included a $1.6 million purchase from Horizon Venture
Slide 25: Contact Info
25 Contact Info Brianna Gerber Vice President of Finance and Investor Relations T: +1.949.419.0288 ext. 127 BriannaG@chromadex.com www.chromadex.com Where to buy TRU NIAGEN® www.truniagen.com www.amazon.com