Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q3 2021 Earnings Presentation
25 slides from Niagen Bioscience's earnings presentation, Nov 3, 2021
Slide 1: ChromaDex Earnings Conference Call Third Quarter 2021
1 ChromaDex Earnings Conference Call Third Quarter 2021 Rob Fried Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Fadi Karam Chief Marketing Officer Nasdaq: CDXC | November 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: Q3 2021 & Recent Highlights
3 Q3 2021 & Recent Highlights (1) The jury found that Elysium is liable for a total of approximately $3.0 million and ChromaDex is liable for approximately $1.9 million, for net damages to ChromaDex of approximately $1.1 million. Including accrued interest, ChromaDex is owed approximately $2.25 to $
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: Science Continues to Expand
6 Science Continues to Expand • Two new human studies on nicotinamide riboside registered since prior update:(1) • City of Hope Medical Center (August 2021) • The objective is to study the effect of exercise and nicotinamide riboside on muscle health and insulin resistance in adult survivors of chil
Slide 7: Recent Peer-Reviewed Clinical Publications
7 Recent Peer-Reviewed Clinical Publications • Movement Disorders – Willemsen et al., 2021 – “Nicotinamide Riboside Improves Ataxia Scores and Immunoglobulin Levels in Ataxia Telangiecstasia.” – September 2021 • First-of-its kind clinical study on NR in children, highlighting improvements for premat
Slide 8: Scientific Advisory Board
8 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 9: Human Clinical Research Areas for Niagen
9 Note: Based on Niagen® nicotinamide riboside (NR) trials listed on clinical trials.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. Cardiova
Slide 10: NR Research Impact is Accelerating
10 NR Research Impact* is Accelerating
Slide 11: Financial Highlights
Financial Highlights
Slide 12: Q3 2021 Net Sales Mix
12 Q3 2021Q3 2020 • Tru Niagen® net sales decreased to 85% of net sales in Q3 2021 compared to 87% in Q2 2021(2) • Niagen®-related net sales increased to 95% of net sales in Q3 2021 compared to 94% in Q2 2021(3) 1. Analytical Reference Standards and Services previously reported as Core 2. Tru Niagen
Slide 13: Q3 2021 Net Sales Growth Rates
13 Growth Rates YoY % (vs Q3 2020) Q3 2021 Net Sales ($ in millions) QoQ % (vs Q2 2021) $14.8 +21% (1)% +31% (11)% +89% 30% (2)% (7)% (80)% (43)% +22% (2)%Total (1) Analytical Reference Standards and Services previously reported as Core Q3 2021 Net Sales TRU NIAGEN® business up 24% year-over-year dr
Slide 14: YTD 2021 Net Sales
14 YTD 2021 Net Sales ($ in millions) Total Strong growth in Tru Niagen® and Analytical Reference Standards & Services business partially offset by lower sales in Niagen® and other ingredients. Niagen® Ingredient business expected to improve with new strategic partnerships. (1) Analytical Reference
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 Description Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 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 10.5 Watsons 0.8
Slide 16: Q3 2021 vs Q2 2021 Results
16 (in thousands) Q3 2021 Q2 2021 Notes Net Sales 17,308 17,699 Tru Niagen® business down (4)% driven by lower Walmart and Watson's sales. Walmart sales were lower compared to initial shelf- stocking last quarter to support the launch. Gross Profit % of Net Sales 10,578 61.1% 10,810 61.1% Gross marg
Slide 17: Q3 2021 vs Q3 2020 Results
17 (in thousands) Q3 2021 Q3 2020 Notes Net Sales 17,308 14,180 Tru Niagen® business up 24% driven by global e-Commerce growth and higher B2B sales. Gross Profit % of Net Sales 10,578 61.1% 8,454 59.6% Up 150bps driven by product cost savings initiatives, overall scale on supply chain overhead and f
Slide 18: Q3 2021 Adjusted EBITDA Summary
18 Q3 2021 Adjusted EBITDA, excluding legal expense, was a loss of $(0.6) million, a decline of $(1.3) million sequentially driven by lower sales and higher operating expenses Adjusted EBITDA Summary 1. Q4 2019 includes $2.2 million of bad debt expense related to the write-off of Elysium accounts re
Slide 19: Q3 2021 Operating Loss vs Q3 2020
19 Q3 2021 Operating Loss vs Q3 2020 (in millions) +$2.2 MM -$6.8 MM
Slide 20: Strengthened the Balance Sheet, Managed 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 9/30/21 Key Drivers Cash $ 22,616 $ 18,812 $13,608 $18,890 $15,478 $16,697 $44,691 $38,778 $33,102 $25 million capital raise plus stock option exer
Slide 21: Quarterly Cash Flow Highlights
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 of r
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 sal
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 Solid Third Quarter
24 Delivered a solid third quarter and continued to demonstrate financial discipline while making important investments to build our brand and protect our intellectual property. • Total net sales of $17.3 million in Q3 2021 (+22% YoY, (2)% versus Q2 2021) ◦ Q2 2021 included initial shelf-stocking to
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® truniagen.com amazon.com Walmart.com and select Walmart Retail Locations