Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q3 2022 Earnings Presentation
24 slides from Niagen Bioscience's earnings presentation, Nov 2, 2022
Slide 1: ChromaDex Earnings Conference Call Third Quarter 2022
ChromaDex Earnings Conference Call Third Quarter 2022 Rob Fried Chief Executive Officer Brianna Gerber SVP, Finance / Interim Chief Financial Officer Nasdaq: CDXC | November 2022
Slide 2: Safe Harbor Statement
SAFE 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 1934
Slide 3: Q3 2022 & Recent Highlights
3 Q3 2022 & Recent Highlights • Total company and Tru Niagen® net sales down (1)% each YoY, with 7% growth in E-Commerce. • Delivered strong gross margins of 59.8% despite inflationary pressures in global supply chains. • Selling and marketing expense was lower as a percentage of net sales YoY (34.4
Slide 4: Management Team
Management Team Rob Fried Chief Executive Officer E-Commerce & entertainment industry executive Savoy Pictures, Columbia Pictures, Fried Films, FeeIn, WHN, Healthspan Research Fadi Karam Chief Marketing Officer Former Nestlé executive Deep brand building experience, across traditional retail as well
Slide 5: 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) 5 Financial Highlights
Slide 6: Q3 2022 Net Sales Mix
6 Q3 2022 Net Sales Mix E-Commerce 61% Watson's & Other B2B 24% Niagen® Ingredient 10% Analytical Reference Standards & Services 4% Other Ingredients 1% Q3 2021 $17.3 MM E-Commerce 66% Watson's & Other B2B 19% Niagen® Ingredient 11% Analytical Reference Standards & Services 4% Other Ingredients 0% $
Slide 7: Q3 2022 Net Sales
7 Q3 2022 Net Sales Q3 2022 Net Sales ($ in millions) 11.3 3.3 1.8 0.7 0.0 E-Commerce Watson's & Other B2B Niagen® Ingredient Analytical Reference Standards & Services Other Ingredients $14.6 Growth Rates YoY % (vs Q3 2021) QoQ % (vs Q2 2022) +7% (6)% (23)% +29% +7% +22% (9)% (9)% (66)% +320% (1)% +
Slide 8: YTD 2022 Net Sales
8 YTD 2022 Net Sales ($ in millions) Total Strong growth in E-Commerce and growth in Niagen® ingredient business, partially offset by decline in Watson's & Other B2B sales. Year-to-Date 2022 Net Sales +3% +11% (17)% +5% (6)% (24)% YoY % (vs YTD 2021) $44.0 34.2 9.8 4.4 2.3 0.3 E-Commerce Watson's &
Slide 9: 2020 – 2022 YTD Net Sales Summary
9 2020 – 2022 YTD Net Sales Summary ($ in millions) 2020 2021 2022 Description Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 E-Commerce $8.2 $8.1 $8.7 $9.5 $34.5 $9.6 $10.6 $10.5 $11.1 $41.8 $10.9 $12.0 $11.3 Watsons 1.8 1.3 2.5 2.1 7.6 1.6 2.9 2.6 2.2 9.3 2.6 1.5 2.6 Other B2B 1.1 2.3 0.8 0.8 5.0 1.3 1.8
Slide 10: Q3 2022 vs Q2 2022 Key P&L Metrics
10 Q3 2022 vs Q2 2022 Key P&L Metric (in thousands) Q3 2022 Q2 2022 Notes Net Sales $17,063 $16,732 Niagen® ingredient sales increased 22% driven by higher sales to new and existing partners. Tru Niagen® sales flat driven by higher Watson's sales , partially offset by lower E-Commerce sales (down (6
Slide 11: Q3 2022 vs Q3 2021 Key P&L Metrics
11 Q3 2022 vs Q3 2021 Key P&L Metrics (in thousands) Q3 2022 Q3 2021 Notes Net Sales $17,063 $17,308 Tru Niagen® business down (1)% driven by lower B2B sales (primarily due to COVID impacts), partially offset by growth in E-Commerce (+7%) Gross Profit % of Net Sales 10,207 59.8% 10,578 61.1% Down (1
Slide 12: Adjusted EBITDA Summary
12 Adjusted EBITDA Summary ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Finanical Measures (In thousands) Three months ended Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net loss, as reported $ (5,902) $ (3,711) $ (4,215) $ (6,097) $ (7
Slide 13: Q3 2022 Operating Loss vs Q3 2021
13 Q3 2022 Operating Loss vs Q3 2021 (8.8) 4.4 0.5 1.3 (0.1) (0.1) (0.2) (0.2) (3.1) Q3 2021 Operating Loss Legal Equity Comp (G+A) Sales & Marketing Other G+A Volume Gross Margin Decline Research and Development Q3 2022 Operating Loss (9.0) (8.0) (7.0) (6.0) (5.0) (4.0) (3.0) (2.0) (1.0) 0.0 -$0.6
Slide 14: Quarterly Balance Sheet Highlights
14 Quarterly Balance Sheet Highlights (in thousands) 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 Key Drivers (YoY for 2022 YTD) Cash $ 18,812 $16,697 $44,691 $38,778 $33,102 $28,219 $20,993 $17,072 $13,262 Cash used in operations to grow the business Inventory 11,535 1
Slide 15: Quarterly Cash Flow Highlights
15 Quarterly Cash Flow Highlights (in thousands) FY 2019 FY 2020 3/31/21 6/30/21 9/30/21 12/31/21 FY 2021 3/31/22 6/30/22 9/30/22 Net Loss $ (32,147)(4) $ (19,925) $ (7,381) $(5,566) $(8,856) $(5,325) $(27,128) $(7,740) $(6,397) $(985)(7) Working Capital 2,026(1) 383 258 (4,390) 942 (1,670) (4,915)
Slide 16: 2022 Financial Outlook
16 2022 Financial Outlook (in thousands) 2020 Actual 2021 Actual 2022 Full Year (“FY”) Outlook Key Drivers (Current FY Outlook) Net Sales $59,257 $67,449 High single digits growth YoY (unchanged from last quarter's outlook) • Tailwinds:E-Commerce • Headwinds: COVID-19 impact on Watsons and New Zeala
Slide 17: Q3 2022 Financial Highlights - Recap
17 Q3 2022 Financial Highlights - Recap • Total net sales of $17.1 million in Q3 2022 ((1)% YoY, +2% versus Q2 2022) • Continued progress building the Tru Niagen® brand ◦ Tru Niagen® net sales of $14.6 million in Q3 2022 ((1)% YoY, flat vs Q2 2022) • Strong gross margin of 59.8% ((20)bps vs Q2 2022
Slide 18: The Science
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) The Science 18
Slide 19: Science Continues to Expand
1 Science Continues to Expand • Seven new human trials on nicotinamide riboside registered since prior update:¹ • State University of New York at Buffalo (August 2022) • The objective is to examine the benefits of NR supplementation on sleep and cognitive function in older adults and to explore its
Slide 20: Science Continues to Expand
2 Science Continues to Expand • University of Pittsburgh (September 2022) • To establish the feasibility of a randomized clinical trial investigating the effects of NR in pediatric patients with ulcerative colitis (UC) and to evaluate the effects of NAD+ repletion on intestinal epithelial mitochondr
Slide 21: Recent Peer-Reviewed Clinical Publications
3 Recent Peer-Reviewed Clinical Publications • Journal of the American College of Cardiology - Wang et al., 2022 - "Safety and Tolerability of Nicotinamide Riboside in Heart Failure With Reduced Ejection Fraction." - September 2022 • The study objective was to assess the safety and tolerability of N
Slide 22: Scientific Advisory Board
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, Chemistr
Slide 23: Basic Physiological Functions are NAD+ Dependent
Basic Physiological Functions are NAD+ Dependent INTRINSIC CAPACITY DOMAIN Based on World Health Organization’s definition VITALITY Energy metabolism Hormonal function Cardio-respiratory function Number of clinical trials (active)* 14 Number of clinical trials (complete)* 9 % of all registered Niage
Slide 24: Contact Info
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) Contact Info Tom Shumaker LifeSci Advisors, Managing Director T: +1.917.929.7600 TSh