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New words:
abatement, adherence, aforementioned, albeit, Alfred, alongside, amplify, articulating, audience, Bridge, broad, campaign, certiorari, cessation, Chapter, citing, complemented, Concurrently, Condensed, constrained, contributor, coupled, credibility, crucial, CSF, diligently, distinguished, diversify, East, enduring, esteemed, excellence, expertise, explicitly, facilitating, firmly, foster, grounded, guide, half, halt, healthier, iHerb, iMedia, impression, inception, invited, IRS, Lender, leverage, leveraging, magnitude, Mann, maternal, modest, moot, multiplatform, nightly, NIST, noteworthy, occurrence, offspring, online, outlined, overarching, overreliance, prerequisite, presence, proactive, procure, procurement, professional, professionalism, prudence, ramp, reassessed, reinforcing, resurgence, retrospective, RUBIN, showcase, Simplification, span, stable, STEVEN, succeed, Supreme, sweep, transparency, unchanged, unconditional, underscore, Variable, vigilant, visibility, voluntary, VP, writ, wrote
Removed:
accrue, addressing, adulthood, advancing, agonist, alpha, Ameliorate, announcement, appointed, Assuming, budgetary, built, capable, capitalize, CCPA, chemical, chemistry, compensate, conformance, corroborated, Covance, CPRA, defense, defer, depended, discovered, display, distancing, Emily, employ, exceed, extremely, Farr, forego, frozen, Fullscript, funding, Geographical, Germain, hired, Homeland, inducing, intense, internally, invoice, isoform, Kevin, Kinase, knowledge, Lauren, list, long, lot, loyalty, Lucie, Margery, Maria, Matakana, memory, Mississippi, monthly, nonhedgeable, outbreak, Oxidative, peroxisome, Pioneer, pose, proportion, qualify, receptor, reducing, remote, remotely, retail, shortfall, smaller, Snr, trained, travel, troubled, ultimately, unadjusted, unallocated, unavailable, unemployment, verification, viewed, Virginia, virtually, young
Financial report summary
?Risks
- 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.
- Interruptions in our relationships or declines in our business with major customers could materially harm our business and financial results.
- Global, market and economic conditions may negatively impact our business, financial condition and share price.
- Our future success largely depends on sales of our Tru Niagen® product.
- The success of our consumer product and ingredient business is linked to the size and growth rate of the vitamin, mineral and dietary supplement market and an adverse change in the size or growth rate of that market could have a material adverse effect on us.
- 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.
- Many of our competitors are larger and have greater financial and other resources than we do.
- Our material cash requirements will depend on many factors.
- Changes in our business strategy, including entering new consumer product markets, restructuring our businesses or other factors may increase our costs or otherwise affect the profitability of our businesses.
- We face significant competition, including changes in pricing.
- Litigation may harm our business.
- Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations.
- If we are unable to maintain sales, marketing and distribution capabilities or maintain arrangements with third parties to sell, market and distribute our products, our business may be harmed.
- Our business could be negatively impacted by cyber security incidents or threats, including without limitation a material interruption to our operations and our IT systems, a material interruption to our clinical trials, harm to our reputation, significant fines, penalties, litigation, and liabilities, regulatory investigations or lawsuits, including class actions, breach or triggering of data protection laws, privacy policies and data protection obligations, or a loss of revenue, customers or sales.
- We may need to increase the size of our organization, and we can provide no assurance that we will successfully expand operations or manage growth effectively.
- The insurance industry has previously and may again become more selective in offering some types of coverage and we may not be able to obtain insurance coverage in the future.
- We may bear financial risk if we underprice our contracts or overrun cost estimates.
- If we experience a significant disruption in our information technology systems or if we fail to implement new systems and software successfully, our business could be adversely affected.
- We are subject to financial and operating covenants in our business financing agreement with Western Alliance Bank, as amended (Credit Agreement) and any failure to comply with such covenants, or obtain waivers in the event of non-compliance, could limit our borrowing availability under the Credit Agreement, resulting in our being unable to borrow under the Credit Agreement and materially adversely impact our liquidity. In addition, our operations may not provide sufficient cash to meet the repayment obligations of debt incurred under the Credit Agreement.
- We rely on single supplier, W.R. Grace, for NR and a limited number of third-party suppliers for the raw materials required to produce our products.
- 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.
- We utilize ingredients and components for our products from foreign suppliers, and may be negatively affected by the risks associated with international trade and importation issues.
- We may never develop any additional products to commercialize.
- We may not be able to partner with others for technological capabilities and new products and services.
- If we fail to maintain adequate quality standards for our products and services, our business may be adversely affected and our reputation harmed.
- If we experience product recalls, we may incur significant and unexpected costs, and our business reputation could be adversely affected.
- Demand for our products and services are subject to the commercial success of our customers’ products, which may vary for reasons outside our control.
- Our ability to protect our intellectual property and proprietary technology through patents and other means is uncertain and may be inadequate, which may have a material and adverse effect on us.
- Our patents and licenses may be subject to challenge on validity grounds, and our patent applications may be rejected.
- We may become subject to claims of infringement or misappropriation of the intellectual property rights of others, which could prohibit us from developing our products, require us to obtain licenses from third parties or to develop non-infringing alternatives and subject us to substantial monetary damages.
- 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 and financial results.
- The prosecution and enforcement of patents licensed to us by third parties are not within our control. Without these technologies, our products may not be successful and our business would be harmed if the patents were infringed on or misappropriated without action by such third parties.
- We may be subject to damages resulting from claims that we, our employees, or our independent contractors have wrongfully used or disclosed alleged trade secrets of others.
- Changes in government regulation or in practices relating to the pharmaceutical, dietary supplement, food and cosmetic industry could decrease the need for the services we provide.
- Compliance with stringent and changing global privacy and data security laws and regulations could result in additional costs and liabilities to us or inhibit our ability to collect and, if applicable, process data globally, and the failure or perceived failure to comply with such laws and regulations could have a material adverse effect on our business, financial condition or results of operations.
- 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.
- Changes in government regulation related to regulatory approvals to market and sell our goods could adversely affect our ability to generate revenues.
- 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 and unvested restricted stock units. Future sales of these shares could adversely affect the market price of our common stock.
- We have a limited operating history in China and we face risks with respect to conducting business in connection with our joint venture in China due to certain legal, political, economic and social uncertainties relating to China.
- Our ability to use our net operating loss (NOL) carryforwards and certain other tax attributes may be limited.
- Our bylaws, as amended (Bylaws) provide that the Court of Chancery of the State of Delaware is the exclusive forum for certain disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
- We may become involved in securities class action litigation that could divert management’s attention and harm our business.
- 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.
- Environmental, social and governance matters may impact our business and reputation.
- Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition or results of operations.
- Our shares of common stock may be thinly traded, so you may be unable to sell at or near ask prices or at all.
- Stockholders may experience significant dilution if future equity offerings are used to fund operations or acquire complementary businesses.
Management Discussion
- (1) Includes a weighted average of approximately 174,000 and 183,000 nonvested shares of restricted stock for the years ended December 31, 2023 and December 31, 2022, 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.
- Net Sales. Net sales consist of gross sales less discounts and returns. Our total net sales grew from $46.3 million in 2019 to $83.6 million in 2023, representing a 13% compound annual growth rate.