Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 04, 2015 | Aug. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | ChromaDex Corp. | |
Entity Central Index Key | 1,386,570 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 4, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-02 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 107,444,481 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Current Assets | ||
Cash | $ 5,699,248 | $ 3,964,750 |
Trade receivables, less allowance for doubtful accounts and returns, July 4, 2015 $41,000; January 3, 2015 $38,000 | 3,099,235 | 1,906,709 |
Inventories | 3,089,033 | 3,734,341 |
Prepaid expenses and other assets | 427,248 | 292,891 |
Total current assets | 12,314,764 | 9,898,691 |
Leasehold Improvements and Equipment, net | 1,552,250 | 1,264,660 |
Deposits | 57,560 | 57,435 |
Intangible assets, net | 298,020 | 296,061 |
Total assets | 14,222,594 | 11,516,847 |
Current Liabilities | ||
Accounts payable | 3,094,543 | 3,451,608 |
Accrued expenses | 1,281,598 | 853,685 |
Current maturities of loan payable | 148,591 | 223,358 |
Current maturities of capital lease obligations | 211,932 | 148,278 |
Customer deposits and other | 229,184 | 234,435 |
Deferred rent, current | 66,299 | 69,456 |
Total current liabilities | 5,032,147 | 4,980,820 |
Loan payable, less current maturities, net | 4,629,023 | 1,977,113 |
Capital lease obligations, less current maturities | 556,029 | 423,015 |
Deferred rent, less current | 108,933 | 137,508 |
Total Liabilities | 10,326,132 | 7,518,456 |
Stockholders' Equity | ||
Common stock, $.001 par value; authorized 150,000,000 shares; issued and outstanding July 4, 2015 106,290,803 and January 3, 2015 105,271,058 shares | 106,291 | 105,271 |
Additional paid-in capital | 44,655,200 | 43,417,442 |
Accumulated deficit | (40,865,029) | (39,524,322) |
Total stockholders' equity | 3,896,462 | 3,998,391 |
Total liabilities and stockholders' equity | $ 14,222,594 | $ 11,516,847 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Trade receivables, less allowance for doubtful accounts and returns | $ 41,000 | $ 38,000 |
Common Stock, Par Value Per Share | $ .001 | $ .001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 106,290,803 | 105,271,058 |
Common Stock, Shares, Outstanding | 106,290,803 | 105,271,058 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations 3 Months Ended (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | |||||
Sales, net | $ 6,101,380 | $ 3,856,154 | $ 11,362,351 | $ 6,930,292 | |
Cost of sales | 3,630,688 | 2,457,388 | 6,964,035 | 4,546,518 | |
Gross profit | 2,470,692 | 1,398,766 | 4,398,316 | 2,383,774 | |
Operating expenses: | |||||
Sales and marketing | 639,748 | 571,548 | 1,225,525 | 1,036,115 | |
General and administrative | 2,015,004 | 2,468,646 | $ 4,262,935 | 4,806,309 | |
Loss from investment in affiliate | 21,543 | ||||
Operating expenses | 2,654,752 | 3,040,194 | $ 5,488,460 | 5,863,967 | |
Operating loss | (184,060) | (1,641,428) | (1,090,144) | (3,480,193) | |
Nonoperating income (expense): | |||||
Interest income | 645 | 305 | 1,363 | 945 | |
Interest expense | (131,777) | (12,019) | (251,926) | (21,910) | |
Nonoperating expenses | (131,132) | (11,714) | (250,563) | (20,965) | |
Net loss | $ (315,192) | $ (1,025,515) | $ (1,653,142) | $ (1,340,707) | $ (3,501,158) |
Basic and Diluted loss per common share | $ 0 | $ (0.02) | $ (.01) | $ (.03) | |
Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 | 107,304,245 | 106,130,972 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations 6 Months Ended (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | |||||
Sales, net | $ 6,101,380 | $ 3,856,154 | $ 11,362,351 | $ 6,930,292 | |
Cost of sales | 3,630,688 | 2,457,388 | 6,964,035 | 4,546,518 | |
Gross profit | 2,470,692 | 1,398,766 | 4,398,316 | 2,383,774 | |
Operating expenses: | |||||
Sales and marketing | 639,748 | 571,548 | 1,225,525 | 1,036,115 | |
General and administrative | 2,015,004 | 2,468,646 | $ 4,262,935 | 4,806,309 | |
Loss from investment in affiliate | 21,543 | ||||
Operating expenses | 2,654,752 | 3,040,194 | $ 5,488,460 | 5,863,967 | |
Operating loss | (184,060) | (1,641,428) | (1,090,144) | (3,480,193) | |
Nonoperating income (expense): | |||||
Interest income | 645 | 305 | 1,363 | 945 | |
Interest expense | (131,777) | (12,019) | (251,926) | (21,910) | |
Nonoperating expenses | (131,132) | (11,714) | (250,563) | (20,965) | |
Net loss | $ (315,192) | $ (1,025,515) | $ (1,653,142) | $ (1,340,707) | $ (3,501,158) |
Basic and Diluted loss per common share | $ 0 | $ (0.02) | $ (.01) | $ (.03) | |
Basic and Diluted weighted average common shares outstanding | 107,409,894 | 106,185,584 | 107,304,245 | 106,130,972 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Jan. 03, 2015 | 105,270,058 | |||
Beginning Balance, Amount at Jan. 03, 2015 | $ 105,271 | $ 43,417,442 | $ (39,524,322) | $ 3,998,391 |
Share-based compensation, Shares | 210,000 | |||
Share-based compensation, Amount | $ 210 | 715,699 | 715,909 | |
Vested restricted stock, shares | 506,000 | |||
Vested restricted stock, Amount | $ 506 | $ (506) | ||
Net loss | $ (1,025,515) | (1,025,515) | ||
Ending Balance, Shares at Apr. 04, 2015 | 105,987,058 | |||
Ending Balance, Amount at Apr. 04, 2015 | $ 105,987 | $ 44,132,635 | (40,549,837) | 3,688,785 |
Beginning Balance, Shares at Jan. 03, 2015 | 105,270,058 | |||
Beginning Balance, Amount at Jan. 03, 2015 | $ 105,271 | 43,417,442 | (39,524,322) | $ 3,998,391 |
Exercise of stock options, Shares | ||||
Net loss | $ (1,340,707) | |||
Ending Balance, Shares at Jul. 04, 2015 | 106,290,803 | |||
Ending Balance, Amount at Jul. 04, 2015 | $ 106,291 | 44,655,200 | (40,865,029) | 3,896,462 |
Beginning Balance, Shares at Apr. 04, 2015 | 105,987,058 | |||
Beginning Balance, Amount at Apr. 04, 2015 | $ 105,987 | 44,132,635 | $ (40,549,837) | 3,688,785 |
Exercise of stock options, Shares | 22,745 | |||
Exercise of stock options, Amount | $ 23 | 15,578 | 15,601 | |
Share-based compensation, Shares | 125,000 | |||
Share-based compensation, Amount | $ 125 | 507,143 | 507,268 | |
Vested restricted stock, shares | 156,000 | |||
Vested restricted stock, Amount | $ 156 | $ (156) | ||
Net loss | $ (315,192) | (315,192) | ||
Ending Balance, Shares at Jul. 04, 2015 | 106,290,803 | |||
Ending Balance, Amount at Jul. 04, 2015 | $ 106,291 | $ 44,655,200 | $ (40,865,029) | $ 3,896,462 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ (1,340,707) | $ (3,501,158) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of leasehold improvements and equipment | 137,279 | 106,832 |
Amortization of intangibles | 20,541 | 15,713 |
Share-based compensation expense | 1,223,177 | 2,036,269 |
Allowance for doubtful trade receivables | $ 3,365 | 16,167 |
Gain on exchange of equipment | $ (17,301) | |
Loss from disposal of equipment | $ 18,226 | |
Loss from investment in affiliate | $ 21,543 | |
Non-cash financing costs | $ 92,143 | |
Changes in operating assets and liabilities: | ||
Trade receivables | $ (1,195,891) | $ (1,298,535) |
Other receivable | 215,000 | |
Inventories | $ 645,308 | (668,903) |
Prepaid expenses and other assets | (134,482) | (96,032) |
Accounts payable | (357,065) | 1,445,848 |
Accrued expenses | 427,913 | 81,701 |
Customer deposits and other | (5,251) | (282,774) |
Deferred rent | (31,732) | (22,524) |
Net cash used in operating activities | (497,176) | (1,948,154) |
Cash Flows From Investing Activities | ||
Purchases of leasehold improvements and equipment | (139,162) | (23,370) |
Purchases of intangible assets | $ (22,500) | (70,000) |
Proceeds from sale of equipment | 1,356 | |
Proceeds from investment in affiliate | 1,092,500 | |
Net cash provided by (used in) investing activities | $ (161,662) | 1,000,486 |
Cash Flows From Financing Activities | ||
Proceeds from exercise of stock options | 15,601 | $ 45,095 |
Proceeds from loan payable | 2,500,000 | |
Payment of debt issuance cost | (15,000) | |
Principal payments on capital leases | (107,265) | $ (78,136) |
Net cash provided by (used in) financing activities | 2,393,336 | (33,041) |
Net increase (decrease) in cash | 1,734,498 | (980,709) |
Cash Beginning of Period | 3,964,750 | 2,261,336 |
Cash Ending of Period | 5,699,248 | 1,280,627 |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest | 159,783 | 21,910 |
Supplemental Schedule of Noncash Investing Activity | ||
Capital lease obligation incurred for the purchase of equipment | $ 303,933 | 222,629 |
Retirement of fully depreciated equipment | 56,110 | |
Supplemental Schedule of Noncash Operating Activity | ||
Stock issued to settle outstanding payable balance | 128,494 | |
Supplemental Schedule of Noncash Share-based Compensation | ||
Changes in prepaid expenses associated with share-based compensation | $ 55,631 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jul. 04, 2015 | |
Interim Financial Statements | |
Note 1. Interim Financial Statements | The accompanying financial statements of ChromaDex Corporation (the Company) and its wholly owned subsidiaries, ChromaDex, Inc., ChromaDex Analytics, Inc. and Spherix Consulting, Inc. include all adjustments, consisting of normal recurring adjustments and accruals, that, in the opinion of the management of the Company, are necessary for a fair presentation of the Companys financial position as of July 4, 2015 and results of operations and cash flows for the three and six months ended July 4, 2015 and June 28, 2014. These unaudited interim financial statements should be read in conjunction with the Companys audited financial statements and the notes thereto for the year ended January 3, 2015 appearing in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (the Commission) on March 19, 2015. Operating results for the six months ended July 4, 2015 are not necessarily indicative of the results to be achieved for the full year ending on January 2, 2016. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The balance sheet at January 3, 2015 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. |
Nature of Business and Liquidit
Nature of Business and Liquidity | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 2. Nature of Business and Liquidity | Nature of business Liquidity While we anticipate that our current cash and cash equivalents on hand and cash generated from operations will be sufficient meet our projected operating plans through at least December 31, 2016, we may require additional funds, either through additional equity or debt financings or collaborative agreements or from other sources. We have no commitments to obtain such additional financing, and we may not be able to obtain any such additional financing on terms favorable to us, or at all. If adequate financing is not available, the Company will further delay, postpone or terminate product and service expansion and curtail certain selling, general and administrative operations. The inability to raise additional financing may have a material adverse effect on the future performance of the Company. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Note 3. Significant Accounting Policies | Basis of presentation Changes in accounting principle: The Company early adopted the amendments in this ASU effective as of April 4, 2015. As of July 4, 2015 and January 3, 2015, the Company had unamortized debt issuance costs of $85,161 and $91,361, respectively. The Company had previously presented the debt issuance costs as other noncurrent assets in its consolidated balance sheet as of January 3, 2015 in the Companys Annual Report on Form 10-K filed with the Commission on March 19, 2015. The early adoption has resulted in adjustments to the Companys consolidated balance sheet as of January 3, 2015, by reclassifying the debt issuance costs as a direct deduction from the carrying amount of the debt liability. Below are the effects of the change on the consolidated balance sheet as of January 3, 2015. ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361 ) 353,496 Total assets $ 11,608,208 $ (91,361 ) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361 ) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361 ) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361 ) $ 11,516,847 Inventories July 4, 2015 January 3, 2015 Natural product fine chemicals $ 1,695,315 $ 1,760,305 Bulk ingredients 1,957,718 2,298,036 3,653,033 4,058,341 Less valuation allowance 564,000 324,000 $ 3,089,033 $ 3,734,341 |
Loss Per Share Applicable to Co
Loss Per Share Applicable to Common Stockholders | 6 Months Ended |
Jul. 04, 2015 | |
Loss Per Share Applicable To Common Stockholders | |
Note 4. Loss Per Share Applicable to Common Stockholders | The following table sets forth the computations of loss per share amounts applicable to common stockholders for the three and six months ended July 4, 2015 and June 28, 2014: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net loss $ (315,192 ) $ (1,653,142 ) $ (1,340,707 ) $ (3,501,158 ) Basic and diluted loss per common share $ (0.00 ) $ (0.02 ) $ (0.01 ) $ (0.03 ) Weighted average common shares outstanding (1): 107,409,894 106,185,584 107,304,245 106,130,972 Potentially dilutive securities (2): Stock options 14,120,114 14,686,002 14,120,114 14,686,002 Warrants 469,020 - 469,020 - Convertible Debt 773,395 - 773,395 - (1) Includes 1,230,484 and 1,600,879 weighted average nonvested shares of restricted stock for the three months ended July 4, 2015 and June 28, 2014, respectively, and 1,392,285 and 1,571,483 weighted average nonvested shares of restricted stock for the six months ended July 4, 2015 and June 28, 2014, respectively, which are participating securities (2) Excluded from the computation of loss per share as their impact is antidilutive. |
Leasehold Improvements and Equi
Leasehold Improvements and Equipment | 6 Months Ended |
Jul. 04, 2015 | |
Leasehold Improvements And Equipment | |
Note 5. Leasehold Improvements and Equipment | Leasehold improvements and equipment consisted of the following: July 4, 2015 January 3, 2015 Laboratory equipment $ 3,530,714 $ 3,151,748 Leasehold improvements 503,343 495,240 Computer equipment 347,786 329,737 Furniture and fixtures 13,039 13,039 Office equipment 21,547 7,877 Construction in progress 18,948 68,141 4,435,377 4,065,782 Less accumulated depreciation 2,883,127 2,801,122 $ 1,552,250 $ 1,264,660 Depreciation expense on leasehold improvements and equipment included in the consolidated statement of operations for the six months ended July 4, 2015 and June 28, 2014 was approximately $137,000 and $107,000, respectively. |
Loan Payable
Loan Payable | 6 Months Ended |
Jul. 04, 2015 | |
Debt Disclosure [Abstract] | |
Note 6. Loan Payable | On June 17, 2015, the Company and Hercules Technology II, L.P entered into Amendment No. 1 (the Amendment) to the Loan and Security Agreement entered into by the parties on September 29, 2014 (the Agreement). The terms of the Agreement provided the Company with access to a term loan of up to $5 million. The first $2.5 million of the term loan was funded at closing. The remaining $2.5 million of the term loan was to be drawn down in part or in full at our option at any time but no later than July 31, 2015. The first advance and second advance, if any, were to be repaid in equal monthly installments through the loans maturity on April 1, 2018, following an initial interest-only period that was to conclude on October 31, 2015. Pursuant to the Amendment, the parties agreed that the interest only period shall be extended to March 31, 2016, provided however that if the Companys consolidated revenue is equal to or greater than $11.5 million for the six months ending December 31, 2015, then the interest-only period shall be extended to June 30, 2016. The maturity date remains unchanged at April 1, 2018 and any remaining principal balance of the loan and all unpaid interest shall be due on the maturity date. The Amendment became effective on June 18, 2015 upon the funding of the full amount of the $2.5 million second advance and payment of a nonrenewable facility fee of $15,000 to the Agent. The second advance of $2.5 million is treated as if the Company entered into a separate loan. The facility fee of $15,000 is treated as debt issuance costs and are being amortized as interest expense using the effective interest method over the term of the loan. There is also additional $93,750 end of term charge the Company will pay, which is 3.75% of the $2.5 million drawn. The end of term charge is being accrued as additional interest expense using the effective interest rate method over the term of the loan. The Company determined that the amended terms of the first advance of $2.5 million on September 29, 2014 were not substantially different from the original terms. The Company therefore did not apply debt extinguishment treatment, but rather accounted for prospectively as yield adjustments, based on the revised terms. Loan payable as of July 4, 2015 consists of the following: Principal amount payable for following years ending December 2015 $ - 2016 905,393 2017 1,945,650 2018 2,148,957 Total principal payments 5,000,000 Accrued end of term charge 31,410 Total loan payable 5,031,410 Less unamortized debt issuance costs and debt discount 253,796 Less current portion 148,591 Loan payable long term $ 4,629,023 The total interest expenses related to the term loan, including cash interest payments, the amortizations of debt issuance costs and debt discount, and the accrual of the end of term charge were approximately $115,000 and $221,000 for the three and six months ended July 4, 2015. For the three and six months ended June 28, 2014, the Company did not have any interest expense related to loan payable as the Company did not have any outstanding balance. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Share-based Compensation | |
Note 7. Share-Based Compensation | 7A. Employee Share-Based Compensation Stock Option Plans Service Period The majority of options granted by the Company feature service conditions. Accordingly, these options vest ratably over specified The following table summarizes our stock option activity during Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 3, 2015 12,723,601 $ 1.13 7.00 Options Granted 225,000 1.28 10.00 Options Classification from Employee to Non-Employee (1,202,762 ) 0.91 Options Exercised (22,745 ) 0.69 Options Forfeited (56,193 ) 1.18 Outstanding at July 4, 2015 11,666,901 $ 1.16 6.46 $ 2,231,000 Exercisable at July 4, 2015 9,508,077 $ 1.16 6.01 $ 1,862,000 The aggregate intrinsic values in the table Certain employees who were previously classified as employees under the share-based compensation plan have been reclassified to non-employees during the six months ended July 4, 2015 as they became consultants. There was no impact on accounting as the options were fully vested. The fair value of the Companys stock options was estimated at the date of grant using the Black-Scholes option pricing model. The table below outlines the weighted average assumptions for options granted to employees during the six months ended July 4, 2015. Six Months Ended July 4, 2015 Expected volatility 75 % Expected dividends 0.00 % Expected term 6.0 years Risk-free rate 1.72 % The weighted average grant date fair value of options granted during the six months ended July 4, 2015 was $0.85. As of July 4, 2015, there was approximately $1,173,000 of total unrecognized compensation expense expected to be recognized over a weighted average period of 2.45 years. Stock Award On April 16, 2015, the Company awarded 125,000 shares of the Companys common stock that were fully vested and non-forfeitable to Mark Germain, who resigned from the Board. These shares were granted as compensation for his services as a director of the Company through April 16, 2015. The fair value of the award, which amounted to approximately $154,000 was based on the trading price of the Companys stock on the date of grant. The expense related to this stock award was immediately recognized. Restricted Stock Restricted stock awards granted by the Company to employees have vesting conditions that are unique to each award. The following table summarizes activity of restricted stock awards granted to employees at July 4, 2015 and changes during the six months then ended: Weighted Average Award-Date Shares Fair Value Unvested shares at January 3, 2015 1,590,000 $ 1.18 Granted - - Vested (510,000 ) 1.41 Forfeited - - Unvested shares at July 4, 2015 1,080,000 $ 1.08 Expected to Vest as of July 4, 2015 1,080,000 $ 1.08 On February 25, 2015, former members of the Companys Board of Directors (the Board), Michael Brauser and Barry Honig, resigned from the Board. The Board made a resolution that 250,000 shares of unvested restricted stock held by Mr. Brauser and 250,000 shares of unvested restricted stock held by Mr. Honig are immediately vested on the date of resignation. The expense for these vested restricted stock was recognized during the fiscal year ended January 3, 2015. On April 16, 2015, a former member of the Board, Mark Germain, resigned from the Board. The Board made a resolution that 10,000 shares of unvested restricted stock held by Mr. Germain are immediately vested on the date of resignation. The expense for these vested restricted stock was recognized during the fiscal year ended January 3, 2015. Employee Option, Stock and Restricted Stock Compensation The Company recognized compensation expense of approximately $442,000 and $820,000 in general and administrative expenses in the statement of operations for the three and six months ended July 4, 2015, respectively, and approximately $1,021,000 and $1,970,000 for the three and six months ended June 28, 2014, respectively. 7B. Non-Employee Share-Based Compensation Stock Option Plans The following table summarizes activity of stock options granted to non-employees at July 4, 2015 and changes during the six months then ended: Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 3, 2015 1,050,451 $ 1.35 5.46 Options Granted - - Options Classification from Employee to Non-Employee 1,202,762 0.91 Options Exercised - - Options Forfeited - - Outstanding at July 4, 2015 2,253,213 $ 1.12 6.28 $ 473,000 Exercisable at July 4, 2015 2,196,963 $ 1.11 6.21 $ 473,000 The aggregate intrinsic values in the table above are based on the Companys closing stock price of $1.22 on the last day of business for the period ended July 4, 2015. As of July 4, 2015, there was approximately $38,000 of total unrecognized compensation expense expected to be recognized over a weighted average period of 1.19 years. Stock and Restricted Stock Awards Restricted stock awards granted by the Company to non-employees generally feature time vesting service conditions, specified in the respective service agreements. Restricted stock awards issued to non-employees are accounted for at current fair value through the vesting period. On January 27, 2015, the Company awarded 350,000 shares of the Companys common stock to non-employees. 210,000 of these shares were treated as stock awards as the shares vested immediately on the date of award, and the remaining 140,000 shares, which were initially treated as unvested restricted stock, vested on May 28, 2015. The fair values of the awards, which totaled approximately $350,000, were measured based on the trading prices of the Companys stock on the date of award and the date vested. The expense related to these stock awards were fully recognized during the six-month period ended July 4, 2015. In addition, 12,000 shares of restricted stock that were granted to a certain non-employee during the fiscal year ended January 3, 2015 became vested during the six-month period ended July 4, 2015. The fair value of these vested restricted shares was approximately $15,000, which represents the market value of the Companys common stock on respective vesting dates charged to expense. The following table summarizes activity of restricted stock awards issued to non-employees at July 4, 2015 and changes during the six months then ended: Weighted Average Shares Fair Value Unvested shares at January 3, 2015 76,000 $ 0.90 Granted 140,000 0.86 Vested (152,000 ) 1.21 Forfeited - - Unvested shares expected to vest at July 4, 2015 64,000 $ 1.22 As of July 4, 2015, there was approximately $78,000 of total unrecognized compensation expense related to the restricted stock award to a non-employee. That cost is expected to be recognized over a period of 2.7 years as of July 4, 2015. Non-Employee Option, Stock and Restricted Stock Compensation The Company recognized share-based compensation expense of approximately $65,000 and $403,000 in general and administrative expenses in the statement of operations for the three and six months ended July 4, 2015 and approximately $16,000 and $66,000 for the three and six months ended June 28, 2014, respectively. |
Business Segments
Business Segments | 6 Months Ended |
Jul. 04, 2015 | |
Business Segments | |
Note 8. Business Segments | The Company has following three reportable segments. · Ingredients segment develops and commercializes proprietary-based ingredient technologies and supplies these ingredients to the manufacturers of consumer products in various industries including the nutritional supplement, food and beverage and animal health industries. · Core standards, and contract services segment includes supply of phytochemical reference standards, which are small quantities of plant-based compounds typically used to research an array of potential attributes, reference materials, and related contract services. · Scientific and regulatory consulting segment which consist of providing scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage potential health and regulatory risks. The Other classification includes corporate items not allocated by the Company to each reportable segment. Further, there are no intersegment sales that require elimination. The Company evaluates performance and allocates resources based on reviewing gross margin by reportable segment. Three months ended July 4, 2015 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 3,411,636 $ 2,371,477 $ 318,267 $ - $ 6,101,380 Cost of sales 1,869,205 1,635,294 126,189 - 3,630,688 Gross profit 1,542,431 736,183 192,078 - 2,470,692 Operating expenses: Sales and marketing 298,281 336,392 5,075 - 639,748 General and administrative - - - 2,015,004 2,015,004 Operating expenses 298,281 336,392 5,075 2,015,004 2,654,752 Operating income (loss) $ 1,244,150 $ 399,791 $ 187,003 $ (2,015,004 ) $ (184,060 ) Three months ended June 28, 2014 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 1,721,872 $ 1,856,950 $ 277,332 $ - $ 3,856,154 Cost of sales 1,043,538 1,295,530 118,320 - 2,457,388 Gross profit 678,334 561,420 159,012 - 1,398,766 Operating expenses: Sales and marketing 310,386 221,797 39,365 - 571,548 General and administrative - - - 2,468,646 2,468,646 Operating expenses 310,386 221,797 39,365 2,468,646 3,040,194 Operating income (loss) $ 367,948 $ 339,623 $ 119,647 $ (2,468,646 ) $ (1,641,428 ) Six months ended July 4, 2015 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 6,091,977 $ 4,671,520 $ 598,854 $ - $ 11,362,351 Cost of sales 3,472,381 3,209,078 282,576 - 6,964,035 Gross profit 2,619,596 1,462,442 316,278 - 4,398,316 Operating expenses: Sales and marketing 572,905 647,336 5,284 - 1,225,525 General and administrative - - - 4,262,935 4,262,935 Operating expenses 572,905 647,336 5,284 4,262,935 5,488,460 Operating income (loss) $ 2,046,691 $ 815,106 $ 310,994 $ (4,262,935 ) $ (1,090,144 ) Six months ended June 28, 2014 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 2,858,181 $ 3,592,833 $ 479,278 $ - $ 6,930,292 Cost of sales 1,761,715 2,489,165 295,638 - 4,546,518 Gross profit 1,096,466 1,103,668 183,640 - 2,383,774 Operating expenses: Sales and marketing 550,346 434,572 51,197 - 1,036,115 General and administrative - - - 4,806,309 4,806,309 Loss from investment in affiliate - - - 21,543 21,543 Operating expenses 550,346 434,572 51,197 4,827,852 5,863,967 Operating income (loss) $ 546,120 $ 669,096 $ 132,443 $ (4,827,852 ) $ (3,480,193 ) -13- Core Standards and Scientific and At July 4, 2015 Ingredients Contract Services Regulatory Consulting segment segment segment Other Total Total assets $ 4,275,827 $ 3,406,936 $ 185,357 $ 6,354,474 $ 14,222,594 Core Standards and Scientific and At January 3, 2015 Ingredients Contract Services Regulatory Consulting segment segment segment Other Total Total assets $ 3,757,073 $ 3,220,518 $ 105,711 $ 4,433,545 $ 11,516,847 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Note 9. Commitments and Contingencies | Capitalized Lease Obligations On January 31, 2015, the Company entered into a financing transaction to purchase laboratory equipment. Under the lease terms, the Company will make monthly lease payments, including interest, of approximately $7,000 for 48 months, for a total payment of approximately $356,000. The Company has recorded a capital lease of approximately $304,000. The equipment will be utilized in our core standards and contract services segment. Subsequent to July 4, 2015, the Company entered into a financing transaction to purchase laboratory equipment. Under the lease terms, the Company will make monthly lease payments, including interest, of approximately $5,000 for 60 months, for a total payment of approximately $276,000. The Company will record a capital lease of approximately $243,000. The equipment will be utilized in our core standards and contract services segment. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 04, 2015 | |
Subsequent Events [Abstract] | |
Note 10. Subsequent Events | On July 6, 2015, the Board of Directors (the Board) granted approximately 917,000 and 675,000 stock options to the Companys employees and members of the Board, respectively, with an exercise price of $1.22 per share. On July 9, 2015, the Board appointed Robert Fried to serve as a member of the Board. Also on July 9, 2015, Glenn Halpryn resigned from the Board. On July 30, 2015, the Board awarded 200,000 stock options to Robert Fried with an exercise price of $1.10 per share. |
Significant Accounting Polici18
Significant Accounting Policies (Policy) | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation |
Changes in accounting principle | Changes in accounting principle: The Company early adopted the amendments in this ASU effective as of April 4, 2015. As of July 4, 2015 and January 3, 2015, the Company had unamortized debt issuance costs of $85,161 and $91,361, respectively. The Company had previously presented the debt issuance costs as other noncurrent assets in its consolidated balance sheet as of January 3, 2015 in the Companys Annual Report on Form 10-K filed with the Commission on March 19, 2015. The early adoption has resulted in adjustments to the Companys consolidated balance sheet as of January 3, 2015, by reclassifying the debt issuance costs as a direct deduction from the carrying amount of the debt liability. Below are the effects of the change on the consolidated balance sheet as of January 3, 2015. ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361 ) 353,496 Total assets $ 11,608,208 $ (91,361 ) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361 ) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361 ) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361 ) $ 11,516,847 |
Inventories | Inventories July 4, 2015 January 3, 2015 Natural product fine chemicals $ 1,695,315 $ 1,760,305 Bulk ingredients 1,957,718 2,298,036 3,653,033 4,058,341 Less valuation allowance 564,000 324,000 $ 3,089,033 $ 3,734,341 |
Significant Accounting Polici19
Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Restatement | ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361 ) 353,496 Total assets $ 11,608,208 $ (91,361 ) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361 ) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361 ) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361 ) $ 11,516,847 |
Inventories | July 4, 2015 January 3, 2015 Natural product fine chemicals $ 1,695,315 $ 1,760,305 Bulk ingredients 1,957,718 2,298,036 3,653,033 4,058,341 Less valuation allowance 564,000 324,000 $ 3,089,033 $ 3,734,341 |
Loss Per Share Applicable to 20
Loss Per Share Applicable to Common Stockholders (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Loss Per Share Applicable To Common Stockholders Tables | |
Loss per share amounts applicable to common stockholders | Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net loss $ (315,192 ) $ (1,653,142 ) $ (1,340,707 ) $ (3,501,158 ) Basic and diluted loss per common share $ (0.00 ) $ (0.02 ) $ (0.01 ) $ (0.03 ) Weighted average common shares outstanding (1): 107,409,894 106,185,584 107,304,245 106,130,972 Potentially dilutive securities (2): Stock options 14,120,114 14,686,002 14,120,114 14,686,002 Warrants 469,020 - 469,020 - Convertible Debt 773,395 - 773,395 - (1) Includes 1,230,484 and 1,600,879 weighted average nonvested shares of restricted stock for the three months ended July 4, 2015 and June 28, 2014, respectively, and 1,392,285 and 1,571,483 weighted average nonvested shares of restricted stock for the six months ended July 4, 2015 and June 28, 2014, respectively, which are participating securities (2) Excluded from the computation of loss per share as their impact is antidilutive. |
Leasehold Improvements and Eq21
Leasehold Improvements and Equipment (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Leasehold Improvements And Equipment | |
Leasehold improvements and equipment | July 4, 2015 January 3, 2015 Laboratory equipment $ 3,530,714 $ 3,151,748 Leasehold improvements 503,343 495,240 Computer equipment 347,786 329,737 Furniture and fixtures 13,039 13,039 Office equipment 21,547 7,877 Construction in progress 18,948 68,141 4,435,377 4,065,782 Less accumulated depreciation 2,883,127 2,801,122 $ 1,552,250 $ 1,264,660 |
Loan Payable (Tables)
Loan Payable (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Debt Disclosure [Abstract] | |
Loan payable | Principal amount payable for following years ending December 2015 $ - 2016 905,393 2017 1,945,650 2018 2,148,957 Total principal payments 5,000,000 Accrued end of term charge 31,410 Total loan payable 5,031,410 Less unamortized debt issuance costs and debt discount 253,796 Less current portion 148,591 Loan payable long term $ 4,629,023 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Share-based Compensation Tables | |
Service Period Based Stock Options | Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 3, 2015 12,723,601 $ 1.13 7.00 Options Granted 225,000 1.28 10.00 Options Classification from Employee to Non-Employee (1,202,762 ) 0.91 Options Exercised (22,745 ) 0.69 Options Forfeited (56,193 ) 1.18 Outstanding at July 4, 2015 11,666,901 $ 1.16 6.46 $ 2,231,000 Exercisable at July 4, 2015 9,508,077 $ 1.16 6.01 $ 1,862,000 |
Weighted average assumptions of stock options granted | Six Months Ended July 4, 2015 Expected volatility 75 % Expected dividends 0.00 % Expected term 6.0 years Risk-free rate 1.72 % |
Restricted stock awards granted to employees | Weighted Average Award-Date Shares Fair Value Unvested shares at January 3, 2015 1,590,000 $ 1.18 Granted - - Vested (510,000 ) 1.41 Forfeited - - Unvested shares at July 4, 2015 1,080,000 $ 1.08 Expected to Vest as of July 4, 2015 1,080,000 $ 1.08 |
Non-Employee stock options | Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 3, 2015 1,050,451 $ 1.35 5.46 Options Granted - - Options Classification from Employee to Non-Employee 1,202,762 0.91 Options Exercised - - Options Forfeited - - Outstanding at July 4, 2015 2,253,213 $ 1.12 6.28 $ 473,000 Exercisable at July 4, 2015 2,196,963 $ 1.11 6.21 $ 473,000 |
Restricted stock awards granted to non-employees | Weighted Average Shares Fair Value Unvested shares at January 3, 2015 76,000 $ 0.90 Granted 140,000 0.86 Vested (152,000 ) 1.21 Forfeited - - Unvested shares expected to vest at July 4, 2015 64,000 $ 1.22 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Business Segments Tables | |
Business Segmentation | Three months ended July 4, 2015 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 3,411,636 $ 2,371,477 $ 318,267 $ - $ 6,101,380 Cost of sales 1,869,205 1,635,294 126,189 - 3,630,688 Gross profit 1,542,431 736,183 192,078 - 2,470,692 Operating expenses: Sales and marketing 298,281 336,392 5,075 - 639,748 General and administrative - - - 2,015,004 2,015,004 Operating expenses 298,281 336,392 5,075 2,015,004 2,654,752 Operating income (loss) $ 1,244,150 $ 399,791 $ 187,003 $ (2,015,004 ) $ (184,060 ) Three months ended June 28, 2014 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 1,721,872 $ 1,856,950 $ 277,332 $ - $ 3,856,154 Cost of sales 1,043,538 1,295,530 118,320 - 2,457,388 Gross profit 678,334 561,420 159,012 - 1,398,766 Operating expenses: Sales and marketing 310,386 221,797 39,365 - 571,548 General and administrative - - - 2,468,646 2,468,646 Operating expenses 310,386 221,797 39,365 2,468,646 3,040,194 Operating income (loss) $ 367,948 $ 339,623 $ 119,647 $ (2,468,646 ) $ (1,641,428 ) Six months ended July 4, 2015 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 6,091,977 $ 4,671,520 $ 598,854 $ - $ 11,362,351 Cost of sales 3,472,381 3,209,078 282,576 - 6,964,035 Gross profit 2,619,596 1,462,442 316,278 - 4,398,316 Operating expenses: Sales and marketing 572,905 647,336 5,284 - 1,225,525 General and administrative - - - 4,262,935 4,262,935 Operating expenses 572,905 647,336 5,284 4,262,935 5,488,460 Operating income (loss) $ 2,046,691 $ 815,106 $ 310,994 $ (4,262,935 ) $ (1,090,144 ) Six months ended June 28, 2014 Ingredients segment Core Standards and Contract Services segment Scientific and Regulatory Consulting segment Other Total Net sales $ 2,858,181 $ 3,592,833 $ 479,278 $ - $ 6,930,292 Cost of sales 1,761,715 2,489,165 295,638 - 4,546,518 Gross profit 1,096,466 1,103,668 183,640 - 2,383,774 Operating expenses: Sales and marketing 550,346 434,572 51,197 - 1,036,115 General and administrative - - - 4,806,309 4,806,309 Loss from investment in affiliate - - - 21,543 21,543 Operating expenses 550,346 434,572 51,197 4,827,852 5,863,967 Operating income (loss) $ 546,120 $ 669,096 $ 132,443 $ (4,827,852 ) $ (3,480,193 ) -13- Core Standards and Scientific and At July 4, 2015 Ingredients Contract Services Regulatory Consulting segment segment segment Other Total Total assets $ 4,275,827 $ 3,406,936 $ 185,357 $ 6,354,474 $ 14,222,594 Core Standards and Scientific and At January 3, 2015 Ingredients Contract Services Regulatory Consulting segment segment segment Other Total Total assets $ 3,757,073 $ 3,220,518 $ 105,711 $ 4,433,545 $ 11,516,847 |
Nature of Business and Liquid25
Nature of Business and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Liquidity | ||||||
Operating (loss) | $ (184,060) | $ (1,641,428) | $ (1,090,144) | $ (3,480,193) | ||
Net (loss) | (315,192) | $ (1,025,515) | (1,653,142) | (1,340,707) | (3,501,158) | |
Cash and cash equivalents | $ 5,699,248 | $ 1,280,627 | $ 5,699,248 | $ 1,280,627 | $ 3,964,750 |
Significant Accounting Polici26
Significant Accounting Policies (Details) - USD ($) | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
Assets | |||
Current assets | $ 12,314,764 | $ 9,898,691 | |
Leasehold Improvements and Equipment, net | 1,552,250 | 1,264,660 | |
Other noncurrent assets | 353,496 | ||
Total assets | 14,222,594 | 11,516,847 | |
Liabilities and Stockholders' Equity | |||
Current liabilities | 5,032,147 | 4,980,820 | |
Loan payable, less current maturities, net | 4,629,023 | 1,977,113 | |
Capital lease obligations, less current maturities | 556,029 | 423,015 | |
Deferred rent, less current | 108,933 | 137,508 | |
Total liabilities | 10,326,132 | 7,518,456 | |
Total stockholders' equity | 3,896,462 | $ 3,688,785 | 3,998,391 |
Total liabilities and stockholders' equity | $ 14,222,594 | 11,516,847 | |
Scenario, Previously Reported [Member] | |||
Assets | |||
Current assets | 9,898,691 | ||
Leasehold Improvements and Equipment, net | 1,264,660 | ||
Other noncurrent assets | 444,857 | ||
Total assets | 11,608,208 | ||
Liabilities and Stockholders' Equity | |||
Current liabilities | 4,980,820 | ||
Loan payable, less current maturities, net | 2,068,474 | ||
Capital lease obligations, less current maturities | 423,015 | ||
Deferred rent, less current | 137,508 | ||
Total liabilities | 7,609,817 | ||
Total stockholders' equity | 3,998,391 | ||
Total liabilities and stockholders' equity | $ 11,608,208 | ||
Restatement Adjustment [Member] | |||
Assets | |||
Current assets | |||
Leasehold Improvements and Equipment, net | |||
Other noncurrent assets | $ (91,361) | ||
Total assets | $ (91,361) | ||
Liabilities and Stockholders' Equity | |||
Current liabilities | |||
Loan payable, less current maturities, net | $ (91,361) | ||
Capital lease obligations, less current maturities | |||
Deferred rent, less current | |||
Total liabilities | $ (91,361) | ||
Total stockholders' equity | |||
Total liabilities and stockholders' equity | $ (91,361) |
Significant Accounting Polici27
Significant Accounting Policies (Details 1) - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Inventories | ||
Natural product fine chemicals | $ 1,695,315 | $ 1,760,305 |
Bulk ingredients | 1,957,718 | 2,298,036 |
Inventory-gross | 3,653,033 | 4,058,341 |
Less valuation allowance | 564,000 | 324,000 |
Inventory-net | $ 3,089,033 | $ 3,734,341 |
Significant Accounting Polici28
Significant Accounting Policies (Details Narrative) - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Significant Accounting Policies Details Narrative | ||
Unamortized debt issuance costs | $ 85,161 | $ 91,361 |
Loss Per Share Applicable to 29
Loss Per Share Applicable to Common Stockholders (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | ||
Net loss | $ (315,192) | $ (1,025,515) | $ (1,653,142) | $ (1,340,707) | $ (3,501,158) | ||
Earnings per share | |||||||
Basic and diluted loss per common share | $ 0 | $ (0.02) | $ (.01) | $ (.03) | |||
Weighted average common shares outstanding | [1] | 107,409,894 | 106,185,584 | 107,304,245 | 106,130,972 | ||
Stock Option [Member] | |||||||
Earnings per share | |||||||
Potentially dilutive securities | [2] | 14,120,114 | 14,686,002 | 14,120,114 | 14,686,002 | ||
Warrant [Member] | |||||||
Earnings per share | |||||||
Potentially dilutive securities | [2] | 469,020 | 469,020 | ||||
Convertible Debt [Member] | |||||||
Earnings per share | |||||||
Potentially dilutive securities | [2] | 773,395 | 773,395 | ||||
[1] | Includes 1,230,484 and 1,600,879 weighted average nonvested shares of restricted stock for the three months ended July 4, 2015 and June 28, 2014, respectively, and 1,392,285 and 1,571,483 weighted average nonvested shares of restricted stock for the six months ended July 4, 2015 and June 28, 2014, respectively, which are participating securities. | ||||||
[2] | Excluded from the computation of loss per share as their impact is antidilutive. |
Loss Per Share Applicable to 30
Loss Per Share Applicable to Common Stockholders (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Loss Per Share Applicable To Common Stockholders Details Narrative | ||||
Weighted average nonvested shares of restricted stock | 1,230,484 | 1,600,879 | 1,392,285 | 1,571,483 |
Leasehold Improvements and Eq31
Leasehold Improvements and Equipment (Details) - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Leasehold improvements and equipment | ||
Laboratory equipment | $ 3,530,714 | $ 3,151,748 |
Leasehold improvements | 503,343 | 495,240 |
Computer equipment | 347,786 | 329,737 |
Furniture and fixtures | 13,039 | 13,039 |
Office equipment | 21,547 | 7,877 |
Construction in progress | 18,948 | 68,141 |
Leasehold improvements and equipment, gross | 4,435,377 | 4,065,782 |
Less accumulated depreciation | 2,883,127 | 2,801,122 |
Leasehold improvements and equipment, total | $ 1,552,250 | $ 1,264,660 |
Leasehold Improvements and Eq32
Leasehold Improvements and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Leasehold Improvements And Equipment Details Narrative | ||
Depreciation expense on leasehold improvements and equipment | $ 137,279 | $ 106,832 |
Loan Payable - Loan payable (De
Loan Payable - Loan payable (Details) - USD ($) | Jul. 04, 2015 | Jan. 03, 2015 |
Principal amount payable for following years ending December | ||
2,015 | ||
2,016 | $ 905,393 | |
2,017 | 1,945,650 | |
2,018 | 2,148,957 | |
Total principal payments | 5,000,000 | |
Accrued end of term charge | 31,410 | |
Total loan payable | 5,031,410 | |
Less unamortized debt issuance costs and debt discount | 253,796 | |
Less current portion | 148,591 | $ 223,358 |
Loan payable – long term | $ 4,629,023 | $ 1,977,113 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - Jul. 04, 2015 - USD ($) | Total | Total |
Debt Disclosure [Abstract] | ||
Interest expenses | $ 115,000 | $ 221,000 |
Term loan | 5,000,000 | 5,000,000 |
Funded at closing | 2,500,000 | 2,500,000 |
Remaining available | 2,500,000 | $ 2,500,000 |
Maturity date | Apr. 1, 2018 | |
Interest-only period extended to | Mar. 31, 2016 | |
Interest-only period extended to if revenue milestone hit | Jun. 30, 2016 | |
Facility fee | $ 15,000 | |
End of term charge | $ 93,750 | $ 93,750 |
End of term charge rate | 3.75% | |
Revenue milestone | Pursuant to the Amendment, the parties agreed that the interest only period shall be extended to March 31, 2016, provided however that if the Companys consolidated revenue is equal to or greater than $11.5 million for the six months ending December 31, 2015, then the interest-only period shall be extended to June 30, 2016. |
Share-Based Compensation - Empl
Share-Based Compensation - Employees Service Based (Details) - 6 months ended Jul. 04, 2015 - USD ($) | Total |
Number of Shares | |
Outstanding at Beginning of Period | 12,723,601 |
Options Granted | 225,000 |
Options Classification from Employee to Non-Employee | $ (1,202,762) |
Options Exercised | (22,745) |
Options Forfeited | (56,193) |
Outstanding at End of Period | 11,666,901 |
Exercisable at End of Period | 9,508,077 |
Weighted Average Exercise Price | |
Outstanding at Beginning of Period | $ 1.13 |
Options Granted | 1.28 |
Options Classification from Employee to Non-Employee | .91 |
Options Exercised | .69 |
Options Forfeited | 1.18 |
Outstanding at End of Period | 1.16 |
Exercisable at End of Period | $ 1.16 |
Weighted Average Remaining Contractual Term | |
Outstanding at Beginning of Period | 7 years |
Options Granted | 10 years |
Outstanding at End of Period | 6 years 5 months 15 days |
Exercisable at End of Period | 6 years 9 days |
Aggregate Intrinsic Value | |
Outstanding at End of Period | $ 2,231,000 |
Exercisable at End of Period | $ 1,862,000 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions (Details 1) - 6 months ended Jul. 04, 2015 | Total |
Weighted average assumptions for options granted to employees | |
Expected volatility | 75.00% |
Expected dividends | 0.00% |
Expected term | 6 years |
Risk-free rate | 1.72% |
Share-Based Compensation - Em37
Share-Based Compensation - Employees - Restricted Stock (Details 2) - 6 months ended Jul. 04, 2015 - Restricted Stock [Member] - $ / shares | Total |
Summary of activity of restricted stock awards granted to employees- Shares | |
Unvested shares at Beginning of Period | 1,590,000 |
Granted | |
Vested | (510,000) |
Forfeited | |
Unvested shares at End of Period | 1,080,000 |
Expected to Vest as of End of Period | 1,080,000 |
Weighted Average Award-Date Fair Value | |
Unvested shares at Beginning of Period | $ 1.18 |
Granted | |
Vested | $ 1.41 |
Forfeited | |
Unvested shares at End of Period | $ 1.08 |
Expected to Vest as of End of Period | $ 1.08 |
Share-Based Compensation - NonE
Share-Based Compensation - NonEmployee (Details 3) - Jul. 04, 2015 - USD ($) | Total |
Non-Employee Share-Based Compensation- Options | |
Outstanding at Beginning of Period | 1,050,451 |
Options Granted | |
Options Classification from Employee to Non-Employee | 1,202,762 |
Options Exercised | |
Options Forfeited | |
Outstanding at End of Period | 2,253,213 |
Exercisable at End of Period | 2,196,963 |
Weighted Average Exercise Price | |
Outstanding at Beginning of Period | $ 1.35 |
Options Granted | |
Options Classification from Employee to Non-Employee | $ .91 |
Options Exercised | |
Options Forfeited | |
Outstanding at End of Period | $ 1.12 |
Exercisable at End of Period | $ 1.11 |
Weighted Average Remaining Contractual Term | |
Outstanding at Beginning of Period | 5 years 5 months 15 days |
Outstanding at End of Period | 6 years 3 months 11 days |
Exercisable at End of Period | 5 years 2 months 15 days |
Aggregate Intrinsic Value | |
Outstanding at End of Period | $ 473,000 |
Exercisable at End of Period | $ 473,000 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock (Details 4) - 6 months ended Jul. 04, 2015 - NonEmployee Restricted Stock [Member] - $ / shares | Total |
Unvested shares at Beginning of Period | 76,000 |
Granted | 140,000 |
Vested | (152,000) |
Forfeited | |
Unvested shares expected to vest at End of Period | 64,000 |
Weighted Average Award-Date Fair Value | |
Unvested shares at Beginning of Period | $ 0.90 |
Granted | .86 |
Vested | $ 1.21 |
Forfeited | |
Unvested shares at End of Period | $ 1.22 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Options issued | ||||
Brauser [Member] | ||||
Shares vested | 250,000 | |||
Honig [Member] | ||||
Shares vested | 250,000 | |||
Germain [Member] | ||||
Shares vested | 10,000 | |||
Employee Comp [Member] | ||||
Weighted average fair value of options granted | $ .85 | |||
Closing stock price | $ 1.22 | $ 1.22 | ||
Unrecognized stock option expense | $ 1,173,000 | $ 1,173,000 | ||
Period of stock option expense expected to be recognized over | 2 years 5 months 12 days | |||
General and administrative expenses | $ 442,000 | $ 1,021,000 | $ 820,000 | $ 1,970,000 |
Employee Comp [Member] | Former Director [Member] | ||||
Common stock shares awarded, shares | 125,000 | |||
Fair value of stock award | $ 154,000 | |||
NonEmployee Comp [Member] | ||||
Closing stock price | $ 1.22 | $ 1.22 | ||
Unrecognized stock option expense | $ 38,000 | $ 38,000 | ||
Period of stock option expense expected to be recognized over | 1 year 2 months 8 days | |||
General and administrative expenses | $ 65,000 | $ 16,000 | $ 403,000 | $ 66,000 |
Common stock shares awarded, shares | 350,000 | |||
Common stock shares awarded fully vested, shares | 210,000 | 210,000 | ||
Common stock shares awarded, period of expense to be recognized | 2 months | |||
Unrecognized expense related to restricted stock awards | $ 78,000 | $ 78,000 | ||
Restricted Stock award, period of expense expected to be recognized over | 2 years 8 months 12 days | |||
Fair value of vested restricted stock awards | $ 15,000 | |||
Shares vested | 140,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Business Segmentation | ||||
Net sales | $ 6,101,380 | $ 3,856,154 | $ 11,362,351 | $ 6,930,292 |
Cost of sales | 3,630,688 | 2,457,388 | 6,964,035 | 4,546,518 |
Gross profit | 2,470,692 | 1,398,766 | 4,398,316 | 2,383,774 |
Operating expenses: | ||||
Sales and marketing | 639,748 | 571,548 | 1,225,525 | 1,036,115 |
General and administrative | 2,015,004 | 2,468,646 | 4,262,935 | 4,806,309 |
Loss from investment in affiliate | 21,543 | |||
Operating expenses | 2,654,752 | 3,040,194 | 5,488,460 | 5,863,967 |
Operating income (loss) | (184,060) | (1,641,428) | (1,090,144) | (3,480,193) |
Assets | 14,222,594 | 14,222,594 | ||
Ingredients Segment [Member] | ||||
Business Segmentation | ||||
Net sales | 3,411,636 | 1,721,872 | 6,091,977 | 2,858,181 |
Cost of sales | 1,869,205 | 1,043,538 | 3,472,381 | 1,761,715 |
Gross profit | 1,542,431 | 678,334 | 2,619,596 | 1,096,466 |
Operating expenses: | ||||
Sales and marketing | $ 298,281 | $ 310,386 | $ 572,905 | $ 550,346 |
General and administrative | ||||
Loss from investment in affiliate | ||||
Operating expenses | $ 298,281 | $ 310,386 | $ 572,905 | $ 550,346 |
Operating income (loss) | 1,244,150 | 367,948 | 2,046,691 | 546,120 |
Assets | 4,275,827 | 4,275,827 | ||
CoreStandardsContractServices [Member] | ||||
Business Segmentation | ||||
Net sales | 2,371,477 | 1,856,950 | 4,671,520 | 3,592,833 |
Cost of sales | 1,635,294 | 1,295,530 | 3,209,078 | 2,489,165 |
Gross profit | 736,183 | 561,420 | 1,462,442 | 1,103,668 |
Operating expenses: | ||||
Sales and marketing | $ 336,392 | $ 221,797 | $ 647,336 | $ 434,572 |
General and administrative | ||||
Loss from investment in affiliate | ||||
Operating expenses | $ 336,392 | $ 221,797 | $ 647,336 | $ 434,572 |
Operating income (loss) | 399,791 | 339,623 | 815,106 | 669,096 |
Assets | 3,406,936 | 3,406,936 | ||
Regulatory Consulting [Member] | ||||
Business Segmentation | ||||
Net sales | 318,267 | 277,332 | 598,854 | 479,278 |
Cost of sales | 126,189 | 118,320 | 282,576 | 295,638 |
Gross profit | 192,078 | 159,012 | 316,278 | 183,640 |
Operating expenses: | ||||
Sales and marketing | $ 5,075 | $ 39,365 | $ 5,284 | $ 51,197 |
General and administrative | ||||
Loss from investment in affiliate | ||||
Operating expenses | $ 5,075 | $ 39,365 | $ 5,284 | $ 51,197 |
Operating income (loss) | 187,003 | $ 119,647 | 310,994 | $ 132,443 |
Assets | $ 185,357 | $ 185,357 | ||
Other Segment [Member] | ||||
Business Segmentation | ||||
Net sales | ||||
Cost of sales | ||||
Gross profit | ||||
Operating expenses: | ||||
Sales and marketing | ||||
General and administrative | $ 2,015,004 | $ 2,468,646 | $ 4,262,935 | $ 4,806,309 |
Loss from investment in affiliate | 21,543 | |||
Operating expenses | 2,015,004 | 2,468,646 | 4,262,935 | 4,827,852 |
Operating income (loss) | (2,015,004) | $ (2,468,646) | (4,262,935) | $ (4,827,852) |
Assets | $ 6,354,474 | $ 6,354,474 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Jul. 04, 2015 - USD ($) | Total |
Capital Lease Obligations [Member] | |
Monthly lease payment | $ 7,000 |
Capital lease term | 48 months |
Capital lease future payments | $ 356,000 |
Capital lease | 304,000 |
Capital Lease Obligations 2 [Member] | |
Monthly lease payment | $ 5,000 |
Capital lease term | 60 months |
Capital lease future payments | $ 276,000 |
Capital lease | $ 243,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - $ / shares | 1 Months Ended | 6 Months Ended |
Aug. 13, 2015 | Jul. 04, 2015 | |
Share based compensation, exercise price per share | ||
Director [Member] | ||
Share based compensation, options, shares | 675,000 | |
Share based compensation, exercise price per share | $ 1.22 | |
Employees [Member] | ||
Share based compensation, options, shares | 917,000 | |
Share based compensation, exercise price per share | $ 1.22 | |
Fried [Member] | ||
Share based compensation, options, shares | 200,000 |
Uncategorized Items - cdxc-2015
Label | Element | Value |
CoreStandardsContractServices [Member] | ||
Total assets | us-gaap_Assets | $ 3,220,518 |
Ingredients Segment [Member] | ||
Total assets | us-gaap_Assets | 3,757,073 |
Other Segment [Member] | ||
Total assets | us-gaap_Assets | 4,433,545 |
Regulatory Consulting [Member] | ||
Total assets | us-gaap_Assets | $ 105,711 |