Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2016 | Aug. 10, 2016 | |
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. 2, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 | 37,856,584 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 02, 2016 | Jan. 02, 2016 |
Current Assets | ||
Cash | $ 3,370,219 | $ 5,549,672 |
Trade receivables, net of allowances of $397,000 and $367,000, respectively | 6,793,779 | 2,450,591 |
Inventories | 4,524,803 | 8,173,799 |
Prepaid expenses and other assets | 465,711 | 373,567 |
Total current assets | 15,154,512 | 16,547,629 |
Leasehold Improvements and Equipment, net | 1,860,476 | 1,788,645 |
Deposits | 233,570 | 58,883 |
Intangible assets, net | 510,637 | 354,052 |
Longterm investment | 20,318 | |
Total assets | 17,779,513 | 18,749,209 |
Current Liabilities | ||
Accounts payable | 2,331,376 | 6,223,958 |
Accrued expenses | 1,937,427 | 1,302,865 |
Current maturities of loan payable | 1,528,578 | |
Current maturities of capital lease obligations | 218,126 | 219,689 |
Customer deposits and other | 262,852 | 272,002 |
Deferred rent, current | 38,350 | 39,529 |
Total current liabilities | 4,788,131 | 9,586,621 |
Loan payable, less current maturities, net | 3,345,335 | |
Capital lease obligations, less current maturities | 337,903 | 444,589 |
Deferred rent, less current | 205,826 | 97,990 |
Total Liabilities | 5,331,860 | 13,474,535 |
Stockholders' Equity | ||
Common stock, $.001 par value; authorized 50,000,000 shares; issued and outstanding July 2, 2016 37,489,914 and January 2, 2016 36,003,589 shares | 37,490 | 36,004 |
Additional paid-in capital | 54,532,594 | 47,534,059 |
Accumulated deficit | (42,122,431) | (42,295,389) |
Total stockholders' equity | 12,447,653 | 5,274,674 |
Total liabilities and stockholders' equity | $ 17,779,513 | $ 18,749,209 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jul. 02, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and returns | $ 397,000 | $ 367,000 |
Common Stock, Par Value Per Share | $ 0.001 | $ .001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 37,489,914 | 36,003,589 |
Common Stock, Shares, Outstanding | 37,489,914 | 36,003,589 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Income Statement [Abstract] | ||||
Sales, net | $ 8,829,579 | $ 6,101,380 | $ 16,161,524 | $ 11,362,351 |
Cost of sales | 4,702,132 | 3,630,688 | 8,582,658 | 6,964,035 |
Gross profit | 4,127,447 | 2,470,692 | 7,578,866 | 4,398,316 |
Operating expenses: | ||||
Sales and marketing | 698,031 | 639,748 | 1,242,753 | 1,225,525 |
Research and development | 751,726 | 175,410 | 1,215,798 | 296,505 |
General and administrative | 2,306,559 | 1,839,594 | 4,295,118 | 3,966,430 |
Operating expenses | 3,756,316 | 2,654,752 | 6,753,669 | 5,488,460 |
Operating income (loss) | 371,131 | (184,060) | 825,197 | (1,090,144) |
Nonoperating income (expense): | ||||
Interest income | 638 | 645 | 1,432 | 1,363 |
Interest expense | (145,424) | (131,777) | (333,919) | (251,926) |
Loss on debt extinguishment | (313,099) | (313,099) | ||
Nonoperating expenses | (457,885) | (131,132) | (645,586) | (250,563) |
Income (loss) before taxes | (86,754) | (315,192) | 179,611 | (1,340,707) |
Provision for taxes | 4,087 | (6,653) | ||
Net income (loss) | $ (82,667) | $ (315,192) | $ 172,958 | $ (1,340,707) |
Basic earnings (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.04) |
Diluted earnings (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.04) |
Basic weighted average common shares outstanding | 36,990,032 | 35,803,298 | 36,702,037 | 35,768,082 |
Diluted weighted average common shares outstanding | 36,990,032 | 35,803,298 | 37,470,666 | 35,768,082 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Amount at Jan. 02, 2016 | $ 36,004 | $ 47,534,059 | $ (42,295,389) | $ 5,274,674 |
Beginning Balance, Share at Jan. 02, 2016 | 36,003,589 | |||
Issuance of common stock, Amount | $ 128 | 479,872 | 480,000 | |
Issuance of common stock, Share | 128,205 | |||
Exercise of stock options, Amount | $ 47 | 93,825 | 93,872 | |
Exercise of stock options, Share | 47,055 | |||
Share-based compensation | 324,035 | 324,035 | ||
Vested restricted stock, Amount | $ 2 | (2) | ||
Vested restricted stock, Share | 2,000 | |||
Net income (loss) | 255,625 | 255,625 | ||
Ending Balance, Amount at Apr. 02, 2016 | $ 36,181 | 48,431,789 | (42,039,764) | 6,428,206 |
Ending Balance, Share at Apr. 02, 2016 | 36,180,849 | |||
Beginning Balance, Amount at Jan. 02, 2016 | $ 36,004 | 47,534,059 | (42,295,389) | $ 5,274,674 |
Beginning Balance, Share at Jan. 02, 2016 | 36,003,589 | |||
Exercise of stock options, Share | (190,473) | |||
Net income (loss) | $ 172,958 | |||
Ending Balance, Amount at Jul. 02, 2016 | $ 37,490 | 54,532,594 | (42,122,431) | 12,447,653 |
Ending Balance, Share at Jul. 02, 2016 | 37,489,914 | |||
Beginning Balance, Amount at Apr. 02, 2016 | $ 36,181 | 48,431,789 | (42,039,764) | 6,428,206 |
Beginning Balance, Share at Apr. 02, 2016 | 36,180,849 | |||
1 for 3 reverse stock split, isssuance due to fractional shares round up, Amount | $ 2 | (2) | ||
1 for 3 reverse stock split, isssuance due to fractional shares round up, Share | 1,632 | |||
Issuance of common stock, Amount | $ 1,117 | 5,238,883 | 5,240,000 | |
Issuance of common stock, Share | 1,117,022 | |||
Exercise of stock options, Amount | $ 185 | 528,327 | 528,512 | |
Exercise of stock options, Share | 185,081 | |||
Share-based compensation | 333,602 | 333,602 | ||
Vested restricted stock, Amount | $ 5 | (5) | ||
Vested restricted stock, Share | 5,330 | |||
Net income (loss) | (82,667) | (82,667) | ||
Ending Balance, Amount at Jul. 02, 2016 | $ 37,490 | $ 54,532,594 | $ (42,122,431) | $ 12,447,653 |
Ending Balance, Share at Jul. 02, 2016 | 37,489,914 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | |
Jul. 02, 2016 | Apr. 02, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Net offering costs | $ 10,000 | $ 20,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jul. 02, 2016 | Jul. 04, 2015 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 172,958 | $ (1,340,707) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation of leasehold improvements and equipment | 159,370 | 137,279 |
Amortization of intangibles | 38,415 | 20,541 |
Share-based compensation expense | 657,637 | 1,223,177 |
Allowance for doubtful trade receivables | 29,649 | 3,365 |
Loss from disposal of equipment | 18,226 | |
Non-cash loss on debt extinguishment | 32,007 | |
Non-cash financing costs | 94,080 | 92,143 |
Changes in operating assets and liabilities: | ||
Trade receivables | (4,372,837) | (1,195,891) |
Inventories | 3,628,678 | 645,308 |
Prepaid expenses and other assets | (266,831) | (134,482) |
Accounts payable | (3,892,582) | (357,065) |
Accrued expenses | 634,562 | 427,913 |
Customer deposits and other | (9,150) | (5,251) |
Deferred rent | 106,657 | (31,732) |
Net cash used in operating activities | (2,987,387) | (497,176) |
Cash Flows From Investing Activities | ||
Purchases of leasehold improvements and equipment | (231,201) | (139,162) |
Purchases of intangible assets | (195,000) | (22,500) |
Net cash used in investing activities | (426,201) | (161,662) |
Cash Flows From Financing Activities | ||
Proceeds from issuance of common stock, net of issuance costs | 5,720,000 | |
Proceeds from exercise of stock options | 622,384 | 15,601 |
Proceeds from loan payable | 2,500,000 | |
Payment of debt issuance cost | (15,000) | |
Principal payments on loan payable | (5,000,000) | |
Principal payments on capital leases | (108,249) | (107,265) |
Net cash provided by financing activities | 1,234,135 | 2,393,336 |
Net (decrease) increase in cash | (2,179,453) | 1,734,498 |
Cash Beginning of Period | 5,549,672 | 3,964,750 |
Cash Ending of Period | 3,370,219 | 5,699,248 |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest | 239,839 | 73,202 |
Supplemental Schedule of Noncash Investing Activity | ||
Capital lease obligation incurred for purchases of equipment | 303,933 | |
Inventory supplied to Healthspan Research, LLC for equity interest, at cost | 20,318 | |
Retirement of fully depreciated equipment - cost | 28,083 | |
Retirement of fully depreciated equipment - accumulated depreciation | $ (28,083) |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jul. 02, 2016 | |
Interim Financial Statements | |
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 Companysfinancial position as of July 2, 2016 and results of operations and cash flows for the threeand six months ended July 2, 2016 and July 4, 2015. 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 2, 2016 appearing in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (the Commission) on March 17, 2016. Operating results for the sixmonths ended July 2, 2016are not necessarily indicative of the results to be achieved for the full year ending on December 31, 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 2, 2016 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. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Liquidity | Nature of business . Liquidity While we anticipate that our current cash, cash equivalents and cash to be generated from operations will be sufficient to meet our projected operating plans through at least August 12, 2017, 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. 02, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Basis of presentation Inventories July 2, 2016 January 2, 2016 Natural product fine chemicals $ 1,031,287 $ 1,239,338 Bulk ingredients 3,601,516 7,195,461 4,632,803 8,434,799 Less valuation allowance (108,000 ) (261,000 ) $ 4,524,803 $ 8,173,799 |
Reverse Stock Split
Reverse Stock Split | 6 Months Ended |
Jul. 02, 2016 | |
Stockholders' Equity Note [Abstract] | |
Reverse Stock Split | On April 13, 2016, the Company effected a 1-for-3 reverse stock split. All information presented herein has been retrospectively adjusted to reflect the reverse stock split as if they took place as of the earliest period presented. An additional 1,632 shares were issued to round up fractional shares as a result of the reverse stock split. |
Earnings Per Share Applicable t
Earnings Per Share Applicable to Common Stockholders | 6 Months Ended |
Jul. 02, 2016 | |
Loss Per Share Applicable To Common Stockholders | |
Earnings Per Share Applicable to Common Stockholders | The following table sets forth the computations of earnings per share amounts applicable to common stockholders for the three and six months ended July 2, 2016 and July 4, 2015: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Net income (loss) $ (82,667 ) $ (315,192 ) $ 172,958 $ (1,340,707 ) Basic weighted average common shares outstanding (1): 36,990,032 35,803,298 36,702,037 35,768,082 Basic earnings (loss) per common share $ (0.00 ) $ (0.01 ) $ 0.00 $ (0.04 ) Dilutive effect of stock options, net 726,879 Dilutive effect of warrants, net 41,750 Diluted weighted average common shares outstanding : 36,990,032 35,803,298 37,470,666 35,768,082 Diluted earnings (loss) per common share $ (0.00 ) $ (0.01 ) $ 0.00 $ (0.04 ) Potentially dilutive securities, total (2): Stock options 5,126,943 4,706,705 4,400,064 4,706,705 Warrants 487,111 156,340 445,361 156,340 Convertible debt 257,798 257,798 (1) Includes 369,220 and 410,161 weighted average nonvested shares of restricted stock for the three months ended July 2, 2016 and July 4, 2015, respectively, and 370,923 and 464,095 weighted average nonvested shares or restricted stock for the six months ended July 2, 2016 and July 4, 2015, respectively, which are participating securities that feature voting and dividend rights. (2) Excluded from the computation of diluted loss per share for the three months ended July 2, 2016, and the three and six months ended July 4, 2015 as their impact is antidilutive. |
Loan Payable
Loan Payable | 6 Months Ended |
Jul. 02, 2016 | |
Debt Disclosure [Abstract] | |
Loan Payable | On June 14, 2016, the Company repaid $4,851,542 owed to Hercules Funding II LLC (Hercules), under the Companys loan and security agreement with Hercules dated as of September 29, 2014 (the Loan Agreement). The payoff amount was comprised of the following: Payoff Amount Principal $ 4,554,659 Accrued interest 15,790 End of term charge 187,500 Prepayment fee 91,093 Other fees 2,500 Total $ 4,851,542 Upon Hercules receipt of the Payoff Amount, the Loan Agreement terminated. The Loan Agreement initially 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 the closing of the Loan Agreement, and was repayable in installments over 30 months, following an initial interest-only period of twelve months after closing. The Company drew down the remaining $2.5 million of the term loan on June 17, 2015 and the interest-only period was extended to March 31, 2016. In connection with the loan, the Company paid an aggregate of $65,000 in facility charges to Hercules and granted Hercules first priority liens and a security interest in substantially all of its assets. The Loan Agreement also provided (i) a borrower option to repay principal in common stock up to an aggregate amount of $500,000 at a conversion price of $3.879 per share and (ii) a lender option to receive principal repayments in common stock up to an aggregate amount of $500,000 at a conversion price of $3.879 per share, subject to certain conditions. However, no principal was repaid in common stock. On the commitment date, no separate accounting was required for the conversion feature. In connection with the termination of the Loan Agreement, Herculess commitments to extend further credit to the Company terminated, all obligations, covenants, debts and liabilities of the Company under the Loan Agreement were satisfied and discharged in full, all documents entered into in connection with the Loan Agreement, other than a warrant issued pursuant to the Loan Agreement, were terminated, all liens or security interests granted to secure the obligations under the Loan Agreement terminated and all guaranties of the Companys obligations under the Loan Agreement terminated. The payoff amount, excluding the accrued interest to date, was $4,835,752 and the net carrying amount of the debt on the extinguishment date was $4,522,653. The difference of $313,099 was recognized as a non-operating loss in the statement of operations during the three months ended July 2, 2016. Net Carrying Amount Payoff Amount (Excluding Interest) Principal $ 4,554,659 Principal $ 4,554,659 Accrued end of term charge 103,909 End of term charge 187,500 Deferred financing cost (45,606) Prepayment fee 91,093 Warrant discount (90,309) Other fees 2,500 Total $ 4,522,653 Total $ 4,835,752 (A) (B) Loss on debt extinguishment $ (313,099) (A) - (B) |
Employee Share-Based Compensati
Employee Share-Based Compensation | 6 Months Ended |
Jul. 02, 2016 | |
Share-based Compensation | |
Employee Share-Based Compensation | Service Period The following table summarizes activity of service period based stock options granted to employees at July 2, 2016 and changes during the six months then ended: Weighted Average Number of Exercise Remaining Contractual Fair Aggregate Shares Price Term Value Value Outstanding at January 2, 2016 4,314,264 $ 3.50 6.44 Options Granted 151,669 4.99 10.00 $ 3.16 Options Exercised (190,473 ) 2.85 Options Forfeited (37,699 ) 3.49 Outstanding at July 2, 2016 4,237,761 $ 3.58 6.04 $ 3,150,000 Exercisable at July 2, 2016 3,436,494 $ 3.50 5.41 $ 2,817,082 The aggregate intrinsic values in the table above are based on the Companys stock price of $4.11, which is the closing price of the Companys stock on the last day of business for the period ended July 2, 2016. The aggregate intrinsic values for options exercised during the six months ended July 2, 2016 was approximately $433,000. 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 2, 2016. Six Months Ended July 2, 2016 Expected term 6.1 years Expected volatility 73 % Expected dividends 0.00 % Risk-free rate 1.50 % As of July 2,2016, there was approximately $1,594,000 of total unrecognized compensation expense under the plans for all employee stock options. That cost is expected to be recognized over a weighted average period of 2.70 years. Employee Share-Based Compensation The Company recognized compensation expense of approximately $314,000and $621,000 in general and administrative expenses in the statement of operations for the three and six months ended July 2, 2016, respectively, and approximately $442,000and $820,000 for the three and six months ended July 4, 2015, respectively. |
Stock Issuance
Stock Issuance | 6 Months Ended |
Jul. 02, 2016 | |
Stock Issuance | |
Stock Issuance | On March 11, 2016, the Company entered into a Securities Purchase Agreement (SPA) to raise $500,000 in a registered direct offering. Pursuant to the SPA, the Company sold a total of 128,205 Units at a purchase price of $3.90 per Unit, with each Unit consisting of one share of the Companys common stock and a warrant to purchase one half of a share of common stock (64,103 total) with an exercise price of $4.80 and a term of 3 years. The estimated fair value of the warrant was approximately $108,000 and the warrant was determined to be classified as equity. The fair value was estimated at the date of issuance using the Black-Scholes based valuation model. The table below outlines the assumptions for the warrant issued. March 11, 2016 Fair value of common stock $ 4.41 Contractual term 3.0 years Volatility 60.00 % Risk-free rate 1.16 % Expected dividends 0.00 % On June 3, 2016, the Company entered into additional SPAs to raise $5,250,000 in a registered direct offering. Pursuant to the SPAs, the Company sold a total of 1,117,022 shares of the Companys common stock at a purchase price of $4.70 per share. |
Business Segments
Business Segments | 6 Months Ended |
Jul. 02, 2016 | |
Business Segments | |
Business Segments | The Company has the 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 provides 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 intersegmentsales that require elimination. The Company evaluates performance and allocates resources based on reviewing gross margin by reportable segment. Three months ended Core Standards and Scientific and July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 6,241,749 $ 2,474,982 $ 112,848 $ $ 8,829,579 Cost of sales 3,034,389 1,561,287 106,456 4,702,132 Gross profit 3,207,360 913,695 6,392 4,127,447 Operating expenses: Sales and marketing 399,700 294,531 3,800 698,031 Research and development 736,726 15,000 751,726 General and administrative 2,306,559 2,306,559 Operating expenses 1,136,426 309,531 3,800 2,306,559 3,756,316 Operating income (loss) $ 2,070,934 $ 604,164 $ 2,592 $ (2,306,559 ) $ 371,131 Three months ended Core Standards and Scientific and July 4, 2015 Ingredients Contract Services Regulatory segment segment 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 Research and development 175,410 175,410 General and administrative 1,839,594 1,839,594 Operating expenses 473,691 336,392 5,075 1,839,594 2,654,752 Operating income (loss) $ 1,068,740 $ 399,791 $ 187,003 $ (1,839,594 ) $ (184,060 ) Six months ended Core Standards and Scientific and July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 10,842,375 $ 5,058,648 $ 260,501 $ $ 16,161,524 Cost of sales 5,133,551 3,233,271 215,836 8,582,658 Gross profit 5,708,824 1,825,377 44,665 7,578,866 Operating expenses: Sales and marketing 731,443 503,910 7,400 1,242,753 Research and development 1,200,798 15,000 1,215,798 General and administrative 4,295,118 4,295,118 Operating expenses 1,932,241 518,910 7,400 4,295,118 6,753,669 Operating income (loss) $ 3,776,583 $ 1,306,467 $ 37,265 $ (4,295,118 ) $ 825,197 Six months ended Core Standards and Scientific and July 4, 2015 Ingredients Contract Services Regulatory segment segment 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 Research and development 296,505 296,505 General and administrative 3,966,430 3,966,430 Operating expenses 869,410 647,336 5,284 3,966,430 5,488,460 Operating income (loss) $ 1,750,186 $ 815,106 $ 310,994 $ (3,966,430 ) $ (1,090,144 ) Core Standards and Scientific and At July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 10,072,279 $ 3,443,044 $ 71,512 $ 4,192,678 $ 17,779,513 Core Standards and Scientific and At January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 9,105,502 $ 3,306,624 $ 111,765 $ 6,225,318 $ 18,749,209 Disclosure of major customers Major customers who accounted for more than 10% of the Companys total sales were as follows: Percentage of the Company's Total Sales Three Months Ended Six Months Ended Major Customers July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Customer C (ingredients segment) 34.5 % * 31.3 % * Customer B (ingredients segment) * 11.8 % * 10.8 % * Represents less than 10%. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 02, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | On August 28, 2015, the Company entered into an Exclusive Supply Agreement (the Supply Agreement) with Healthspan Research, LLC (Healthspan). Under the terms of the Supply Agreement, Healthspan agreed to purchase NIAGEN® from the Company and the Company granted to Healthspan worldwide rights for resale of specific dietary supplements containing NIAGEN® in certain direct response channels. Pursuant to the terms of the Supply Agreement, in exchange for a 4% equity interest in Healthspan, the Company agreed to initially supply NIAGEN® to Healthspan free of charge up to a certain amount on a buy-one-get-one-free basis and thereafter at a fixed price and, in exchange for an additional 5% equity interest in Healthspan, the Company will grant to Healthspan certain exclusive rights to resell NIAGEN®. Healthspan will pay the Company royalties on the cumulative worldwide net sales of its finished products containing NIAGEN®. The exclusivity rights will remain for so long as Healthspan meets certain minimum purchase requirements. In the event that, during the initial term, the Company terminates the exclusivity rights due to failure to meet the minimum purchase requirements or for any reason other than a material breach of the Supply Agreement by Healthspan, then the 5% equity interest shall be automatically redeemed for a purchase price of $1.00 effective upon the date of termination of the exclusivity rights. In connection with the foregoing, also on August 28, 2015, the Company and Healthspan entered into an interest purchase agreement and limited liability company agreement pursuant to which the Company was issued 9% of the outstanding equity interests of Healthspan. Rob Fried, a director of the Company, is the manager of Healthspan and owns 91% of the outstanding equity interests of Healthspan. The Supply Agreement, interest purchase agreement and limited liability company agreement were unanimously approved by the independent directors of the Company. During the six months endedJuly 2, 2016, the Company shipped NIAGEN® to Healthspanon a buy-one-get-one-free basis. Our cost of NIAGEN® supplied free of charge was approximately $20,000 and this was recorded as a long-term investment at our cost. The Company accounts for its ownership interest under the cost method of accounting as the Company does not have an ability to exercise significant influence on Healthspan. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | On February29, 2016, the Company entered into a lease amendment to extend the term of the lease for its laboratory facility located in Boulder, Colorado through April 2023. Pursuant to the lease amendment, the Company will make monthly lease payments ranging from $23,472 to $27,210, as the payments escalate during the term of the lease. On March 4, 2016, the Company entered into a lease amendment to lease an office space located in Rockville, Maryland through April 2021. Pursuant to the lease amendment, the Company will make monthly lease payments ranging from $3,450 to $3,883, as the payments escalate during the term of the lease. On April 14, 2016, the Company entered into a lease to lease an office and laboratory space located in Longmont, Colorado through September 2023. Pursuant to the lease, the Company will make monthly lease payments ranging from $8,586 to $11,518, as payments escalate during the term of the lease. Subsequent to the period ended July 2, 2016, the Company agreed to pay additional lease payments of approximately $800 per month as the landlord will provide additional improvements to the leased premises. |
Significant Accounting Polici19
Significant Accounting Policies (Policy) | 6 Months Ended |
Jul. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation |
Inventories | Inventories July 2, 2016 January 2, 2016 Natural product fine chemicals $ 1,031,287 $ 1,239,338 Bulk ingredients 3,601,516 7,195,461 4,632,803 8,434,799 Less valuation allowance (108,000 ) (261,000 ) $ 4,524,803 $ 8,173,799 |
Significant Accounting Polici20
Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Accounting Policies [Abstract] | |
Inventories | July 2, 2016 January 2, 2016 Natural product fine chemicals $ 1,031,287 $ 1,239,338 Bulk ingredients 3,601,516 7,195,461 4,632,803 8,434,799 Less valuation allowance (108,000 ) (261,000 ) $ 4,524,803 $ 8,173,799 |
Earnings Per Share Applicable21
Earnings Per Share Applicable to Common Stockholders (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Loss Per Share Applicable To Common Stockholders Tables | |
Loss per share amounts applicable to common stockholders | Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Net income (loss) $ (82,667 ) $ (315,192 ) $ 172,958 $ (1,340,707 ) Basic weighted average common shares outstanding (1): 36,990,032 35,803,298 36,702,037 35,768,082 Basic earnings (loss) per common share $ (0.00 ) $ (0.01 ) $ 0.00 $ (0.04 ) Dilutive effect of stock options, net 726,879 Dilutive effect of warrants, net 41,750 Diluted weighted average common shares outstanding : 36,990,032 35,803,298 37,470,666 35,768,082 Diluted earnings (loss) per common share $ (0.00 ) $ (0.01 ) $ 0.00 $ (0.04 ) Potentially dilutive securities, total (2): Stock options 5,126,943 4,706,705 4,400,064 4,706,705 Warrants 487,111 156,340 445,361 156,340 Convertible debt 257,798 257,798 |
Loan Payable (Tables)
Loan Payable (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Debt Disclosure [Abstract] | |
Loan payable | The payoff amount was comprised of following: Payoff Amount Principal $ 4,554,659 Accrued interest 15,790 End of term charge 187,500 Prepayment fee 91,093 Other fees 2,500 Total $ 4,851,542 Net Carrying Amount Payoff Amount (Excluding Interest) Principal $ 4,554,659 Principal $ 4,554,659 Accrued end of term charge 103,909 End of term charge 187,500 Deferred financing cost (45,606 ) Prepayment fee 91,093 Warrant discount (90,309 ) Other fees 2,500 Total $ 4,522,653 Total $ 4,835,752 (A) (B) Loss on debt extinguishment $ (313,099 ) (A) - (B) |
Employee Share-Based Compensa23
Employee Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Share-based Compensation Tables | |
Service Period Based Stock Options | Weighted Average Number of Exercise Remaining Contractual Fair Aggregate Shares Price Term Value Value Outstanding at January 2, 2016 4,314,264 $ 3.50 6.44 Options Granted 151,669 4.99 10.00 $ 3.16 Options Exercised (190,473 ) 2.85 Options Forfeited (37,699 ) 3.49 Outstanding at July 2, 2016 4,237,761 $ 3.58 6.04 $ 3,150,000 Exercisable at July 2, 2016 3,436,494 $ 3.50 5.41 $ 2,817,082 |
Weighted average assumptions of stock options granted | Six Months Ended July 2, 2016 Expected term 6.1 years Expected volatility 73 % Expected dividends 0.00 % Risk-free rate 1.50 % |
Stock Issuance (Tables)
Stock Issuance (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Stock Issuance | |
Outlines the assumptions for warrant issued | March 11, 2016 Fair value of common stock $ 4.41 Contractual term 3.0 years Volatility 60.00 % Risk-free rate 1.16 % Expected dividends 0.00 % |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Business Segments Tables | |
Business Segmentation | Three months ended Core Standards and Scientific and July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 6,241,749 $ 2,474,982 $ 112,848 $ $ 8,829,579 Cost of sales 3,034,389 1,561,287 106,456 4,702,132 Gross profit 3,207,360 913,695 6,392 4,127,447 Operating expenses: Sales and marketing 399,700 294,531 3,800 698,031 Research and development 736,726 15,000 751,726 General and administrative 2,306,559 2,306,559 Operating expenses 1,136,426 309,531 3,800 2,306,559 3,756,316 Operating income (loss) $ 2,070,934 $ 604,164 $ 2,592 $ (2,306,559 ) $ 371,131 Three months ended Core Standards and Scientific and July 4, 2015 Ingredients Contract Services Regulatory segment segment 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 Research and development 175,410 175,410 General and administrative 1,839,594 1,839,594 Operating expenses 473,691 336,392 5,075 1,839,594 2,654,752 Operating income (loss) $ 1,068,740 $ 399,791 $ 187,003 $ (1,839,594 ) $ (184,060 ) Six months ended Core Standards and Scientific and July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 10,842,375 $ 5,058,648 $ 260,501 $ $ 16,161,524 Cost of sales 5,133,551 3,233,271 215,836 8,582,658 Gross profit 5,708,824 1,825,377 44,665 7,578,866 Operating expenses: Sales and marketing 731,443 503,910 7,400 1,242,753 Research and development 1,200,798 15,000 1,215,798 General and administrative 4,295,118 4,295,118 Operating expenses 1,932,241 518,910 7,400 4,295,118 6,753,669 Operating income (loss) $ 3,776,583 $ 1,306,467 $ 37,265 $ (4,295,118 ) $ 825,197 Six months ended Core Standards and Scientific and July 4, 2015 Ingredients Contract Services Regulatory segment segment 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 Research and development 296,505 296,505 General and administrative 3,966,430 3,966,430 Operating expenses 869,410 647,336 5,284 3,966,430 5,488,460 Operating income (loss) $ 1,750,186 $ 815,106 $ 310,994 $ (3,966,430 ) $ (1,090,144 ) Core Standards and Scientific and At July 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 10,072,279 $ 3,443,044 $ 71,512 $ 4,192,678 $ 17,779,513 Core Standards and Scientific and At January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 9,105,502 $ 3,306,624 $ 111,765 $ 6,225,318 $ 18,749,209 |
Percentage of Sales Table | Percentage of the Company's Total Sales Three Months Ended Six Months Ended Major Customers July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Customer C (ingredients segment) 34.5% * 31.3% * Customer B (ingredients segment) * 11.8% * 10.8% * Represents less than 10%. |
Nature of Business and Liquid26
Nature of Business and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2016 | Apr. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | Jan. 02, 2016 | |
Liquidity | ||||||
Operating income (loss) | $ 371,131 | $ (184,060) | $ 825,197 | $ (1,090,144) | ||
Net (loss) | (82,667) | $ 255,625 | (315,192) | 172,958 | (1,340,707) | |
Cash and cash equivalents | $ 3,370,219 | $ 5,699,248 | $ 3,370,219 | $ 5,699,248 | $ 5,549,672 |
Significant Accounting Polici27
Significant Accounting Policies (Details) - USD ($) | Jul. 02, 2016 | Jan. 02, 2016 |
Inventories | ||
Natural product fine chemicals | $ 1,031,287 | $ 1,239,338 |
Bulk ingredients | 3,601,516 | 7,195,461 |
Inventory-gross | 4,632,803 | 8,434,799 |
Less valuation allowance | (108,000) | (261,000) |
Inventory-net | $ 4,524,803 | $ 8,173,799 |
Reverse Stock Split (Details Na
Reverse Stock Split (Details Narrative) | Apr. 13, 2016shares |
Reverse Stock Split Details Narrative | |
Reverse stock split | 1 for 3 reverse stock split |
Reverse stock split, Share Issued | 1,632 |
Earnings Per Share Applicable29
Earnings Per Share Applicable to Common Stockholders (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2016 | Apr. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Net income (loss) | $ (82,667) | $ 255,625 | $ (315,192) | $ 172,958 | $ (1,340,707) |
Basic weighted average common shares outstanding | 36,990,032 | 35,803,298 | 36,702,037 | 35,768,082 | |
Basic earnings (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.04) | |
Dilutive effect of stock options, net | 726,879 | ||||
Dilutive effect of warrants, net | 41,750 | ||||
Diluted weighted average common shares outstanding | 36,990,032 | 35,803,298 | 37,470,666 | 35,768,082 | |
Diluted earnings (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.04) | |
Stock Option [Member] | |||||
Potentially dilutive securities | |||||
Potentially dilutive securities | 5,126,943 | 4,706,705 | 4,400,064 | 4,706,705 | |
Warrant [Member] | |||||
Potentially dilutive securities | |||||
Potentially dilutive securities | 487,111 | 156,340 | 445,361 | 156,340 | |
Convertible Debt [Member] | |||||
Potentially dilutive securities | |||||
Potentially dilutive securities | 257,798 | 257,798 |
Earnings Per Share Applicable30
Earnings Per Share Applicable to Common Stockholders (Details) (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Loss Per Share Applicable To Common Stockholders Details Narrative | ||||
Weighted average nonvested shares of restricted stock | 369,220 | 410,161 | 370,923 | 464,095 |
Loan Payable (Details)
Loan Payable (Details) | Jul. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
Principal, payoff amount | $ 4,554,659 |
Accrued interest, payoff amount | 15,790 |
End of term charge, payoff amount | 187,500 |
Prepayment fee, payoff amount | 91,093 |
Other fees, payoff amount | 2,500 |
Total payoff amount | $ 4,851,542 |
Loan Payable (Details 1)
Loan Payable (Details 1) | Jul. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
Principal, carrying amount | $ 4,554,659 |
Accrued end of term charge, carrying amount | 103,909 |
Deferred financing cost, carrying amount | (45,606) |
Warrant discount, carrying amount | (90,309) |
Total carrying amount | 4,522,653 |
Principal, payoff amount | 4,554,659 |
End of term charge, payoff amount | 187,500 |
Prepayment fee, payoff amount | 91,093 |
Other fees, payoff amount | 2,500 |
Total payoff amount | 4,835,752 |
Loss on debt extinguishment | $ (313,099) |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - USD ($) | 3 Months Ended | 8 Months Ended | ||
Jul. 02, 2016 | Sep. 14, 2014 | Jun. 17, 2015 | Sep. 01, 2014 | |
Debt Disclosure [Abstract] | ||||
Principal, payoff amount | $ 4,554,659 | |||
Total payoff amount | 4,851,542 | |||
Loan agreement | $ 5,000,000 | |||
Draw down amount | $ 2,500,000 | $ 2,500,000 | ||
Facility fees | 65,000 | |||
Conversion feature | (i) a borrower option to repay principal in common stock up to an aggregate amount of $500,000 at a conversion price of $3.879 per share and (ii) a lender option to receive principal repayments in common stock up to an aggregate amount of $500,000 at a conversion price of $3.879 per share, subject to certain conditions | |||
Total carrying amount | 4,522,653 | |||
Loss on debt extinguishment | $ (313,099) |
Employee Share-Based Compensa34
Employee Share-Based Compensation (Details) | 6 Months Ended |
Jul. 02, 2016USD ($)$ / sharesshares | |
Service Period Based Stock Options | |
Outstanding at Beginning of Period | shares | 4,314,264 |
Options Granted | shares | 151,669 |
Options Exercised | shares | (190,473) |
Options Forfeited | shares | (37,699) |
Outstanding at End of Period | shares | 4,237,761 |
Exercisable at End of Period | shares | 3,436,494 |
Weighted Average Exercise Price | |
Outstanding at Beginning of Period | $ 3.50 |
Options Granted | 4.99 |
Options Exercised | 2.85 |
Options Forfeited | 3.49 |
Outstanding at End of Period | 3.58 |
Exercisable at End of Period | $ 3.50 |
Weighted Average Remaining Contractual Term | |
Outstanding at Beginning of Period | 6 years 5 months 9 days |
Options Granted | 10 years |
Outstanding at End of Period | 6 years 15 days |
Exercisable at End of Period | 5 years 4 months 28 days |
Weighted Average Fair Value | |
Weighted Average Fair Value Option Granted | $ 3.16 |
Aggregate Intrinsic Value | |
Outstanding at End of Period | $ | $ 3,150,000 |
Exercisable at End of Period | $ | $ 2,817,082 |
Employee Share-Based Compensa35
Employee Share-Based Compensation (Details 1) | Mar. 11, 2016 | Jul. 02, 2016 |
Employee Share-based Compensation Details 1 | ||
Expected term | 3 years | 6 years 1 month 6 days |
Expected volatility | 60.00% | 73.00% |
Expected dividends | 0.00% | 0.00% |
Risk-free rate | 1.16% | 1.50% |
Employee Share-Based Compensa36
Employee Share-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Employee Share-based Compensation Details Narrative | ||||
Closing stock price | $ 4.11 | $ 4.11 | ||
Aggregate intrinsic values for options exercised | $ 433,000 | |||
Unrecognized compensation expense | $ 1,594,000 | $ 1,594,000 | ||
Cost is expected to be recognized over a weighted average period | 2 years 8 months 12 days | |||
Recognized compensation expense | $ 314,000 | $ 442,000 | $ 621,000 | $ 820,000 |
Stock Issuance (Details)
Stock Issuance (Details) - $ / shares | Mar. 11, 2016 | Jul. 02, 2016 |
Stock Issuance Details | ||
Fair value of common stock | $ 4.41 | |
Contractual term | 3 years | 6 years 1 month 6 days |
Volatility | 60.00% | 73.00% |
Risk-free rate | 1.16% | 1.50% |
Expected dividends | 0.00% | 0.00% |
Stock Issuance (Details Narrati
Stock Issuance (Details Narrative)) - USD ($) | Jun. 03, 2016 | Mar. 11, 2016 |
Stock Issuance | ||
Proceeds from sale of common stock | $ 5,250,000 | $ 500,000 |
Sale of common stock | 1,117,022 | 128,205 |
Purchase price per unit sold | $ 4.70 | $ 3.90 |
Unit description | of one share of the Companys common stock and a warrant to purchase one half of a share of common stock (64,103 total) with an exercise price of $4.80 and a term of 3 years | |
Unit warrant exercise price | $ 4.80 | |
Unit warrant term | 3 years | |
Fair value of warrants | $ 108,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | Jan. 02, 2016 | |
Business Segmentation | |||||
Net sales | $ 8,829,579 | $ 6,101,380 | $ 16,161,524 | $ 11,362,351 | |
Cost of sales | 4,702,132 | 3,630,688 | 8,582,658 | 6,964,035 | |
Gross profit | 4,127,447 | 2,470,692 | 7,578,866 | 4,398,316 | |
Operating expenses: | |||||
Sales and marketing | 698,031 | 639,748 | 1,242,753 | 1,225,525 | |
Research and development | 751,726 | 175,410 | 1,215,798 | 296,505 | |
General and administrative | 2,306,559 | 1,839,594 | 4,295,118 | 3,966,430 | |
Operating expenses | 3,756,316 | 2,654,752 | 6,753,669 | 5,488,460 | |
Operating income (loss) | 371,131 | (184,060) | 825,197 | (1,090,144) | |
Total assets | 17,779,513 | 17,779,513 | $ 18,749,209 | ||
Ingredients Segment [Member] | |||||
Business Segmentation | |||||
Net sales | 6,241,749 | 3,411,636 | 10,842,375 | 6,091,977 | |
Cost of sales | 3,034,389 | 1,869,205 | 5,133,551 | 3,472,381 | |
Gross profit | 3,207,360 | 1,542,431 | 5,708,824 | 2,619,596 | |
Operating expenses: | |||||
Sales and marketing | 399,700 | 298,281 | 731,443 | 572,905 | |
Research and development | 736,726 | 175,410 | 1,200,798 | 296,505 | |
General and administrative | |||||
Operating expenses | 1,136,426 | 473,691 | 1,932,241 | 869,410 | |
Operating income (loss) | 2,070,934 | 1,068,740 | 3,776,583 | 1,750,186 | |
Total assets | 10,072,279 | 10,072,279 | 9,105,502 | ||
Core Standards and Contract Services Segment [Member] | |||||
Business Segmentation | |||||
Net sales | 2,474,982 | 2,371,477 | 5,058,648 | 4,671,520 | |
Cost of sales | 1,561,287 | 1,635,294 | 3,233,271 | 3,209,078 | |
Gross profit | 913,695 | 736,183 | 1,825,377 | 1,462,442 | |
Operating expenses: | |||||
Sales and marketing | 294,531 | 336,392 | 503,910 | 647,336 | |
Research and development | 15,000 | 15,000 | |||
General and administrative | |||||
Operating expenses | 309,531 | 336,392 | 518,910 | 647,336 | |
Operating income (loss) | 604,164 | 399,791 | 1,306,467 | 815,106 | |
Total assets | 3,443,044 | 3,443,044 | 3,306,624 | ||
Scientific and Regulatory Consulting Segment [Member] | |||||
Business Segmentation | |||||
Net sales | 112,848 | 318,267 | 260,501 | 598,854 | |
Cost of sales | 106,456 | 126,189 | 215,836 | 282,576 | |
Gross profit | 6,392 | 192,078 | 44,665 | 316,278 | |
Operating expenses: | |||||
Sales and marketing | 3,800 | 5,075 | 7,400 | 5,284 | |
Research and development | |||||
General and administrative | |||||
Operating expenses | 3,800 | 5,075 | 7,400 | 5,284 | |
Operating income (loss) | 2,592 | 187,003 | 37,265 | 310,994 | |
Total assets | 71,512 | 71,512 | 111,765 | ||
Other Segment [Member] | |||||
Business Segmentation | |||||
Net sales | |||||
Cost of sales | |||||
Gross profit | |||||
Operating expenses: | |||||
Sales and marketing | |||||
Research and development | |||||
General and administrative | 2,306,559 | 1,839,594 | 4,295,118 | 3,966,430 | |
Operating expenses | 2,306,559 | 1,839,594 | 4,295,118 | 3,966,430 | |
Operating income (loss) | (2,306,559) | $ (1,839,594) | (4,295,118) | $ (3,966,430) | |
Total assets | $ 4,192,678 | $ 4,192,678 | $ 6,225,318 |
Business Segments (Details 1)
Business Segments (Details 1) - Ingredients Segment [Member] | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Customer C [Member] | |||||
Customer concentration risk | 34.50% | 31.30% | |||
Customer B [Member] | |||||
Customer concentration risk | 11.80% | 10.80% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - Related Party [Member] | 6 Months Ended |
Jul. 02, 2016USD ($) | |
Related party transaction description | Pursuant to the terms of the Supply Agreement, in exchange for a 4% equity interest in Healthspan, the Company agreed to initially supply NIAGEN® to Healthspan free of charge and thereafter at a fixed price and, in exchange for an additional 5% equity interest in Healthspan, the Company will grant to Healthspan certain exclusive rights to resell NIAGEN® in certain direct response channels.  Healthspan will pay the Company royalties on the cumulative worldwide net sales of its finished products containing NIAGEN®.  The exclusivity rights will remain for so long as Healthspan meets certain minimum purchase requirements. |
Equity interest received | 5.00% |
Supply charges recorded as long term investment | $ 20,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Lease Purchase Commitment [Member] - USD ($) | Apr. 14, 2016 | Mar. 04, 2016 | Feb. 29, 2016 |
Minimum [Member] | |||
Monthly lease payment | $ 8,586 | $ 3,450 | $ 23,472 |
Additional monthly payment | 800 | ||
Maximum [Member] | |||
Monthly lease payment | 11,518 | $ 3,883 | $ 27,210 |
Additional monthly payment | $ 800 |