ChromaDex (CDXC) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2017	Aug. 09, 2017
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. 1, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-30
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		46,093,894
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
Current Assets
Cash	$ 14,138,607	$ 1,642,429
Trade receivables, net of allowances of $736,000 and $1,081,000, respectively	4,579,253	5,852,030
Inventories	7,794,182	7,912,630
Prepaid expenses and other assets	864,935	329,854
Total current assets	27,376,977	15,736,943
Leasehold Improvements and Equipment, net	3,372,879	3,111,374
Deposits	402,497	397,207
Intangible assets, net	1,767,811	486,226
Longterm investment	0	20,318
Total assets	32,920,164	19,752,068
Current Liabilities
Accounts payable	3,131,759	5,978,288
Accrued expenses	2,111,205	2,170,172
Current maturities of capital lease obligations	299,103	255,461
Customer deposits and other	503,850	389,010
Deferred rent, current	114,101	76,219
Due to officer	100,000	0
Total current liabilities	6,260,018	8,869,150
Capital lease obligations, less current maturities	393,184	343,589
Deferred rent, less current	547,539	564,971
Total Liabilities	7,200,741	9,777,710
Commitments and contingencies
Stockholders' Equity
Common stock, $.001 par value; authorized 150,000,000 shares; issued and outstanding July 1, 2017 45,571,891 shares and December 31, 2016 37,544,531 shares	45,572	37,545
Additional paid-in capital	75,590,304	55,160,387
Accumulated deficit	(49,916,453)	(45,223,574)
Total stockholders' equity	25,719,423	9,974,358
Total liabilities and stockholders' equity	$ 32,920,164	$ 19,752,068

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and returns	$ 736,000	$ 1,081,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares, Issued	45,571,891	37,544,531
Common Stock, Shares, Outstanding	45,571,891	37,544,531

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Statement [Abstract]
Sales, net		$ 5,306,855	$ 8,829,579	$ 9,755,977	$ 16,161,524
Cost of sales		3,044,086	4,702,132	5,740,555	8,582,658
Gross profit		2,262,769	4,127,447	4,015,422	7,578,866
Operating expenses:
Sales and marketing		728,299	698,031	1,324,461	1,242,753
Research and development		849,962	751,726	1,514,152	1,215,798
General and administrative		2,657,573	2,306,559	5,040,719	4,295,118
Other		745,773	0	745,773	0
Operating expenses		4,981,607	3,756,316	8,625,105	6,753,669
Operating income (loss)		(2,718,838)	371,131	(4,609,683)	825,197
Nonoperating expense:
Interest expense, net		(45,286)	(144,786)	(83,196)	(332,487)
Loss on debt extinguishment		0	(313,099)	0	(313,099)
Nonoperating expenses		(45,286)	(457,885)	(83,196)	(645,586)
Income (loss) before income taxes		(2,764,124)	(86,754)	(4,692,879)	179,611
Provision for income taxes		0	4,087	0	(6,653)
Net income (loss)		$ (2,764,124)	$ (82,667)	$ (4,692,879)	$ 172,958
Basic earnings (loss) per common share		$ (0.07)	$ 0	$ (0.12)	$ 0
Diluted earnings (loss) per common share		(0.07)	0	$ (0.12)	$ 0
Basic and diluted loss per common share		$ (0.07)	$ 0
Basic weighted average common shares outstanding	[1]	42,121,150	36,990,032	40,075,920	36,702,037
Diluted weighted average common shares outstanding		42,121,150	36,990,032	40,075,920	37,470,066
Basic and diluted weighted average common shares outstanding		42,121,150	36,990,032
[1]	Includes approximately 0.5 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 1, 2017, respectively, and approximately 0.4 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 2, 2016, respectively. These shares are participating securities that feature voting and dividend rights.

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2016	37,544,531
Beginning Balance, Amount at Dec. 31, 2016	$ 37,545	$ 55,160,387	$ (45,223,574)	$ 9,974,358
Issuance of common stock associated with the acquisition of Healthspan Research LLC, Shares	367,648
Issuance of common stock associated with the acquisition of Healthspan Research LLC, Amount	$ 367	999,635		1,000,002
Exercise of stock options, Shares	3,202
Exercise of stock options, Amount	$ 3	6,620		6,623
Vested restricted stock, Shares	2,667
Vested restricted stock, Amount	$ 3	(3)		0
Share-based compensation		319,830		319,830
Net loss			(1,928,755)	(1,928,755)
Ending Balance, Shares at Apr. 01, 2017	37,918,048
Ending Balance, Amount at Apr. 01, 2017	$ 37,918	56,486,469	(47,152,329)	9,372,058
Beginning Balance, Shares at Dec. 31, 2016	37,544,531
Beginning Balance, Amount at Dec. 31, 2016	$ 37,545	55,160,387	(45,223,574)	$ 9,974,358
Exercise of stock options, Shares				(3,202)
Net loss				$ (4,692,879)
Ending Balance, Shares at Jul. 01, 2017	45,571,891
Ending Balance, Amount at Jul. 01, 2017	$ 45,572	75,590,304	(49,916,453)	25,719,423
Beginning Balance, Shares at Apr. 01, 2017	37,918,048
Beginning Balance, Amount at Apr. 01, 2017	$ 37,918	56,486,469	(47,152,329)	9,372,058
Issuance of common stock, net of offering costs of $1,184,000, Shares	7,649,968
Issuance of common stock, net of offering costs of $1,184,000, Amount	$ 7,650	18,698,634		18,706,284
Exercise of stock options, Shares	1,875
Exercise of stock options, Amount	$ 2	5,342		5,344
Vested restricted stock, Shares	2,000
Vested restricted stock, Amount	$ 2	(2)		0
Share-based compensation		399,861		399,861
Net loss			(2,764,124)	(2,764,124)
Ending Balance, Shares at Jul. 01, 2017	45,571,891
Ending Balance, Amount at Jul. 01, 2017	$ 45,572	$ 75,590,304	$ (49,916,453)	$ 25,719,423

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity (USD $) (Parenthetical)	3 Months Ended
	Jul. 01, 2017USD ($)
Statement of Stockholders' Equity [Abstract]
Offering costs	$ 1,184,000

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Cash Flows From Operating Activities
Net income (loss)	$ (4,692,879)	$ 172,958
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of leasehold improvements and equipment	264,235	159,370
Amortization of intangibles	89,803	38,415
Share-based compensation expense	719,691	657,637
Allowance for doubtful trade receivables	(344,055)	29,649
Loss from disposal of equipment	1,452	0
Non-cash loss on debt extinguishment	0	32,007
Non-cash financing costs	56,587	94,080
Changes in operating assets and liabilities:
Trade receivables	1,628,288	(4,372,837)
Inventories	179,362	3,628,678
Prepaid expenses and other assets	(554,679)	(266,831)
Accounts payable	(2,950,302)	(3,892,582)
Accrued expenses	(62,174)	634,562
Customer deposits and other	114,840	(9,150)
Deferred rent	20,451	106,657
Due to officer	(32,500)	0
Net cash used in operating activities	(5,561,880)	(2,987,387)
Cash Flows From Investing Activities
Purchases of leasehold improvements and equipment	(295,078)	(231,201)
Purchases of intangible assets	(183,958)	(195,000)
Net cash used in investing activities	(479,036)	(426,201)
Cash Flows From Financing Activities
Proceeds from issuance of common stock, net of issuance costs	18,706,284	5,720,000
Proceeds from exercise of stock options	11,966	622,384
Payment of debt issuance cost	(42,279)	0
Principal payments on loan payable	0	(5,000,000)
Principal payments on capital leases	(138,877)	(108,249)
Net cash provided by financing activities	18,537,094	1,234,135
Net increase (decrease) in cash	12,496,178	(2,179,453)
Cash Beginning of Period	1,642,429	5,549,672
Cash Ending of Period	14,138,607	3,370,219
Supplemental Disclosures of Cash Flow Information
Cash payments for interest	26,611	239,839
Supplemental Schedule of Noncash Investing Activity
Noncash consideration transferred for the acquisition of Healthspan Research LLC	1,187,430	0
Capital lease obligation incurred for purchases of equipment	232,114	0
Inventory supplied to Healthspan Research, LLC for equity interest, at cost	0	20,318
Retirement of fully depreciated equipment - cost	55,947	28,083
Retirement of fully depreciated equipment - accumulated depreciation	$ (55,947)	$ (28,083)

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jul. 01, 2017
Interim Financial Statements
Interim Financial Statements	The accompanying financial statements of ChromaDex Corporation and its wholly owned subsidiaries, ChromaDex, Inc., Healthspan Research, LLC, ChromaDex Analytics, Inc. and ChromaPharma, Inc. (collectively referred to herein as “ChromaDex” or the “Company” or, in the first person as “we”, “us” and “our”) 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 Company’s financial position as of July 1, 2017 and results of operations and cash flows for the three and six months ended July 1, 2017 and July 2, 2016. These unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2016 appearing in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “Commission”) on March 16, 2017. Operating results for the six months ended July 1, 2017 are not necessarily indicative of the results to be achieved for the full year ending on December 30, 2017. 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 December 31, 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. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Liquidity	Nature of business Liquidity On April 26, 2017, the Company entered into a Securities Purchase Agreement with certain purchasers named therein, pursuant to which the Company agreed to sell and issue up to $25.0 million of its Common Stock in three tranches. The first and second tranche closed on April 27, 2017 and May 24, 2017, respectively and the Company received $3.5 million and $16.4 million, respectively. The third tranche is expected to close following a related stockholder approval at the Company's special meeting on August 10, 2017. While we anticipate that our current cash, cash equivalents, cash to be generated from operations and the funds from the financing transaction described above will be sufficient to meet our projected operating plans through at least August 11, 2018, 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. 01, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Basis of presentation Adopted Accounting Pronouncements Fiscal 2017 Note 5. Acquisition and Related Party Transaction In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to simplify the accounting for stock compensation. It focuses on income tax accounting, award classification, estimating forfeitures, and cash flow presentation. The Company adopted the amendments in this ASU effective as of January 1, 2017. The adoption of ASU 2016-09 did not have a material effect on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventories, other than those accounted for under Last-In-First-Out, will be reported at the lower of cost or net realizable value. Net realizable value is the estimated selling price less costs of completion, disposal and transportation. The Company adopted the amendments in this ASU effective as of January 1, 2017. The adoption of ASU 2015-11 did not have a material effect on our consolidated financial statements. Recent accounting standards

Earnings Per Share Applicable t

Earnings Per Share Applicable to Common Stockholders	6 Months Ended
	Jul. 01, 2017
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 1, 2017 and July 2, 2016: Three Months Ended Six Months Ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net income (loss) $ (2,764,124 ) $ (82,667 ) $ (4,692,879 ) $ 172,958 Basic weighted average common shares outstanding (1): 42,121,150 36,990,032 40,075,920 36,702,037 Basic earnings (loss) per common share $ (0.07 ) $ (0.00 ) $ (0.12 ) $ 0.00 Dilutive effect of stock options, net - - - 726,879 Dilutive effect of warrants, net - - - 41,750 Diluted weighted average common shares outstanding : 42,121,150 36,990,032 40,075,920 37,470,666 Diluted earnings (loss) per common share $ (0.07 ) $ (0.00 ) $ (0.12 ) $ 0.00 Potentially dilutive securities, total (2): Stock options 5,965,172 5,126,943 5,965,172 4,400,064 Warrants 470,444 487,111 470,444 445,361 (1) Includes approximately 0.5 million weighted average nonvested shares of restricted stock for each of the three and six month periods ending July 1, 2017, respectively, and approximately 0.4 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 2, 2016, respectively. These shares are participating securities that feature voting and dividend rights. (2) Excluded from the computation of diluted earnings (loss) per share as their impact is antidilutive.

Asset Acquisition and Related P

Asset Acquisition and Related Party Transaction	6 Months Ended
	Jul. 01, 2017
Related Party Transactions [Abstract]
Asset Acquisition and Related Party Transaction	On March 12, 2017, the Company acquired all of the outstanding equity interests of Healthspan from Robert Fried, Jeffrey Allen and Dr. Charles Brenner (the "Sellers"). Robert Fried is a member of the Board of Directors ("Board") of the Company, a position he has held since July 2015. Upon the closing of, and as consideration for, the acquisition, the Company issued an aggregate of 367,648 shares of the Company’s common stock to the Sellers. The fair value of these shares was approximately $1.0 million based on the closing price of $2.72 per share on March 12, 2017. Also on March 12, 2017, the Company appointed Robert Fried as President and Chief Strategy Officer, effective immediately. Mr. Fried continues to serve as a member of the Board, but resigned as a member of the Nominating and Corporate Governance Committee of the Board. Healthspan was formed in August 2015 to offer and sell finished bottle products that contain NIAGEN® directly to consumers through internet-based selling platforms. NIAGEN® is the leading ingredient the Company currently sells. Prior to the acquisition, the Company has supplied certain amount of NIAGEN® to Healthspan as a raw material inventory in exchange for a 4% equity interest in Healthspan. An additional 5% equity interest was received for granting certain exclusive rights to resell NIAGEN®. The Company acquired the consumer product business model that Healthspan has established. Included in the business model acquired is the know-how marketing to date, and the designs and procedures needed to operate a consumer product business. This transaction was accounted for as an acquisition of assets. An intangible asset of approximately $1.35 million was recorded as a result of this acquisition, which is the difference of consideration transferred and the net amount of assets acquired and liabilities assumed. (A) Consideration transferred (B) Net amount of assets and liabilities Fair value Assets acquired Fair value Common Stock $ 1,000,000 Cash and cash equivalents $19,000 Transaction costs 178,000 Trade receivables 11,000 Previously held equity interest 20,000 Inventory 61,000 $ 1,198,000 Liabilities assumed Due to officer (132,000) Accounts payable (74,000) Credit card payable (30,000) Other accrued expenses (3,000) Consumer product business model, intangible asset (A) -(B) $ 1,346,000 Net assets $ (148,000) The acquired intangible asset is considered to have a useful life of 10 years as we believe the economic benefits from the acquisition will last at least 10 years. The expense is amortized using the straight-line method over the useful life and the Company recognized an amortization expense of approximately $41,000 for the six months ended July 1, 2017. In cancellation of a loan owed by Healthspan to Mr. Fried prior to the acquisition, the Company repaid $32,500 to Mr. Fried on March 13, 2017 and will also repay $100,000 on March 12, 2018. No interest is to be paid for the outstanding $100,000 due to Mr. Fried.

Trade Receivables Allowances

Trade Receivables Allowances	6 Months Ended
	Jul. 01, 2017
Trade Receivables Allowances
Trade Receivables Allowances	The allowance amounts for the periods ended July 1, 2017 and December 31, 2016 are as follows: July 1, 2017 December 31, 2016 Allowances related to Customer C $ 500,000 $ 800,000 Customer E 184,000 198,000 Other allowances 52,000 83,000 $ 736,000 $ 1,081,000

Inventories

Inventories	6 Months Ended
	Jul. 01, 2017
Inventories Abstract
Inventories	The amounts of major classes of inventory as of July 1, 2017 and December 31, 2016 are as follows: July 1, 2017 December 31, 2016 Bulk ingredients $ 6,833,000 $ 7,044,000 Reference standards 1,052,000 1,033,000 Dietary supplement - finished bottles 23,000 - Dietary supplement - work-in-process 48,000 - 7,956,000 8,077,000 Less valuation allowance (162,000 ) (164,000 ) $ 7,794,000 $ 7,913,000

Employee Share-Based Compensati

Employee Share-Based Compensation	6 Months Ended
	Jul. 01, 2017
Share-based Compensation
Employee Share-Based Compensation	Stock Option Plans On June 20, 2017, the stockholders of the Company approved the ChromaDex Corporation 2017 Equity Incentive Plan (the "2017 Plan"). The 2017 Plan is intended to be the successor to the ChromaDex Corporation Second Amended and Restated 2007 Equity Incentive Plan (the "2007 Plan"). Under the 2017 Plan, the Company is authorized to issue stock options that total no more than the sum of (i) 3,000,000 new shares, (ii) approximately 384,000 unallocated shares remaining available for the grant of new awards under the 2007 Plan, and (iii) any returning shares from the 2007 Plan or the 2017 Plan, such as forfeited, cancelled, or expired shares. Share-Based Compensation for Robert Fried On March 12, 2017, the Board appointed Robert Fried, as President and Chief Strategy Officer. In connection with his appointment as President and Chief Strategy Officer, the Company granted an option to purchase up to 500,000 shares of ChromaDex common stock under the 2007 Plan, subject to monthly vesting over a three-year period. The Company also granted 166,667 shares of restricted stock, subject to annual vesting over a three-year period. The fair value measured for the granted restricted stock was approximately $453,000 and the expense is amortized over the vesting period of three years. Service Period Based Stock Options The following table summarizes activity of service period based stock options granted to employees at July 1, 2017 and changes during the six months then ended: Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 31, 2016 4,281,151 $ 3.52 6.36 Options Granted 693,334 2.89 10.00 $ 1.85 Options Exercised (3,202 ) 2.07 $ 3,000 Options Forfeited (33,419 ) 3.53 Outstanding at July 1, 2017 4,937,864 $ 3.43 6.40 $ 3,072,000 Exercisable at July 1, 2017 3,348,382 $ 3.43 5.09 $ 2,246,000 The aggregate intrinsic values in the table above are based on the Company’s stock price of $3.82, which is the closing price of the Company’s stock on the last day of business for the period ended July 1, 2017. The fair value of the Company’s 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 1, 2017. Six Months Ended July 1, 2017 Expected term 5.8 years Expected volatility 73 % Expected dividends 0.00 % Risk-free rate 2.13 % As of July 1, Employee Share-Based Compensation The Company recognized compensation expense of approximately $371,000 and $677,000 in general and administrative expenses in the statement of operations for the three and six months ended July 1, 2017, respectively, and approximately $314,000 and $621,000 for the three and six months ended July 2, 2016, respectively.

Stock Issuance

Stock Issuance	6 Months Ended
	Jul. 01, 2017
Stock Issuance
Stock Issuance	On April 26, 2017, the Company entered into a Securities Purchase Agreement (the "SPA") with certain purchasers named therein, pursuant to which the Company agreed to sell and issue up to $25.0 million of its common stock at a purchase price of $2.60 per share in three tranches of approximately $3.5 million, $16.4 million and $5.1 million, respectively. The first two tranches closed during the three months ended July 1, 2017, whereby approximately 7.6 million shares were issued for proceeds of $19.9 million. The third tranche is expected to close following a related stockholder approval at the Company's special meeting on August 10, 2017.

Business Segments

Business Segments	6 Months Ended
	Jul. 01, 2017
Business Segments
Business Segments	Since the year ended December 31, 2016, the Company has made operational changes to merge its scientific and regulatory consulting segment into core standards and contract services segment. Additionally, the consumer product operations recently acquired in connection with the Healthspan acquisition are categorized as a part of the ingredients segment. As a result, the Company has the following two reportable segments: ● Ingredients segment develops and commercializes proprietary-based ingredient technologies and supplies these ingredients to consumers in finished products or as raw materials 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 (i) supply of phytochemical reference standards, (ii) analytical and chemistry based services and (iii) scientific and regulatory consulting. The “Corporate and 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 Core Standards and July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 3,004,656 $ 2,302,199 $ - $ 5,306,855 Cost of sales 1,356,845 1,687,241 - 3,044,086 Gross profit 1,647,811 614,958 - 2,262,769 Operating expenses: Sales and marketing 453,668 274,631 - 728,299 Research and development 849,962 - - 849,962 General and administrative - - 2,657,573 2,657,573 Other 745,773 - - 745,773 Operating expenses 2,049,403 274,631 2,657,573 4,981,607 Operating income (loss) $ (401,592 ) $ 340,327 $ (2,657,573 ) $ (2,718,838 ) Three months ended Core Standards and July 2, 2016 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 6,241,749 $ 2,587,830 $ - $ 8,829,579 Cost of sales 3,034,389 1,667,743 - 4,702,132 Gross profit 3,207,360 920,087 - 4,127,447 Operating expenses: Sales and marketing 399,700 298,331 - 698,031 Research and development 736,726 15,000 - 751,726 General and administrative - - 2,306,559 2,306,559 Operating expenses 1,136,426 313,331 2,306,559 3,756,316 Operating income (loss) $ 2,070,934 $ 606,756 $ (2,306,559 ) $ 371,131 Six months ended Core Standards and July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 5,089,059 $ 4,666,918 $ - $ 9,755,977 Cost of sales 2,271,612 3,468,943 - 5,740,555 Gross profit 2,817,447 1,197,975 - 4,015,422 Operating expenses: Sales and marketing 759,013 565,448 - 1,324,461 Research and development 1,514,152 - - 1,514,152 General and administrative - - 5,040,719 5,040,719 Other 745,773 - - 745,773 Operating expenses 3,018,938 565,448 5,040,719 8,625,105 Operating income (loss) $ (201,491 ) $ 632,527 $ (5,040,719 ) $ (4,609,683 ) Six months ended Core Standards and July 2, 2016 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 10,842,375 $ 5,319,149 $ - $ 16,161,524 Cost of sales 5,133,551 3,449,107 - 8,582,658 Gross profit 5,708,824 1,870,042 - 7,578,866 Operating expenses: Sales and marketing 731,443 511,310 - 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 1,932,241 526,310 4,295,118 6,753,669 Operating income (loss) $ 3,776,583 $ 1,343,732 $ (4,295,118 ) $ 825,197 Core Standards and At July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Total assets $ 13,413,963 $ 3,982,296 $ 15,523,905 $ 32,920,164 Core Standards and At December 31, 2016 Ingredients Contract Services Corporate segment segment and other Total Total assets $ 13,257,289 $ 3,918,440 $ 2,576,339 $ 19,752,068 Disclosure of major customers Major customers who accounted for more than 10% of the Company’s total sales were as follows: Three months ended Six months ended Major Customers July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Customer C (Ingredients segment) * 34.5 % * 31.3 % Customer F (Ingredients and Core segment) 11.9 % * * * * Represents less than 10%. Major customers who accounted for more than 10% of the Company’s total trade receivables were as follows: Percentage of the Company's Total Trade Receivables Major Customers At July 1, 2017 At December 31, 2016 Customer C (Ingredients segment) 48.8 % 45.8 % Customer D (Ingredients and Core segment) * 10.2 % * Represents less than 10%.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal proceedings On December 29, 2016, ChromaDex, Inc. filed a complaint (the “Complaint”) in the United States District Court for the Central District of California, naming Elysium Health, Inc. as defendant. Among other allegations, ChromaDex, Inc. alleges in the Complaint that (i) Elysium breached the Supply Agreement, dated June 26, 2014, by and between ChromaDex, Inc. and Elysium Health, LLC (“Elysium”) (the “pTeroPure® Supply Agreement”), by failing to make payments to ChromaDex, Inc. for purchases of pTeroPure® pursuant to the pTeroPure® Supply Agreement, (ii) Elysium breached the Supply Agreement, dated February 3, 2014, by and between ChromaDex, Inc. and Elysium, as amended (the “NIAGEN® Supply Agreement”), by failing to make payments to ChromaDex, Inc. for purchases of NIAGEN® pursuant to the NIAGEN® Supply Agreement, (iii) Elysium breached the Trademark License and Royalty Agreement, dated February 3, 2014, by and between ChromaDex, Inc. and Elysium (the “License Agreement”), by failing to make payments to ChromaDex, Inc. for royalties due pursuant to the License Agreement and (iv) certain officers of Elysium made false promises and representations to induce ChromaDex, Inc. into providing large supplies of pTeroPure® and NIAGEN® to Elysium pursuant to the pTeroPure® Supply Agreement and NIAGEN® Supply Agreement. ChromaDex, Inc. is seeking punitive damages, money damages and interest. On January 25, 2017, Elysium filed an answer and counterclaims (the “Counterclaim”) in response to the Complaint. Among other allegations, Elysium alleges in the Counterclaim that (i) ChromaDex, Inc. breached the NIAGEN® Supply Agreement by not issuing certain refunds or credits to Elysium and for violating certain confidential information provisions, (ii) ChromaDex, Inc. breached the implied covenant of good faith and fair dealing pursuant to the NIAGEN® Supply Agreement, (iii) ChromaDex, Inc. breached certain confidential provisions of the pTeroPure® Supply Agreement, (iv) ChromaDex, Inc. fraudulently induced Elysium into entering into the License Agreement (the “Fraud Claim”), (v) ChromaDex, Inc.’s conduct constitutes misuse of its patent rights (the “Patent Claim”) and (vi) ChromaDex, Inc. has engaged in unlawful or unfair competition under California state law (the “Unfair Competition Claim”). Elysium is seeking damages for ChromaDex, Inc.’s alleged breaches of the NIAGEN® Supply Agreement and pTeroPure® Supply Agreement, and compensatory damages, punitive damages and/or rescission of the License Agreement and restitution of any royalty payments conveyed by Elysium pursuant to the License Agreement. On February 15, 2017, ChromaDex, Inc. filed an amended complaint. In the amended complaint, ChromaDex, Inc. re-alleges the claims in the Complaint, and also alleges that Elysium willfully and maliciously misappropriated ChromaDex, Inc.’s trade secrets. On February 15, 2017, ChromaDex, Inc. also filed a motion to dismiss the Fraud Claim, the Patent Claim and the Unfair Competition Claim. On March 1, 2017, Elysium filed a motion to dismiss ChromaDex, Inc.'s fraud and trade secret misappropriation causes of action. On March 6, 2017, Elysium filed a first amended counterclaim. On March 20, 2017, ChromaDex, Inc. moved to dismiss Elysium's amended fraud, patent misuse and the Unfair Competition Claim. On May 10, 2017, the court ruled on the motions to dismiss, denying ChromaDex, Inc.’s motion as to Elysium’s fraud and patent misuse claims and granting ChromaDex, Inc.’s motion with prejudice as to Elysium’s Unfair Competition Claim. With respect to Elysium’s motion, the court granted the motion with prejudice as to ChromaDex, Inc.’s fraud claim and granted with leave to amend the motion as to ChromaDex, Inc.’s trade secret misappropriation claims. On May 24, 2017, ChromaDex, Inc. answered the first amended counterclaim and asserted several affirmative defenses. Also on May 24, 2017, ChromaDex, Inc. filed a second amended complaint, amending the trade secret misappropriation claims and addressing Elysium’s patent misuse counterclaim. On June 7, 2017, ChromaDex, Inc. filed a third amended complaint dismissing the trade secret misappropriation claims and asserting two breach of contract claims for Elysium’s failure to pay for the product delivered. On June 16, 2017, Elysium answered the third amended complaint. On July 17, 2017, Elysium filed petitions with the U.S. Patent and Trademark Office for inter partes review of U.S. Patent No. 8,197,807 and 8,383,086, patents to which ChromaDex, Inc. is the exclusive licensee. As of July 1, 2017, ChromaDex, Inc. did not accrue a potential loss for the Counterclaim because ChromaDex, Inc. believes that the allegations are without merit and thus it is not probable that a liability had been incurred, and the amount of loss cannot be reasonably estimated. From time to time we are involved in legal proceedings arising in the ordinary course of our business. We believe that there is no other litigation pending that is likely to have, individually or in the aggregate, a material adverse effect on our financial condition or results of operations. Lease Subsequent to the period ended July 1, 2017, the Company entered into a lease for an office space located in Los Angeles, California through September 2021. Pursuant to the lease, the Company will make monthly lease payments ranging from approximately $11,000 to $21,000, as the payments escalate during the term of the lease. Employment agreement with Robert Fried On March 12, 2017, the Company entered into an Employment Agreement (the "Fried Agreement") with Robert Fried. Mr. Fried is entitled to receive certain severance payments per the terms of the Fried Agreement. The key terms of the Fried Agreement, including the severance terms are as follows: Mr. Fried is entitled to: (i) an annual base salary of $300,000; (ii) an annual cash bonus equal to (a) 1% of net direct-to-consumer sales of products with nicotinamide riboside as a lead ingredient by the Company plus (b) 2% of direct to consumer net sales of products with nicotinamide riboside as a lead ingredient for the portion of such sales that exceeded prior year sales plus (c) 1% of the gross profit derived from nicotinamide riboside ingredient sales to dietary supplement producers; (iii) an option to purchase up to 500,000 shares of Common Stock under the 2007 plan, subject to monthly vesting over a three-year period; and (iv) 166,667 shares of restricted Common Stock, subject to annual vesting over a three-year period. Subject to Mr. Fried’s continuous service through such date, Mr. Fried is also eligible to receive (i) on March 12, 2018, 166,667 shares of restricted Common Stock, subject to annual vesting over a two-year period, (ii) on March 12, 2019, 166,666 shares of restricted Common Stock that vest in full on the one year anniversary of the grant date and (iii) up to 500,000 shares of fully-vested restricted Common Stock that will be granted upon the achievement of certain performance goals. Any unvested options or shares of restricted stock will vest in full upon (a) a change in control of the Company, (b) Mr. Fried’s death, (c) Mr. Fried’s disability, (d) termination by the Company of Mr. Fried’s employment without cause or (e) Mr. Fried’s resignation for good reason, subject in each case to Mr. Fried’s continuous service as an employee or consultant of the Company or any of its subsidiaries though such event. The severance terms of the Fried Agreement provide that if (i) Mr. Fried’s employment is terminated by the Company without cause, for death or disability, or Mr. Fried resigns for good reason, or (ii) (a) a change in control of the Company occurs and (b) within one month prior to the date of such change in control or twelve months after the date of such change in control R. Fried’s employment is terminated by the Company other than for cause, then, subject to executing a release, Mr. Fried will receive (w) continuation of his base salary for 12 months, (x) health care continuation coverage payments premiums for 12 months, (y) a prorated annual cash bonus earned for the fiscal year in which such termination or resignation occurs, and (z) an extended exercise period for his options

Other Expense

Other Expense	6 Months Ended
	Jul. 01, 2017
Other Expense
Other Expense	Loss from an ongoing litigation, Elysium Health, Inc. During the three months ended July 1, 2017, the Company, in relation to the ongoing litigation, incurred a write-off of approximately $746,000 in gross trade receivable from Elysium Health, Inc. related to royalties. As a result of this write-off and after further analysis, the Company made an adjustment to the total allowance amount from ($800,000) to ($500,000).

Significant Accounting Polici20

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation
Accounting Pronouncements and Standards	Adopted Accounting Pronouncements Fiscal 2017 Note 5. Acquisition and Related Party Transaction In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to simplify the accounting for stock compensation. It focuses on income tax accounting, award classification, estimating forfeitures, and cash flow presentation. The Company adopted the amendments in this ASU effective as of January 1, 2017. The adoption of ASU 2016-09 did not have a material effect on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventories, other than those accounted for under Last-In-First-Out, will be reported at the lower of cost or net realizable value. Net realizable value is the estimated selling price less costs of completion, disposal and transportation. The Company adopted the amendments in this ASU effective as of January 1, 2017. The adoption of ASU 2015-11 did not have a material effect on our consolidated financial statements. Recent accounting standards

Earnings Per Share Applicable21

Earnings Per Share Applicable to Common Stockholders (Tables)	6 Months Ended
	Jul. 01, 2017
Loss Per Share Applicable To Common Stockholders Tables
Loss per share amounts applicable to common stockholders	Three Months Ended Six Months Ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net income (loss) $ (2,764,124 ) $ (82,667 ) $ (4,692,879 ) $ 172,958 Basic weighted average common shares outstanding (1): 42,121,150 36,990,032 40,075,920 36,702,037 Basic earnings (loss) per common share $ (0.07 ) $ (0.00 ) $ (0.12 ) $ 0.00 Dilutive effect of stock options, net - - - 726,879 Dilutive effect of warrants, net - - - 41,750 Diluted weighted average common shares outstanding : 42,121,150 36,990,032 40,075,920 37,470,666 Diluted earnings (loss) per common share $ (0.07 ) $ (0.00 ) $ (0.12 ) $ 0.00 Potentially dilutive securities, total (2): Stock options 5,965,172 5,126,943 5,965,172 4,400,064 Warrants 470,444 487,111 470,444 445,361 (1) Includes approximately 0.5 million weighted average nonvested shares of restricted stock for each of the three and six month periods ending July 1, 2017, respectively, and approximately 0.4 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 2, 2016, respectively. These shares are participating securities that feature voting and dividend rights. (2) Excluded from the computation of diluted earnings (loss) per share as their impact is antidilutive.

Asset Acquisition and Related22

Asset Acquisition and Related Party Transaction (Tables)	6 Months Ended
	Jul. 01, 2017
Asset Acquisition And Related Party Transaction Tables
Net amount of assets and liabilities acquired	(A) Consideration transferred (B) Net amount of assets and liabilities Fair value Assets acquired Fair value Common Stock $ 1,000,000 Cash and cash equivalents $19,000 Transaction costs 178,000 Trade receivables 11,000 Previously held equity interest 20,000 Inventory 61,000 $ 1,198,000 Liabilities assumed Due to officer (132,000) Accounts payable (74,000) Credit card payable (30,000) Other accrued expenses (3,000) Consumer product business model, intangible asset (A) -(B) $ 1,346,000 Net assets $ (148,000)

Trade Receivables Allowances (T

Trade Receivables Allowances (Tables)	6 Months Ended
	Jul. 01, 2017
Trade Receivables Allowances Tables
Trade Receivables Allowances	July 1, 2017 December 31, 2016 Allowances related to Customer C $ 500,000 $ 800,000 Customer E 184,000 198,000 Other allowances 52,000 83,000 $ 736,000 $ 1,081,000

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Inventories	July 1, 2017 December 31, 2016 Bulk ingredients $ 6,833,000 $ 7,044,000 Reference standards 1,052,000 1,033,000 Dietary supplement - finished bottles 23,000 - Dietary supplement - work-in-process 48,000 - 7,956,000 8,077,000 Less valuation allowance (162,000 ) (164,000 ) $ 7,794,000 $ 7,913,000

Employee Share-Based Compensa25

Employee Share-Based Compensation (Tables)	6 Months Ended
	Jul. 01, 2017
Share-based Compensation Tables
Service Period Based Stock Options	Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 31, 2016 4,281,151 $ 3.52 6.36 Options Granted 693,334 2.89 10.00 $ 1.85 Options Exercised (3,202 ) 2.07 $ 3,000 Options Forfeited (33,419 ) 3.53 Outstanding at July 1, 2017 4,937,864 $ 3.43 6.40 $ 3,072,000 Exercisable at July 1, 2017 3,348,382 $ 3.43 5.09 $ 2,246,000
Weighted average assumptions of stock options granted	Six Months Ended July 1, 2017 Expected term 5.8 years Expected volatility 73 % Expected dividends 0.00 % Risk-free rate 2.13 %

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jul. 01, 2017
Business Segmentation	Three months ended Core Standards and July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 3,004,656 $ 2,302,199 $ - $ 5,306,855 Cost of sales 1,356,845 1,687,241 - 3,044,086 Gross profit 1,647,811 614,958 - 2,262,769 Operating expenses: Sales and marketing 453,668 274,631 - 728,299 Research and development 849,962 - - 849,962 General and administrative - - 2,657,573 2,657,573 Other 745,773 - - 745,773 Operating expenses 2,049,403 274,631 2,657,573 4,981,607 Operating income (loss) $ (401,592 ) $ 340,327 $ (2,657,573 ) $ (2,718,838 ) Three months ended Core Standards and July 2, 2016 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 6,241,749 $ 2,587,830 $ - $ 8,829,579 Cost of sales 3,034,389 1,667,743 - 4,702,132 Gross profit 3,207,360 920,087 - 4,127,447 Operating expenses: Sales and marketing 399,700 298,331 - 698,031 Research and development 736,726 15,000 - 751,726 General and administrative - - 2,306,559 2,306,559 Operating expenses 1,136,426 313,331 2,306,559 3,756,316 Operating income (loss) $ 2,070,934 $ 606,756 $ (2,306,559 ) $ 371,131 Six months ended Core Standards and July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 5,089,059 $ 4,666,918 $ - $ 9,755,977 Cost of sales 2,271,612 3,468,943 - 5,740,555 Gross profit 2,817,447 1,197,975 - 4,015,422 Operating expenses: Sales and marketing 759,013 565,448 - 1,324,461 Research and development 1,514,152 - - 1,514,152 General and administrative - - 5,040,719 5,040,719 Other 745,773 - - 745,773 Operating expenses 3,018,938 565,448 5,040,719 8,625,105 Operating income (loss) $ (201,491 ) $ 632,527 $ (5,040,719 ) $ (4,609,683 ) Six months ended Core Standards and July 2, 2016 Ingredients Contract Services Corporate segment segment and other Total Net sales $ 10,842,375 $ 5,319,149 $ - $ 16,161,524 Cost of sales 5,133,551 3,449,107 - 8,582,658 Gross profit 5,708,824 1,870,042 - 7,578,866 Operating expenses: Sales and marketing 731,443 511,310 - 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 1,932,241 526,310 4,295,118 6,753,669 Operating income (loss) $ 3,776,583 $ 1,343,732 $ (4,295,118 ) $ 825,197 Core Standards and At July 1, 2017 Ingredients Contract Services Corporate segment segment and other Total Total assets $ 13,413,963 $ 3,982,296 $ 15,523,905 $ 32,920,164 Core Standards and At December 31, 2016 Ingredients Contract Services Corporate segment segment and other Total Total assets $ 13,257,289 $ 3,918,440 $ 2,576,339 $ 19,752,068
Sales Revenue, Net [Member]
Percentage of Sales Table	Three months ended Six months ended Major Customers July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Customer C (Ingredients segment) * 34.5 % * 31.3 % Customer F (Ingredients and Core segment) 11.9 % * * * * Represents less than 10%.
Accounts Receivable [Member]
Percentage of Sales Table	Percentage of the Company's Total Trade Receivables Major Customers At July 1, 2017 At December 31, 2016 Customer C (Ingredients segment) 48.8 % 45.8 % Customer D (Ingredients and Core segment) * 10.2 % * Represents less than 10%.

Nature of Business and Liquid27

Nature of Business and Liquidity (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended
	Jul. 01, 2017	Apr. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating income (loss)	$ (2,718,838)		$ 371,131	$ (4,609,683)	$ 825,197
Net (loss)	(2,764,124)	$ (1,928,755)	(82,667)	(4,692,879)	172,958
Cash and cash equivalents	$ 14,138,607		$ 3,370,219	$ 14,138,607	$ 3,370,219	$ 1,642,429

Earnings Per Share Applicable28

Earnings Per Share Applicable to Common Stockholders (Details) - USD ($)		3 Months Ended			6 Months Ended
		Jul. 01, 2017	Apr. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Net income (loss)		$ (2,764,124)	$ (1,928,755)	$ (82,667)	$ (4,692,879)	$ 172,958
Basic weighted average common shares outstanding	[1]	42,121,150		36,990,032	40,075,920	36,702,037
Basic earnings (loss) per common share		$ (0.07)		$ 0	$ (0.12)	$ 0
Dilutive effect of stock options, net		0		0	0	726,879
Dilutive effect of warrants, net		0		0	0	41,750
Diluted weighted average common shares outstanding :		42,121,150		36,990,032	40,075,920	37,470,066
Diluted earnings (loss) per common share		$ (0.07)		$ 0	$ (0.12)	$ 0
Stock Option [Member]
Potentially dilutive securities	[2]	5,965,172		5,126,943	5,965,172	4,400,064
Warrant [Member]
Potentially dilutive securities	[2]	470,444		487,111	470,444	445,361
[1]	Includes approximately 0.5 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 1, 2017, respectively, and approximately 0.4 million weighted average nonvested shares of restricted stock for the three and six month periods ending July 2, 2016, respectively. These shares are participating securities that feature voting and dividend rights.
[2]	Excluded from the computation of diluted earnings (loss) per share as their impact is antidilutive.

Asset Acquisition and Related29

Asset Acquisition and Related Party Transaction (Details)	6 Months Ended
	Jul. 01, 2017USD ($)
Asset Acquisition And Related Party Transaction Tables
Common Stock	$ 1,000,000
Transaction costs	178,000
Previously held equity interest	20,000
Consideration transferred (A)	1,198,000
Assets acquired
Cash and cash equivalents	19,000
Trade receivables	11,000
Inventory	61,000
Liabilities assumed
Due to officer	(132,000)
Accounts payable	(74,000)
Credit card payable	(30,000)
Other accrued expenses	(3,000)
Net assets (B)	(148,000)
Consumer product business model, intangible asset (A) -(B)	$ 1,346,000

Trade Receivables Allowances (D

Trade Receivables Allowances (Details) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
Trade receivables allowances	$ 736,000	$ 1,081,000
Customer C
Trade receivables allowances	500,000	800,000
Customer E
Trade receivables allowances	184,000	198,000
Other Allowances
Trade receivables allowances	$ 52,000	$ 83,000

Inventories (Details)

Inventories (Details) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
Inventories
Bulk ingredients	$ 6,833,000	$ 7,044,000
Reference standards	1,052,000	1,033,000
Dietary Supplement - finished bottles	23,000	0
Dietary supplement - work-in-process	48,000	0
Inventory-gross	7,956,000	8,077,000
Less valuation allowance	(162,000)	(164,000)
Inventory-net	$ 7,794,182	$ 7,912,630

Employee Share-Based Compensa32

Employee Share-Based Compensation (Details)	6 Months Ended
	Jul. 01, 2017USD ($)$ / sharesshares
Service Period Based Stock Options
Outstanding at Beginning of Period | shares	4,281,151
Options Granted | shares	693,334
Options Exercised | shares	(3,202)
Options Forfeited | shares	(33,419)
Outstanding at End of Period | shares	4,937,864
Exercisable at End of Period | shares	3,348,382
Weighted Average Exercise Price
Outstanding at Beginning of Period	$ 3.52
Options Granted	2.89
Options Exercised	2.07
Options Forfeited	3.53
Outstanding at End of Period	3.43
Exercisable at End of Period	$ 3.43
Weighted Average Remaining Contractual Term
Outstanding at Beginning of Period	6 years 4 months 10 days
Options Granted	10 years
Outstanding at End of Period	6 years 4 months 24 days
Exercisable at End of Period	5 years 1 month 2 days
Weighted Average Fair Value
Weighted Average Fair Value Option Granted	$ 1.85
Aggregate Intrinsic Value
Exercised | $	$ 3,000
Outstanding at End of Period | $	3,072,000
Exercisable at End of Period | $	$ 2,246,000

Employee Share-Based Compensa33

Employee Share-Based Compensation (Details 1)	6 Months Ended
	Jul. 01, 2017
Employee Share-based Compensation Details 1
Expected term	5 years 9 months 18 days
Expected volatility	73.00%
Expected dividends	0.00%
Risk-free rate	2.13%

Employee Share-Based Compensa34

Employee Share-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Closing stock price	$ 3.82		$ 3.82
Unrecognized compensation expense	$ 3,081,000		$ 3,081,000
Cost is expected to be recognized over a weighted average period			2 years 4 months 24 days
Recognized compensation expense	$ 371,000	$ 314,000	$ 677,000	$ 621,000
President [Member]
Option grant			500,000
Restricted stock award			166,667
Fair value of restricted stock award			$ 453,000

Stock Issuance (Details Narrati

Stock Issuance (Details Narrative) - USD ($)	6 Months Ended
	Jul. 01, 2017	Apr. 26, 2017
Stock Issuance
Shares issued under SPA	7,600,000
Proceeds received under SPA	$ 19,900,000
Purchase price per share		$ 2.60

Business Segments (Details)

Business Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Net sales	$ 5,306,855	$ 8,829,579	$ 9,755,977	$ 16,161,524
Cost of sales	3,044,086	4,702,132	5,740,555	8,582,658
Gross profit	2,262,769	4,127,447	4,015,422	7,578,866
Operating expenses:
Sales and marketing	728,299	698,031	1,324,461	1,242,753
Research and development	849,962	751,726	1,514,152	1,215,798
General and administrative	2,657,573	2,306,559	5,040,719	4,295,118
Other	745,773	0	745,773	0
Operating expenses	4,981,607	3,756,316	8,625,105	6,753,669
Operating income (loss)	(2,718,838)	371,131	(4,609,683)	825,197
Total assets	32,920,164		32,920,164		$ 19,752,068
Ingredients Segment [Member]
Net sales	3,004,656	6,241,749	5,089,059	10,842,375
Cost of sales	1,356,845	3,034,389	2,271,612	5,133,551
Gross profit	1,647,811	3,207,360	2,817,447	5,708,824
Operating expenses:
Sales and marketing	453,668	399,700	759,013	731,443
Research and development	849,962	736,726	1,514,152	1,200,798
General and administrative	0	0	0	0
Other	745,773		745,773
Operating expenses	2,049,403	1,136,426	3,018,938	1,932,241
Operating income (loss)	(401,592)	2,070,934	(201,491)	3,776,583
Total assets	13,413,963		13,413,963		13,257,289
Core Standards and Contract Services Segment [Member]
Net sales	2,302,199	2,587,830	4,666,918	5,319,149
Cost of sales	1,687,241	1,667,743	3,468,943	3,449,107
Gross profit	614,958	920,087	1,197,975	1,870,042
Operating expenses:
Sales and marketing	274,631	298,331	565,448	511,310
Research and development	0	15,000	0	15,000
General and administrative	0	0	0	0
Other	0		0
Operating expenses	274,631	313,331	565,448	526,310
Operating income (loss)	340,327	606,756	632,527	1,343,732
Total assets	3,982,296		3,982,296		3,918,440
Corporate and Other Segment [Member]
Net sales	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Sales and marketing	0	0	0	0
Research and development	0	0	0	0
General and administrative	2,657,573	2,306,559	5,040,719	4,295,118
Other	0		0
Operating expenses	2,657,573	2,306,559	5,040,719	4,295,118
Operating income (loss)	(2,657,573)	$ (2,306,559)	(5,040,719)	$ (4,295,118)
Total assets	$ 15,523,905		$ 15,523,905		$ 2,576,339

Business Segments (Details 1)

Business Segments (Details 1)	3 Months Ended				6 Months Ended				12 Months Ended
	Jul. 01, 2017		Jul. 02, 2016		Jul. 01, 2017		Jul. 02, 2016		Dec. 31, 2016
Customer C [Member] | Ingredients Segment [Member]
Customer concentration risk		[1]	34.50%			[1]	31.30%
Customer F [Member] | Ingredients and Core Segment [Member]
Customer concentration risk	11.90%			[1]		[1]		[1]
Customer C Receivables [Member] | Ingredients Segment [Member]
Customer concentration risk					48.80%				45.80%
Customer D Receivables [Member] | Ingredients and Core Segment [Member]
Customer concentration risk						[1]			10.20%
[1]	Represents less than 10%.

Other Expense (Details Narrativ

Other Expense (Details Narrative)	3 Months Ended
	Jul. 01, 2017USD ($)
Other Expense
Loss from ongoing litigation	$ 746,000
Allowance amount, beginning	(800,000)
Allowance amount, ending	$ (500,000)