Niagen Bioscience, Inc. Q3 FY2024 earnings call

• Record results: $25.6 million revenue, 31% Y/Y growth, net income $1.9 million, sixth consecutive quarter of positive adjusted EBITDA ($2.9 million), and $5.1 million total positive cash flow. Ended quarter with $32.4 million cash and no debt.
• E-commerce growth: Stronger trends on Amazon (fueled by Prime Day marketing) and own website (improved through PR, influencer, and social media efforts).
• Niagen Plus launch: Launched Niagen IV and injections, expanded to over 100 clinics with expectation to reach over 300 in coming weeks, driven by consumer interest spurred by celebrity endorsements and media coverage.
• FDA communication: Initiated communication with FDA to organize meetings for IND application for NR in treating ataxia telangiectasia (AT).
• Audit firm change: Marcum stepped down as auditor, and ChromaDex is seeking new audit firm for next growth phase.

In the third quarter of 2024, ChromaDex achieved $25.6 million in revenue, a 31% year-over-year increase. Niagen ingredient sales were a key driver, with $4.3 million in higher sales of food-grade Niagen to key partners and initial sales of pharmaceutical-grade Niagen to select clinics. E-commerce continued to be significant, with stronger trends on Amazon and the company's own website. Watsons remained a strategic partner but had sales fluctuations due to the Hong Kong retail market decline. Niagen Plus product line launch, including Niagen IV, saw rapid expansion, with over 100 clinics shipping to and expecting over 300 clinics in the near future. Revenue contribution: Niagen ingredient sales, including pharmaceutical grade, contributed significantly to the 31% growth, e-commerce was a cornerstone, and Watsons provided steady but fluctuating revenue.

• Updated top-line outlook: Expect approximately 15% year-over-year growth driven by global e-commerce, new/existing partnerships, and Niagen IV launch.
• Investments: Plan to invest in sales/marketing during Q4 to support Niagen IV launch while maintaining efficiencies, and increase R&D investments to support core strategic initiatives.

• Forward-looking statements subject to risks and uncertainties, including those in Form 10-Q related to operations, financial condition, cash flows, global market, and economic conditions. Regulatory risks in pursuing pharmaceutical initiatives and market risks in competition and market acceptance of NAD products.

Q: Could you talk about the formulations of IV and injectable Niagen, dosages, and growth of clinics?

A: Niagen IV is 500mg, taking 15-20 minutes, injectable is 100mg or 50mg, both growing. Currently in 100 clinics, expecting 300 in next few weeks.

Q: Clarification on cash production, payables, and credit?

A: Cash provided by operations was $3.5 million for nine months, difference from last year due to increase in trade receivables, reduction in accounts payable and accrued expenses, lower provision for credit losses, offset by $6.4 million improvement in net income.

Q: AT orphan indication progress?

A: Having conversations with FDA, hope to get notes on pre-IND submission within a month, aiming to pursue IND and study in 2025.

Q: Pricing of Niagen IV, category of Niagen Plus sales, and margin outlook?

A: Niagen IV sessions charge $500-$700 per session. Niagen Plus sales are under ingredient as pharmaceutical grade. Gross margins fluctuate by product mix, Niagen Plus has higher margins, foreseeable future margins around current range.

Q: Restraints on clinic growth, patient response, and 2025 guidance?

A: Restraint is supply of pharmaceutical-grade material. Patients converting from NAD, having positive experience. No 2025 forecast yet as market is early.

Q: Clarification on food-grade Niagen, dosage comparison, and marketing of Niagen Plus?

A: Food-grade Niagen sales up due to customer Amazon sales strategy. Dosage comparison data pending, but intend to market Niagen Plus with future data when available.

Q: Addressable market for clinics and international expansion?

A: Estimated 3,000 IV clinics in US. Significant interest outside US, but navigating regulatory approvals for international expansion.