Niagen Bioscience, Inc. Q4 FY2024 earnings call

• Rob Fried mentioned record Q4 revenues of $29.1 million (37% YOY growth) and full year net revenues of $99.6 million (19% YOY growth), with net income of $8.6 million for the full year. - Highlighted e-commerce growth, strong Niagen ingredient sales growth, and issues with competitors engaging in misleading and dangerous practices. - Discussed the launch of Niagen Plus product line, supply chain issues with Niagen IV resolved, communication with FDA regarding investigational new drug applications, and the NO PARK study for Parkinson's disease with last participant enrolled in June 2024. - Ozan Pamir detailed full year 2024 financials, Q4 financial performance including gross margin improvement, selling and marketing expense reduction, and 2025 guidance including net sales growth expectations, G&A expense increase, and upcoming company name change.

In the fourth quarter, the e-commerce channel had robust organic growth with net sales of $17.3 million, a 30% increase year-over-year. The food grade and pharmaceutical-grade Niagen ingredient business had net sales of $5.3 million, a 96% increase year-over-year. Tru Niagen distribution through strategic partners like Watsons remained consistently solid. For the full year, total net sales were $99.6 million, a 19% year-over-year increase, with Tru Niagen-related sales up 29% driven by e-commerce growth and B2B sales, and total Niagen ingredient sales up 96%.

• 2025 full year net sales expected to maintain momentum with approximately 18% year-over-year growth. - Modest improvement in gross margins anticipated due to supply chain optimizations and cost-saving initiatives. - Selling and marketing expenses expected to increase in absolute dollars but remain stable as a percentage of net sales. - R&D expenses expected to increase in absolute dollars while remaining stable as a percentage of net sales. - General and administrative expenses expected to increase by approximately $5 million to $6 million, primarily due to business growth investments and absence of prior royalty reversals. - Upcoming company name change with targeted marketing investments.

• Companies infringing on patents, making false label claims, and having sloppy manufacturing processes introducing dangerous endotoxins. - Lack of action from FDA and FTC to prevent consumer deception. - Unregulated companies in the NAD market, such as those selling NAD or NMN which are not bioavailable or have associated issues.

Q: Talk about the stick packs, milligram size, pricing, and pull-through on Amazon or website?

A: Stick packs are 300 milligrams per pack with inulin, sales have increased, consumers tend to be younger and in exercise cohorts, and expect to initiate a marketing campaign behind them in 2025.

Q: Clarify on the royalty adjustment and Elysium settlement?

A: The $3.5 million reversal relates to Dartmouth royalties, not reoccurring. The $1.3 million from Elysium settlement's second payment is expected by end of March, also $1.3 million.

Q: NO PARK study readout timeline?

A: It's a double-blinded study, last participant enrolled in June 2024, but no specific timeline for readout provided as it depends on data compilation and publication factors.

Q: Drivers of strong e-commerce performance in Q4?

A: Improvement in Shopify performance, increased awareness of NAD due to Niagen IV launch and publicity, and a mix of new to brand and slight increase in recurring customers.

Q: Niagen IV clinic additions, pace, and supply chain confidence?

A: Up to around 500 clinics now, expecting at least double by year end, supply chain issues resolved but BUD (expiration date) issues initially, but expected to correct in next months, and confident in supply with manufacturing partners and inventory plans.