ChromaDex Corporation (CDXC) Q1 2019 Earnings Call Transcript

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ChromaDex Corporation (NASDAQ:CDXC) Q1 2019 Earnings Call May 9, 2019, 4:30 p.m. ET

Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:


Ladies and gentlemen, thank you for standing by. And welcome to ChromaDex Corporation's first quarter 2019 earnings conference call. My name is Crystal, and I will be the conference operator today. At this time, all participants are in a listen-only mode. And as a reminder, this conference call is being recorded. This afternoon, ChromaDex issued a news release announcing the company's financial results for the first quarter 2019. If you have not reviewed this information, both are available within the Investor Relations section of ChromaDex's website at I would now like to turn the conference call over to Brianna Gerber, Senior Director of FP&A and Investor Relations. Please go ahead, Ms. Gerber.

Brianna Gerber -- Senior Director of Financial Planning and Analysis and Investor Relations

Thank you, Crystal. Good afternoon, and welcome to ChromaDex Corporation's first quarter 2019 results investor call. With us today are ChromaDex's chief executive officer, Rob Fried, Founder and Executive Chairman, Frank Jaksch, and Chief Financial Officer, Kevin Farr. Today's conference call may include forward-looking statements, including statements related to ChromaDex's research and development and clinical trial plans and the timing and results of such trials, the timing of future regulatory filings, the expansion of the sale of TRU NIAGEN in new markets, plans to add to the management team, future financial results, business development opportunities, future cash needs, ChromaDex's operating performance in the future, future investor interest and clinical trial studies that are subject to risks and uncertainties relating to ChromaDex's future business prospects and opportunities as well as anticipated results of operations.

Forward-looking statements represent only the Company's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause ChromaDex's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These risk factors include those contained in ChromaDex's annual report on Form 10-K most recently filed with the SEC. Please note that the Company assumes no obligation to update any forward-looking statements after the date of this conference call to conform with the forward-looking statements, actual results, or to changes in its expectations. In addition, certain of the financial information presented in this call references non-GAAP financial measures.

The Company's earnings presentation, which was issued this afternoon and is available on the Company's website, presents reconciliations to the appropriate GAAP measures. Finally, this conference call is being recorded via webcast. The webcast will be available at the Investor Relations section of our website at With that, it's now my pleasure to turn the call over to our chief executive officer, Rob Fried.

Rob Fried -- Chief Executive Officer

Thank you, Brianna. Good afternoon, everyone. And thank you for joining our first quarter 2019 investor call. Today we'll be sharing first quarter milestones against our core objectives: to build TRU NIAGEN into a global brand, to own our science, and to be a principal, fundamentally sound business operation focused on the long-term. I would characterize this quarter as consistent with our expectations, and I'm very pleased with how the entire organization executed.

As expected, we delivered strong top-line growth, we drove improvements in gross margins and marketing efficiency, and we enhanced brand awareness of TRU NIAGEN and NAD worldwide. While not reflected in our first quarter financial results, yesterday we announced a $10 million capital raise, led by international strategic investors. This new funding provides additional resources to continue to invest in science, to grow our brand globally, and to further strengthen the fundamentals of our business as we scale for growth. Before reviewing the quarterly results in more detail, I will now turn the call over to our Executive Chairman, Frank Jaksch for an update on recent developments in scientific research. Frank?

Frank Jaksch -- Co-Founder and Executive Chairman

Thank you, Rob. The science of aging continues to gain momentum which reinforces our global opportunity with TRU NIAGEN. As we build awareness of TRU NIAGEN globally, our strategic advantage is our multiyear investment to develop the science around nicotinamide riboside and NAD. One of our core objectives is to own the science in this area and continue to partner with the world's leading universities to advance the field of research. There are 29 ongoing, completed, and published clinical trials currently registered on to investigate the pharmacokinetics and therapeutic effects of NR. This is one more than our last quarterly update. And additional five clinical trials are registered to test NR in combination with other ingredients for a total of 34. And there was a new trial recently registered with the World Health Organization. Over 60% of the studies that are in progress or being planned focus on neurological and cardiovascular areas with other key areas being obesity and aging.

We finished the quarter with more than 170 sign research collaborations, up slightly versus last quarter. Our company and the Scientific Advisory Board continue to lead the discussion on nicotinamide riboside and NAD with published scientific research and with key influencers. Dr. Brenner led a preclinical study on NR supplementation in the context of lactation in the postpartum period that was published in January and which I discussed on our last call. He also hosted a breakout session at Upgrade XPs sixth Annual Biohacking Conference in April where he explained cellular metabolism and the role of NAD as a key coenzyme in electron transport, as well as how metabolic stressors can compromise NAD. Beyond our own research and thought leadership on NR and NAD, we are excited about the t