Delaware | 26-2940963 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
10005 Muirlands Blvd. Suite G, Irvine, California | 92618 | |
(Address of Principal Executive Offices) | (Zip Code) |
June 29,
2013
|
December 29,
2012
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash
|
$ | 826,631 | $ | 520,000 | ||||
Trade receivables, less allowance for doubtful accounts and returns June 29, 2013 $17,000; December 29, 2012 $450,000
|
1,186,529 | 1,940,539 | ||||||
Non-trade receivable
|
250,000 | - | ||||||
Note receivable, current
|
1,623,508 | - | ||||||
Inventories
|
1,944,597 | 5,205,304 | ||||||
Prepaid expenses and other assets
|
436,455 | 261,297 | ||||||
Total current assets
|
6,267,720 | 7,927,140 | ||||||
Leasehold Improvements and Equipment, net
|
1,012,963 | 936,426 | ||||||
Other Noncurrent Assets
|
||||||||
Deposits
|
41,192 | 34,773 | ||||||
Note receivable, less current
|
779,205 | - | ||||||
Long-term equity investment
|
2,678,832 | - | ||||||
Intangible assets, net
|
165,561 | 136,182 | ||||||
Total other noncurrent assets
|
3,664,790 | 170,955 | ||||||
Total assets
|
$ | 10,945,473 | $ | 9,034,521 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$ | 2,152,023 | $ | 3,428,233 | ||||
Accrued expenses
|
711,503 | 876,158 | ||||||
Current maturities of capital lease obligations
|
110,382 | 77,259 | ||||||
Customer deposits and other
|
336,824 | 310,267 | ||||||
Deferred rent, current
|
51,743 | 71,042 | ||||||
Total current liabilities
|
3,362,475 | 4,762,959 | ||||||
Capital lease obligations, less current maturities
|
238,287 | 148,374 | ||||||
Deferred rent, less current
|
152,456 | 129,859 | ||||||
Stockholders' Equity
|
||||||||
Common stock, $.001 par value; authorized 150,000,000 shares; issued and outstanding June 29, 2013 100,807,164 and December 29, 2012 92,140,062 shares
|
100,807 | 92,140 | ||||||
Additional paid-in capital
|
36,329,257 | 33,617,801 | ||||||
Accumulated deficit
|
(29,237,809 | ) | (29,716,612 | ) | ||||
Total stockholders' equity
|
7,192,255 | 3,993,329 | ||||||
Total liabilities and stockholders' equity
|
$ | 10,945,473 | $ | 9,034,521 |
June 29,
2013
|
June 30,
2012
|
|||||||
Sales
|
$ | 2,706,896 | $ | 2,670,611 | ||||
Cost of sales
|
1,746,158 | 1,905,916 | ||||||
Gross profit
|
960,738 | 764,695 | ||||||
Operating expenses:
|
||||||||
Sales and marketing
|
631,559 | 1,868,418 | ||||||
General and administrative
|
1,342,280 | 2,883,728 | ||||||
Operating expenses
|
1,973,839 | 4,752,146 | ||||||
Operating loss
|
(1,013,101 | ) | (3,987,451 | ) | ||||
Nonoperating income (expense):
|
||||||||
Interest income
|
31,440 | 1,056 | ||||||
Interest expense
|
(8,061 | ) | (7,562 | ) | ||||
Nonoperating income (expenses)
|
23,379 | (6,506 | ) | |||||
Net loss
|
$ | (989,722 | ) | $ | (3,993,957 | ) | ||
Basic and Diluted net loss per common share
|
$ | (0.01 | ) | $ | (0.04 | ) | ||
Basic and Diluted weighted average common shares outstanding
|
99,833,963 | 91,362,664 |
June 29,
2013
|
June 30,
2012
|
|||||||
Sales
|
$ | 5,041,462 | $ | 4,455,617 | ||||
Cost of sales
|
3,407,884 | 4,295,136 | ||||||
Gross profit
|
1,633,578 | 160,481 | ||||||
Operating expenses:
|
||||||||
Sales and marketing
|
1,360,983 | 3,727,080 | ||||||
General and administrative
|
2,702,181 | 4,845,639 | ||||||
Gain on sale of assets (Note 3)
|
(2,891,917 | ) | - | |||||
Operating expenses
|
1,171,247 | 8,572,719 | ||||||
Operating income (loss)
|
462,331 | (8,412,238 | ) | |||||
Nonoperating income (expense):
|
||||||||
Interest income
|
32,324 | 2,255 | ||||||
Interest expense
|
(15,852 | ) | (15,827 | ) | ||||
Nonoperating income (expenses)
|
16,472 | (13,572 | ) | |||||
Net income (loss)
|
$ | 478,803 | $ | (8,425,810 | ) | |||
Basic net income (loss) per common share
|
$ | 0.00 | $ | (0.10 | ) | |||
Diluted net income (loss) per common share
|
$ | 0.00 | $ | (0.10 | ) | |||
Basic weighted average common shares outstanding
|
97,230,043 | 88,034,429 | ||||||
Diluted weighted average common shares outstanding
|
97,486,066 | 88,034,429 |
Total
|
||||||||||||||||||||
Common Stock
|
Additional
|
Accumulated
|
Stockholders'
|
|||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Deficit
|
Equity
|
||||||||||||||||
Balance, December 29, 2012
|
92,140,062 | $ | 92,140 | $ | 33,617,801 | $ | (29,716,612 | ) | $ | 3,993,329 | ||||||||||
Exercise of stock options
|
13,538 | 14 | 6,755 | - | 6,769 | |||||||||||||||
Exercise of warrants
|
3,414,283 | 3,414 | 713,585 | - | 716,999 | |||||||||||||||
Share-based compensation
|
440,000 | 440 | 548,212 | - | 548,652 | |||||||||||||||
Net income
|
- | - | - | 1,468,525 | 1,468,525 | |||||||||||||||
Balance, March 30, 2013
|
96,007,883 | $ | 96,008 | $ | 34,886,353 | $ | (28,248,087 | ) | $ | 6,734,274 | ||||||||||
Exercise of stock options
|
250,000 | 250 | 124,750 | - | 125,000 | |||||||||||||||
Exercise of warrants
|
4,389,281 | 4,389 | 917,360 | - | 921,749 | |||||||||||||||
Share-based compensation
|
160,000 | 160 | 400,794 | - | 400,954 | |||||||||||||||
Net loss
|
- | - | - | (989,722 | ) | (989,722 | ) | |||||||||||||
Balance, June 29, 2013
|
100,807,164 | $ | 100,807 | $ | 36,329,257 | $ | (29,237,809 | ) | $ | 7,192,255 |
June 29,
2013
|
June 30,
2012
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net income (loss)
|
$ | 478,803 | $ | (8,425,810 | ) | |||
Adjustments to reconcile net income (loss) to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation of leasehold improvements and equipment
|
134,325 | 166,748 | ||||||
Amortization of intangibles
|
10,621 | 6,799 | ||||||
Share-based compensation expense
|
728,349 | 1,264,524 | ||||||
Gain on sale of assets
|
(2,891,917 | ) | - | |||||
Loss from disposal of equipment
|
- | 1,879 | ||||||
Interest added to note receivable
|
(31,824 | ) | - | |||||
Changes in operating assets and liabilities:
|
||||||||
Trade receivables
|
770,994 | (264,536 | ) | |||||
Inventories
|
(206,824 | ) | (2,348,197 | ) | ||||
Prepaid expenses and other assets
|
(51,010 | ) | 369,527 | |||||
Accounts payable
|
(907,337 | ) | 1,151,141 | |||||
Accrued expenses
|
(150,095 | ) | (213,521 | ) | ||||
Customer deposits and other
|
26,557 | (30,081 | ) | |||||
Deferred rent
|
3,298 | (30,034 | ) | |||||
Net cash used in operating activities
|
(2,086,060 | ) | (8,351,561 | ) | ||||
Cash Flows From Investing Activities
|
||||||||
Purchases of leasehold improvements and equipment
|
(39,011 | ) | (12,214 | ) | ||||
Purchase of intangible assets
|
(40,000 | ) | (2,000 | ) | ||||
Proceeds from sale of assets
|
750,000 | - | ||||||
Net cash provided by (used in) investing activities
|
670,989 | (14,214 | ) | |||||
Cash Flows From Financing Activities
|
||||||||
Proceeds from issuance of common stock, net of issuance costs
|
- | 10,158,438 | ||||||
Proceeds from exercise of stock options
|
131,769 | - | ||||||
Proceeds from exercise of warrants
|
1,638,748 | 45,000 | ||||||
Principal payments on capital leases
|
(48,815 | ) | (44,806 | ) | ||||
Net cash provided by financing activities
|
1,721,702 | 10,158,632 | ||||||
Net increase in cash
|
306,631 | 1,792,857 | ||||||
Cash Beginning of Period
|
520,000 | 420,152 | ||||||
Cash Ending of Period
|
$ | 826,631 | $ | 2,213,009 | ||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash payments for interest
|
$ | 15,852 | $ | 15,827 | ||||
Supplemental Schedule of Noncash Investing Activity
|
||||||||
Capital lease obligation incurred for the purchase of equipment
|
$ | 171,851 | $ | 50,786 | ||||
Supplemental Schedule of Noncash Share-based Compensation
|
||||||||
Stock awards issued for services prior to the period
|
$ | 14,560 | $ | - | ||||
Changes in stock and warrant awards issued for future services
|
$ | 206,697 | $ | - | ||||
Supplemental Schedule of Noncash Activities Related to
|
||||||||
Sale of BluScience Consumer Product Line
|
||||||||
Assets transferred
|
$ | 3,526,677 | $ | - | ||||
Liabilities transferred
|
$ | 368,873 | $ | - | ||||
Consideration received, net of $750,000 cash proceeds
|
$ | 5,299,721 | $ | - |
June 29, 2013
|
December 29, 2012
|
|||||||
Natural product fine chemicals
|
$ | 1,656,702 | $ | 1,614,755 | ||||
Bulk ingredients
|
512,895 | 432,230 | ||||||
Dietary supplements – raw materials
|
- | 401,809 | ||||||
Dietary supplements – work in process
|
- | 465,253 | ||||||
Dietary supplements – finished goods
|
- | 2,657,257 | ||||||
2,169,597 | 5,571,304 | |||||||
Less valuation allowance
|
225,000 | 366,000 | ||||||
$ | 1,944,597 | $ | 5,205,304 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 29, 2013 |
June 30,
2012
|
June 29, 2013 |
June 30,
2012
|
|||||||||||||
Basic weighted average common shares outstanding
|
99,833,963 | 91,362,664 | 97,230,043 | 88,034,429 | ||||||||||||
Warrants and options in the money, net
|
319,587 | 5,693,386 | 256,023 | 6,101,236 | ||||||||||||
Weighted average common shares outstanding assuming dilution
|
100,153,550 | 97,056,050 | 97,486,066 | 94,135,665 |
March 28, 2013
|
||||
Assets transferred
|
||||
Trade receivables, less allowance for returns
|
$ | (16,984 | ) | |
Inventories
|
3,467,530 | |||
Prepaid expenses and other assets
|
76,131 | |||
Total assets transferred
|
3,526,677 | |||
Liabilities transferred
|
||||
Accounts payable
|
368,873 | |||
Total liabilities transferred
|
368,873 | |||
Total net assets transferred
|
$ | 3,157,804 | ||
Consideration received
|
||||
Cash
|
$ | 500,000 | ||
Non-trade receivable
|
500,000 | |||
Note receivable (See Note 4)
|
2,370,889 | |||
Long-term equity investment
|
2,678,832 | |||
Total consideration received
|
$ | 6,049,721 | ||
Difference recognized as gain on sale
|
$ | 2,891,917 |
June 29, 2013
|
December 29, 2012
|
|||||||
Laboratory equipment
|
$ | 2,563,238 | $ | 2,439,688 | ||||
Leasehold improvements
|
403,971 | 403,971 | ||||||
Computer equipment
|
370,692 | 363,739 | ||||||
Furniture and fixtures
|
18,313 | 18,313 | ||||||
Office equipment
|
7,877 | 7,877 | ||||||
Construction in progress
|
186,439 | 106,080 | ||||||
3,550,530 | 3,339,668 | |||||||
Less accumulated depreciation
|
2,537,567 | 2,403,242 | ||||||
$ | 1,012,963 | $ | 936,426 |
Six Months Ended June 29, 2013
|
||||
Volatility
|
32.68 | % | ||
Expected dividends
|
0.00 | % | ||
Expected term
|
6.1 years
|
|||
Risk-free rate
|
1.18 | % |
Weighted Average
|
||||||||||||||||
Remaining
|
Aggregate
|
|||||||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
Term
|
Value
|
|||||||||||||
Outstanding at December 29, 2012
|
12,202,558 | $ | 1.08 | |||||||||||||
Options Granted
|
310,000 | 0.68 | ||||||||||||||
Options Exercised
|
(13,538 | ) | 0.50 |
|
||||||||||||
Options Expired
|
(75,000 | ) | 0.50 | |||||||||||||
Options Forfeited
|
(149,168 | ) | 1.24 | |||||||||||||
Outstanding at June 29, 2013
|
12,274,852 | $ | 1.08 | 7.86 | $ | 375,554 | ||||||||||
Exercisable at June 29, 2013
|
6,035,944 | $ | 1.24 | 6.48 | $ | 202,092 |
Weighted Average
|
||||||||||||||||
Remaining
|
Aggregate
|
|||||||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
Term
|
Value
|
|||||||||||||
Outstanding at December 29, 2012
|
145,834 | $ | 1.59 | |||||||||||||
Options Granted
|
200,000 | 0.63 | ||||||||||||||
Options Exercised
|
- | - | ||||||||||||||
Options Expired
|
- | - | ||||||||||||||
Options Forfeited
|
(45,834 | ) | 1.59 | |||||||||||||
Outstanding at June 29, 2013
|
300,000 | $ | 0.95 | 9.00 | $ | 30,200 | ||||||||||
Exercisable at June 29, 2013
|
52,084 | $ | 1.59 | 7.85 | $ | - |
Weighted Average
|
||||||||
Award-Date
|
||||||||
Shares
|
Fair Value
|
|||||||
Unvested shares at December 29, 2012
|
500,000 | $ | 0.69 | |||||
Granted
|
- | - | ||||||
Vested
|
- | - | ||||||
Forfeited
|
- | - | ||||||
Unvested shares at June 29, 2013
|
500,000 | $ | 0.69 | |||||
Expected to Vest as of June 29, 2013
|
500,000 | $ | 0.69 |
Weighted Average
|
||||||||||||||||
Remaining
|
Aggregate
|
|||||||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
Term
|
Value
|
|||||||||||||
Outstanding at December 29, 2012
|
1,097,300 | $ | 1.23 | |||||||||||||
Options Granted
|
- | - | ||||||||||||||
Options Exercised
|
(250,000 | ) | 0.50 | |||||||||||||
Options Forfeited
|
- | - | ||||||||||||||
Outstanding at June 29, 2013
|
847,300 | $ | 1.44 | 6.23 | $ | 11,670 | ||||||||||
Exercisable at June 29, 2013
|
847,300 | $ | 1.44 | 6.23 | $ | 11,670 |
Warrants granted
in connection with :
|
Weighted Average
Exercise Prices
|
Number Outstanding
And Exercisable
At June 29, 2013
|
Weighted Average
Remaining Contractual Life
|
||||||
2008 Private placement equity offering
|
$ | 3.00 | 404,047 |
0.8 month
|
|||||
2012 Placement agent commission
|
$ | 0.85 | 285,000 |
13.1 months
|
|||||
2012 Non-employee award
|
$ | 0.75 | 250,000 |
13.3 months
|
|||||
$ | 1.75 | 939,047 |
7.9 months
|
·
|
Core standards, contract services and ingredients segment includes supply of phytochemical reference standards, which are small quantities of plant-based compounds typically used to research an array of potential attributes, and reference materials, related contract services, and proprietary ingredients.
|
·
|
Scientific and regulatory consulting segment which consist of providing scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage potential health and regulatory risks.
|
·
|
Retail dietary supplement products segment which consist of the supply of the BluScience line of dietary supplement products containing our proprietary ingredients to various retail distribution channels. On March 28, 2013, the Company entered into an asset purchase and sale agreement with NeutriSci and consummated the sale of BluScience consumer product line to NeutriSci.
|
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
Three months ended June 29, 2013
|
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Net sales
|
$ | 2,504,372 | $ | 202,524 | $ | - | $ | - | $ | 2,706,896 | ||||||||||
Cost of sales
|
1,614,413 | 131,745 | - | - | 1,746,158 | |||||||||||||||
Gross profit
|
889,959 | 70,779 | - | - | 960,738 | |||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Sales and marketing
|
630,447 | 1,112 | - | - | 631,559 | |||||||||||||||
General and administrative
|
- | - | - | 1,342,280 | 1,342,280 | |||||||||||||||
Operating expenses
|
630,447 | 1,112 | - | 1,342,280 | 1,973,839 | |||||||||||||||
Operating income (loss)
|
$ | 259,512 | $ | 69,667 | $ | - | $ | (1,342,280 | ) | $ | (1,013,101 | ) |
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
Three months ended June 30, 2012
|
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Net sales
|
$ | 2,150,585 | $ | - | $ | 520,026 | $ | - | $ | 2,670,611 | ||||||||||
Cost of sales
|
1,528,203 | - | 377,713 | - | 1,905,916 | |||||||||||||||
Gross profit
|
622,382 | - | 142,313 | - | 764,695 | |||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Sales and marketing
|
536,572 | - | 1,331,846 | - | 1,868,418 | |||||||||||||||
General and administrative
|
- | - | - | 2,883,728 | 2,883,728 | |||||||||||||||
Operating expenses
|
536,572 | - | 1,331,846 | 2,883,728 | 4,752,146 | |||||||||||||||
Operating income (loss)
|
$ | 85,810 | $ | - | $ | (1,189,533 | ) | $ | (2,883,728 | ) | $ | (3,987,451 | ) |
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
Six months ended June 29, 2013
|
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Net sales
|
$ | 4,655,885 | $ | 445,862 | $ | (60,285 | ) | $ | - | $ | 5,041,462 | |||||||||
Cost of sales
|
3,128,396 | 278,533 | 955 | - | 3,407,884 | |||||||||||||||
Gross profit (loss)
|
1,527,489 | 167,329 | (61,240 | ) | - | 1,633,578 | ||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Sales and marketing
|
1,227,224 | 2,600 | 131,159 | - | 1,360,983 | |||||||||||||||
General and administrative
|
- | - | - | 2,702,181 | 2,702,181 | |||||||||||||||
Gain on sale of assets
|
- | - | (2,891,917 | ) | - | (2,891,917 | ) | |||||||||||||
Operating expenses
|
1,227,224 | 2,600 | (2,760,758 | ) | 2,702,181 | 1,171,247 | ||||||||||||||
Operating income (loss)
|
$ | 300,265 | $ | 164,729 | $ | 2,699,518 | $ | (2,702,181 | ) | $ | 462,331 |
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
Six months ended June 30, 2012
|
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Net sales
|
$ | 4,005,333 | $ | - | $ | 450,284 | $ | - | $ | 4,455,617 | ||||||||||
Cost of sales
|
2,874,825 | - | 1,420,311 | - | 4,295,136 | |||||||||||||||
Gross profit (loss)
|
1,130,508 | - | (970,027 | ) | - | 160,481 | ||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Sales and marketing
|
1,011,516 | - | 2,715,564 | - | 3,727,080 | |||||||||||||||
General and administrative
|
- | - | - | 4,845,639 | 4,845,639 | |||||||||||||||
Operating expenses
|
1,011,516 | - | 2,715,564 | 4,845,639 | 8,572,719 | |||||||||||||||
Operating income (loss)
|
$ | 118,992 | $ | - | $ | (3,685,591 | ) | (4,845,639 | ) | (8,412,238 | ) |
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
At June 29, 2013
|
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Total assets
|
$ | 3,924,625 | $ | 95,584 | $ | - | $ | 6,925,264 | $ | 10,945,473 |
Core Standards,
Contract Services |
Scientific and
Regulatory |
Retail
Dietary |
||||||||||||||||||
At December 29, 2012 |
and Ingredients segment
|
Consulting segment
|
Supplement Products segment
|
Other
|
Total
|
|||||||||||||||
Total assets
|
$ | 3,542,355 | $ | 72,573 | $ | 4,331,866 | $ | 1,087,727 | $ | 9,034,521 |
Exhibit No. | Description of Exhibits | |
10.1
|
Second Amendment to Standard Industrial/Commercial Multi-Tenant Lease, made as of May 7, 2013, between SCIF Portfolio II, LLC (“Lessor”) and ChromaDex, Inc. (“Lessee”) (1)
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|
31.1
|
Certification of the Chief Executive Officer pursuant to §240.13a−14 or §240.15d−14 of the Securities Exchange Act of 1934, as amended
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31.2
|
Certification of the Chief Financial Officer pursuant to §240.13a−14 or §240.15d−14 of the Securities Exchange Act of 1934, as amended
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32.1
|
Certification pursuant to 18 U.S.C. Section 1350 (as adopted pursuant to Section 906 of the Sarbanes−Oxley Act of 2002)
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(1)
|
Incorporated by reference to Exhibit 10.1 from the Current Report on Form 8-K filed with the SEC on May 7, 2013.
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101.INS*
|
XBRL Instance Document
|
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101.SCH*
|
XBRL Taxonomy Extension Schema
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase
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|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase
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101.LAB*
|
XBRL Taxonomy Extension Label Linkbase
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101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase
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*
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed note filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.
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Managements Plans for Continuing Operations
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6 Months Ended |
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Jun. 29, 2013
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Managements Plans For Continuing Operations | |
Note 10. Managements Plans for Continuing Operations | The Company has earned a net profit of $478,803 for the six-month period ended June 29, 2013. This profit for the six-month period ended June 29, 2013 is mainly due to a gain of $2,891,917 on the sale of BluScience consumer product line to NeutriSci.
Without the gain on sale of BluScience consumer product line, the Company incurred an operating loss of $2,429,586 for the six-month period ended June 29, 2013. One of the factors that contributed to this loss is share-based compensation expense. Our share-based compensation expense totaled $728,349 for the six months ended June 29, 2013. In addition to the stock options granted to employees, the Company has been awarding shares of its common stock to non-employees as compensation of the services provided. Another factor that contributed to the loss is the investment in additional personnel and marketing expenses to implement its business plan to expand the line of proprietary ingredients. This has resulted in higher selling, marketing and patent related expenses compared to prior years. Management has also implemented additional strategic operational structure changes, which it believes, will allow the Company to achieve profitability with future growth without incurring significant additional overhead costs. Managements anticipation of future growth is largely related to the demand of the line of proprietary ingredients offered by the Company. We also incurred an operating loss of $192,399 from BluScience operations, without the gain on sale of BluScience consumer production line. Increase in trade accounts receivable allowance for possible future returns was the main reason for the loss from BluScience operations as the increase in allowance was treated as a reduction of revenue.
By curtailing certain expenditures, management believes it will be able to support operations of the Company with its current cash and cash from operations through December, 2013. In addition, on July 12, 2013, the Company received a partial payment of $200,000 from NeutriSci from the sale of BluScience consumer product line and expects to receive additional $883,334 from NeutriSci prior to December, 2013.
If the Company determines that it shall require additional financing to further enable it to achieve its long-term strategic objectives, there can be no assurance that such financing will be available on terms favorable to it 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.
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Condensed Consolidated Statements of Operations (Unaudited) (USD $)
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3 Months Ended | 6 Months Ended | ||
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Jun. 29, 2013
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Jun. 30, 2012
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Jun. 29, 2013
|
Jun. 30, 2012
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Income Statement [Abstract] | ||||
Sales | $ 2,706,896 | $ 2,670,611 | $ 5,041,462 | $ 4,455,617 |
Cost of sales | 1,746,158 | 1,905,916 | 3,407,884 | 4,295,136 |
Gross profiit | 960,738 | 764,695 | 1,633,578 | 160,481 |
Operating expenses: | ||||
Sales and marketing | 631,559 | 1,868,418 | 1,360,983 | 3,727,080 |
General and administrative | 1,342,280 | 2,883,728 | 2,702,181 | 4,845,639 |
Gain on sale of assets (Note 3) | (2,891,917) | |||
Operating expenses | 1,973,839 | 4,752,146 | 1,171,247 | 8,572,719 |
Operating income (loss) | (1,013,101) | (3,987,451) | 462,331 | (8,412,238) |
Nonoperating income (expense): | ||||
Interest income | 31,440 | 1,056 | 32,324 | 2,255 |
Interest expense | (8,061) | (7,562) | (15,852) | (15,827) |
Nonoperating income (expenses) | 23,379 | (6,506) | 16,472 | (13,572) |
Net income (loss) | $ (989,722) | $ (3,993,957) | $ 478,803 | $ (8,425,810) |
Basic income (loss) per common share | $ (0.01) | $ (0.04) | $ 0 | $ (0.10) |
Diluted net income (loss) per common share | $ (0.01) | $ (0.04) | $ 0 | $ (0.10) |
Basic weighted average common shares outstanding | 99,833,963 | 91,362,664 | 97,230,043 | 88,034,429 |
Diluted weighted average common shares outstanding | 99,833,963 | 91,362,664 | 97,486,066 | 88,034,429 |
Gain on Sale of Assets
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Gain On Sale Of Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 3. Gain on sale of assets | On March 28, 2013, we entered into an asset purchase and sale agreement with NeutriSci and consummated the sale of BluScience consumer product line to NeutriSci. The total sale transaction value is estimated at approximately $6,000,000 and consists of following: (a) a $250,000 cash payment, which NeutriSci paid as a deposit in February 2013; (b) an additional $250,000 cash payment, which was paid at the closing of the sale; (c) an additional cash payment of $500,000 due no later than 60 days after the closing of the sale, which $250,000 was paid as of June 29, 2013 and an additional $200,000 was paid on July 12, 2013; (d) $2,500,000 senior convertible secured note (convertible into 625,000 shares Series I Preferred Stock as described below) payable in quarterly installments of $416,667 beginning August 15, 2013; and (e) 669,708 shares of Series I Preferred Shares that are convertible into 2,678,832 Class A common shares of NeutriSci, representing an aggregate of 19% of the NeutriSci shares at a deemed price for each Class A common share of $1.00 per share. The transaction documents contain certain equity blockers that preclude our ownership in NeutriSci in excess of 9.99% and 19% without obtaining a waiver from NeutriSci. We will continue to generate revenue through a royalty on 6% of future net sales of BluScience products as well as a supply agreement with NeutriSci for our patented pTeroPure pterostilbene. The fair value of the investment in NeutriSci was determined based on other recent contemporaneous unrelated third party investments in NeutriSci.
The 669,708 shares of Series I Preferred Shares that are convertible into 2,678,832 Class A common shares of NeutriSci is reflected as long-term equity investment in our consolidated balance sheet as of June 29, 2013. The Company does not yet have enough information to make a determination if the equity method accounting will apply to the equity investment in NeutriSci. For the three- and six-month periods ended June 29, 2013, the Company has applied the cost method, however, if the Company determines that NeutriSci investment qualifies for use of the equity method, the investment, results of operations and accumulated deficit of the Company shall be adjusted as if the equity method had been in effect during all periods in which the investment was held. As of June 29, 2013, the aggregate carrying amount of the equity investment in NeutriSci is $2,678,832. We have evaluated for impairment for this aggregate carrying amount and concluded that there is no other-than-temporary impairment as of June 29, 2013, as there were no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment.
As of June 29, 2013, $250,000 cash payment remained unpaid and this amount is reflected as non-trade receivable in our consolidated balance sheet as of June 29, 2013. Of this unpaid amount, a partial payment of $200,000 was received on July 12, 2013.
The gain on sale of assets is recognized since the consideration we received from the sale is more than the carrying amount of transferred assets and liabilities. Below are details on assets and liabilities transferred and the consideration we received:
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Employee Share-Based Compensation (Tables)
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Jun. 29, 2013
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Employee Share-Based Compensation Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average assumptions of stock options granted |
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Service Period Based Stock Options |
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Performance Based Stock Options |
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Restricted stock awards granted to employees |
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Income Taxes
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6 Months Ended |
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Jun. 29, 2013
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Income Taxes | |
Note 11. Income Taxes | At June 29, 2013 and December 29, 2012, the Company maintained a full valuation allowance against the entire net deferred income tax balance after considering relevant factors, including recent operating results, the likelihood of the utilization of net operating loss tax carry forwards, and the ability to generate future taxable income. The Company expects to maintain a full valuation allowance on its entire net deferred tax assets in 2013, resulting in an effective tax rate of zero for the six months ended June 29, 2013.
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Employee Share-Based Compensation (Details 3) (Restricted Stock [Member], USD $)
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6 Months Ended |
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Jun. 29, 2013
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Restricted Stock [Member]
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Summary of activity of restricted stock awards granted to employees- Shares | |
Unvested shares at December 29, 2012 | 500,000 |
Granted | |
Vested | |
Forfeited | |
Unvested shares at June 29, 2013 | 500,000 |
Expected to Vest as of June 29, 2013 | 500,000 |
Weighted Average Award-Date Fair Value | |
Unvested shares at December 29, 2012 | $ 0.69 |
Granted | |
Vested | |
Forfeited | |
Unvested shares at June 29, 2013 | $ 0.69 |
Expected to Vest as of June 29, 2013 | $ 0.69 |
Business Segmentation (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Business Segmentation Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segmentation |
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Warrants (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Warrants Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants |
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Management's Plans for Continuing Operations (Details Textuals) (USD $)
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Management's Plans for Continuing Operations | |
Net profit | $ 478,803 |
Gain on sale of BluScience | 2,891,917 |
Operating loss excluding gain of sale of BluScience assets | 2,429,586 |
Share based compensation expense | 728,349 |
Operating loss from BluScience excluding gain of sale of BluScience assets | 192,399 |
Second payment toward additional payment amount | 200,000 |
Additional amount expected to receive 2013 from sale of BluScience | $ 883,334 |
Leasehold Improvements and Equipment (Details) (USD $)
|
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Leasehold Improvements And Equipment Details | ||
Laboratory equipment | $ 2,563,238 | $ 2,439,688 |
Leasehold improvements | 403,971 | 403,971 |
Computer equipment | 370,692 | 363,739 |
Furniture and fixtures | 18,313 | 18,313 |
Office equipment | 7,877 | 7,877 |
Construction in progress | 186,439 | 106,080 |
Leasehold Improvements and Equipment-gross | 3,550,530 | 3,339,668 |
Less accumulated depreciation | 2,537,567 | 2,403,242 |
Leasehold Improvements and Equipment-net | $ 1,012,963 | $ 936,426 |
Non-Employee Share-Based Compensation (Details) (USD $)
|
6 Months Ended |
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Jun. 29, 2013
|
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Non-Employee Share-Based Compensation- Options | |
Outstanding at December 29, 2012 | 1,097,300 |
Options Granted | |
Options Exercised | (250,000) |
Options Forfeited | |
Outstanding at June 29, 2013 | 847,300 |
Exercisable at June 29, 2013 | 847,300 |
Weighted Average Exercise Price | |
Outstanding at December 29, 2012 | $ 1.23 |
Options Granted | |
Options Exercised | $ 0.50 |
Options Forfeited | |
Outstanding at June 29, 2013 | $ 1.44 |
Exercisable at June 29, 2013 | $ 1.44 |
Weighted Average Remaining Contractual Term | |
Outstanding at June 29, 2013 | 6 years 2 months 23 days |
Exercisable at June 29, 2013 | 6 years 2 months 23 days |
Aggregate Intrinsic Value | |
Outstanding at June 29, 2013 | $ 11,670 |
Exercisable at June 29, 2013 | $ 11,670 |
Gain on Sale of Assets (Details) (USD $)
|
Mar. 28, 2013
|
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Assets transferred | |
Trade receivables, less allowance for returns | $ (16,984) |
Inventories | 3,467,530 |
Prepaid expenses and other assets | 76,131 |
Total assets transferred | 3,526,677 |
Liabilities transferred | |
Accounts payable | 368,873 |
Total liabilities transferred | 368,873 |
Total net assets transferred | 3,157,804 |
Consideration received | |
Cash | 500,000 |
Non-trade receivable | 500,000 |
Note receivable (See Note 4) | 2,370,889 |
Long-term equity investment | 2,678,832 |
Total consideration received | 6,049,721 |
Difference recognized as gain on sale | $ 2,891,917 |
Warrants (Details Narrative) (USD $)
|
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 29, 2013
|
Jun. 29, 2013
|
|
Warrants Details Narrative | ||
Proceeds from exercise of warrants | $ 921,749 | $ 1,638,748 |
exercise of warrants, shares | 4,389,281 | 7,803,564 |
Exercise price of warrant | $ 0.21 | $ 0.21 |
Warrants expired | 533,067 | 1,314,303 |
Exercise price of warrants expired | $ 3 | $ 3 |
Non-Employee Share-Based Compensation (Tables)
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Jun. 29, 2013
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Non-Employee Share-Based Compensation Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Employee stock options |
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Interim Financial Statements
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6 Months Ended |
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Jun. 29, 2013
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Interim Financial Statements | |
Note 1. Interim Financial Statements [Text Block] | 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 our financial position as of June 29, 2013 and results of operations and cash flows for the three and six months ended June 29, 2013 and June 30, 2012. These unaudited interim financial statements should be read in conjunction with the Companys audited financial statements and the notes thereto for the year ended December 29, 2012 appearing in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (the Commission) on March 29, 2013. Operating results for the six months ended June 29, 2013 are not necessarily indicative of the results to be achieved for the full year ending on December 28, 2013. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 29, 2012 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. |
Note Receivable
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6 Months Ended |
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Jun. 29, 2013
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Receivables [Abstract] | |
Note 4. Note Receivable | On March 28, 2013, we entered into an asset purchase and sale agreement with NeutriSci and consummated the sale of BluScience consumer product line to NeutriSci. As part of the sale transaction, NeutriSci issued to us a $2,500,000 senior convertible secured note, which will be payable by NeutriSci in 6 installments of $416,667 on following dates: August 15, 2013, November 15, 2013, February 15, 2014, May 15, 2014, August 15, 2014 and November 15, 2014. This note was discounted based on interest rates of 5.25% to 5.50% for a discount of $129,111 and the note was recorded at a discounted value of $2,370,889, which approximates fair value. As of June 29, 2013, the book value of the note was $2,402,713 with a recognized interest receivable of $31,824. As of June 29, 2013, the current portion of note receivable with payments due in one year or less was $1,623,508 and the long-term portion of note receivable with payments due in more than one year was $779,205.
In the event of default, the note can be convertible into Series I Preferred Shares of NeutriSci at the option of ChromaDex. Each Series I Preferred Share can be convertible into 4 Class A common shares of NeutriSci. The conversion price will be (a) $4.00 per Series I Preferred Share prior to a Public Offering (as defined in the note); or (b) the closing price of Series I Preferred Share or four times the closing price of Class A common share on a stock exchange immediately prior to the conversion date.
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Nature of Business and Significant Accounting Policies
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Jun. 29, 2013
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Nature Of Business And Significant Accounting Policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 2. Nature of Business and Significant Accounting Policies [Text Block] | Nature of business: The Company is a natural products company that discovers, acquires, develops and commercializes proprietary ingredient technologies through its business model that utilizes its wholly owned business units, including ingredient technologies, natural product fine chemicals, chemistry and analytical testing services, and product regulatory and safety consulting. The Company provides science-based solutions to the nutritional supplement, food and beverage, animal health, cosmetic and pharmaceutical industries at various terms.
Basis of presentation: The financial statements and accompanying notes have been prepared on a consolidated basis and reflect the consolidated financial position of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated from these financial statements. The Company's fiscal year ends on the Saturday closest to December 31, and the Companys normal fiscal quarters end on the Saturday 13 weeks after the last fiscal year end or fiscal quarter end. Every fifth or sixth fiscal year, the inclusion of an extra week occurs due to the Companys floating year-end date. The fiscal year 2014 will include 53 weeks instead of the normal 52 weeks.
Trade accounts receivable: Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on monthly and quarterly reviews of all outstanding amounts. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. The allowances for doubtful accounts for the periods ended June 29, 2013 and December 29, 2012 were $17,000 and $450,000, respectively. Of the allowance amount of $450,000 for the period ended December 29, 2012, $433,000 represents a hold on the receivables placed by a retailer that carried our BluScience retail consumer line. The hold was placed by the retailer as an offset in the event of future returns of our products and the hold was treated as a reduction of revenue. On March 28, 2013, we sold the BluScience retail consumer line to NeutriSci International Inc. (NeutriSci) and the related trade accounts receivable including the allowance have been transferred to NeutriSci. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received.
Inventories: Inventories are comprised of raw materials, work-in-process and finished goods. They are stated at the lower of cost, determined by the first-in, first-out method (FIFO) method, or market. The inventory on the balance sheet is recorded net of valuation allowances of $225,000 and $366,000 for the periods ended June 29, 2013 and December 29, 2012, respectively. Labor and overhead has been added to inventory that was manufactured or characterized by the Company. On March 28, 2013, the Company sold the BluScience retail consumer line to NeutriSci and related dietary supplements inventory have been transferred to NeutriSci. The amounts of major classes of inventory as of June 29, 2013 and December 29, 2012 are as follows:
Earnings per share: Potentially dilutive common shares consist of the incremental common shares issuable upon the exercise of common stock options and warrants for all periods. For the three-month period ended June 29, 2013 and the three- and six-month periods ended June 30, 2012, the basic and diluted shares reported are equal because the common share equivalents are anti-dilutive due to the net loss. Below is a tabulation of the potentially dilutive securities that were in the money for the three- and six-month periods ended June 29, 2013 and June 30, 2012.
Total warrants and options that were not in the money at June 29, 2013 and June 30, 2012 were 11,595,211 and 15,071,066, respectively. |
Non-Employee Share-Based Compensation (Details Textuals) (USD $)
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3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
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Jun. 29, 2013
NonEmployee Share Based Compensation [Member]
Stock Options [Member]
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Jun. 29, 2013
NonEmployee Share Based Compensation [Member]
Stock Options [Member]
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Jun. 29, 2013
NonEmployee Share Based Compensation [Member]
StockAward [Member]
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Jun. 30, 2012
NonEmployee Share Based Compensation [Member]
StockAward [Member]
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Jun. 29, 2013
NonEmployee Share Based Compensation [Member]
StockAward [Member]
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Jun. 30, 2012
NonEmployee Share Based Compensation [Member]
StockAward [Member]
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Jun. 29, 2013
NonEmployee Shared Based Compensation [Member]
WarrantAward [Member]
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Jun. 29, 2013
NonEmployee Shared Based Compensation [Member]
WarrantAward [Member]
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Jun. 29, 2013
NonEmployee Shared Based Compensation [Member]
GeneralAndAdministrativeExpenses [Member]
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Jun. 30, 2012
NonEmployee Shared Based Compensation [Member]
GeneralAndAdministrativeExpenses [Member]
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Jun. 29, 2013
NonEmployee Shared Based Compensation [Member]
GeneralAndAdministrativeExpenses [Member]
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Jun. 30, 2012
NonEmployee Shared Based Compensation [Member]
GeneralAndAdministrativeExpenses [Member]
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Closing stock price | $ 0.78 | $ 0.78 | ||||||||||
Aggregate intrinsic value nonemployee options exercised | $ 35,000 | $ 35,000 | ||||||||||
Shares awarded during the period | 160,000 | 265,000 | 600,000 | 454,557 | ||||||||
Share-based compensation expense | 88,071 | 181,260 | 150,249 | 308,176 | 1,334 | 4,094 | 90,342 | 258,578 | 155,398 | 620,700 | ||
Unrecognized compensation expense | $ 230,276 |
Nature of Business and Significant Accounting Policies (Details) (USD $)
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Jun. 29, 2013
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Dec. 29, 2012
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Inventories | ||
Natural product fine chemicals | $ 1,656,702 | $ 1,614,755 |
Bulk ingredients | 512,895 | 432,230 |
Dietary supplements - raw materials | 401,809 | |
Dietary supplements - work in process | 465,253 | |
Dietary supplements - finished goods | 2,657,257 | |
Inventory-gross | 2,169,597 | 5,571,304 |
Less valuation allowance | 225,000 | 366,000 |
Inventory-net | $ 1,944,597 | $ 5,205,304 |
Gain on Sale of Assets (Details Narrative) (USD $)
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6 Months Ended |
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Jun. 29, 2013
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Second payment toward additional payment amount | $ 200,000 |
NeutriSci [Member]
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Sale transaction value | 6,000,000 |
Deposit | 250,000 |
Closing payment | 250,000 |
Additional payment amount | 500,000 |
Payment toward additional payment amount | 250,000 |
Second payment toward additional payment amount | 200,000 |
Unpaid cash payment due at June 29, 2013 | 250,000 |
Secured note | 2,500,000 |
Convertible shares | 625,000 |
Quarterly installment | $ 416,667 |
Series I preferres shares issued | 669,708 |
Series I conversion into Class A Common Shares | 2,678,832 |
Class A common percent of deemed shares | 19.00% |
Class A price per share | $ 1.00 |
Royalty due to company on future net sales, rate | 6.00% |
Employee Share-Based Compensation (Details 2) (Performance Based Stock Options [Member], USD $)
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6 Months Ended |
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Jun. 29, 2013
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Performance Based Stock Options [Member]
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Summary of performance based stock option activity- Shares | |
Outstanding at December 29, 2012 | 145,834 |
Options Granted | 200,000 |
Options Exercised | |
Options Expired | |
Options Forfeited | (45,834) |
Outstanding at June 29, 2013 | 300,000 |
Exercisable at June 29, 2013 | 52,084 |
Weighted Average Exercise Price | |
Outstanding at December 29, 2012 | $ 1.59 |
Options Granted | $ 0.63 |
Options Exercised | |
Options Expired | |
Options Forfeited | $ 1.59 |
Outstanding at June 29, 2013 | $ 0.95 |
Exercisable at June 29, 2013 | $ 1.59 |
Weighted Average Remaining Contractual Term | |
Outstanding at June 29, 2013 | 9 years |
Exercisable at June 29, 2013 | 7 years 10 months 6 days |
Aggregate Intrinsic Value | |
Outstanding at June 29, 2013 | $ 30,200 |
Exercisable at June 29, 2013 |
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