What changed in this filing

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Item 1. Business

2024-03-06 compared with 2023-03-08 · 86 added, 93 removed, 235 unchanged (43% of the section changed)

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This marked the strategic shift to become a global bioscience company dedicated to healthy aging.

On September 5, 2017, the Company completed the sale of its operating assets that were used with the Company’s quality verification program testing and analytical chemistry business for food and food related products to Covance Laboratories Inc.

On January 15, 2021, Healthspan Research LLC was dissolved.

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Our team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (NAD+), an essential coenzyme that is a key regulator of cellular metabolism and is found in every cell of the human body.

NAD+ levels in humans have been shown to decline by more than 50% from young adulthood to middle age.

NAD+ levels in humans have been shown to decline by up to 65% between ages 30 and 70.

In addition to age, other factors linked to NAD+ depletion include poor diet, excess alcohol consumption and a number of disease states.

NAD+ levels may be increased through supplementation with NAD+ precursors, such as nicotinamide riboside (NR), calorie restriction and moderate exercise.

In 2013, we commercialized Niagen®, a proprietary form of NR, a novel form of vitamin B3.

We are at the forefront of exploring effective methods to increase NAD+ levels and support healthy aging.

In 2013, we commercialized Niagen®, a proprietary form of NR, a novel form of vitamin B3, and one of the most well-studied and efficient NAD+ precursors on the market.

Data from numerous preclinical studies and human clinical trials show that NR is a highly efficient NAD+ precursor that significantly raises NAD+ levels in blood and tissue.

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Our scientific advisory board is led by Chairman Dr.

Roger Kornberg, Nobel Laureate Stanford Professor, Dr.

Charles Brenner, one of the world’s recognized experts in NAD+ and discoverer of NR as a NAD+ precursor, Dr.

Rudy Tanzi, the co-chair of the department of neurology at Harvard Medical School, Sir John Walker, Nobel Laureate and Emeritus Director, MRC Mitochondrial Biology Unit in the University of Cambridge, England, Dr.

Bruce German, Chairman of food, nutrition and health at the University of California, Davis, Dr.

Brunie Felding, Associate Professor, Department of Molecular Medicine at Scripps Research Institute, California Campus, Dr.

David Katz, the Founder and former director of Yale University’s Yale-Griffin Prevention Research Center, President and Founder of the non-profit True Health Initiative, and Founder and Chief Executive Officer of Diet ID, Inc.

Roger Kornberg, Nobel Laureate and Stanford Professor.

Other distinguished members include Dr.

Charles Brenner, Alfred E Mann Family Foundation Chair in the Department of Diabetes & Cancer Metabolism at City of Hope and one of the world’s recognized experts in NAD+ and discoverer of NR as a NAD+ precursor;

Rudy Tanzi, co-chair of the department of neurology at Harvard Medical School;

Sir John Walker, Nobel Laureate and Emeritus Director of the MRC Mitochondrial Biology Unit in the University of Cambridge, England;

Bruce German, Chairman of Food, Nutrition and Health at the University of California, Davis;

Brunie Felding, Associate Professor in the Department of Molecular Medicine at Scripps Research Institute, California Campus;

David Katz, Founder and former director of Yale University’s Yale-Griffin Prevention Research Center, President and Founder of the non-profit True Health Initiative, and Founder and Chief Executive Officer of Diet ID, Inc.;

Vilhelm (Will) Bohr, M.D., Ph.D., D.Sc., former Chief of the Laboratory of Molecular Genetics at the National Institute on Aging of the National Institutes of Health.

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Through our consumer products segment, we provide finished dietary supplement products that contain the Company's proprietary ingredients, commercialized as Tru Niagen®, directly to consumers and distributors.

As one of the world leaders in the emerging NAD+ space and the science of healthy aging, we continuously strive to evolve our Tru Niagen® products through the exploration, discovery and enhancement of patented technologies.

The Tru Niagen® brand is built on a dedication to scientific evidence and improving consumer health by safely raising NAD+ levels to help consumers age better.

Our principal objective is to increase awareness of the Tru Niagen® brand worldwide including through expanded access to consumers by entering new markets, retail platforms and other opportunities.

We remain focused on expanding marketing and distribution of the Tru Niagen® brand in new strategic international markets and securing the regulatory approvals necessary to accomplish the same.

As one of the world leaders on NAD+ and the science of healthy aging, we continuously strive to evolve our Tru Niagen® products through ongoing exploration, discovery and the application of patented technologies.

We believe that the Tru Niagen® brand is associated with scientific rigor and a dedication to enhancing consumer health by safely elevating NAD+ levels, thereby facilitating a healthier aging process.

Our primary objective is to amplify global awareness of the Tru Niagen® brand through comprehensive marketing strategies, strategic partnerships and expanded market presence.

Our dedication to extending the reach of the Tru Niagen® brand is evident in our focus on enhanced marketing and distribution efforts in key global markets, while also working to obtain the required regulatory approvals for these endeavors.

We began international expansion of the Tru Niagen® brand with the launch in Hong Kong and Macau with our strategic partner, A.S.

Watson Group, in 2017.

Since then, we have further expanded into Singapore, New Zealand, Canada, Australia, China, Korea, Japan, the United Kingdom and other European markets.

We support our international operations in various capacities which include supplying our international strategic partners with finished products manufactured in the U.S, as well as marketing materials and know-how.

Simultaneously, we continue to support our proprietary e-commerce platforms and the e-commerce platforms of strategic regional and local partners within the U.S while further exploring opportunities for new domestic channels.

Since then, through our strategic partners, we have further expanded distribution into over 100 countries.

Concurrently, we maintain support for our proprietary e-commerce platforms and collaborate on the e-commerce platforms of partners both within the U.S and internationally.

Ingredients Segment

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We also offer Immulina®, a spirulina extract with predominant active compounds of Braun-type lipoproteins which are useful for supporting human immune function.

Our mission is to continue to identify, acquire and commercialize other innovative proprietary ingredients and technologies.

Our experienced team is capable of advancing products through early development into commercialization with the required regulatory approval, safety, toxicology and clinical trials as well as providing supply chain management and manufacturing needs to ultimately sell the ingredient products directly or license to third parties.

Our mission is to continue to identify, acquire and commercialize innovative proprietary ingredients and technologies.

With an experienced team, we possess the capability to guide innovative ingredients and technologies from early development through commercialization, ensuring compliance with regulatory approvals, safety standards, toxicology assessments, and clinical trials.

Furthermore, we offer comprehensive supply chain management and manufacturing support, enabling us to either directly sell the ingredient products or license them to third parties.

Analytical Reference Standards and Services Segment

Since 1999, we have provided research and quality-control products and services through our analytical reference standards and services segment and have positioned ourselves as a leader in the industry.

Customers worldwide in the dietary supplement, food and beverage, cosmetic, pharmaceutical, and life sciences industries utilize our products, which are small quantities of highly-characterized, phytochemicals, natural products and plant-based materials, to ensure the quality of their raw materials and finished products.

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We believe we create value throughout the supply chain of the dietary supplements, functional foods, life science research, personal care markets and associated analytical testing laboratories.

We intend to capitalize on additional opportunities in product development and commercialization of various kinds of intellectual property that we have largely discovered and acquired through the sales process associated with this segment.

We have used and, to a limited extent, continue to use intellectual property harnessed from our analytical reference standards and services segment to create new proprietary ingredients to our customers.

Business Market

According to data from Global Wellness Institute, the global wellness industry market was approximately $4.4 trillion in 2020 amidst the disruptions of COVID-19, which is down from $4.9 trillion in 2019.

In 2020, the personal care, beauty and anti-aging market was approximately $960 billion, healthy eating, nutrition and weight loss was approximately $950 billion and traditional and complementary medicine market was approximately $410 billion.

The Global Wellness Institute projects the overall wellness economy to grow approximately 10% annually, or 60% in total, from 2020 to 2025, with most segments projected to exceed GDP growth.

According to data from Global Wellness Institute, the global wellness industry market was approximately $5.6 trillion in 2022, nearly 14% higher than its size in 2019.

In 2022, the personal care and beauty market was approximately $1,089 billion, healthy eating, nutrition and weight loss was approximately $1,079 billion and traditional and complementary medicine market was approximately $519 billion.

The Global Wellness Institute projects the overall wellness economy to grow approximately 8.6% annually, or 51% in total, from 2022 to 2027.

According to data from Grand View Research, the global dietary supplements market size was estimated at $164 billion in 2022, and is expected to grow at a compound annual growth rate of 8.9% from 2022 to 2030.

In 2022, our net sales grew by 7%, followed by a 16% increase in 2023.

Over the five-year period from 2019 to 2023, we achieved a compound annual growth rate of 13%.

For the years ended December 31, 2023 and 2022, our net sales were approximately $83.6 million and $72.1 million, respectively.

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Consumer Products Segment

We employ a variety of strategies to drive sales and consumer awareness of Tru Niagen®, including social media and internet advertising, managing affiliate marketing, influencer campaigns and marketing, paid spokespersons and talent, events and trade shows, e-mail marketing campaigns, paid search advertising and distribution of research publications and press releases.

We also have a dedicated customer care department that handles day-to-day communications with our end customers addressing any needs or concerns related to our Tru Niagen® products.

United States of America:

Our sales and marketing strategy for the Consumer Products Segment is designed to enhance the visibility and awareness of Tru Niagen® in a targeted and effective manner.

With our dedicated team and supporting agencies, we implement a diverse array of strategies aimed at engaging our target audience and driving sales.

We leverage social media and internet advertising to reach a broad audience and create a strong online presence.

Simultaneously, we actively manage affiliate marketing programs to foster strategic partnerships and expand our reach through trusted networks.

In our pursuit of authentic connections, we engage in influencer collaborations with key personalities, leveraging their reach to promote Tru Niagen® and connect with their followers.

In addition, utilizing paid spokespersons and talent plays a crucial role in articulating the benefits and uniqueness of Tru Niagen®, thereby adding credibility to our brand.

Participation in industry events and trade shows serves as one among several avenues through which we showcase our products and engage with potential customers on a personal level.

Moreover, we implement targeted email campaigns to establish direct communication with our audience, delivering valuable information and exclusive offers.

The strategic use of paid search advertising ensures visibility among individuals actively searching for related keywords, contributing to the overall effectiveness of our marketing efforts.

Additionally, we distribute research publications and press releases to investors and healthcare practitioners to underscore the scientific backing and noteworthy developments associated with Tru Niagen®.

Integral to our customer-centric approach is the maintenance of a dedicated customer care department.

This department handles day-to-day communications and promptly addresses any inquiries or concerns from our valued customers.

Our overarching approach is firmly grounded in professionalism and integrity, with the ultimate goal of leaving a lasting and positive impression of Tru Niagen® in the minds of consumers.

Through these strategic initiatives, we aim not only to drive sales but also to build a strong and enduring connection with our esteemed customer base.

Distribution:

Domestic (United States of America):

We distribute Tru Niagen® products direct to consumers through our propriety e-commerce platform TruNiagen.com, Amazon, ShopHQ and other established internet marketplaces.

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We utilize strategic partners on a regional or local country basis to expand our distribution of Tru Niagen® products internationally.

Our strategic partners offer our products through brick and mortar stores, e-commerce channels or a combination of both.

With our strategic partners, we currently distribute Tru Niagen® products to the following international markets:

• Hong Kong (A.S.

Watson Group);

• Macau (A.S.

Watson Group);

• Singapore (A.S.

Watson Group);

• New Zealand (Matakana Superfoods);

• Australia (Matakana Superfoods);

• China (Sinopharm);

• Korea (Juvenis, Coupang);

• Canada (CLM Health Group, Amazon, Fullscript Canada and www.TruNiagen.ca);

• Japan (Amazon);

• United Kingdom (Amazon);

• Germany (Amazon);

• France (Amazon);

• Italy (Amazon);

• Spain (Amazon);

• Poland (Amazon);

• Netherlands (Amazon);

• Sweden (Amazon).

Our strategic partners offer our products through brick and mortar stores, e-commerce channels, such as Amazon, or a combination of both.

With our strategic partners, we currently distribute Tru Niagen® products to the following international markets, Hong Kong, Macau, Singapore, New Zealand, Australia, China, South Korea, Canada, Japan, United Kingdom, Germany, France, Italy, Spain, Poland, Netherlands, Switzerland and Sweden.

Additionally, in August 2023, we launched a partnership with iHerb, an online global destination for supplements with access to over 180 countries, to help accelerate our global expansion.

We continue to focus on obtaining additional regulatory approvals required to expand marketing and distribution of the Tru Niagen® brand in new strategic international markets.

Currently, we are in the process of obtaining applicable regulatory approvals, including “Blue Hat” or health food registration with the Peoples Republic of China State Administration for Market Regulation for Tru Niagen® and other products containing nicotinamide riboside in our name or our designee (collectively, the “Blue Hat Registration”) in connection with our joint venture agreement with Taikuk Group Ltd.

Currently, we are in the process of obtaining applicable regulatory approvals, including “Blue Hat” or health food registration with the Peoples Republic of China State Administration for Market Regulation for Tru Niagen® and other products containing nicotinamide riboside in our name or the name of our designee (collectively, the “Blue Hat Registration”) in connection with our joint venture agreement with Taikuk Group Ltd.

Achieving Blue Hat Registration would notably broaden our sales opportunities in China and is at the forefront of our expansion goals.

As of December 31, 2022, it is uncertain when Blue Hat Registration will be achieved.

As of December 31, 2023, it is uncertain if or when Blue Hat Registration will be achieved.

For additional discussion surrounding our joint venture agreement and Blue Hat Registration see Note 15, Joint Venture , in Item 8 Financial Statements and Supplementary Data of this Form 10-K.

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CERP™ has produced more than 40% of all peer-reviewed NR-focused publications and 75% of the peer-reviewed clinical NR publications so far.

To date, 24 peer-reviewed human clinical trials have been published on our proprietary ingredient Niagen® demonstrating its safety and/or efficacy through CERP™.

To date, 31 peer-reviewed human clinical trials have been published on our proprietary ingredient Niagen® demonstrating its safety and/or efficacy.

No adverse effects have been attributed to Niagen® in any of the published clinical trials.

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Niagen® was also successfully notified to FDA as Generally Recognized as Safe in August 2016.

Through our research and development laboratory in Longmont, Colorado, we venture to discover, develop and evaluate new products that we aim to take to market and explore cost saving processes for existing products.

Through our research and development laboratory in Longmont, Colorado, and the collective efforts of our experienced team, we venture to discover, develop and evaluate new products that we aim to take to market and explore cost saving processes for existing products.

Research and development expense for the years ended December 31, 2023 and 2022 was approximately $5.0 million and $4.8 million, respectively.

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The health and wellness, anti-aging and dietary supplement industries are highly competitive, and we have competitors that offer products similar to our products.

Many of our competitors may have significantly greater financial and human resources than our own.

Many of our competitors may have greater financial and human resources than our own.

We seek to differentiate our products and marketing from our competitors by emphasizing product quality, product benefits, scientific rigor, and functional ingredients.

Patent and trademark applications that protect brands, product names, and new technologies are pursued whenever possible.

While we cannot assure that such measures will block competitive products, we believe our continued emphasis on innovation and new product development targeted at the needs of our consumers will enable us to effectively compete in the marketplace by building a trusted brand.

While we cannot assure that such measures will block competitive products, we believe our continued emphasis on scientific research, innovation and new product development targeted at the needs of our consumers will enable us to effectively compete in the marketplace by building a trusted brand.

For our consumer products segment, we are in direct competition with Elysium Health who offers a similar product to Tru Niagen® as well as other providers of NAD+ boosting supplements.

Additionally, we have customers who are authorized resellers of Niagen® as a consumer product.

We believe these resellers are focused on specific channels that we feel are complementary to our business and expand awareness of the Niagen® ingredient and benefits.

We believe these resellers are focused on specific channels or geographies that we feel are complementary to our business and expand awareness of the Niagen® ingredient and benefits.

We also face strong indirect competition from other ingredient suppliers who may supply alternative ingredients that may have similar characteristics to ingredients we offer.

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These competitors have already developed reference standards or services or are currently taking steps to develop them.

We strive to always provide superior products and services to our competition.

We strive to always provide superior products and services than our competition.

Working Capital

ChromaDex’s working capital as of December 31, 2023 and 2022 was approximately $9.5 million and $13.5 million, respectively.

For the year ended December 31, 2023, we observed a positive impact on our supply chain lead times due to the mitigation of COVID-related disruptions and the implementation of additional efficiency initiatives.

We measure working capital by adding trade receivables and inventories and subtracting accounts payable.

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Other countries, such as Switzerland, have voluntarily adopted laws and regulations that mirror those of the European Union with respect to novel foods or new dietary ingredients.

Regulation in other major and established markets, including Canada, Japan, Brazil, China, Turkey and Australia all maintain and enforce a clear regulatory framework for novel ingredients and dietary supplements (or their equivalent).

Regulation in other markets we operate in or seek to operate in, including Canada, Japan, Brazil, China, Turkey and Australia all maintain and enforce a clear regulatory framework for novel ingredients and dietary supplements (or their equivalent).

Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, Including Duration

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7,776,326 Methods and compositions for treating neuropathies 6/3/2005 8/17/2010 6/24/2026 Licensed from Washington University

7,846,452 Potent immunostimulatory extracts from microalgae 7/28/2005 12/7/2010 7/28/2025 Licensed from University of Mississippi

8,106,184 Nicotinyl Riboside Compositions and Methods of Use 11/17/2006 1/31/2012 9/20/2027 Licensed from Cornell University

8,114,626 Yeast strain and method for using the same to produce Nicotinamide Riboside 3/26/2009 2/14/2012 1/5/2026 Licensed from Dartmouth College

8,133,917 Pterostilbene as an agonist for the peroxisome proliferator-activated receptor alpha isoform 10/25/2010 3/13/2012 8/18/2025 Licensed from the University of Mississippi and U.S.

Department of Agriculture

8,197,807 Nicotinamide Riboside Kinase compositions and Methods for using the same 4/20/2006 6/12/2012 11/19/2026 Licensed from Dartmouth College

8,252,845 Pterostilbene as an agonist for the peroxisome proliferator-activated receptor alpha isoform 2/1/2012 8/28/2012 8/18/2025 Licensed from the University of Mississippi and U.S.

Department of Agriculture

8,383,086 Nicotinamide Riboside Kinase compositions and Methods for using the same 4/12/2012 2/26/2013 4/20/2026 Licensed from Dartmouth College

8,809,400 Method to Ameliorate Oxidative Stress and Improve Working Memory Via Pterostilbene Administration 8/8/2011 8/19/2014 10/2/2028 Licensed from the University of Mississippi and U.S.

Department of Agriculture

8,841,350 Method for treating non-melanoma skin cancer by inducing UDP-Glucuronosyltransferase activity using pterostilbene 5/8/2012 9/23/2014 5/8/2032 Co-owned by ChromaDex and University of California

8,889,126 Methods and compositions for treating neuropathies 5/28/2010 11/18/2014 6/3/2025 Licensed from Washington University

9,000,147 Nicotyl riboside compositions and methods of use 1/17/2012 4/7/2015 11/17/2026 Licensed from Cornell University

9,028,887 Method improve spatial memory via pterostilbene administration 5/22/2014 5/12/2015 6/10/2028 Licensed from the University of Mississippi and U.S.

Department of Agriculture

9,295,688 Methods and compositions for treating neuropathies 10/10/2014 3/29/2016 6/3/2025 Licensed from Washington University

9,321,797 Nicotyl riboside compositions and methods of use 11/17/2014 4/26/2016 11/17/2026 Licensed from Cornell University

9,439,875 Anxiolytic effect of pterostilbene 5/11/2011 9/13/2016 12/11/2031 Licensed from the University of Mississippi and U.S.

Department of Agriculture

9,975,915 Crystalline forms of nicotinoyl ribosides, modified derivatives thereof, and phosphorylated analogs thereof, and methods of preparation thereof 11/10/2017 5/22/2018 11/10/2037 Co-owned with The Queen’s University of Belfast and exclusively licensed by ChromaDex

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10,000,520 B-vitamin and amino acid conjugates of nicotinoyl ribosides and reduced nicotinoyl ribosides, derivatives thereof, and methods of preparation thereof 3/16/2017 6/19/2018 3/16/2037 Co-owned with The Queen’s University of Belfast and exclusively licensed by ChromaDex

Patent Number Title Filling Date Issued Date Expires Licensor

10,183,036 Use of nicotinic acid riboside or nicotinamide riboside derivatives, and reduced derivatives thereof, as NAD+ increasing precursors 4/20/2017 1/22/2019 4/20/2037 Owned by ChromaDex

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Owned by ChromaDex

Patent Number Title Filling Date Issued Date Expires Licensor

11,071,747 Use of NAD precursors for breast enhancement

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11,584,770 Methods of preparing nicotinamide riboside and derivatives thereof 5/4/2022 2/21/2023 7/24/2034 Licensed from Queen’s University Belfast

11,633,421 Use of NAD precursors for improving maternal health and/or offspring health 11/29/2017 4/25/2023 6/19/2039 Licensed from University of Iowa

11,746,123 Efficient and scalable syntheses of nicotinoyl ribosides and reduced nicotinoyl ribosides, modified derivatives thereof, phosphorylated analogs thereof, adenylyl dinucleotide conjugates thereof, and novel crystalline forms thereof 6/22/2020 9/05/2023 11/10/2037 Co-owned with The Queen’s University of Belfast and exclusively licensed by ChromaDex

Manufacturing, Sources and Availability of Raw Materials

Our finished products are manufactured by third-party FDA-regulated contract manufacturers in the United States with some raw materials sourced internationally.

Each contract manufacturer upholds the standards imposed by the International Organization for Standardization as well as the high quality standards we require.

We utilize third-party manufacturers to produce NR, encapsulate and bottle NR sold as a dietary supplement and produce and supply other ingredients, products, and services.

Our finished consumer products are manufactured by third-party FDA-regulated contract manufacturers in the United States, complemented by the global sourcing of raw materials.

These manufacturing partners uphold the standards imposed by the International Organization for Standardization, as well as the high-quality standards we require.

We utilize third-party manufacturers for the production, encapsulation, and bottling of NR as well as the manufacturing and supply of various other ingredients, products, and services.

In most cases, our contract manufacturers purchase raw materials based on our specifications;

however, we may also license particular raw material ingredients and supply our own source to the manufacturer.

Following the receipt of products or product components from third-party manufacturers, in addition to in-house testing performed by the contract manufacturer, we perform independent analysis and testing to ensure conformance to our strict specifications.

We continuously monitor and manage supplier performance through a corrective action program developed by us.

We believe these manufacturing relationships can minimize our capital investment, help control costs, and allow us to compete with larger volume manufacturers of dietary supplements, phytochemicals and ingredients.

From time to time, if our capacity permits and when demand or quality requirements make it appropriate to do so, we manufacture certain products or product components internally.

(Grace) is our exclusive manufacturer for the supply of NR.

Effective as of December 14, 2022, we entered into an Eighth Amendment (Eighth Amendment) to the Manufacturing and Supply Agreement (such agreement as amended, the “Grace Manufacturing Agreement”), originally effective in January 2016 with Grace.

Beginning January 2019, Grace was issued patents related to the manufacturing of the crystalline form of NR.

Pursuant to the Eighth Amendment, we are committed to purchase approximately $18.0 million of total inventory during fiscal year 2023, which is our only future purchase commitment with Grace.

The Grace Manufacturing Agreement will expire on December 31, 2023, subject to further renewal of the agreement to be negotiated by the parties.

We believe that we have identified reliable sources and suppliers of ingredients, chemicals, phytochemicals and reference materials that will provide products in compliance with our guidelines.

Following the receipt of products or product components from third-party manufacturers, alongside the in-house testing conducted by the manufacturers themselves, we conduct independent analyses and testing.

This dual-layered approach ensures adherence to our stringent specifications.

To uphold quality standards, we continually monitor and manage supplier performance through a proactive corrective action program developed in-house.

We believe these strategic manufacturing relationships not only mitigate our capital investment but also enable us to exercise cost control, positioning us competitively against larger-volume manufacturers in the dietary supplements, phytochemicals, and ingredients market.

Additionally, the Company has an exclusive manufacturer for the supply of NR, W.R.

Effective November 2, 2023, the Company entered into a Ninth Amendment to the Manufacturing and Supply Agreement (the "Grace Manufacturing Agreement"), initially effective in January 2016.

In January 2019, Grace was issued patents related to the crystalline form of NR chloride which limit the Company’s ability to find alternatives for supply (Grace Patents).

In December 2023, the Company and Grace executed a Limited Licensing Agreement.

Pursuant to this agreement, the Company is authorized to procure NR supply from a designated third party in explicitly defined quantities for purchase in 2024.

The Grace Manufacturing Agreement is set to expire on December 31, 2024, subject to potential renewal, the terms of which will be negotiated by both parties.

Any failure to extend the Grace Manufacturing Agreement on satisfactory terms could potentially have a material adverse impact on our financial results and strategic position, as outlined in more detail in Item 1A.

Risk Factors, "We rely on a single supplier, W.R.

Grace, for NR and a limited number of third-party suppliers for the raw materials required to produce our products."

In our pursuit of excellence, we believe that we have identified reliable sources and suppliers of ingredients, chemicals, phytochemicals, and reference materials.

These trusted partners are committed to delivering products that align with our stringent guidelines, further reinforcing our confidence in the quality and consistency of our supply chain.

Environmental Compliance

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As of December 31, 2023 we did not have any significant backlog orders from the distributors that have not been shipped.

For products that are directly shipped to consumers, we have minimal backlog orders as we carry sufficient inventory on hand to ship upon the receipt of order.

For consumer products directly shipped to consumers, our standard practice involves maintaining sufficient inventory on hand to fulfill orders upon receipt and as of December 31, 2023 backlog orders to consumers were minimal.

For our ingredients segment, we also have minimal backlog orders as we carry sufficient inventory on hand for most of the products we offer and we ship upon the receipt of customer’s order.

For our analytical reference standards and services segment, we normally have a small backlog of orders.

These orders amount to approximately $20,000 or less.

As we list over 1,750 phytochemicals and 400 botanical reference materials in our catalog, we may not always have the items in stock at the time of customers’ orders.

For our analytical reference standards and services segment, we normally have a small, immaterial backlog of orders.

As we have an extensive catalog featuring a wide array of phytochemicals and botanical reference material, we may not always have the items in stock at the time of customers’ orders.

These backlog orders are normally fulfilled within two to six weeks.

Human Capital:

Culture and Workforce

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We believe our people are critical for our success.

We are dedicated to providing an environment where ChromaDex employees can have fulfilling careers, and be happy, healthy and productive.

We are dedicated to providing an environment where ChromaDex employees can have fulfilling careers, be happy, healthy and productive.

We offer attractive wage and benefit packages to take care of the needs of our employees and their families.

Our competitive compensation and dynamic culture help us to attract and retain top candidates.

We continue to invest in recruiting and rewarding talented people.

We continue to invest in recruiting, developing, and rewarding talented people.

ChromaDex and its employees are dedicated to diversity, inclusion, and fairness.

We celebrate personal authenticity and expression as a catalyst to advance human health and innovation.

We support healthy, open dialogue and we communicate information about the company through multiple internal channels to our employees .

We promote and support an open dialogue.

We communicate information about the company through multiple internal channels to our employees .

As of December 31, 2023, ChromaDex had 106 full-time employees, none of whom are unionized.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business