Ladies and gentlemen thank you for standing by and welcome to the ChromaDex Corporation’s first quarter 2015 earnings conference call. My name is Shannon 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. I would now like to turn the conference call over to Andrew Johnson, Director of Investor Relations. Please go ahead.

Thank you, Shannon and good morning and welcome to ChromaDex Corporation’s 2015 first quarter results conference call. With us today are ChromaDex’s Founder and Chief Executive Officer, Frank Jaksch and Chief Financial Officer Tom Varvaro. On Thursday, ChromaDex issued a press release announcing the company’s financial results for the first quarter of 2015 and filed our Form 10-Q. If you have not reviewed this information, both are available within the investor relations section of ChromaDex’s website at www.chromadex.com and the Form 10-Q is also available on the SEC’s website. Before I turn the call over to management, please remember that our prepared remarks and responses to questions may contain forward-looking statements. Words such as may, will, expect, intend, plan, believe, seek, could, estimate, judgment, targeting, should, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statement. Actual results could differ materially from those implied by such forward looking statements due to a variety of factors, including but not limited to our ability to execute our business plans, announcements of technological innovation or new products by us or our competitors, our ability to upgrade and develop our systems and infrastructure to accommodate growth, loss of any strategic relationship, regulation by federal, state or local government and general economic conditions as well as economic condition specific to the healthcare industry. Our annual report on Form 10-K filed with the SEC on March 19, 2015, recent and forthcoming quarterly reports on Form 10-Q, recent current reports on Form 8K and 8K amended and other SEC filings discuss some of the potential risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward looking statements for any reason. Although the company believes that the expectations reflected in such forward looking statements are based upon reasonable assumptions we can give no assurance that expectations will be attained. The company undertakes no obligation to update any forward looking statements whether as a result of new information, future events or otherwise. In addition, certain of the financial information presented in this call references non-GAAP financial measures. The company’s earning release which was issued Thursday after the closed and it is available on the company’s website presents reconciliation to the appropriate GAAP measure and explanation of why the company believes such non-GAAP financial measures are useful to investors. Finally, this conference call is being recorded via webcast. The webcast will be available on the investor relations section of our website at www.chromadex.com. With that, it is now my pleasure to turn the call over to Frank Jaksch and Tom Varvaro.

Thank you, Andrew. I appreciate all of you who've taken the time to join our first quarter call. This is actually the first quarterly earnings call that we have ever done and we anticipate having quarterly conference calls going forward. For those of you who are new to our story, ChromaDex was founded in ‘99 and we became -- we began trading as a public company in 2008. To date we have built one of the largest catalogs of phytochemicals in the world. What are phytochemicals? Phytochemicals are compounds that are naturally occurring in plants and that's kind of what we focus on as a company at least from the beginning. In addition, we have also grown to become a leading provider of chemistry and consulting services to the natural products industry, including companies such as Nestlé, Pepsi, Kraft and Cargill. As we’ve grown the company over the past 15 years, we have leveraged both our brand and industry relationships derived from our phytochemical, analytical and consulting businesses to acquire valuable intellectual property for several novel ingredient technologies. Over the past five years, we've commercialized four ingredient technologies under our brands NIAGEN, pTeroPure, PURENERGY and ProC3G. After reviewing the quarter results, I will provided a more detailed overview of ChromaDex as well as our business opportunities. With that, I will turn over the call to Tom, so he can go through the Q1 2015 financial results.

Thank you, Frank, and good morning everyone. All the following numbers are approximated due to rounding. For the first quarter ended April 4, 2015 ChromaDex reported record net sales of $5.3 million, an increase of 71% as compared to $3.1 million for the first quarter of 2014 and a 24% sequential increase over Q4 2014. This marks the fourth consecutive quarter that we’ve reported record revenue. The ingredient segment generated record net sales of $2.7 million for Q1 2015, an increase of 136% compared to $1.1 million for Q1 2014 and a 36% sequential increase over Q4 2014. The core standards and services segment also posted a 33% increase as it generated net sales of $2.3 million for Q1 2015 compared to $1.7 million for Q1 2014 and a 10% sequential increase over Q4 2014. The regulatory consulting segment net sales increased 39% from $200,000 for Q1 2014 to $280,000 for Q1 2015 and a 39% sequential increase over Q4 2014. Gross margin for the quarter was $1.9 million versus $1 million for Q1 2014, a 96% increase and a 36% sequential increase over Q4 2014. Net loss for the quarter was $1 million versus a net loss of $1.8 million in Q1 2014. EBITDA adjusted for non-cash charges associated with share-based compensation, which is a non-GAAP measure, improved this quarter to a loss of $310,000 as compared to a loss of $780,000 for Q4 2014 and a loss of $850,000 for Q1 2014. Our cash on hand at the end of the quarter was $3.2 million versus $4 million at the end of Q4 2014. Total cash available was $5.7 million which includes an additional $2.5 million that is available from our Hercules facility. With that, I will now turn the call back over to Frank.

Thanks, Tom. Needless to say all of us at ChromaDex are thrilled to having reported our fourth consecutive quarter of record revenue. These results speak to the momentum we're experiencing across all of our business segments. As I mentioned at the top of the call, I just wanted to use this opportunity to better describe our business segments as well as some of the exciting business opportunities out in front of us. I am going to start with our ingredient segment as it’s one of the most important growth segments of our business. The ingredients business is only four years old and over the past 5 quarters, our ingredients segment has had exceptional growth both year-over-year and sequential growth and we expect that trend to continue. Our phytochemical chemistry and consulting businesses continue to be a steady grower and generates positive cash flow for the company. The ingredients segment is where we may be able to create the most substantial shareholder value and we are continuing to focus on growing our existing portfolio of branded ingredients as well as continually develop -- developing our new ingredients as well as keeping our pipeline of new licensed opportunities full. We believe there's additional substantial value not currently reflected in our valuation for several pharmaceutical applications for at least one of our ingredients, primarily nicotinamide riboside. But let’s start from the beginning and let’s take a look at how do we find ingredients, the ones that we have in our portfolio right now. ChromaDex leverages market intelligence from a 15-year-old chemistry business primarily in the form of information coming from universities and research institutes. We get a very early access to information and then license highly valuable intellectual property to roll it out as a novel ingredient technology. And most of these relationships…

[Operator Instructions] Our first question is from Scott Jackson with RayBlue [ph] Capital.

Hi guys, great job on the quarter. So there has been a quite a bit in the news on the – as you mentioned, newer studies coming out on the health benefits of nicotinamide. Just want to know how you view the recent news of studies like the most recent one from Washington University medical school impacting ChromaDex’s pipeline going forward?

Thanks Scott. That’s a good question. We continue to put out if you noticed over the past couple of years we do put out press releases regarding certain science landing in publications and these publications are critical to the company. So from a – I’ve said this over the past couple years but from a catalyst standpoint having these types of studies especially on nicotinamide riboside published is critical to the company. We need the stuff to publish and the sheer number of publications that come out and there's been a substantial amount of these that have come out over the past two years and we expect more to come out over the next 12 to 24 months as well. But the more visibility we get in terms of the science the higher that -- the more potential there is in terms of this really starting to show some pickup and that's going to be critical because consumer awareness is critical to our -- the size or the potential of a compound like nicotinamide riboside and science is usually the driver towards that. So the more of these publications that come out which we’re really moving in that direction of trying to facilitate this through these collaborative agreements like I talked about. These are critical for the company and continuing to see more of those at least from ChromaDex putting up press releases, identifying that is going to be, like I said, a very important catalyst for the company moving forward.

Thank you. Our next question is from Robert Levy with Morgan Stanley.

Last week I saw a report about the positive effects on avoiding skin cancer by using niacinamide. How does this relate to ChromaDex?

Another good question, sort of picks up well after the last one but yes, there was -- I've received hundreds of emails since last week from family and shareholders, investors and other people within the industry that there was a study that published – it was a clinical study about the use of a compound niacinamide. Niacinamide of course is a related metabolite to nicotinamide riboside but yet they are slightly different. Niacinamide has been out in the market and fairly ubiquitous in the market for a long time, but they published some data about the use of a compound for prevention or somehow moving the needle in terms of skin cancer, non-melanoma related skin cancer. And we've been tracking that actually on our own for the past couple of years in terms of some studies that we have done. Visibility for – that publication that that really got a lot of media attention brought a lot of visibility to ChromaDex over the past week or so. Although we’ve been very busy with our earnings, it’s still important to have studies like that come out and not only prove that vitamin B three related compounds like nicotinamide riboside or niacinamide for that matter actually work but our expectation is that nicotinamide riboside at least based on data that we have right now is going to perform better than niacinamide and again like I said we’re on top of that and it's good to have visibility regarding any niacinamide or B3 related vitamin out there.

Our next question comes from Steve Levy with Steve Levy Consulting.

Hi Frank, how many entities have we signed up for quality testing assurance under our new program?

So far we've only signed up one and that's BPI and when we started that discussion with them probably last October and took us about three or four months to iron out the details regarding the sign-up for that program but that was the first official rollout of our program. Since we launched that program a couple of months ago we’ve been in several discussions with other companies as well to evaluate implementing that type of a program with those companies; each company is slightly different in terms of their complications, in terms of how we are going to plug those programs in. So it does take a little while to get new ones but we expect to have new companies like BPI out there and right now we’re slow-moving some of them because we really want to get that relationship with BPI fleshed out and really let them build some visibility for the program before we start pushing a lot of the other ones. But again it's a little bit of a long developmental cycle but we expect other ones to come on as well.

Thank you. Our next question is from [Chris Drixon with Retail Investor] [ph].

Thanks Frank for holding this call, I really appreciate it. I heard you mention the potential pharmaceutical opportunities of NIAGEN earlier on the call. I was wondering if you could talk about the potential for that to become a drug in the future, maybe elaborate on [Indiscernible]?

Sure, another good question. The pharmaceutical angle which I touched on, I think what we are going to do is we’re going to take a very sort of, call it, a strategic approach towards moving, in this case, nicotinamide riboside forward as a drug. We’re focused right now on more, what I will call low hanging fruit based on data that we have, we already have existing preclinical data on the use of nicotinamide riboside for treating Cockayne syndrome and as I mentioned before it's a rare pediatric orphan disease, it’s a very small population. We’re already in touch with the key advocacy group as well as NIH and we believe we’re going to be able to probably fund this entire study through NIH but we’re still working through those details right now. But the reason why this study is important, it's not just for moving in the direction of getting a drug approval but it's a great proxy from -- if we can effect or move the needle on NAD and the cause of the accelerated aging in this particular disease is in fact related directly related to NAD or massive depletion of NAD that causes the accelerated aging. These kids die by 10 or 12 years old. And they essentially die of old age. So if we can move the needle in a genetic abnormality that causes a severe, the most severe form of an NAD depletion, then it's a great proxy for us in terms of what this is going to do in terms of the normal – what I will call the normal aging population and the importance of NAD being linked to aging itself and/or longevity. And there we expect more data to come out on that in general but in this case it's going…

Thank you. Our next question is from Barry Kitt with Pinnacle Fund.

So if we wanted to take NR, what's the best way for us to get it, I noticed – and I also notice on your website there is no links to anybody selling any of the products made from your products?

Right. So the best way to take it right now majority of the products that are sold are direct to consumer products that you can find on the internet. There are several of those -- there's Elysium Health, there's a product called from Live Cell Research, there's a product from HPN called NR. There is a Life Extension Foundation product that's out there and now there are several other new products, those are just a few -- at least a few that I went through the list on that, you can largely acquire or purchase online .There's going to be an expansion into retail coming up fairly soon. We haven't disclosed the details yet of the companies and/or the first products that are going to be launched in terms of retail but retail our products and the likes of like CVS or Rite Aid, Walgreens are going to be those outlets, we will continue to expand in those but right now it’s primarily through internet direct to consumer site. As you know we don't sell consumer product ourselves and we’re not necessarily pushing certain specific clients of ours in terms of their products. We’re trying to remain a little agnostic on that front.

Yes, it’s very difficult to figure out where to buy these products. So I didn’t write those down, I guess I will listen to the replay so I can get that information.

Yes, there is – we will expand that category, it's fairly normal in terms of the pickup, the direct to physician is usually one of the first markets that launched this product and on research launched product last year at about this time and then the other markets that are more the direct to consumer usually the second ones to come in. We’ve had several in that category and the next on the expansion is retail and that's really what we’re working on right now.

So you could have some kind of marketplace on your website or any clients who use your ingredients could advertise or essentially list their products as available?

Well it's not normal as an ingredient technology supplier to do that and we try to -- we don't want to somehow look like we’re promoting one product over another one. Our job is to try to get nicotinamide riboside included into as many different types of products as we can.

That makes sense. I was just thinking if it’s agnostic, you’re not pushing in the specific company, just anybody who uses your product, can list their product as being available, I don’t know if that makes any sense or not, but –

Yes I think eventually we will put -- have more representations similar to what we do with our pterostilbene but I think at some point we will have more of consumer facing website at least at some point in the future. Right now the website -- ChromaDex’s website focuses more not so much towards consumer but more towards the trade that we’re trying to represent the material to. But I think that's a good comment, fair comment. End of Q&A

Thank you. This concludes the Q&A session. I would like to turn the call back over to Frank Jaksch for closing remarks.

Again thanks everybody for joining our first call. And again we had a lot to say over this initial call but – and if anybody has follow-on questions, feel free to reach out to Andrew Johnson, ChromaDex’s internal IR representative or Bob Prag as well who also is a representative of the company. And so if you have any questions that go beyond the ones that were just mentioned, we will always listen and try to respond as much as we can. So with that, thanks everyone and I look forward to our next call.

Ladies and gentlemen this concludes today’s conference. Thank you for your participation and have a wonderful day.