00:03 Ladies and gentlemen, thank you for standing by, and welcome to ChromaDex Corporation's Fourth Quarter 2021 Earnings Conference Call. My name is Josh, and I will be the conference operator today. At this time, all participants are in a listen-only mode. And as a reminder, this conference call is being recorded. This afternoon ChromaDex issued a news release announcing the company's financial results for the fourth quarter of 2021. If you have not reviewed this information, both are available within the Investor Relations section of ChromaDex's website at www.chromadex.com. 00:38 I would now like to turn the conference call over to Brianna Gerber, Vice President of Finance and Investor Relations. Please go ahead, Ms. Gerber.

00:48 Thank you. Good afternoon, and welcome to ChromaDex Corporation's fourth quarter 2021 results investor call. With us today are ChromaDex's Chief Executive Officer, Rob Fried; Chief Financial Officer, Kevin Farr; and Senior Vice President of Scientific and Regulatory Affairs Dr. Andrew Shao. 01:08 Today's conference call may include forward-looking statements, including statements related to ChromaDex's research and development and clinical trial plans and the timing and results of such trials, the timing of future regulatory filings, the expansion of the sale of Tru Niagen in new markets, business development opportunities, future financial results, cash needs, operating performance, investor interest and business prospects and opportunities as well as anticipated results of operations. 01:38 Forward-looking statements represent only the company's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause ChromaDex's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. 02:05 These risk factors include those contained in ChromaDex's Quarterly Report on Form 10-Q, most recently filed with the SEC, including the effect of the COVID-19 pandemic on our business, results of operations, financial condition and cash flows. Please note that the company assumes no obligation to update any forward-looking statements after the date of this conference call to conform with the forward-looking statements, actual results or to changes in its expectations. 02:32 In addition, certain of the financial information presented in this call references non-GAAP financial measures. The company's earnings presentation and earnings press release, which were issued this afternoon and are available on the company's website, present reconciliations to the appropriate GAAP measures. Finally, this conference call is being recorded via webcast. The webcast will be available at the Investor Relations section of our website at www.chromadex.com. 03:02 With that, it's now my pleasure to turn the call over to our Chief Executive Officer, Rob Fried. Rob?

03:08 Thank you, Brianna. Good afternoon, everyone and thank you for joining our fourth quarter 2021 investor call. In 2021, ChromaDex achieved several important strategic milestones. We launched Tru Niagen in 3,800 Walmart stores. Our first mass retail launch in the United States. We also partnered with Sinopharm Xingsha, a subsidiary of one of China's largest pharmaceutical companies to help grow our Tru Niagen cross-border business, and to collaborate in securing health food registration in China. 03:46 We signed agreements with new strategic partners H&H Group and Ro to help build the Niagen ingredient business with their unique customer base, and we announced results of the study on NR supplementation in children with Ataxia, an orphan disease characterized by premature aging. We believe this is further evidence of Niagen's potential impact on age-related health declines. This strategic momentum has continued in early 2022. 04:16 Our ChromaDex External Research Program or CERP achieved its 100 published peer-reviewed study on Niagen and other ingredients. This milestone was followed by a first of its kind study on Parkinson's disease patients, which was another data point supporting NR's positive impact on neurodegenerative diseases. A Phase II study is currently underway, which will explore these findings in a larger patient population. 04:45 And finally, we were granted an important new U.S. continuation patents that significantly reinforces ChromaDex's intellectual property portfolio. We now have over 40 patents on NR and other NAD precursors. This particular patent adds protection of the manufacturing process of NR and its various salt forms through 2037. While many of these achievements position the company for growth in 2022 and beyond, we also delivered solid financial performance in 2021. 05:19 Full year net sales were $67.4 million, a 14% increase year-over-year. Tru Niagen net sales were $56.7 million, a 20% increase year-over-year.…

10:13 Thank you, Rob. It a pleasure to speak to you all today. I joined ChromaDex about two and a half years ago, and served as the Senior Vice President of Global Scientific and Regulatory Affairs. During my time here, I've been incredibly impressed by the company's deep committed to the science behind NR and other NAD precursors, as we build a trusted consumer brand Tru Niagen. 10:37 Prior to ChromaDex, I spent nearly two decades in the global nutrition industry, leading similar functions for organizations such as the Council for Responsible Nutrition and Herbalife Nutrition. Rob asked me to join today's earnings call to provide some perspective on the ChromaDex External Research Program or CERP which was started by our Co-Founder and Executive Chairman Frank Jaksch in 2013, and is now led by Dr. Yasmeen Nkrumah-Elie. Thanks to Frank's vision, ChromaDex is a pioneer in the industry and Yasmeen has brought great focus and passion to accelerate CERP's mission. 11:19 To-date, CERP has accumulated more than 245 collaborative agreements with over 170 institutions in 33 countries, representing over $85 million in estimated total research value. Over 90% of studies are investigator-initiated and third-party funded. Our innovative approach results in greater trust in research as skepticism of industry funded research has been a challenge in the dietary supplement industry. It's an exciting time for CERP which recently celebrated its 100 peer-reviewed publication on Niagen and other ingredients. 12:01 To-date, the program has produced more than 45% of all peer-reviewed publications and 70% of the peer-reviewed clinical publications involving NR, and this is a remarkable milestone for an ingredient like ours. Most of the research going through CERP is advancing the science of NAD and NR well beyond the scope of the dietary supplement industry. We're honored to provide the highest…

16:17 Thank you, Andrew. ChromaDex delivered on or exceeded our latest full year 2021 financial outlook to investors across all metrics. For the year, we delivered total net sales of $67.4 million, a 14% year-over-year increase with strong growth in Tru Niagen of 20%, including 21% growth in e-commerce. 16:41 Gross margins of 61.5%, up approximately 200 basis points year-over-year as scale, product mix and cost saving initiatives more than offset inflationary pressures across global supply chains. Roughly flat R&D expense as a percentage of net sales as we funded investments in new NAD precursor development. Higher selling and marketing expense as a percentage of net sales as we invested in brand building activities, and a slight decrease in general and administrative expense versus our outlook of a slight increase as we tightly managed cost. 17:18 The underlying business as measured by adjusted EBITDA excluding legal expense, a non-GAAP metric, posted a full year loss of $2.5 million compared to a loss of $1 million in full year 2020. The increased loss year-over-year was primarily driven by increased brand investments in marketing to position us for 2022 and beyond. This has been a key metric for the organization. However, with the significant litigation expense behind us, we'll be focusing on adjusted EBITDA including legal expense going forward as a proxy for cash used before working capital investments. We've provided a reconciliation to the appropriate GAAP measures in our earnings release slides. 18:04 Turning to the highlights from the fourth quarter of 2021, ChromaDex delivered a solid quarter with total net sales of $17.8 million, up 15% year-over-year and a gross margin of 61.2%. The underlying business as measured by adjusted EBITDA, excluding legal expense, a non-GAAP measure posted a loss of $1.8 million in the fourth quarter. As I said…

30:07 [Operator Instructions] Your first question comes from the line of Jeffrey Cohen with Ladenburg Thalmann. Your line is open.

30:20 Hi, Rob, Andrew, and Kevin. How are you?

30:24 Hey, Jeff.

30:25 Good, Jeff.

30:24 Hello.

30:26 So I guess my question initially is for Andrew. Andrew, thank you for the walkthrough on the CERP programs. I wonder if you could talk about marketing claims and outcomes on work that's being done now and how could that slip into the markets for NR?

30:50 Hi, Jeff. Thank you for your question. So, the way we look at substantiating claims is to take the total body of evidence that's available. So that would include, obviously studies that come through CERP, and other studies that are identified in the literature. We look at the whole body of evidence to support claims. Obviously, clinical studies carry the most weight as part of that effort, and we do look to CERP studies as the main source of those clinical studies to inform decisions that we make on claims. As you know, a number of those studies involve disease related outcomes, disease patients and so forth, and of course selling a dietary supplement. We don't use those studies directly to make disease claims. We're not allowed to do that, we're not permitted to do that. But those studies of course give us great insights into how Niagen is affecting the body normally, normal function, how -- normally how NAD affects the function of different organs and different systems. So, we really look at it very holistically in using those studies to try to generate and support claims. That's kind of a general answer to your question. I'm not sure if you had a question about a specific study.

32:22 No, that's actually perfect, Andrew. Thank you very much. And as my follow-up, a couple, Kevin, if you could talk about the Q4 legal expense and what do you anticipate as legal for '22, and then also with that, just remind us if margins do or do not include outbound freight, and if that's going to be impacting margins or if you're measuring that from your margin number? Thank you.

32:51 Yeah, I think as we went into the fourth quarter, we saw legal expense drop. We were doing pre-motion judgments before the judgment. So, we did have some legal expense. But we continue to expect in 2022 that the majority of legal spending with regard to litigation is behind us. We continue to expect that baseline legal expense which consists primarily of patents, general corporate and internal headcount will be around $4 million in 2022. That's more or less divided by four, and that's probably quarterly. In addition to the baseline expense, ongoing litigation expense, including New York case, Delaware appeal, the Thorne IPR and rejuvenation litigation should each cost less than $1 million. However, the timing and magnitude of litigation expense is more difficult to predict. We do expect in the first quarter of 2022 litigation expense will be the highest expense due to the ongoing expense related to motions of pre-judgment interest in California, the Delaware appeal and the Thorne IPR. 34:05 Litigation expense should decline after that in the balance of the year. And we'll continue to look for where we can optimize these budgets, include outstanding litigation, and we recently filed a motion in New York District Court and forced $2.5 million settlement that was agreed to by Elysium Health. The details of this are publicly filed with the court. And with regard to our gross margin projection for 2022 of slightly above 60%. Again, I think we are factoring in what we see is inflation in the cost of freight and others, but we also have -- with regard to gross margins, we have aggressively been pursuing initiatives to maintain our strong gross margin. It was mainly driven by continued supply chain cost savings initiatives, leveraging overall scale of the business and favorable mix that partially or fully offset inflationary pressures across global supply chain. We did buy some component parts early, like glass bottles and others, in 2021, so we won't see inflationary on some of the component parts until late in the year. We're also considering price increases if inflation remains persistently high.

35:31 Super. Thanks for taking our questions.

35:35 You're welcome.

35:37 Your next question comes from the line of Mitch Pinheiro with Sturdivant & Co. Your line is open.

35:44 Yeah. Hey, good afternoon. I guess my first question is, I'm looking at your 2022 sales guidance, while 15% to 20% is nice, it is below what I'm looking for. I think I imagine consensus. And I understand some of the, sort of the global headwinds, but as you just look here in North America and United States, shouldn't that be able to do -- support a mid-20% growth, and then whether everything else sort of fall in where it does. it just seems like it's -- are you being conservative in your initial outlook here, or is -- just sort expect the e-commerce in the United States to have much stronger 2022? Can you talk about that a little bit?

36:46 Yeah, let me, let me start and Rob, feel free to add in. I think as you know, in the fourth quarter of 2021 we're gearing up accelerated investments in TV in early 2022. And we are not tone deaf, so I think with regard to the macroeconomic environment has changed significantly since then, including geopolitical instability and increased COVID-19 headwinds in certain countries. And also, there are industry headwinds due to changes in the Apple iOS are impacting bottom of funnel conversion. As such, we're taking a more measured approach to investments in our TV campaign and other growth initiatives versus leaning into these headwinds, early in 2022. Would you like to add anything to that, Rob?

37:32 Yeah, I think, Kevin, that covers it. That's the reality, there have been a lot of changes of late. The big one is that iOS algorithm change, with regard to e-commerce. So, what you're seeing is higher customer acquisition costs across the board in digital marketing, in Search, in social, and in influencer campaigns. So even though we're seeing growth and we're seeing lots of new customer acquisition, last few months, it's gotten more expensive. At the same time, we are starting to advertise more on television. So, we increased our television advertising in the fourth quarter with the Shannon Sharpe ad, and now we've shot a new ad, which is sort of a more broader appeal ad that I think more targets the Walmart consumer, and that's going to be launched shortly. But we're expecting -- we think that the market is still really -- we know the market is really huge out there for what we offer. We expect to continue to grow. We think costs -- marketing costs might be slightly more expensive in the coming months until there is a shift. So yes, it is conservative. And yes, it is a very measured, and as Kevin likes to say, pragmatic approach to our investments for growth. 38:47 What we still continue to have is excellent retention. The people who buy Tru Niagen and take Tru Niagen keep taking and buying Tru Niagen. The retention numbers continue to look extremely solid. Amazon has indicated to us that they think we are the -- have the highest retention of any dietary supplement that they sell. And we see that kind of support on our website as well. And we know we see that in the other channels that we see. But we're seeing on the macroeconomic environment,…

40:46Yeah. I mean it just seems that certainly, the momentum by -- behind the science is far stronger than the momentum behind the awareness, consumer awareness. And I mean, this has been a tough couple of years, obviously, to be -- to operate in, but you would just think there'd be a little stronger response to the research, and hopefully your TV campaign can address that. My one question is with Shannon Sharpe's TV ad, I mean are you -- I mean is that -- are you getting satisfactory returns in that? Like where that would be a baseline, or are you not happy with like that type of ad and you have to go a different direction.

41:52 No, the marketing department has told us that the -- those ads has actually played quite well. And we've used those ads in the past, and they played quite well. So, we expect to continue to use the Shannon Sharpe ad. It's just a more specific cohort group. What we're thinking now is that we could go much broader than just sort of a male fitness sports related cohort. We think it's a much broader based market than that, and this new campaign is targeting a wider audience. But we still intend to use Shannon in sports and other territories. I also agree with you. I think that the science continues to be amazing. I mean, as Andrew was saying, we're now seeing a spate of published peer-reviewed clinical studies showing that Niagen works on a whole host of age-related issues and disorders. So, and yet the awareness is still not that great. The problem we have is you can't make a claim. So, your question was right on the dot. Science comes out, but you have to be very careful about how you promote it. So, we have to be -- we're very careful, we're very measured, we're very conservative in the way we promote it, and we just take it one step at a time until it hits that tipping point.

43:09 Yeah, Mitch, and I think it's more than just the TV spot. We've developed, tested a simplified message to articulate the benefits of Tru Niagen in a 30 second TV spot, but more broadly, we're doing Tru brand building which requires bringing together a holistic plan that includes communication and consumer education, including our new TV campaign, the loyalty or brand ambassador program that incentivizes our most engaging customers to recommend Tru Niagen, and an expanded portfolio that caters to different consumer needs, and Rob referred to that product portfolio. We're also in various stages of implementing these initiatives, but they are a roadmap for 2022. We expect to see accelerated growth exiting 2022 when all of this is in place.

44:01 If you were looking for why you would have upside to the current sales forecast, what are the couple of key things that you're going to have look -- see to do better than your current forecast? What do you think they are?

44:23 There are a number of things that could happen, that could make it go from 15%, 20% growth to the multiples of that. And buying it, paying for it, doing a large campaign is one, but it isn't necessarily the most cost efficient way to do it. We are -- as you know, we make deals with a number of partners. We have partnered with Ro, we have H&H, we have Nestle, we have Sino, any one of those deals could yield. We could make more deals like that, we could expand into other categories like pet nutrition, infant nutrition, and there could be an -- it's very difficult to understand publicity and viral activity and when a product goes from well-known to talked about at every dinner table. You can't force that. It's very difficult to know when word of mouth just catches and it takes off. But we feel that we're pretty close to that. So, it's just the right people saying -- the right influencers saying the right thing at the right time to the right people and we know the product works. So, it's very -- that's really what happened in Hong Kong a few years ago. There was -- sales were very good in Hong Kong, but then there was an influencer who independently posted a video on his personal experience taking Tru Niagen. That's when sales exploded in Hong Kong. 45:56 We are waiting for that to happen here, but you have to be very careful about trying to make that happen because you can't make claims. So that's another thing that could happen, that could create explosive growth. And then of course the TV campaign itself. I mean, as Kevin said, we're going to be measured and careful about it, but it may just very well work. We have a new marketing department at the company that have been added for only 10 or 11 months, but it's there. An excellent team. They do a lot of research, they're very thoughtful, they're very careful, they're taking it one step at a time, they put a lot of time and energy into the script of the spot and they've tested the spot. It's not the only spot, they're going to be producing other spots behind it. But we expect -- we have high hopes that it will succeed. But we're still creating very conservative expectations for how it will succeed.

46:48 And just last question, my...

46:49 Sorry, I was just going to add to that.

46:53 I'm sorry. Go ahead.

46:54 No, I'm just going to indicate that, look, we're seeing, again, COVID impacting our businesses in places like New Zealand and Australia, and consumer takeaway in Hong Kong. So that -- if that basically dies down for consistent amount of time, that could help us too to hit the higher end of the range.

47:17 Okay. Got you. And then last, it's just Nestle. No sales this quarter and what's happening at Nestle is where are conversations? I know you talked about trying to looking at other plans but if you could talk about what's happening there, I'd appreciate it. Thank you.

47:39 Well Nestle, as you know, over the last few years has been acquiring many companies in the space. In fact, they announced another one a month ago. They bought Bountiful last year for $5 billion, they bought another company here in California last month, I forgot what it's called. But they've become the largest dietary supplement company in the world in addition to being the largest food company. And they know very, very well how unique nicotinamide riboside is and they're extremely impressed with what we've done with the Tru Niagen brand, creating this recognizable and highly trusted brand with basically an e-commerce effort in the last three years to build it to where it is. And they're excited to develop the relationship further. As you know, they have many divisions there. They have a pet nutrition division, they have an infant nutrition division, they we even have a pharmaceutical division and then they have all these dietary supplement divisions. So, we expect and hope that the relationship with Nestle will expand, but it has to be done in a way that optimizes our shareholders' interests. We know that the initial deal was for them to create this brand Celltrient, and they committed quite a bit of money towards Celltrient. It's still has yet to take off as a brand, but we are under the impression that they are continuing to invest in it. But they continue to have interest in ChromaDex and in Tru Niagen and finding ways to expand the relationship. So, we -- that may be something that we see during the year, but we certainly are exploring it.

49:20 All right. Thank you so much.

49:22 Thanks, Mitch.

49:26 Your next question comes from the line of Jeff Van Sinderen with B. Riley. Your line is open.

49:31 Hi, everyone. Just had kind of follow-up on -- around the ad campaigns targeted at driving Walmart or I guess a broader demographic. Is it too early to have any ROAs on that, has it been tested yet? Just wondering on the status, and then maybe you could just give us kind of an update on Walmart sales. Is it ramping? And then just kind of a multipart question, but just I guess, can you speak more about anticipated contribution from some of the newer programs this year like H&H for example, including international? Thanks.

50:14 So -- you want me to do it?

50:15 Go ahead. I'll take the Walmart one if you want.

50:18 Okay. So yeah, let me start with the international piece. International has been tough because of COVID and now Hong Kong is in a very, very severe lockdown right now. They have 50,000 cases in the population of 5 million people right now, and their hospitals are all booked, and they have a formal lockdown and foot traffic is not that great in stores. And hopefully, it will die down the way it has here and in Europe and then things will hopefully get back to normal. And we've seen a similar kind of problem in Australia, New Zealand and in other parts of the world. So, the international sales have grown, but not as much as they would, and will, when COVID dies down. In terms of ROAs as for the campaign, no, it's too early. We haven't even launched this new spot that marketing department just shot. It's more difficult to measure ROAs, on a difficult specific spot on television. It's much easier on the digital marketing. 51:21 The ROAs for the digital marketing has gone up in the last six months and that's mostly due to a lot of testing that we've done, but also because of the iOS algorithm changes that have taken place. I think actually our timing is pretty good to begin shifting towards traditional media given what's happening in the digital media marketing -- marketplace. But it -- ROAs has very, very important to us, especially considering the macroeconomic environment these days. So, we are increasing our attention, not just on growth, but also on marketing efficiency, and that is why we describe our approach as a measured, pragmatic approach to spending our marketing dollars. Do you want to take Walmart?

52:06 Yeah, I'll take Walmart. And I think overall, we expect more meaningful revenue growth in aggregate for our new partners in 2021 and Designs for Health, as I've mentioned in my remarks for 2022, and I just want to highlight again, I think in my prepared remarks, we have not really included any revenues from potential new partners that are in the pipeline. And then with respect to Walmart, we don't provide sell-through based upon our retail partners. But it continues to build slowly, but our expectation is that it will accelerate as we scale our national television campaign in 2022. And we are just launching the new TV campaign. We shared this campaign with Walmart and they remain enthusiastic about us building the NAD+ categories together with them. We and Walmart are aligned on the launch expectations and they are committed to building the Tru Niagen business over time.

53:06 Okay. Good to hear. Thanks for that. And then, I think you mentioned a new Tru Niagen product that you're planning to launch this year. Just wondering, if you can speak more about that timing, where -- what the launch is targeted at, or where you might launch it, target market there, planned advertising to support it, that kind of thing?

53:32 So first let me just -- we have basically been a single product company for the last few years, Tru Niagen. We have partners to whom we have supplied Niagen and they have created formulations with Niagen, life extension, and of course Nestle. H&H is planning a formulation product that includes Niagen and they haven't yet released it, but we expect it to be shortly. We expected them to have it released in December, it looks like they're a little delayed. But this will be our first formulation product that includes Niagen. Remember, we are at the center of this NAD phenomenon and we are the leading company for anyone interested in NAD, which we all should be interested in, and or specifically nicotinamide riboside. And we've sold it as just a pure single ingredient product. So, this year, we intend to release a product that includes Niagen, but also adds to its other ingredients that we think are very special and very important and that we've gone through the meticulous process of making sure that it is absolutely the highest grade that exists on the planet. 54:47 We know that the people who presently are our customers are exceptionally well-educated. We think it could be close to 40% of our customers have graduate degrees. This is a highly sophisticated educated group of people that are very, very smart and they research the product. If you're going to take another product -- buy another product from ChromaDex, you can trust that we will make it as good as it can be. So, what we are planning is to release a formulation product that targets a specific indication in the dietary supplement space that includes Niagen and a few other ingredients that are extremely well sourced and carefully formulated to provide a very specific benefit to people, I expect it to be released in the next few months. It will be a soft launch, there will be marketing behind it, it will be primarily an e-commerce online launch, and then we'll take it there -- from there and see how it goes. Of course, there is interest on that product from many of our partners, but we're taking it one step at a time.

55:50 Okay. Good to hear. And then just around the -- just to clarify around the patent litigation, can you touch on the new patent for manufacturing? I think you said runs through 2037. I guess, maybe if you can just kind of hit what does that really mean for ChromaDex and competitors?

56:16 So as you know, ChromaDex has a very deep patent portfolio and we also have this exclusive relationship with GRACE, who has a manufacturing patent on the -- actually a manufacturing process that ChromaDex developed, but GRACE patented in exchange for this exclusive relationship. And of course, there's the Dartmouth patent. But in addition, we were very excited to be issued a new NRTA patent, nicotinamide riboside triacetate patent and then there is a second NRTA patent pending. The combination of these two NRT patents nicotinamide riboside triacetate are very, very important for ChromaDex because we know of no manufacturing process that does not require NRT as an intermediate step to get to nicotinamide riboside. So, in order to get to NR, you've got to start NRT. And these are patents that involve NRT and the process of manufacturing NRT. So, we feel very, very good about the addition of this patent that's been issued, and hopefully the one that's pending to our existing strong patent portfolio of nicotinamide riboside.

57:47 Okay. So, Rob, is it fair to say, and I don't want to put words in your mouth, but is it fair to say that this new patent and the patent that is pending around this manufacturing process will make it really difficult for others to manufacture Tru Niagen?

58:09 I think that it's safe to say that it will be difficult, but we could not comment on whether or not anybody that we know of is infringing on it presently.

58:19 Okay. Fair enough. Thank you for taking all my questions.

58:25 Sure.

58:26 Your next question comes from the line of Brian Nagel with Oppenheimer. Your line is open.

58:31 Hi. Good afternoon. Thanks for taking my question.

58:33 Hey, Brian.

58:36 My questions are a follow up to at least a couple of the prior questions, just with respect to the topic of marketing, then the initial '22 sales guidance. So, I was going to merge them together, but one is, you talked about I guess the forthcoming TV ads that's done in partnership with Walmart. When are you expecting that to launch? And is that is -- to what degree is that TV ad contemplated in that the guidance for 15% to 20%? And then second, we talked a lot about and Shannon Sharpe, and I mean as long as I've been associated with the company, Shannon Sharpe has been your key ambassador spokesperson. Is there any thought to bringing someone new in, kind of work side-by-side with Shannon Sharpe?

59:26 So I think we can both -- I'll start. The answer to the second question is yes. There is discussion about and we've had discussions with other celebrities. Of course, we also work with Brooke Burke in addition to Shannon Sharpe, and there are other, what we call Tru believers out there. Ryan Lochte, as you know, Gabby Reece, and there have been others that have -- we've worked within the past. But I think what you mean is going after a big name, like, a Tom Brady or and Oprah Winfrey.

59:54 That's exactly what I mean, yeah.

59:56 Something along those lines. The answer is yes, we have had meetings, we have had discussions. Some of these people can be very pricey. And we also want to make sure that anybody that we go with, a couple of things, one is they are actually a Tru believer. They've taken the product, and they're not -- we're not just buying their endorsement, but that is a credible endorsement, which we think is consistent with the brand that we have. And the second is, it's one thing to pay them their expensive fee, but it's another thing -- you have to then support it with significant TV spots and media. So, it is not an insignificant commitment to go there. And we need to be measured and careful about that. But the answer to your question is yes, we did do a deal with Goop recently. 60:48 Goop is Gwyneth Paltrow's brand. She has been taking Tru Niagen for quite a while, and it was the first and only product that Goop endorsed and with what is now the Goop sort of seal of approval. She is not the only. There are many that we know of in the Hollywood community and the sports community that are truly hooked down Tru Niagen and take Tru Niagen but we have not yet landed on what we consider to be the right additional spokesperson to Brooke and Shannon to take it to the next level. But we do work on it.

61:27 Got it.

61:26 Okay. The other question was -- had to do with the new ad campaign that we shot. Not in conjunction with Walmart, but targeting Walmart.

61:37 Okay.

61:41 We -- the new, the Head of Marketing at ChromaDex has been here, as you know, less than a year, and has a great deal of experience creating these types of campaigns. These are the types of products that he's worked on in the past. So, the campaign that he is launching and the ad that he has created is targeted towards the type of consumer that he has worked with in the past that he believes purchases at Walmart, but we have been conservative in our projections of how it will convert into sales at Walmart, because until we launch it and measure it, we just don't know.

62:28 Your last question comes from the line of Sean McGowan with ROTH Capital Partners. Your line is open.

62:36 Thanks. Hi, guys. Good to be back.

62:38 Hey, Sean.

62:41 I've got a couple of questions. On your guidance of 15% to 20%, can you give us any color on how that's going to play out across kind to three segments consumer, ingredients and standards and services?

62:57 I think it's going to be -- the growth is going to come from the engine, which is our e-commerce business. And I think what we've said is in aggregate, it's going to come across our partners, which are partners in the Niagen category. So that's going to be -- it's going to be between Niagen and Tru Niagen that drives that growth.

63:20 So you would expect growth in both consumer and ingredients?

63:28 Yes.

63:29 Okay. Great. Second, on the -- when you talk about that guidance not including -- not contemplating any contribution from partnerships that are in the pipeline, can you kind of handicap what -- is there a -- an amount that that could contribute or are we talking about small numbers if everything does kick in and more in the future? Could there be a meaningful contribution in 2022 from those partnerships that are not currently part of your guidance?

64:05 I think if we go back to our experience in 2021 with regard to Ro and H&H, I think that it takes a while for them to get the product to the marketplace. And I think with regard to that, I think it will be additive. I think the one that's more near term is Sinopharm. But again, we've got -- they've got to bring it to market, and this is probably more of a second half of the year or fourth quarter item. So, I think from orders of magnitude, it would be -- it will be additive. But how big, is yet to be determined.

64:49 Okay. Thank you. And then two other quickies. Kevin, when you were talking about the ingredient sales did you say it was up 53% increase sequentially?

65:02 Yes.

65:03 Yeah. Okay. So, I thought heard --and then finally, when will the 10-K be filed?

65:10 10-K is due on the 15th of the month, so it will be between earnings and 15th.

65:20 Okay. Very good. Thank you very much.

65:22 But Sean, Sean, I just wanted to -- before you left, I just wanted say -- welcome you here. We've known and worked with Sean for many years and we're very privileged and honored that you have decided to cover us, and we're looking forward to working with you and ROTH.

65:41 Thank you. I appreciate that, Rob.

65:49 And I wanted to...

65:47 Good to be on this side as well.

65:48 And I wanted to clarify the 53%. That, we sequentially grew. Quarter-over-quarter, it grew by 14%.

66:01 Yeah. Okay. Got it. Thank you.

66:05 And that's all the time we had for questions. I will turn the call back to Brianna Gerber for closing remarks.

66:12 Thank you, Josh. There will be a replay of this call beginning at 4:30 PM Pacific Time today. The replay number is 1-800-700-2030, and the conference ID is 4126168. Thank you, everyone, for joining us today, and for your continued support of ChromaDex.

66:34 This concludes today's conference call. You may now disconnect.