Q1 2025 Niagen Bioscience Inc Earnings Call
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.
Robert Fried: So we're seeing many clinics contact us.
Robert Fried: But as we've discussed in the past, We had some supply chain challenges. It's a pharma grade product. It's not food grade like the dietary supplement that we sell. It's pharmaceutical grade, which is an entirely different supply chain, much more challenging supply chain, one that is heavily regulated and has to make sure that it's completely pure, no particulate matter. And it's taken us a while to learn that process, but we now have, and our supply is secure, and there is a very long, what they call a BUD shelf life. so that the clinics feel comfortable purchasing it.
Speaker Change: Afternoon, <unk> Bioscience issued a news release announcing the Companys financial results for the first quarter of 2025 if.
Speaker Change: If you have not reviewed this information both are available within the Investor Relations section of Myogen Biosciences website at Www Dot <unk> Bioscience Dot com.
Leslie Yu: I would now like to turn the conference call over to Leslie <unk> Vice President of Finance. Please go ahead Mr. Yu.
Leslie Yu: Thank you good afternoon, and welcome to <unk> Biosciences first quarter 2025 conference call.
Speaker Change: With us today are <unk> Biosciences, Chief Executive Officer, Rob Fried Chief.
Robert Fried: So our expectation is in the next few quarters we'll start to see a fairly dramatic increase in the sales of pharma grade Niagen to the clinics and the physicians. Great.
Speaker Change: Chief Financial Officer, <unk>, <unk> Senior Vice President of scientific and regulatory Affairs, Dr. Andrew Shao.
Speaker Change: Dr. Shaw will join the call for Q&A.
Speaker Change: Yes.
Speaker Change: Today's conference call May include forward looking statements, including statements related to the Companys research and development.
Robert Fried: And then with respect to the e-commerce I was wondering if there are some new promotional strategies that you expect to employ in order to push more volume via the e-commerce channel? And if so, what some of these strategies might be? And if you're thinking about the possibility, you mentioned influencers before, you know, is there any potential applicability of the use of influencer campaign in the course of 2025 to further accelerate growth through the e-commerce? Well, as you've seen in the last few quarters, we've we have done a good job of dramatically increasing our overall e-commerce growth.
Speaker Change: And clinical trial plans and the timing and results of such trials.
Speaker Change: The timing of future regulatory filings.
Speaker Change: Mention of the sale of igen products and ingredients and new markets.
Speaker Change: Development opportunities future financial results cash needs operating performance investor interests, and business prospects and opportunities as well as anticipated results of operations.
Speaker Change: <unk> 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.
Speaker Change: Because forward looking statements relate to matters that have not yet occurred these.
Robert Fried: You'll recall a year and a half ago, the growth rate was much lower now we're this quarter over 30%. But we are, as a company, extremely focused on profitability and efficiency, return on advertising spend, long-term value. So we're unlikely to do some aggressive, cost-inefficient influencer deal that won't have a measurable, reliable return on investment. But if one comes along that we like, we are quick to do it. There are many celebrities that have tried Niagen IV and are excited by it and have expressed interest. But making a deal like that is Challenging because we want to deliver a profit to our investors and expect to continue to do so.
Speaker Change: The statements are inherently subject to risks and uncertainties.
Speaker Change: Any factors could cause <unk> actual activities or results to differ materially from the activities and results anticipated in forward looking statements.
Speaker Change: These risk factors include those contained in <unk> quarterly report on Form 10-Q, most recently filed with the SEC, including the results of operations financial condition cash flows as well as global market and economic conditions on our business.
Speaker Change: 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.
Speaker Change: And its expectations.
Speaker Change: In addition, certain financial information presented in this call references non-GAAP financial measures.
Robert Fried: There are influencer strategies with lesser known celebrities, particularly in the healthcare space that we continue to align with and make deals with. We have not been terribly aggressive on TikTok with influencers, we expect to increase our presence there in the near term. And we think that that will be helpful. But as more and more people experience the Niagen IV and the Niagen injections and more and more people become interested in NAD and more and more articles come out, we're seeing general increased interest in Niagen in all forms. The more people research, the more they realize that the only safe, legal, well-tested, reliable, consistent brand in the entire NAD space is the Niagen brand.
Speaker Change: The company's earnings presentation and earnings press release, which was issued this afternoon.
Speaker Change: Available on the Companys website.
Speaker Change: Reconciliations to the appropriate GAAP measures.
Speaker Change: Finally, this conference call is being recorded via webcast. The webcast will be available at the investors relations section of our website at Www <unk> Bioscience Dot com.
Speaker Change: With that it's now my pleasure to turn the call over to our Chief Executive Officer, Rob Fried.
Rob Fried: Thank you Leslie and good afternoon, everyone and thank you for joining us on our first ever investor call as nitrogen Bioscience, formerly known as <unk>.
Rob Fried: I am pleased to announce that we had an excellent start to 2025.
Robert Fried: So we do expect to continue to grow in the e-commerce space. We do expect to use more influencers and word of mouth and event-oriented campaigns in the future. But nothing overly dramatic is on the immediate horizon.
Rob Fried: For the first quarter, we delivered $35 million in revenue, a 38% year over year increase.
Rob Fried: And we delivered net income of $5 $1 million.
Rob Fried: We generated $7 $9 million of cash from operations.
Unknown Attendee: Thank you.
Rob Fried: We ended the quarter with $55 $6 million in cash.
Destiny Buch: And your next question comes from the line of Jeff Cohen with Lattenberg Salmon, your line is open. Hi, thank you, this is Destiny on for Jeff. I appreciate you taking our questions.
Rob Fried: And no debt.
Rob Fried: Okay.
Rob Fried: In this first quarter our e-commerce continued to be a main driver of our topline growth with net sales of $16 8 million or 31% increase year over year.
Destiny Buch: I'm curious, when you look at the market for Niagen Plus, How many clinics do you think are a good fit for this product?
Rob Fried: Okay.
Rob Fried: Our food grade and pharmaceutical grade Nisin ingredient business grew to $8 million of 95% increase year over year.
Destiny Buch: And then how should we think about the onboarding of new clinics, if you will, going through the remainder of 2025? Because it's been very impressive from the time of launch to now. And I'm curious if we should continue to expect that trend.
Rob Fried: Our <unk> plus product.
Rob Fried: Remains a key focus area for the company.
Jen: Hi, Jen plus refers to intravenous and injection.
Robert Fried: Hi Destiny, thank you for that question. We hope to be in a thousand clinics by the end of the year. We feel that we are on pace for that, but it's difficult to do. We think there are upwards of 2,000 to 3,000 clinics that are the potential addressable market. And then there are numerous physicians. that also offer IV or injections directly without using a clinic. So we think that the overall addressable market for administration of IV and injection is significantly larger than the 600 where we are present today. Got it. Okay.
Jen: This is available now at almost 600 clinics nationwide.
Jen: In the last few months, we've partnered with clinics at different events and conferences included in Socal Wellness summit.
Jen: <unk> World.
Jen: To offer nitrogen plus to Influencers and consumers the feedback has been extremely positive.
Speaker Change: Any comment on the much faster infusion time then.
Jen: With minimal side effects, and many state and that they feel arrested and revitalized.
Speaker Change: Following the infusion.
Speaker Change: We will continue to work closely with clinics to promote <unk> plus is the superior experience the solution.
Speaker Change: Boosting NAD levels.
Speaker Change: The pharmaceutical application of NR continues to be an important strategic initiative for the company.
Destiny Buch: Thank you.
Robert Fried: To that, you know, same extent, I'm wondering if you're seeing any ordering patterns from these initial clinics that you can talk about and how that may change now that you've had now that you have a longer or more extended BUD. So as you know, Destiny, we did this before we launched this, we did many things aside from getting on the list for the with the FDA, which took a long time and also making pharmaceutical grade material, which took a long We also patented the process and have applied for that patent, which is pending, but also conducted a study showing the safety of Niagen IV and also comparing it to NAD IV.
Speaker Change: As it relates to the phase III No Park study investigating the use of NR and the treatment of Parkinson's disease, we continue to be in consistent dialogue with the researchers and still expect that this study will be completed by June.
Speaker Change: Once the study is completed.
Speaker Change: We will not be able to see the results for a few months, but we look forward to sharing more updates.
Speaker Change: As we know them.
Speaker Change: We continue to have ongoing dialogue with the FDA about N R for the treatment of ataxia till inject Asia.
Speaker Change: We hope to have an update for you later this year.
Robert Fried: Once we completed all of that, we had to build the commercial distribution pipeline, which was quite different than the true knowledge and dietary supplement pipeline. And we launched it initially in August, and we quickly ran out of supply, and it took several months for us to replenish that supply, but we're now in shape to do that. But we don't have a great deal of anecdotal data on how the consumers are using it or how they are benefiting. We do surveys. We have some preliminary information. There are some patterns that we're seeing, for example. One thing that keeps popping up is this thing that the clinics are calling the Niagen glow.
Speaker Change: As for our intellectual property, we made a very important announcement in March that a new composition of matter patent was granted.
Speaker Change: Broadening our patent portfolio and expanding protection for all salt forms of nicotinamide riboside.
Speaker Change: There is no form of NR that does not infringe upon one or two of the patents controlled by <unk> Biosciences.
Speaker Change: As most of you know demand for products to boost NID levels surging.
Speaker Change: More consumers are understanding that <unk> is a trusted and most effective solution.
Robert Fried: It seems as though people that go in and get the Niagen IV notice almost immediately a certain skin glow. Another thing that we have noticed right away is improved sleep right away, that people who go in and get the Niagen IV seem to notice a difference in sleep right away. But these are just anecdotal pieces of information. We're conducting many studies and we're planning many studies to show the therapeutic and prophylactic benefits of Niagen injection and IV versus all the studies that we've conducted with true Niagen as a dietary supplement. Okay, that makes sense.
Speaker Change: Well the Niv market continues to grow significantly there continues to be a misconception that supplementing with NID itself either through oral supplementation of intravenous is an effective way to elevate cell and tissue levels.
Speaker Change: The proven fact is that <unk> cannot bypass cell membranes and must be broken down into NAD precursors like NR to enter cells.
Speaker Change: Increase in <unk> levels.
Speaker Change: <unk> supplementation in IV continues to dimension and more press and on social media, despite not being an effective method to boost and <unk> levels.
Destiny Buch: I'm hoping that you have a hashtag that says Niagen Glow because that's excellent.
Speaker Change: Furthermore, companies continue to take advantage of this trend in market pure and a D supplements on Amazon and other marketplaces.
Destiny Buch: And then if I can squeeze one more in, can you just expand a little bit on the It's the ingredient revenue. I'm just kind of curious. I know it could be kind of unpredictable, maybe a little bit lumpy, and this is the first quarter. So I'm not sure if there were larger orders that may sustain your partners throughout the remainder of the year. I'm just trying to get a better feel. Thank you.
Speaker Change: Taking M D as a molecule in oral form does not elevate and there are no studies to date that show that it does.
Speaker Change: They need a precursor.
Speaker Change: As the global leader in Science, and Commerce, we hold a responsibility to embody integrity and precision science to promote healthy aging. However, the same cannot be said for many of the other sellers of NAV supplements.
Ozan Pamir: Yeah, hi, Destiny. Thank you for the question. Yeah, we had $7 million of food grade ingredient sales in the quarter, as you know. As I kind of alluded to earlier in my speech, it can be lumpy orders. We expect the trend to continue, but it's a little hard to predict each quarter. So you're right in that assessment that we can expect some fluctuation.
Speaker Change: Our ongoing market surveillance program shows that three quarters of the higher selling <unk> supplements on Amazon failed to meet their label claims three quarters.
Speaker Change: We continue to call upon likeminded industry stakeholders and.
Speaker Change: Holding companies and brands accountable for the products, they market and sell to consumers.
Robert Fried: Our ongoing market surveillance program shows that three quarters of the higher selling in a supplement on Amazon fail to meet their label claims three quarters.
Mitchell Pinheiro: On the pharma grade ingredient side, that's an item plus line, we expect an upward trend. Okay, got it. Great quarter. Thank you so much. Thanks to everybody.
Speaker Change: With regards to M&A.
Speaker Change: SBA ruled that <unk> is not a lawful dietary ingredients under the federal food drug and cosmetic.
Robert Fried: We continue to call upon likeminded industry stakeholders, and holding companies and brands accountable by the <unk>.
Speaker Change: We recognize that the agency has been sued for this decision, but we reaffirm our position in support of the FDA and believe it will uphold his decision.
Mitchell Pinheiro: And your next question comes in the line of Mitch Pinheiro with Strudivit & Company. Your line is open. Hey, good afternoon. I'm itch. So. So just one follow up question on on the Niagen Plus is You see, you mentioned physicians offices, you know, are another, you know, location where you could get you know, the IV. What kind of physicians are they? And, like, how are you doing in the healthcare practitioner market, which seems to be where, you know, well, a lot of people do their own research, you know, on supplements. Oftentimes, you know, your physician is obviously the most credible source of sort of, you know, therapy.
Robert Fried: Products and market and sell to consumers.
Robert Fried: With regard to <unk> and then the SBA ruled that <unk> is not a lawful dietary ingredient under the federal food drug and cosmetic.
Speaker Change: As we continue to see and then products find their way on the market, we urge the FDA to maintain and enforce its ruling to protect consumers and ensure that only compliance properly regulated ingredients are marketed as dietary supplements.
Robert Fried: We recognize that the agency has been sued for this decision, but we reaffirm our position in support of the FDA and believe it will uphold his decision.
Speaker Change: The fact is if you're interested in the NAV product.
Robert Fried: As we continue to see and then products find their way on the market, we urge the SBA to maintain and enforce its ruling to protect consumers to ensure that only compliance properly regulated ingredients are marketed as dietary supplements.
Speaker Change: And that product does not say Nigel.
Speaker Change: I would recommend you stay away.
Speaker Change: As I mentioned before this is the first call as knowledge and bioscience versus chrome attacks.
Robert Fried: The fact is if you are interested in an NAV product.
Speaker Change: The evolution from Comex in Tonight, and Bioscience signifies more than just the company name.
Robert Fried: And that product does not say nitrogen.
Robert Fried: I would recommend you stay away.
Speaker Change: It is an alignment of our brand with our mission.
Speaker Change: As I mentioned before this is the first call as <unk> bioscience versus chrome attacks.
Speaker Change: <unk> Bioscience aims to reinforce Nigel at the forefront of NAD boosting solutions, making the name Knights synonymous with healthy aging.
Mitchell Pinheiro: So where do you, where do you, where do you see that health care practitioner market going?
Speaker Change: The evolution from Columbia that into Neogen bioscience signifies more than just the company name.
Speaker Change: We will continue to uphold these core values scientific rigor transparency authenticity innovation and integrity.
Robert Fried: Yeah, we'll leave it at that. Yeah, we think that the healthcare practitioner market is very important for us as a company. As we've often said, if one were to do a business school case study on Niagen Bioscience, the case study would be, how do you sell a dietary supplement that works like a drug? This is not an ingredient that you pee out. This has a meaningful benefit and we have proven that it's safe, yet the regulations are very clear that one cannot imply a claim on any disease state. You can only make structure function claims in the dietary supplement space.
Speaker Change: It is an alignment of our brand with our mission.
Speaker Change: <unk> Bioscience aims to reinforce nitrogen at the forefront of NAD boosting solutions, making the name Knights synonymous with healthy aging.
Speaker Change: We are here to show you our shareholders our customers and all.
Speaker Change: And all our stakeholders.
Speaker Change: Thanks to niacin.
Speaker Change: There is a better way to age.
Speaker Change: We will continue to uphold these core values scientific rigor transparency.
Speaker Change: I'd now like to hand, the call over to ozone to run through the quarter's financials.
Speaker Change: Typically innovation and integrity.
Speaker Change: Then onto Q&A and closing remarks.
Speaker Change: We are here to show you our shareholders our customers.
Speaker Change: Uh huh.
Speaker Change: Thank you Rob and.
All of our stakeholders. Thanks.
Speaker Change: And thank you to our investors partners and team members for joining us today.
Nigel: Thanks Nigel.
Speaker Change: There is a better way to age.
Speaker Change: As Rob highlighted <unk> Bioscience had a strong start to the year delivering record revenues and achieving net income for the third consecutive quarter.
Speaker Change: I would now like to hand, the call over to ozone to run through the quarter's financials.
Speaker Change: Then onto Q&A and closing remarks.
Speaker Change: While it's still early in the year, we're committed to demonstrating the operational discipline and focus on executing our key initiatives to drive these results.
Speaker Change: Boson.
Robert Fried: And for a company like ours that now has 38 peer-reviewed, high-impact-factor clinical human studies. Randomized. Controlled. and another 40 in process. This is very rare and very, very uncommon. Most dietary supplement companies more or less will sell anything as long as the FDA or the FTC don't get on their case. But nada. It's a meaningful ingredient. We saw a meaningful product. If you take it, there will be a therapeutic benefit. If you take it long enough and you measure it, you'll notice And we consider that to be a extraordinary unique differential advantage for our company, but also a disadvantage, because we're competing with many companies who really don't care.
Speaker Change: Thank you Rob.
Speaker Change: So thank you to our investors partners and team members for joining us today.
Speaker Change: As Rob highlighted <unk> Bioscience had a strong start to the year delivering record revenues and achieving net income for the third consecutive quarter.
Speaker Change: Now I'll go over our first quarter financial performance.
Speaker Change: In the first quarter of 2025, we delivered strong results with total net sales of $30 5 million.
Speaker Change: While it's still early in the year, you are committed to demonstrating operational discipline and focus on executing our key initiatives to drive these results.
Speaker Change: 38% increase.
Speaker Change: Or $8 3 million from the same period last year.
Speaker Change: Our <unk> business, driven primarily by E. Commerce grew 31%, adding $4 2 million, while our 19 ingredient business nearly doubled up 95% and contributed $4 $1 million.
Speaker Change: Now ill go over our first quarter financial performance.
Speaker Change: In the first quarter of 2025, we delivered strong results with total net sales of $30 5 million.
Speaker Change: 38% increase or $8 3 million from the same period last year.
Speaker Change: Within the ingredients business, we delivered $2 9 million and higher food Goodnight themselves.
Speaker Change: Our <unk> business, driven primarily by E. Commerce grew 31%, adding $4 2 million, while our <unk> ingredient business nearly doubled up 95% and contributed $4 1 million.
Robert Fried: They'll say anything, they'll do anything, they'll make it anywhere. There's no quality controls like the ones that we put in here. They're really not trustworthy brands and trustworthy companies. but not Niagen. We are almost obsessive with being conservative with our claims. And with the highest, purest quality that can be offered, we make it here in the United States. So that means healthcare practitioners are extra important for us. because these are theoretically Theoretically, the people who do their research and do their work, and they investigate which are the brands that can be trusted and which are the ingredients that have research behind it?
Speaker Change: And $1 million in pharma grade Nigel ourselves.
Speaker Change: Gross margin improved to 63, 4% in the first quarter.
Speaker Change: 270 basis points compared to 67% a year ago.
Speaker Change: Within the ingredients business, we delivered $2 9 million and higher food grade <unk> sales.
Speaker Change: This improvement was driven by changes in our product and business mix, including the benefit of higher ecommerce sales and continued sales of pharmaceutical grade margin as well as supply chain cost savings as we continue to scale. We remain focused on further optimizing our supply chain and operations to drive sustained value creation.
Speaker Change: And $1 million in pharma grade in Asia sales.
Speaker Change: Gross margin improved to 63, 4% in the first quarter up 270 basis points compared to 67% a year ago.
Speaker Change: This improvement was driven by changes in our product and business mix, including the benefit of higher ecommerce sales and continued sales of pharmaceutical grade <unk> as well as supply chain cost savings as we continue to scale. We remain focused on further optimizing our supply chain and operations to drive sustained value creation.
Speaker Change: And long term profitability.
Speaker Change: Speaking of our supply chain last month, we issued a press release, stating that our operations remain unaffected by the newly imposed tariffs.
Robert Fried: What are the C of A's? Is it, you know, certificates of authenticity? Is it what they say it is? and they are the ones that can influence the consumers the most. We think that that is the best way for us to market the product. We think the answer to the question, how do you sell a dietary supplement that works like a drug? is you don't. You let others do it for you. And we think healthcare practitioners are central to that strategy.
Speaker Change: Want to take this opportunity to reaffirm that our ability to deliver nitrogen products to our customers both domestically and internationally remains intact. Following recent trade policy changes.
Speaker Change: And long term profitability.
Speaker Change: Speaking of our supply chain last month, we issued a press release, stating that our operations remain unaffected by the newly imposed tariffs I wanted to take this opportunity to reaffirm that our ability to deliver <unk> products to our customers both domestically and internationally remains intact. Following the recent trade policy change.
Speaker Change: And as a reminder, we've established a primarily U S based supply chain and as a result, we do not currently anticipate any disruption to our cost structure or pricing.
Speaker Change: However, we are actively monitoring the evolving international trade policies, and we will continue to manage our operations with discipline and agility to mitigate any potential impact.
Mitchell Pinheiro: And then my other question was, was on your marketing spend. So you're gonna, you're gonna, you know, you're ramping up marketing spend a little bit. And it certainly seems in a disciplined way. And your last, the first quarter, your marketing efficiency looked pretty good. Is this new spending? going to be, you know, at that efficiency level? Or is it some experimental marketing spend that, you know, you're not exactly sure the returns? How do you view the increase this year in your market? We intend to maintain in this area of marketing as a percentage of revenue, and there will be experimental marketing, but nothing overly dramatic.
Speaker Change: <unk>.
And as a reminder, we've established a primarily U S based supply chain and as a result, we do not currently anticipate and the disruption to our cost structure or pricing.
Speaker Change: Selling and marketing expense as a percentage of net sales improved to 26, 6% compared to 34% in the first quarter of 2024.
Speaker Change: However, we are actively monitoring the evolving international trade policies, and we'll continue to manage our operations with discipline and agility to mitigate any potential impact.
Speaker Change: This improvement reflects our continued focus on scaling cells efficiently measured in high return investments.
Speaker Change: Research and development expense was $800000 lower year over year. The driver for this was the increased investment in the prior year R&D.
Speaker Change: Selling and marketing expense as a percentage of net sales improved to 26, 6% compared to 34% in the first quarter of 2024.
Speaker Change: To support the successful launch of <unk> plus product plan.
Speaker Change: This improvement reflects our continued focus on scaling sales efficiently through a measured and high return investments.
Speaker Change: General and administrative expenses decreased by $200000 compared to the previous year.
Speaker Change: Research and development expense was $800000 lower year over year. The driver for this was the increased investment in the prior year R&D to support the successful launch of <unk> plus product plan.
Speaker Change: In Q1, we recovered $1 $3 million of credit losses related to our legal settlement with Elysium, representing the second and final payment associated with the bad debt, but not in 2019.
Ozan Pamir: And will it be spread out? Is the cadence of the marketing spend this year relatively, you know, even for the remaining three quarters? Or is there going to be a, you know, higher spending than anyone? Yeah, we expect the spend to be, you know, evenly distributed throughout the year. And just to note, you know, as you as you said, I just want to reiterate, even though dollar amount went up, or as a percentage of net sales, or marketing spend has gone down significantly.
Speaker Change: And this was partially offset by increased investments in infrastructure to support the scaling of our business.
Speaker Change: General and administrative expenses decreased by $200000 compared to the previous year.
Speaker Change: In Q1, we recovered $1 $3 million of credit losses related to our legal settlement with Elysium, representing the second and final payment associated with the bad debt, but not in 2019.
Speaker Change: For the first quarter of 2025, our net income was $5 $1 million or earnings of <unk> 70 per share a significant improvement compared to a net loss of half a million dollars and a loss of one seven per share for the first quarter of 2024.
Speaker Change: And this was partially offset by increased investments in infrastructure to support the scaling of our business.
Mitchell Pinheiro: Okay, all right, that's all I have. Thanks for taking the question. Yeah, thank you.
Speaker Change: Turning to the balance sheet and cash flow, we ended the quarter with $55 $6 million in cash and no debt, maintaining significant liquidity and financial flexibility.
Speaker Change: For the first quarter of 2025, our net income was $5 1 million or earnings of <unk> <unk> per share a significant improvement compared to a net loss of half a million dollars and a loss of one seven per share for the first quarter of 2024.
Sean McGowan: And your next question comes from the line of Sean McGowan with Roth Capital Partners. Your line is open. Okay, thanks. A couple of questions.
Speaker Change: During this period net cash provided by operations was $7 9 million compared to $300000 in the same period last year.
Sean McGowan: So can you update us on the status of the injectable side of Niagen Plus. You know, what do you expect for that as a rollout? Let's start with that thing. It is being offered in many clinics presently, it's a lower dose. We are developing right now an at-home version of it that people can take at home. We hope to have an at-home version of Niagen injectable on the market by the end of the year. We don't know if it'll be the pen version like you see with GLP-1, but there'll be a syringe version with a vial that people can purchase and self-inject at home.
Speaker Change: Turning to the balance sheet and cash flow, we ended the quarter with $55 6 million in cash and no debt, maintaining significant liquidity and financial flexibility.
Speaker Change: The year over year improvement was largely driven by a $5 $6 million improvement in net income along with favorable changes in working capital, including vertical be stronger collections on trade receivables and an increase in accounts payable compared to the prior year period.
Speaker Change: During this period net cash provided by operations was $7 9 million compared to $300000 in the same period last year.
Speaker Change: These were partially offset by a decrease in credit loss expense due to the recovery of previously written off amounts and higher investment in inventory to support the scaling of our operations.
Speaker Change: The year over year improvement was largely driven by a $5 $6 million improvement in net income along with favorable changes in working capital, including relatively stronger collections on trade receivables and an increase in accounts payable compared to the prior year period.
Speaker Change: As it relates to our 2025 full year P&L outlook deep.
Speaker Change: Detailed information on key financial metrics can be found in our earnings press release and the accompanying slide presentation.
Speaker Change: These were partially offset by a decrease in credit loss expense due to recovery of previously written off amounts and higher investment in inventory to support the scaling of our operations.
Speaker Change: Building on our strong start to the year, we are raising our full year top line growth outlook from approximately 18% to a range of 20% to 25% year over year.
Sean McGowan: Any sense of, you know, when that might be kind of widely available? We think the syringe version will be available before... certainly by the fourth quarter, maybe sooner. And we think if there is a pen version, we're exploring it right now, it won't be available before the first quarter of next year. Okay, that's helpful.
Speaker Change: As it relates to our 2025 full year P&L outlook deep.
Speaker Change: This reflects our confidence in the sustained momentum across both our ecommerce and nice ingredients businesses.
Speaker Change: Detailed information on key financial metrics can be found in our earnings press release and the accompanying slide presentation.
Speaker Change: Market experience.
Building on our strong start to the year, we are raising our full year top line growth outlook from approximately 18% to a range of 20% to 25% year over year.
Speaker Change: We expect e-commerce to remain a steady growth engine.
Speaker Change: While sales to our major partners may fluctuate quarter to quarter, we remain confident in the strength of our full year trajectory.
Sean McGowan: At the risk of, you know, maybe putting the cart before the horse here, but in terms of this Parkinson's study, kind of like anticipate in advance the timing of when there might be some commentary on this. Is the timing of when you would be able to comment on this in any way a function of whether the news is kind of good or bad? Like, are people going to be looking into the time that it takes to make a comment and inferring from that whether it's positive or negative? No, you can't interpret whether the news is good or not good by the timing of our announcement.
Speaker Change: This reflects our confidence in the sustained momentum across both our ecommerce and nice ingredients businesses as the market expense.
Speaker Change: We're also updating our outlook for general and administrative expenses.
Speaker Change: We now expect an increase of approximately $7 million to $8 million.
Speaker Change: We expect e-commerce to remain a steady growth engine.
Speaker Change: Compared to our previous estimate of $5 million to $6 million year over year.
Speaker Change: While sales to our major partners may fluctuate quarter to quarter, we remain confident in the strength of our full year trajectory.
Speaker Change: This increase in outlook is primarily driven by an increase in share based compensation related to performance stock Grant tying management performance directly to long term value accretion for the company.
Speaker Change: We're also updating our outlook for general and administrative expenses.
Speaker Change: We now expect an increase of approximately $7 million to $8 million.
Speaker Change: While this grant will result in an increase in G&A expense due to a strong reflection of the alignment between leadership and shareholder interests.
Speaker Change: Compared to our previous estimate of $5 million to $6 million year over year.
Speaker Change: This increase in outlook is primarily driven by an increase in share based compensation related to performance stock Grant time management performance directly to long term value accretion for the company.
Robert Fried: And the reason for that is the study will be completed, but this is a very long, very large study, so it will take several months for the researchers to compile the data and analyze the data and then share the data. But after that. They will want to get the study published, and they will write up a manuscript and submit it to several journals for peer review, and they won't want to risk getting accepted in these journals by the data being leaked. So it will be a while. It could be a year or more after June before it is publicly available.
Speaker Change: Beyond these adjustments one of their key metrics remained consistent with the outlook I shared last quarter, we continue to expect steady gross margins and sustained profitability.
While this grant will result in an increase in G&A expense due to a strong reflection of the alignment between leadership and shareholder interests.
Speaker Change: Looking beyond the operational inefficiencies are going to be expanding in a market, we have a clear and compelling path forward to sustain our momentum and profitability.
Speaker Change: Beyond these adjustments all of the key metrics remain consistent with the outlook I shared last quarter.
Speaker Change: Our strong performance in the first quarter positions us well for the year ahead, and we're encouraged by the positive market trends and the opportunities emerging across our business.
Speaker Change: <unk> expects steady gross margins and sustained profitability.
Speaker Change: Looking beyond the operational inefficiencies in the expanding market.
Speaker Change: I remain inspired by the resilience and dedication of the knife in bioscience team and I'm confident that our continued focus on execution will lead to further success.
Speaker Change: A clear and compelling path forward to sustain our momentum and profitability.
Robert Fried: It is possible that it is sooner than that. But we don't intend to rush it. It's a great study. We have very high hopes, but of course, we have no idea. It's double blinded. Neither the participants nor the researchers have any idea. about who took what and what the efficacy and the results were.
Speaker Change: Our strong performance in the first quarter positions us well for the year ahead, and we are encouraged by the positive market trends and the opportunities emerging across our business.
Speaker Change: I look forward to sharing more positive results in the future.
Speaker Change: Operator, we're now ready to take questions.
Speaker Change: I remain inspired by the resilience and dedication of the <unk> Bioscience team and I am confident that our continued focus on execution will lead to further success.
Robert Fried: So The reason we're hopeful is because we understand the mechanisms of action of Parkinson's. and it's how it relates to mitochondrial malfunctions and that's really where we are most effective. But also there were studies that were already published that were smaller, phase one studies that indicated a benefit. So we are hopeful, but we really have no idea. Okay, that's very helpful.
Speaker Change: I look forward to sharing more positive results in the future.
Speaker Change: Operator, we're now ready to take questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: Please limit your questions to one question and one follow up.
Speaker Change: Our first question comes from the line of ROM <unk> with H C. Wainwright Your line is open.
Ozan Pamir: Ozan, if I can just ask you to clarify one thing on the G&A, not only in the number in the quarter, but on your commentary, was there anything besides the reversal of that kind of bad debt reserve in the first quarter of this year that you would consider kind of an unusual or unrepeatable benefit? Or can we just make that adjustment and assume that that's just a starting Yeah, that would be the only one. The only, the difference between Q1 and the rest of the quarters is the, I think we talked about a little bit earlier, the stock-based compensation.
Speaker Change: Thanks, very much for taking my questions and congratulations on the outstanding performance to kick off the year.
Speaker Change: I wanted to you Robert.
Speaker Change: Possible for you folks to give us some sense of what you see as emerging tailwind for adoption of denial and IV product lineup and in particular, if you could comment on.
Speaker Change: Indispensing NIAGEN Ivy.
Speaker Change: Thank you for the question Ron we put an announcement out earlier this week that we were up to 600 clinics.
Speaker Change: The possibility.
Speaker Change: Compounding clinics and pharmacies.
Speaker Change: We continue to see fairly dramatic interest from clinics and now physicians in offering Niogen IV, we've been holding many events, where we host celebrities influencers, especially those that have tried our interested in.
Speaker Change: Becoming more interested in dispensing nitrogen IV.
Speaker Change: Okay.
Ozan Pamir: We didn't have a full quarter impact of that in Q1, since the grant was done a little bit later in the quarter. So I would, you know, on a go-forward basis, there will be an impact there. But in the end, it's the only outcome.
Speaker Change: Thank you for the question Rob.
We put an announcement out earlier this week that we were up to 600 clinics.
Speaker Change: And the head to head comparison is really no comparison, NIAGEN IV elevates NAD levels much higher and it doesn't have those same uncomfortable side effects that nadi have but also it takes minutes opposed.
Speaker Change: We continue to see.
Speaker Change: Early dramatic interest from clinics and now positions.
Speaker Change: And offering <unk> and IV.
Speaker Change: Holding many events, where we host celebrities and influencers, especially those that have tried or are interested in <unk>.
Ozan Pamir: Thank you. All of the stock that is comp taken in that line.
Ozan Pamir: Sorry, say again? Is all of stock-based compensation reflected in that G&A line, or is it not? I believe so, yeah. It is shown in the 10-Q spread out.
Speaker Change: The reason for that is quite simple the NAD molecule is very large and it's a nucleotide and there's a phosphate on the perimeter. So it endeavors to get into the cell, but fails it needs to break down in the bloodstream into smaller molecules the best of which.
Speaker Change: And the head to head comparison is really no comparison.
Speaker Change: Gen IV elevates NAD levels much higher.
Speaker Change: And it doesn't have those same uncomfortable side effects that NID IV.
Speaker Change: But also it takes minutes as opposed to ours.
Ozan Pamir: Okay, thank you.
Speaker Change: Reason for that is quite simple.
Speaker Change: Molecules very large and it's a nucleotide and theres a phosphate on the perimeter.
Matt Dane: And your next question comes from the line of Matt Dane with Tyaton Capital Management. Your line is open. Great, thank you.
Speaker Change: So endeavors to get into the cell, but fails it needs to break down in the bloodstream into smaller molecules. The best of which is actually nicotinamide Riboside, which then fleet freely flows up into the cell and then converts into NID. Once it's in the cell. So it's just simply assuming our product.
Matt Dane: I wanted to ask, are you able to meet all demand for the Niagen IV product today? Yeah, just was curious about that. Yes.
Speaker Change: N a D. So as more and more people experience it they're getting the benefits of elevated N a D, but they're having a much more pleasant experience. So we're seeing many clinics contact us, but as we've discussed in the past we had some supply challenges.
Matt Dane: Are you holding back additional clinics from signing up though, or being a persistent until you have the full nine product availability and the the the I guess the supply ramped up? No.
Speaker Change: We also detecting the data on the studies that there is inflammation associated with <unk>.
Speaker Change: It's a pharma grade product, it's not food grade like the dietary supplement that we sell it's pharmaceutical grade, which is an entirely different supply chain much more challenging supply chain. One that is heavily regulated and has to make sure that it's completely no.
Speaker Change: So as more and more people experience it they are getting.
Speaker Change: The benefits of elevated NID, but they are having a much more pleasant experience. So we are seeing many clinics contact us.
Matt Dane: And then I also did want to touch on what is happening around your discussions with the FTA. Development Player of the Year. I'm just curious what's going on behind Discussions Today with the FDA are 1 Partners. Just hoping to get a little bit more color. It's a good question. We are having active discussions with the FDA. We submitted a pre-IND to them in October, they gave us their comments in December, we responded to them, they got back to us. a few weeks ago. There is some discussion about the endpoints, the number of studies. But it is definitely progressing, and no, we have not had any active discussions Thank you.
Speaker Change: But as we've discussed in the past.
Speaker Change: We had some supply chain challenges.
Speaker Change: And it's taken us a while to learn that process, but we now have and our supply is secure and there is a very long what they call a b U D shelf life, so that the clinic steel comfortable purchasing it. So our expectation is in next few quarters will start to see.
Speaker Change: Our pharma grade product, it's not food grade like the dietary supplement that we sell it's pharmaceutical grade, which is an entirely different supply chain much more challenging supply chain. One that is heavily regulated and make sure that it's completely pure no particular matter.
Speaker Change: And it's taken us a while to learn that process, but we now have.
Speaker Change: Our supply of secure.
Speaker Change: And there is a very long what they call <unk> shelf life.
Speaker Change: Pidgeon through the clinics and the physicians.
Speaker Change: So that the clinics feel comfortable purchasing it so our expectation is in the next few quarters, we'll start to see.
Speaker Change: Great and then with respect to the E Commerce business I was wondering if there are some new promotional strategies that you expect to employ in order to push more volume via the E Commerce channel and if so what strategy and if you.
Matt Dane: Thank you. With third party partners, we want to take it further along. before we do that. Now the FDA's got back to you with... So basically... You're understanding what the next steps are. You'll just continue down the path back and forth with the FDA. And I think we should do the filing here later this year then it sounds like. Correct. Okay, perfect. Sounds good. Thank you, Rob. Sure.
Speaker Change: Sally dramatic increase in the sales.
Speaker Change: <unk> pharma grade.
Speaker Change: And to the clinics and the physicians.
Speaker Change: You mentioned Influencers before is there any potential applicability of the use of Influencer campaign in the course of 2025 to further accelerate growth through the commerce channel. Thanks.
Speaker Change: Great and then with respect to the E Commerce business I was wondering if there are some new promotional strategies that you expect to employ in order to push more volume via the E Commerce channel and if so what some of these strategies might be and if youre thinking about.
Speaker Change: Well as you've seen in the last few quarters. We've we have done a a good job of dramatically increasing our overall E. Commerce growth you recall, a year and a half ago. The growth rate was much lower now we're this quarter.
Susan Anderson: And your next question comes from the line of Susan Anderson with Cana Gorge Genuity. Your line is open. Hi, good evening. Thanks for taking my question. Nice job on the quarter. I guess maybe just to ask about the various TruNiagen formulations. I guess, you know, you started doing the sick packs. I think you have an immune product now. I guess I'm just curious how those are performing. Are they helping to add to growth at all?
Speaker Change: The possibility you mentioned influencers before.
Speaker Change: Are there any potential applicability of the use of Influencer campaign.
Speaker Change: In the course of 2025 to further accelerate growth through the E Commerce channel.
Speaker Change: We are as a company extremely focused on profitability and efficiency return on advertising spend long term value. So we're unlikely to do some aggressive cost inefficient influencer deal.
Speaker Change: Well as you've seen in the last few quarters.
Speaker Change: We have done a good job of dramatically increasing our overall e-commerce growth.
Susan Anderson: And then are you planning for any more product rollouts the rest of the year? Those are good questions and welcome, Susan. They are selling. It doesn't yet have a meaningful impact on overall sales. Most of our sales are still the various true Niagen SKUs and the ingredient business. But both stick packs and Immune are growing, and we intend to invest more in our marketing efforts in both of those products because we see increasing demand in both. We may be doing some alterations in the feedback. But we expect both a stick tax and immune to grow more as the year progresses.
Speaker Change: Youll recall, a year and a half ago the growth rate was much lower narrower this quarter over 30%.
Speaker Change: But we are as a company extremely focused on profitability and efficiency return on advertising spend long term value.
Speaker Change: Viable return on investment, but if one comes along that we like we are quick to do it. There are many celebrities that have tried NIAGEN IV and are excited by it and have expressed interest, but making a deal like that is a challenge.
Speaker Change: So we are unlikely to do some aggressive cost inefficient influencer deal that won't have a measurable reliable return on investment.
Speaker Change: We want to deliver a profit to our investors and expect to continue to do so there are influencer strategies with lesser known celebrities, particularly in the healthcare space that we continue to align with and.
Speaker Change: But if one comes along that we like we are quick to do it there are many celebrities.
Speaker Change: That have tried <unk> and IV and are excited by it and have expressed interest, but making a deal like that is.
Speaker Change: Challenging.
Speaker Change: Not been terribly aggressive on tick tock with Influencers, we expect to increase our presence there in the near term and we think that that will be a helpful.
Speaker Change: Because we want to deliver a profit to our investors.
Susan Anderson: Yes, there is another formulation that we call True Niagen Beauty. It was a formulation that we created a few years ago specifically for Watson's Hong Kong at their request. We're making a few alterations to that formula as well and intend to launch it here in the U.S. perhaps as early as this year. Okay, great. And will that be launched on your own website or another website? It will be launched on our website and other websites. Great.
Speaker Change: To continue to do so.
Speaker Change: There are influencer strategies with lesser known celebrities, particularly in the health care space that we continue to align with and make deals with.
Speaker Change: But as more and more people experience the NIAGEN I V and the NIAGEN injections and more and more people become interested in N a D and more and more articles come out we're seeing general increase interest in NIAGEN in all forms T.
Speaker Change: We have not been terribly aggressive on tick tock with Influencers, we expect to increase our presence there in the near term and we think that that will be helpful.
Speaker Change: The more they realize but the only safe legal well tested reliable consistent brand in the entire NAD space is the NIAGEN brand. So we do expect to continue to grow in the E Commerce space, We do expect.
Speaker Change: But as more and more people experience the <unk> IV and the NIAID injections and more and more people become interested in Nash and <unk>.
Speaker Change: More and more articles come out we're seeing general increase interest in <unk> and in all forms the more people research the more they realize that the only safe legal well tested reliable consistent brand in the entire space.
Susan Anderson: And then maybe I could just follow up on the nitrogen injectables, the previous question. You talked about the at-home display rolling out in the fourth quarter.
Speaker Change: Influencers and word of mouth and event oriented campaigns in the future, but nothing overly dramatic is on the immediate horizon.
Robert Fried: I guess I'm curious, Do you already have plans on kind of what channels will that be rolling out? The clinics will be rolling out, you know, other even, you know, DTC kind of clinic providers where, you know, consumers could even order them online or how should we think about that? Yes, we expect that consumers will be able to order them online. And it might be through some of these telehealth companies that presently are selling GLC-1 at-home products. We don't have any deals like that to announce presently. And it will likely also be available on other platforms like Google Shop, for example.
Speaker Change: Thank you.
Speaker Change: Is the <unk> brand.
Speaker Change: So we do expect to continue to grow in the E. Commerce space, we do expect to use more influencers and word of mouth and event oriented campaigns in the future.
Speaker Change: And your next question comes from the line of Jeff Cohen with Laddenburg Thalmann. Your line is open.
Speaker Change: Hi. Thank you. This is destiny on for Jeff I. Appreciate you taking our questions I'm curious when you look at the market for Nigen plus how many clinics do you think are are good fit for this product and then how nanim.
Speaker Change: But nothing overly dramatic is on the immediate horizon.
Speaker Change: Thank you.
Speaker Change: And your next question comes from the line of Jeff Cohen with Ladenburg Thalmann. Your line is open.
Speaker Change: The onboarding of new clinics, if you will going through the remainder of 2025, because you've it's been very impressive from the time of launch to now and I'm I'm curious if we should continue to expect that that trend.
Speaker Change: Hi. Thank you. This is destiny on for Jeff I. Appreciate you taking our questions I'm curious when you look at the market for <unk> plus how.
Robert Fried: But one thing to point out that's important to remember is we sell Niagen to the compound pharmacy. The compound pharmacy then sells to those telehealth companies and clinics. So we are not the direct seller to those customers. We are more marketers. Of course, we're very, very involved in that process, and we develop very close relationships. with these clinics and telehealth companies. Indeed, in most cases, we actually bring them to the pharmacy. But it's an important distinction to understand in the supply chain. It's really helpful. Thanks so much. Good luck the rest of the year. Thank you, Susan.
Speaker Change: How many clinics do you think.
Speaker Change: There are a good fit for this product and then how should we think about the.
Speaker Change: Hi, Destiny. Thank you for that question.
Speaker Change: Onboarding of new clinics, if you will going through the remainder of 2025, because it's been very impressive from the time of launch now and I'm curious if we should continue to expect that that trend.
Speaker Change: We hope to be in a thousand clinics by the end of the year. We feel that we are on pace for that but it's difficult to do we think there are upwards of two to 3000 clinics that are the potential addressable market.
Speaker Change: Hi, guys. Thank you for that question.
Speaker Change: There are numerous physicians.
Speaker Change: We hope to be in 1000 clinics by the end of the year.
Speaker Change: At also offer I V or injections directly without using a clinic. So we think that the overall address addressable market for administration of I V and injection is significantly larger than T.
Speaker Change: We feel that we are on pace for that but it's difficult to do.
Speaker Change: Yeah.
Speaker Change: We think there are upwards of two to 3000 clinics that are the potential addressable market and then there are numerous physicians.
Speaker Change: We are are pleasant today.
Speaker Change: That also offer.
JP Mark: And your next question comes from the line of JP Mark with Farmhouse Equity Research. Your line is open. Hey, Rob. I just wanted to say my questions have been asked and answered. I just wanted to send along my congratulations on a great quarter. Thank you very much. Thank you.
Speaker Change: Or injections directly without using a clinic.
Speaker Change: Got it okay. Thank you could that you know same extent I'm wondering if you're seeing any ordering patterns from these initial clinics that you can talk about and how that may change now that you've had now that you have a lot of more extension.
Speaker Change: So we think that the overall address addressable market for administration of IV and injection is significantly larger than the 600, where we are.
Speaker Change: Present today.
Speaker Change: So as you know destiny, we did before we launched this we did many things aside from getting on the list for the F with the FDA, which took a long time and also making pharmaceutical grade material, which took a lo.
Wesley Yu: And there are no further questions at this time.
Speaker Change: Got it okay. Thank you.
Wesley Yu: Wesley Yu, I turn the call back over to you. Thank you, Kayla. There will be a replay of this call beginning at 730 p.m. Eastern Time today. The replay number is 1-800-770-2030. And the replay ID is 858-4242.
Speaker Change: Add to that.
Speaker Change: Im wondering if youre seeing any.
Speaker Change: During patterns from these initial clinics that you can talk about and how that May change now that you've had now that you have a longer or more extended.
Speaker Change: Process and have applied for that patent, which is pending but also conducted a study showing the safety of Niegen I V and also comparing it to N a D I V.
Speaker Change: Yeah.
Speaker Change: So as you know destiny, we did it before we launch this we did many things aside from getting.
Wesley Yu: Thank you, everyone, for joining today and for your continued support of Niagen Bioscience. This concludes today's conference call. You may now disconnect.
Speaker Change: On the list for the <unk> with the FDA, which took a long time and also making pharmaceutical grade material, which took a long time.
Speaker Change: Once we completed all of that we had to build the commercial distribution pipeline, which was quite different than the true knives and dietary supplement pipeline and we launched it initially in August and we quickly ran out of supply and it took several.
Speaker Change: Also patented the process and have applied for that patent, which is pending but also conducted a study.
Speaker Change: Showing the safety of <unk> IV and also comparing it to <unk>.
Speaker Change: Ivy.
Speaker Change: Once we completed all of that we had to build the commercial distribution pipeline, which is quite different than the <unk> and dietary supplement pipeline and we launched it in initially in August.
Speaker Change: In shape to do that but we don't have a great deal of Amecdotal data on how the consumers are using it or how they are benefiting it. We do surveys we have some preliminary information there are some patterns that we're seeing for example.
Speaker Change: And we quickly ran out of supply and it took several months for us to replenish that supply, but we're now in shape to do that.
Speaker Change: Something that keeps popping up is this thing that the clinics are calling the NIAGEN glow. It seems as though people that go in and get the NIAGEN ivene noticed almost immediately a certain skin glow. Another thing that we have noticed right away is.
Speaker Change: We don't have a great deal of anecdotal data on how the consumers are using it or how they are benefiting we do surveys we have some preliminary information there are some patterns that we're seeing.
Speaker Change: For example.
Speaker Change: One thing that keeps popping up is this thing that the clinics are calling the NAIAD Jen Lowe.
Speaker Change: Way and people, who go in and get the Nigerian IV seem to notice a difference in sleep right away, but these are just anecdotal pieces of information we're conducting many studies and we're planning many studies to show the therapeutic and prophylactic benefits of.
Speaker Change: It seems as though people that go in and get denied Gen. IV notice almost immediately a certain skin glow.
Speaker Change: Another thing that we have noticed right away is improved sleep right away and people, who go in and get the NIH and IV seem to notice a difference in sleep right away.
Speaker Change: This is all the studies that we've conducted with true nigen as a dietary supplement.
Speaker Change: But these are just anecdotal.
Speaker Change: OK that makes sense I'm, hoping that you have a hashtag that says niage and glow because that's excellent on your social of course, and then [laughter]. If I can squeeze one more in can you just expand a little bit on the.
Speaker Change: Pieces of information, we're conducting many studies and we're planning many studies to show the therapeutic and prophylactic benefits of <unk> injection in IV versus all of the studies that we've conducted with <unk> as a dietary supplement.
Speaker Change: The ingredients revenue I'm, just kind of curious I know it could be kind of unpredictable, maybe a little bit lumpy and this is the first quarter. So I'm not sure. If there were larger orders that may you know sustain your partners throughout the remainder of the year I'm just trying to get a better feel thank you.
Speaker Change: Okay that makes sense I am hoping that you'll have a hash tag that says <unk> because thats excellent.
Speaker Change: And then.
Speaker Change: If I can squeeze one more in can you just expand a little bit on the.
Speaker Change: Yeah Z I destiny. Thank you for describing yeah, we had $7 million of food grade ingredient sales in the quarter as you know.
Speaker Change: If the ingredients revenue I'm, just kind of curious I know it could be kind of unpredictable, maybe a little bit lumpy and this is the first quarter. So I'm not sure. If there were larger orders that may sustain your partners throughout the remainder of the year Im just trying to get a better feel thank you.
Speaker Change: As I kind of alluded to earlier in my speech it can be lumpy orders.
Speaker Change: We expect the time to continue but it's a little hard to predict each quarter.
Speaker Change: Yes.
Speaker Change: Thank you for this question yes.
Speaker Change: Yes, we had $7 million of food grade ingredient sales in the quarter as you know.
Speaker Change: So you're you're right in that assessment that we can expect some fluctuation on the pharma grade ingredient side that that's an item plus line.
Speaker Change: As I kind of alluded to earlier in my speech it can be lumpy orders.
Speaker Change: We expect an upward trend.
Speaker Change: We expect the trend to continue but it's a little hard to predict each quarter.
Speaker Change: Okay got it great quarter. Thank you so much thanks and your next question comes from the line of Mitch Panero with Strudevent Company. Your line is open.
Speaker Change: So youre right in that assessment that we can expect some fluctuation on the pharma grade ingredient side.
Speaker Change: That's an item plus line.
Mitch Panero: Hey, good afternoon.
Speaker Change: We expect an upward trend.
Speaker Change:
Speaker Change: So.
Speaker Change: Okay got it great quarter. Thank you so much.
Speaker Change: Sure. It's one follow up question on on the Niage and plus is are are you, saying you mentioned physicians offices you know.
Kevin: Thanks, Kevin.
Kevin: And your next question comes from the line of Mitch Pinheiro with Sturtevant <unk> Company. Your line is open.
Mitch Pinheiro: Hi, good afternoon.
Speaker Change: Or another a you know location, where you know you could get you know the the I V. What kind of physicians are they and like how are you doing in the health care practitioner market, which seems to be where you know.
Kevin: Hi, Mitch.
Mitch Pinheiro: So.
Mitch Pinheiro: Yes.
Mitch Pinheiro: So just one follow up question on on the.
Mitch Pinheiro: <unk> plus is.
Mitch Pinheiro: Are you.
Mitch Pinheiro: Are you seeing you mentioned physicians offices.
Mitch Pinheiro: Or another.
Mitch Pinheiro: Location, where you could get.
Speaker Change: On supplements often times you know your physician is obviously the most credible source of of of sort of you know therapy, So where where do you where do you where do you see that health care practition or.
Mitch Pinheiro: The IV.
Mitch Pinheiro: What kind of physicians are they.
Mitch Pinheiro: And like how are you dealing in the health care practitioner market, which seems to be where a lot of people do their own research on supplements.
Speaker Change: Yeah, we'll leave it that.
Mitch Pinheiro: Often times your position.
Speaker Change: Yeah, we think that the healthcare practitioner market is very important for us as a company as we've often said if one were to do a business School case study on true on Niage and Bioscience. The case study would be how do you sell a dietary supplement that works like a drug.
Mitch Pinheiro: Obviously, the most credible source of.
Mitch Pinheiro: <unk>.
Mitch Pinheiro: Hi.
Mitch Pinheiro: Sort of.
Speaker Change: <unk> therapy, so where do you where do you where do you see that the health care practitioner market going in.
Mitch Pinheiro: Yes, I will leave it at that.
Speaker Change: This is not an ingredient that you pee out.
Mitch Pinheiro: Yes, we think that the health care practitioner market is very important for us as a company.
Speaker Change: This has a meaningful benefit and we have proven that it's safe yet the the regulations are very clear that one cannot imply a claim on any disease state you can only use.
Mitch Pinheiro: As we've often said if one were to do a business school case study.
Mitch Pinheiro: On June <unk> Bioscience. The case study would be how do you sell a dietary supplement that works like a drug.
Mitch Pinheiro: This is not an ingredient that you pay out.
Mitch Pinheiro: This has a meaningful benefit and we have proven that it's safe.
Speaker Change: And for a company like ours that now has 38 peer reviewed high impact factor clinical humans.
Speaker Change: The regulations are very clear that one should not imply.
Speaker Change: Randomized controlled and another 40 in process. This is very very rare and very very uncommon most dietary supplement companies more or less will sell anything as long as the FDA or the FTC.
Speaker Change: A claim.
Speaker Change: Any disease state you can only you make structure function claims in the dietary supplement space.
Speaker Change: And for a company like ours that now has 38 peer reviewed high impact factor clinical humans.
Speaker Change: But not us it's a meaningful ingredient we saw a meaningful product. If you take it there will be a therapeutic benefit if you take it long enough and you measure it you'll notice the benefit and we consider that to be an extraordinary unique differential advantage for our company, but also adv.
Studies.
Speaker Change: Randomized controlled and.
Speaker Change: And another 40 in process. This is a very rare and very very uncommon most dietary supplement companies.
Speaker Change: More or less will sell anything as long as the FDA or the FTC don't get on their case.
Speaker Change: But not us.
Speaker Change: A meaningful ingredient we saw meaningful product if you take it there will be a therapeutic benefit if you take it long enough and you measure it youll notice the benefit and we consider that to be extraordinarily unique differential advantage for our company, but also a disadvantage because youre competing with many companies, who really don't care they'll say anything.
Speaker Change: Almost obsessive with being conservative with our claims and with the highest purest quality that can be offered we make it here in the United States.
Speaker Change: We will do anything that will make it anywhere there's no quality controls like the ones that we put in here. They are really not trustworthy brands and trustworthy companies.
Speaker Change: So that means healthcare practitioners are extra important for us because these are theoretically theoretically the people who do their research and do their work and they investigate which are the brands that can be trusted and which are research.
Speaker Change: But not we are almost obsessive with being conservative with our claims.
Speaker Change: And with the highest purity quality that can be offered we make it here in the United States.
Speaker Change: So that means healthcare practitioners are extra important for us.
Speaker Change: Specifics of authenticity is it what they say it is and they are the ones that can influence the consumers. The most we think that that is the best way for us to market. The product. We think the answer to the question. How do you sell a dietary supplement that works like a drug.
Speaker Change: Because these are theoretically.
Speaker Change: Theoretically the people who do their research and do their work and they investigate which are the brands that can be trusted and which are the ingredients that have research behind it what are the <unk> is it.
Speaker Change: Certificates of authenticity is what they say it is.
Speaker Change: U don't you, let others do it for you and we think health care practitioners are central to that strategy.
Speaker Change: And they are the ones that can influence the consumers the most.
Speaker Change: We think that that is the best way for us to market. The product. We think the answer to the question. How do you sell a dietary supplement that works like the drugs.
Speaker Change: Okay, and then I have a question was was on your marketing spend so you're you're gonna you're gonna you know you're ramping up marketing spend a little bit in a certainly seems in a disciplined way and your last the first quarter your marketing efficiency looked pretty good.
Speaker Change: As you don't you, let others do it for you.
Speaker Change: And we think health care practitioners are central to that strategy.
Speaker Change: Is this new spending going to be you know at that efficiency level or is it some experimental marketing spend that you know you're not exactly sure. The returns how do you view the increases here in your marketing spend.
Speaker Change: Okay and then.
Speaker Change: My other question was was on your marketing spend so youre going to youre going to Youre ramping up marketing spend a little bit.
Speaker Change: And it certainly seems in a disciplined way and your last.
Speaker Change: The first quarter year marketing efficiency looked pretty good.
Speaker Change: We intend to maintain in this area of marketing as a percentage of revenue and we there will be experimental marketing, but nothing overly dramatic.
Speaker Change: Is this new spending.
Speaker Change: Going to be at that efficiency level or is it some experimental marketing spend that.
Speaker Change: And will it be spread out is is the cadence of the marketing spend this year relatively you know even for the remaining three quarters or is there gonna be a you know higher spending than anyone quarter.
Speaker Change: Youre not exactly sure the returns how do you view the increase this year in your marketing spend.
Speaker Change: We intend to maintain in this area of marketing as a percentage of revenue and we there will be experimental marketing, but nothing overly dramatic.
Speaker Change: Yeah spend to be.
Speaker Change: And will it be spread out is the cadence of the marketing spend this year.
Speaker Change: Relatively even for the remaining three quarters or is there going to be.
Speaker Change: Yeah.
Speaker Change: Higher spending in any one quarter.
Speaker Change: Yes.
Speaker Change: Okay, Alright, that's all I have thanks for taking the questions. Thank you.
Speaker Change: The spend to be.
Speaker Change: Evenly distributed throughout the year.
Speaker Change: And just to note.
Speaker Change: And your next question comes from the line of Shawn Mcgowan with Roth Capital Partners. Your line is open.
Speaker Change: As you said I just want to reiterate even though dollar amount went up.
Speaker Change: <unk> as a percentage of net sales our marketing spend has gone down significantly this quarter.
Shawn Mcgowan: Hi, guys. Thanks.
Shawn Mcgowan: A couple of questions. So can you update us on the kind of status of the injectable side of.
Speaker Change: Okay Alright.
Speaker Change: Alright, that's all I have.
Speaker Change: Thanks for taking the questions.
Speaker Change: Alright, thank you.
Speaker Change: And your next question comes from the line of Sean Mcgowan with Roth Capital Partners. Your line is open.
Sean McGowan: Hi, guys. Thanks.
Sean McGowan: A couple of questions. So can you update us on the status of the injectable side of.
Shawn Mcgowan: We are developing right now and at home version of it that people can take at home. We hope to have an at home version of NIAGEN injectable on the market by the end of the year, we don't know if it'll be T.
Sean McGowan: <unk> plus.
Sean McGowan: What do you expect for that as we rollout.
Sean McGowan: Let's start with that thanks.
Speaker Change: It is being offered in many clinics presently it's a lower dose.
Shawn Mcgowan: Three one but there'll be a syringe version with a vial that people can purchase and self inject at home.
Speaker Change: We are developing right now and at home version of it that people can take it home.
Speaker Change: We hope to have an at home version of <unk> injectable on the market by the end of the year.
Shawn Mcgowan: Any sense of you know when that might be kind of widely available.
Shawn Mcgowan: We think the syringe version will be available.
Speaker Change: We don't know if it will be the patent the patent version like you see with <unk>, one, but there'll be a syringe version with a vial that people can purchase and self inject at home.
Shawn Mcgowan: Certainly by the fourth quarter, maybe sooner and we think if there is a pen version, we're exploring it right now it won't be available before the first quarter of next year.
Speaker Change: And any sense of when that might be kind of widely available.
Speaker Change: Okay. That's helpful. At the risk of you know, maybe putting cart before the horse here, but in terms of this Parkinson's study.
Speaker Change: We think the syringe version will be available books.
Speaker Change: Certainly by the fourth quarter, maybe sooner and we think if there is a pen version, we're exploring it right now won't be available before the first quarter of next year.
Speaker Change: Okay. That's helpful.
Speaker Change: And at the risk of.
Speaker Change: Maybe putting the cart before the horse here, but in terms of this Parkinson's study.
Speaker Change: It takes to make a comment and starting from that whether it's positive or negative no you can't interpret whether the news is good or not good by the timing of our announcement and the reason for that is the study will be completed.
Speaker Change: I'm trying to.
Speaker Change: I anticipate in advance the timing of when there might be some commentary on this is the timing of when you would be able to comment on this in any way a function of whether the news is kind of good or bad.
Speaker Change: Are people going to be looking into the time that it takes to make a comment and starting from that whether it's positive or negative.
Speaker Change: Large study so it'll take several months for the researchers to compile the data and analyze the data and then share the data, but after that they will want to get the study published and they will write up a manuscript and submit it to several.
Speaker Change: You can't interpret whether the news is good or not good by the timing of our announcement.
Speaker Change: And the reason for that is the study will be completed but this is a very long very large study. So it will take several months for the researchers to compile the data and analyze the data and then share the data.
Speaker Change: For peer review and they won't want to risk getting accepted in these journals by the data being leaked so it will be a while it could be a year after or more after June before it is publicly available.
Speaker Change: But after that.
Speaker Change: They will want to get the study published and they will write up of manuscripts and submitted to.
Speaker Change: Several journals for peer review and they won't want to risk getting accepted in these journals.
Speaker Change: But we don't intend to rush it. It's a great study, we have very high hopes but of course, we have no idea, it's double blinded neither the participants nor the researchers have any idea about the results were so.
Speaker Change: The data being leaked.
Speaker Change: So it will be a while it could be a year or more after June before it is publicly available. It is possible that it is sooner than that.
Speaker Change: But we don't intend to rush it.
Speaker Change: The reason, we're hopeful is because we understand the mechanisms of action of Parkinson's and it's how it's relates to mitochondrial malfunctions and that's really where we are most effective but also there were studies that were already.
Speaker Change: It's a great study, we have very high hopes but of course, we have no idea it's double blinded.
Speaker Change: Neither the participants no other researchers have any idea.
Speaker Change: About.
Speaker Change: Who took what and what the efficacy and the results were so.
Speaker Change: Smaller phase one studies that indicated a benefit so we are hopeful but we really have no idea. Okay. That's very helpful.
Speaker Change: The reason, we're hopeful because we understand the mechanisms of action of Parkinson's.
Speaker Change: And then how it relates to mitochondrial malfunctions and that's really where we are.
Speaker Change: Are most effective.
Speaker Change: But also there were.
Speaker Change: Ah studies that were already published that were smaller phase one studies that indicated a benefit so we are hopeful but.
Speaker Change: But we really have no idea.
Speaker Change: Okay, that's very helpful.
Speaker Change: Your or can we just make that adjustment and assume that that's just the starting point, yeah that would be the only one the only the difference between Q1 and the rest of the quarters is the I think we talked about a little bit earlier the stock based compensation, we don't have a full order impact.
Speaker Change: John If I can just ask you to clarify one thing on the on.
Speaker Change: On the G&A and the number in the quarter, but on your commentary was there anything besides the reversal of that kind of bad debt reserve.
Speaker Change: In the first quarter of this year that you would consider kind of an unusual around unrepeatable benefit.
Speaker Change: In in Q1 since you grab was done a little bit later in the quarter. So I would you know on a go forward basis, there will be an impact there, but in terms of one time events. The reversal. The the bad debt 1.3 million is the only add.
Speaker Change: Can you just make that adjustment and assume that thats the starting point.
Speaker Change: That would be the only one the only the difference between Q1 and the rest of the quarters as I think we talked about a little bit earlier to stock based compensation.
Speaker Change: And have a full quarter impact of that.
Speaker Change: All of the doctors can't taken in that line.
Speaker Change: In Q1 since the grant that was done a little bit later in the quarter.
Speaker Change: Sorry, say again is all of stock based compensation reflected in that G. N a line or is it.
Speaker Change: So I would.
Speaker Change: On a go forward basis.
Speaker Change: There will be an impact there, but in terms of one time events.
Speaker Change: The bad debt $1 3 million as the only IV.
Speaker Change: I I believe so yeah, it's it.
Speaker Change: All of the stock based comp taken in that line.
Speaker Change: It is shown in the 10-Q spread out.
Speaker Change: Oh, Okay. Thank you.
Speaker Change: Sorry say again.
Speaker Change: As all of stock based compensation reflected in that G&A line or.
Speaker Change: And your next question comes from the line of Matt Dayne with Tiaden Capital Management. Your line is open.
Speaker Change: Or is it.
Speaker Change: Yes.
Speaker Change: I believe so yes.
Speaker Change: Okay.
Speaker Change: Yes.
Matt Dayne: Great. Thank you I wanted to ask are you able to meet all demand for the Nigen IV product today.
Speaker Change: It is shown in the 10-Q is spread out.
Speaker Change: Okay. Thank you.
Matt Dayne: Yeah, just was curious about that yes.
Speaker Change: And your next question comes from the line of Matt Dane with Titan Capital Management. Your line is open.
Matt Dayne: Are you holding back additional clinics from signing up though or being a persistent until you have the full nige.
Matt Dane: Great. Thank you I wanted to ask are you able to meet all demand for the <unk> IV product today.
Speaker Change: Yes, just was curious about that.
Matt Dane: Yes.
Matt Dayne: And then I also did want to touch on what is happening around your discussions with the FDA around the a T and Niajin you said that there should be some maybe potentially some developments later this year just curious what's going on behind the scenes is there active discussions today with the FDA.
Matt Dane: Okay.
Matt Dane: Are you holding back additional clinics from signing up though or being a princess set until you have the full of <unk> IV product availability in the.
Matt Dane: The I guess the supply ramped up.
Matt Dane: No.
Matt Dane: Okay.
Matt Dayne: Having discussions with potential partners, just hoping to get a little bit more color there that'd be great. It's a good question. We are having active discussions with the FDA, we submitted a pre I N D to them in October they gave us their comments in December we respond.
Matt Dane: And then I also did want to touch on what is happening around your discussions with the FDA around the <unk> you said there should be some maybe potentially some developments later this year just curious what's going on behind the scenes is there active discussions to date with the FDA are you having discussions with potential partners.
Matt Dayne: A few weeks ago. There is some discussion about the endpoints the number of studies, but it is definitely progressing and no. We have not had any active discussions with third party partners, we want to take it further.
Matt Dane: Just was hoping to get a little bit more color there that'd be great.
Matt Dane: It's a good question, we are having active discussions with the FDA, we submitted a pre IND to them in October they gave us their comments in December we responded to them they got back to us a.
Matt Dayne: Before we do that.
Matt Dane: A few weeks ago.
Matt Dane: There is some discussion about the endpoints the number of studies.
Matt Dayne: Okay, Okay, and so now the Fda's got back to you with their comments and so basically your your understanding what what the next steps are and and then you'll you'll just continue down the path back and forth with the FDA and tell you to that point to to do the filing here later this year then it sounds like.
Matt Dane: But it is definitely progressing and no we have not had any active discussions.
Matt Dane: With third party partners, we want to take it further along.
Matt Dane: Before we do that.
Matt Dane: Okay. Okay.
Rob Fried: Perfect sounds good thank you Rob.
Matt Dane: So now the FDA has got back to you with their comments, so basically year to year.
Speaker Change: And your next question comes from the line of Susan Anderson with Canagor Genuity. Your line is open.
Matt Dane: I understand what the next steps are and then Youll just continue down the path back and forth with the FDA until you are to that point to do the filing here later this year then it sounds like.
Susan Anderson: Hi, Good evening. Thanks for taking my question nice job on the quarter I guess, maybe just to ask about the various two nigen formulations. I guess you know you start doing the sick packs I think you have an immune product now I guess I'm just.
Matt Dane: Correct.
Matt Dane: Perfect.
Matt Dane: Thank you Rob.
Matt Dane: Sure.
Speaker Change: And your next question comes from the line of Susan Anderson with Canaccord Genuity. Your line is open.
Hi, Good evening. Thanks for taking my question. This is Geoff on the quarter.
Speaker Change: I guess.
Speaker Change: You asked about.
Speaker Change: Those are good questions and welcome Susan.
Speaker Change: There is an aging population.
Speaker Change: In Caribbean and stick packs I think yes in the immune product now.
Speaker Change: They they are selling it's not it doesn't yet have a meaningful impact on overall sales most of our sales are still the various true nigem skus and the ingredient business, but both stickpacks and immune are growing and we intend to.
Speaker Change: I guess I'm just curious how those are performing are they helping to add to growth at all and then are you planning for any more product rollout for the rest of the year.
Speaker Change: Those are good questions and welcome Susan.
Speaker Change: Sure in our marketing efforts in both of those products because we see increased.
Speaker Change: They.
Speaker Change: They are selling it.
Speaker Change: It doesn't yet have a meaningful impact on overall sales most of our sales are still the various <unk> skus and the ingredient business.
Speaker Change: But both stick packs and immune are growing and we intend to invest more in our marketing efforts in both of those products because we see increasing demand in both we may be doing some alterations in the immune formulation based on consumer feedback.
Speaker Change: But we expect both stickpat's and immune to grow more as the year progresses, yes. There is another formulation that we call.
Speaker Change: But we expect both stick packs and immune to grow more as the year progresses.
Speaker Change: West.
Speaker Change: We're making a few operations to that formula as well and intend to launch it here in the U S. Perhaps as early as this year.
Speaker Change: Yes, there is another formulation that we call.
Speaker Change: <unk> beauty.
Speaker Change: It was a formulation that we created a few years ago, specifically for Watson's Hong Kong at <unk>.
Speaker Change: [noise], Okay, great and will that be launched on your own website or another website. It will be launched on our website and other websites. Okay. Great and then maybe I could just follow up on the.
Speaker Change: Request.
Speaker Change: We're making a few alterations to that formula as well and intend to launch it here in the U S. Perhaps as early as this year.
Speaker Change: Okay, great and will that be launched on your own website or another website.
Speaker Change: Do you already have plans on kind of what channels will that be rolling out the clinics will it be rolling out you know at other even you know D. T C kind of clinic providers, where you know consumers could even order them online or how should we think about that.
Speaker Change: It will be launched on our web site and other web sites.
Speaker Change: Okay great.
Speaker Change: And then maybe I could just follow up on that.
Speaker Change: The next question.
Speaker Change: Talked about the at home opinions play rolling out <unk>.
Speaker Change: I guess I'm curious.
Speaker Change: <unk>.
Speaker Change: Do you already have plans on kind of what channels will that be rolling out the clinics will be rolling out.
Ethan: Other Ethan.
Speaker Change: C.
Speaker Change: Kind of in clinic provider, where consumers could even order them online or how should we think about that.
Speaker Change: We don't have any deals like that to announce presently and it will likely also be available on other platforms like Google shop for example.
Speaker Change: Yes, we expect that consumers will be able to order them online.
Speaker Change: And it might be through some of these telehealth companies that presently are selling GLC one at home products.
Speaker Change: The one thing to point out that's important to remember is we sell NIAGEN to the compound pharmacy. The compound pharmacy, then sells to those telehealth companies and clinics. So we are not seller to those.
Speaker Change: We don't have any deals like that to announce presently.
Speaker Change: And it will likely also be available on other platforms like Google shop for example.
Speaker Change: But one thing to.
Speaker Change: Pointed out that's important to remember.
Speaker Change: Customers, we are more marketers of course, we're very very involved in that process and we develop very close relationships with these clinics and telehealth companies. Indeed in most cases, we actually bring them to the pharmacy.
Speaker Change: As we sell.
Speaker Change: <unk> to the compound pharmacy.
Speaker Change: The compounding pharmacy, then sells to.
Speaker Change: To those.
Speaker Change: Telehealth companies and clinics. So we are not the direct seller to those.
Speaker Change: But it's an important distinction to understand in the supply chain. Okay. Great. Thanks. So much good luck the rest of the year. Thank you Susan.
Speaker Change: Customers, we are more marketers of course, we're very very involved in that process and we develop very close relationships.
Speaker Change: With these clinics and telehealth companies indeed in most cases, we actually bring them to the pharmacy.
Speaker Change: And your next question comes from the line of J P. Mark with farmhouse equity research. Your line is open.
Speaker Change: But it's an important distinction to understand in the supply chain.
Speaker Change: Hey, Rob I I was on I just wanted to pay my questions have been asked and answered I just wanted to send along to my congratulations on a great quarter. Thank you very much.
Speaker Change: Okay great.
Paul: Paul Thanks, so much good luck the rest of the year.
Susan: Thank you Susan.
Speaker Change: And your next question comes from the line of JP, Mark with farmhouse equity Research. Your line is open.
Speaker Change: Thank you. Thank you.
Speaker Change: And there are no further questions at this time Wesley U I turn the call back over to you.
Speaker Change: Hey, Rob.
Speaker Change: I just wanted to turn my questions have been asked and answered, but I just wanted to send along my congratulations on a great quarter.
Speaker Change: Thank you Kayla there will be a replay of this call beginning at 730 P. M. Eastern time today. The replay number is one 807 702030 and the replay I'd is 8584242. Thank.
Speaker Change: Thank you very much.
Speaker Change: Alright, thank you.
Speaker Change: Thank you.
Speaker Change: And there are no further questions at this time Wesley you I turn the call back over to you.
Speaker Change: Okay and for your continued support of Nigen Bioscience.
Speaker Change: Thank you Kayla there will be a replay of this call beginning at 730 PM Eastern time today.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Replay number is one 870 702030 and the replay is 858.
Speaker Change: <unk>.
Speaker Change: Everyone for joining today and for your continued support of <unk> Biosciences.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Please wait the conference will begin shortly.
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