ChromaDex parts with accountant over independence concerns

Published 14/10/2024, 07:40
ChromaDex parts with accountant over independence concerns

LOS ANGELES, CA - ChromaDex Corp. (NASDAQ:CDXC), a company specializing in medicinal chemicals and botanical products, has announced a change in its certifying accountant, as detailed in a recent filing with the Securities and Exchange Commission (SEC).

On Monday, Marcum LLP informed ChromaDex that it would resign as the independent registered public accounting firm for the company, effective October 31, 2024.

The resignation is due to concerns over independence related to Marcum's upcoming merger with CBIZ (NYSE:CBZ) Inc., a provider of human resources consulting and health insurance brokerage services to ChromaDex. Marcum's departure is not the result of any disagreement on accounting practices or financial disclosures.

The audit reports for the fiscal years ending December 31, 2022, and December 31, 2023, conducted by Marcum, did not contain any adverse opinions or modifications related to audit scope or accounting principles. Furthermore, there were no disagreements or reportable events between ChromaDex and Marcum during those fiscal years and the subsequent interim period up to the date of the report.

In compliance with SEC regulations, ChromaDex has obtained a letter from Marcum, dated October 11, 2024, confirming their agreement with the statements made regarding their resignation. This letter is included as an exhibit in the SEC filing.

The company has not yet announced a successor accounting firm to take over its financial audit responsibilities following Marcum's resignation. This change comes at a time when ChromaDex continues its operations in the medicinal chemicals and botanical products sector, headquartered in Los Angeles, California.

The information reported is based on a press release statement and the recent SEC filing by ChromaDex Corp.

In other recent news, ChromaDex Corporation reported a 12% year-over-year increase in revenue, reaching $22.7 million for the second quarter of 2024. The company also noted a near breakeven net loss of $15,000 for the quarter. ChromaDex has appointed a new CFO, Ozan Pamir, who brings a wealth of experience from his previous position as CFO of 180 Life Sciences.

The company has successfully launched the Niagen Plus product line and anticipates a 10-15% year-over-year growth for 2024. In partnership with Wells Pharma of Houston, ChromaDex is expanding the distribution of its Niagen product to 14 additional wellness clinics across the United States. This expansion follows the initial introduction of Niagen IV and injections at select clinics.

Furthermore, ChromaDex has announced strategic partnerships with entities like Watsons, Nestle Health Science, and Pure Encapsulations. These partnerships are expected to enhance brand awareness and market penetration. The firm remains optimistic about Niagen IV's potential in the GLP-1 market and among Parkinson's patients. These are the recent developments for ChromaDex.

InvestingPro Insights

To provide additional context to ChromaDex's recent announcement regarding its change in certifying accountant, it's worth examining some key financial metrics and insights from InvestingPro.

ChromaDex's financial position shows some interesting characteristics. According to InvestingPro data, the company has a market capitalization of $267.49 million USD. An InvestingPro Tip highlights that ChromaDex holds more cash than debt on its balance sheet, which could be seen as a positive factor for financial stability during this transition period.

In terms of growth, ChromaDex's revenue for the last twelve months as of Q2 2024 stands at $85.58 million USD, with a revenue growth of 5.74% over the same period. This growth trend is further supported by an InvestingPro Tip suggesting that net income is expected to grow this year, and analysts predict the company will be profitable this year.

However, it's important to note that ChromaDex is currently not profitable over the last twelve months, as indicated by another InvestingPro Tip. This context adds significance to the upcoming change in auditors and the importance of maintaining accurate financial reporting.

For investors interested in a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform currently lists 5 more tips for ChromaDex, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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