I think it is more than if they think that Niagen is real. I think it has more to do with deception. Why are they being so secretive about the P&G deal? Why did the deal not include any up front payments to CDXC? I find it questionable as to why they only did $7 million in revenue this past quarter, considering all the new clients. Most importantly, why has there been no comments from the company yet? Any legitimate company would have come out with a response by now, unless the comments in the article are true.
I posted the following back in March and no one commented. Why does it seem like the deal (regarding the size of the deal) that was announced about 5LINX does not appear to be true?
Jaksch said the following in the CC:
"So NIAGEN continues to be our primary revenue growth driver. We began 2015 with just five NIAGEN customers and by the start of 2016, our customer account had risen to 13, so we are more than double the amount of customers. So if you take a look at if we only had five and we generated the revenue that we did last year, we expect those same customers that we had last year to continue to grow, but we have eight additional clients coming into this year, which is a good sign for what the revenue growth potential for NIAGEN might be. Although we may not give guidance, at least it will give you some indication of what effect that could have on our revenue. One better way to look at this might be that we actually have one client that we had last year and that one client we expect to actually do the same amount of revenue, just that one client, the same amount of revenue that we did with all of NIAGEN sales for last year."
Who is the one client? Perhaps it is 5LINX. Back in 2014, they signed a $62 million deal with them. In 2014, 5LINX would purchase $2.6 million in ingredients. From 2015 to 2017, 5LINX would purchase another $60 million in ingredients. If CDXC had only $12.5 million in ingredient sales in 2015 and all of that was attributed to 5LINX, one should expect $47.5 million in sales from them over 2016 and 2017.
Since it is reasonable to assume that all of the ingredients sales in 2015 did not come from 5LINX, one should expect that the number for 2016-2017 should be higher than $50 million. If they purchase $15 million this year, one should expect a purchase of $35 million next year. However which way the purchases are spread, it represents a significant increase in revenue over the next two years from just one client. With BPI and the rest coming on board this year, it should make things interesting.
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