As previously disclosed, on December 29, 2016, ChromaDex, Inc. (“ChromaDex”) filed a complaint (the “Complaint”) in the United States District Court for the Central District of California, naming Elysium Health, Inc. as defendant. Among other allegations, ChromaDex alleges in the Complaint that (i) Elysium breached the Supply Agreement, dated June 26, 2014, by and between ChromaDex and Elysium Health, LLC (“Elysium”) (the “pTeroPure Supply Agreement”), by failing to make payments to ChromaDex for purchases of pTeroPure(R) pterostilbene (“pTeroPure”) to the pTeroPure Supply Agreement, (ii) Elysium breached the Supply Agreement, dated February 3, 2014, by and between ChromaDex and Elysium, as amended (the “NIAGEN Supply Agreement”), by failing to make payments to ChromaDex for purchases of NIAGEN(R) nicotinamide riboside (“NIAGEN”) to the NIAGEN Supply Agreement, (iii) Elysium breached the Trademark License and Royalty Agreement, dated February 3, 2014, by and between ChromaDex and Elysium (the “License Agreement”), by failing to make payments to ChromaDex for royalties due to the License Agreement and (iv) certain officers of Elysium made false promises and representations to induce ChromaDex into providing large supplies of pTeroPure and NIAGEN to Elysium to the pTeroPure Supply Agreement and NIAGEN Supply Agreement. ChromaDex is seeking punitive damages, money damages and interest.

On January 25, 2017, Elysium filed an answer and counterclaims (the “Counterclaim”) in response to the Complaint. Among other allegations, Elysium alleges in the Counterclaim that (i) ChromaDex breached the NIAGEN Supply Agreement by not issuing certain refunds or credits to Elysium and for violating certain confidential information provisions, (ii) ChromaDex breached the implied covenant of good faith and fair dealing to the NIAGEN Supply Agreement, (iii) ChromaDex breached certain confidential provisions of the pTeroPure Supply Agreement, (iv) ChromaDex fraudulently induced Elysium into entering into the License Agreement (the “Fraud Claim”), (v) ChromaDex’s conduct constitutes misuse of its patent rights (the “Patent Claim”) and (vi) ChromaDex has engaged in unlawful or unfair competition under California state law (the “Unfair Competition Claim”). Elysium is seeking damages for ChromaDex’s alleged breaches of the NIAGEN Supply Agreement and pTeroPure Supply Agreement, and compensatory damages, punitive damages and/or rescission of the License Agreement and restitution of any royalty payments conveyed by Elysium to the License Agreement.

On February 15, 2017, ChromaDex filed an amended complaint (the “Amended Complaint”). In the Amended Complaint, ChromaDex re-alleges the claims in the Complaint, and also alleges that Elysium willfully and maliciously misappropriated ChromaDex’s trade secrets. On February 15, 2017, ChromaDex also filed a motion to dismiss the Fraud Claim, the Patent Claim and the Unfair Competition Claim. While ChromaDex expresses no opinion as to the ultimate outcome of this matter, ChromaDex believes Elysium’s allegations are without merit and will vigorously defend against them.

About CHROMADEX CORPORATION (NASDAQ:CDXC)

Chromadex Corporation and its subsidiaries ChromaDex, Inc., ChromaDex Analytics, Inc. and Spherix Consulting, Inc. provide research and quality-control products and services to the natural products industry. The Company allows its business units to discover, acquire, develop and commercialize ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. The Company operates through three segments: Ingredients, which develops, supplies and commercializes ingredient technologies; Core standards and contract services, which supplies phytochemical reference standards, which are small quantities of plant-based compounds used to research an array of attributes, reference materials and related contract services, and Scientific and regulatory consulting, which provides scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage health and regulatory risks.

CHROMADEX CORPORATION (NASDAQ:CDXC) Recent Trading Information

CHROMADEX CORPORATION (NASDAQ:CDXC) closed its last trading session up +0.02 at 2.88 with 122,838 shares trading hands.