Cardax Inc., which will start selling its new anti-inflammatory product in more than 3,200 General Nutrition Corp. corporate stores nationwide this fall, said Friday that it expects revenue to be “significantly higher” in the third quarter.
The Honolulu-based company, which began rolling out ZanthoSyn in late August, generated $66,237 in revenue during the second quarter and $174,227 for the first six months of the year.
Cardax said in a news release that revenue in the second quarter was down from the first quarter primarily due to the value of the initial order of ZanthoSyn in 29 Hawaii GNC stores in the first quarter. That order supported sales at GNC stores in the second quarter. This week’s GNC nationwide announcement was an expansion of an earlier GNC-Hawaii relationship.
“We are pleased to see GNC same-store sales of ZanthoSyn accelerate in the second quarter (from the first quarter),” Cardax CEO David Watumull said in a statement. “Physician recommendations and our outreach to GNC store personnel played a key role in this increase and position us well for continued growth.”
Cardax said its quarterly loss widened to $383,043 from $227,742 in the year-earlier period primarily due to ZanthoSyn sales and marketing activity. Operating expenses jumped
57 percent to $431,168 from $274,530 in the year-earlier quarter.
The company has lost $56.8 million since its inception in March 2010, according to the quarterly financial filing Cardax submitted Friday to the Securities and Exchange Commission.
Cardax’s stock, which trades over the counter, dipped 1.5 cents, or 6.5 percent, to 21.5 cents Friday
after soaring more than
31 percent Thursday to
23 cents following the GNC announcement.
“(The stock movement) reflects something real, which is the GNC relationship expansion,” Watumull said in a phone interview.
Cardax shares are up
95.5 percent this year.
