Cardax sales quadruple but loss widens

Cardax Inc.’s revenue quadrupled in the second quarter as sales of its new anti-inflammatory product remained strong in Hawaii and picked up speed in California, Nevada and New York.

The Honolulu-based company, which launched ZanthoSyn in August 2016, generated $272,049 in sales during the April-June period compared with $66,237 in the year-earlier quarter. Cardax began selling its product to General Nutrition Corp. stores in Hawaii on Jan. 25, 2017, and GNC stores across the United States on Aug. 10, 2017.

Despite higher sales, Cardax saw its quarterly loss triple in the period to $1.1 million from $383,043 on increased operating expenses in all categories, according to a company report Monday.

“We are very pleased to see continuing sales growth in the selected U.S. markets where we have focused our sales and marketing efforts thus far,” Cardax President and CEO David Watumull said in a statement.

Cardax, which has raised cash by issuing securities in its operations, raised an additional $1.44 million in gross proceeds through the exchange of 9.6 million warrants during a warrant exchange offering that closed July 27. The warrants entitle the holders to purchase Cardax stock at a specific price until the expiration date.

Since inception in March 2010, the company has had a loss of about $60.1 million. Cardax has never had a quarterly profit due to the costs involved in researching and marketing the product. Cardax had $327,183 in cash as of June 30.

The company said in a filing with the Securities and Exchange Commission that it expects its marketing program for ZanthoSyn will continue to focus on outreach to physicians, health care professionals, retail personnel and consumers, and it anticipates further losses in the development of its business.

Cardax, which announced its results after the market closed Monday, saw its stock end the day virtually unchanged at 20 cents. It rose to 21 cents Tuesday.

ON THE MOVE

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