The company basically says: we are not going to support BluScience in the future; it will be supported by a JV; in this manner we can continue to conserve cash and remain a viable entity; our business will be development for others to manufacture, distribute and market. This is reasonable and logical. Back in April I insisted that this had to be the only approach that they could follow. They should be ok, as I assume they are in negotiations on partnering (THEY HAD BETTER BE!!!). The financials were atrocious, as expected, and we will see terrible Q3 financials as well, but hopefully the smoke clears in Q4, and 2013 becomes THE YEAR... The future strategy looks very sound. BUT they need a/some great partners to make it happen. Hopefully DR. Frost can round up some excellent potential partners.
Just bumping this back to the top, since what the company said and what the company did, is exactly what happened. When the market goes back to the video tape and realizes everything is on track, we can resume.
Probably going to take a good look at next earnings for clues.
In all fairness joejoe 10Q did not say they were not going to support Blu..they said "The BluScience marketing program and inventory production for the balance of 2012 are in the process of being reviewed and adjusted downward." Sales were up again this Q and it sounds like they are having trouble keeping up with production.
"We anticipate that our current cash, cash equivalents and cash generated from operations, the capital raised during the six months ended June 30, 2012 (see Liquidity and Capital Resources below) will be sufficient to meet our projected operating plans through the end of December, 2012."
I guess we will see at the end of the year...they may need a JV or to raise capital...or something or someone might come to fruition after sept. 20th and the results are presented. We know the results are going to be great or they would not be presenting them at the American Heart Association's High Blood Pressure Research 2012 Scientific Sessions
I'd wager that CDXC has seen the future, and it is 'solely' development and licensing. Finding the right partner(s) means everything to this company.
They are telegraphing below, that they are totally revamping their business plan, and that they do not plan to spend beyond their means. That means putting the operational business end in the hands of a much larger entity. They have started with Glanbia on the ingredients side. This will de-risk the company, which is excellent, but it will be a pure science-license driven play. I hope that all the pieces are in place by Q1, 2013...that would be a reasonably fast timeline for a substantial change in business strategy. In the meantime, BluScience will have to limp along (CDXC says they are downwardly adjusting volume expectations at the same time they are DOUBLING points of distribution, assuming CVS and Meijers have accepted the product line as reported earlier, implying the turnover will be down dramatically at existing WAGS and GNC locations, meaning there will be pretty much ZERO marketing support) until the new claims are substantiated and put on the bottles.
At the heart conference, they must have something good to say on scientific results, but if I am any judge, I don't think it has a substantial impact on cholesterol....mine is up since cutting back on Lipitor and taking daily doses of Blu.
From the latest Q: .."The BluScience marketing program and inventory production for the balance of 2012 are in the process of being REVIEWED and adjusted downward."
Results of Operations..." we plan to seek to increase marketing and sales related efforts for these products, including our new dietary supplement product line BluScience, subject to available financial resources. However, we presently do NOT have available the necessary resources (financial and otherwise) to do so."