Niagen Bioscience, Inc. Common Stock Midwest IDEAS Conference

Hi, everyone. Nice to see everyone. Thanks for joining today. I want to first ask the group who is familiar with NAD, what NAD is, other than Bill? Just one person. NAD is a coenzyme that exists in every living cell of every living being. It is vital for DNA repair, cellular defense, and energy production. It declines as we age. Between the ages of 30 and 70, your NAD levels are shown to decline by 65%. What does this mean? This means that if you think about how you used to recover when you were younger from sports, when you sprain your ankle or hurt your wrist, then you are able to get back to playing whatever sport you were playing. As you age, that can turn from weeks to months, and it can increase over time, and sometimes you may never play the sport that you are playing again.

That is because the NAD levels in your tissue have declined, and they are unable to repair themselves. There is one problem with NAD. NAD is a large molecule that if it is outside of your cell, it cannot enter your cell. It has a phosphate group around it, and the only way that you can elevate your NAD levels is by taking a precursor. If you are taking an NAD product as a dietary supplement or injecting yourself with an NAD or IV product, it is not going to elevate your NAD levels in the tissue and in the cell. That is what we sell. We have patented nicotinamide riboside. We sell it under the brand name of Niagen as an ingredient, and we have commercialized it as a supplement ourselves as our consumer product. Niagen Bioscience is the world's leading NAD company.

We tackle aging, and we do that by selling Niagen. We sell Niagen as an ingredient to other supplement companies. We sell our own consumer product through Niagen through various e-commerce channels and retail. We sell Niagen Plus, which is our IV and injection product, and we have entered into the skincare business. These are some of the highlights of our business. We have a cash-generating business, which provides strategic optionality to our company. I will talk a bit more about this a little bit later about our core business and how we are approaching our business model. We have strategic partnerships with blue-chip companies like Nestlé, who is also a shareholder in the company, just under 5%, and Watsons, which is one of our largest distribution partners. We have accomplished all this by growing profitably and maintaining a very healthy and strong balance sheet.

In the last 12 months, we had $127 million of revenues. We had $16 million of net income, and we finished last quarter with just under $67 million in cash and no debt. We also have an incredibly clean cap table. We have 79 million shares outstanding. We have no warrants in the company, and we continue to operate the business very conservatively. Our business is backed by our very strong patent portfolio. We have over 100 patents covering many different precursors, not just NR. Probably one of our largest opportunities is our drug development pipeline. We have done over 500 published studies on NR, and we have done more than 46 now clinical trials on NR.

Some of these were in rare genetic diseases and accelerated aging diseases, and we have seen remarkable results in those. We are developing a new molecule that is similar to NR, but it is significantly more bioavailable and it has a different safety profile. We are purposing that molecule for drug development in the rare disease space. When I talk about our core business, it is our branded product of Tru Niagen. I have some samples here that you guys can grab after the presentation. We have our ingredient partners like Nestlé, Life Extension, H&H, where we sell the ingredient. We have entered into the injectable and telehealth space. Injectables in the IV space, we entered into 2024, and we recently launched our telehealth business. We entered into the skincare business with our first product. We are going to have another launch of that later this year.

As I mentioned earlier, our drug development pipeline. Niagen has an incredibly impressive scientific advisory board. We have Charles Brenner, who is the world's foremost authority on NAD metabolism. He is the one who discovered NR and the NR kinase pathway, the way that NR can enter your cells. We have a Nobel Prize winner with Roger Kornberg. We have Rudy Tanzi, who is a leading researcher in Alzheimer's. We have the world's leading authority on milk. NR is actually found in milk, the elixir of life. We have an aging expert, Hassy Cohen, who is also an expert in peptides and has patented various very popular peptides in the past.

We have one of the world's leading breast cancer researchers who has studied NAD supplementation and cancer. We have Dr. Will Bohr, who is helping us also with our rare disease drug development, and is one of the world's most published researchers on aging. NAD has become incredibly popular over the years, and especially recently, we have had many celebrities talk about NAD. They take NAD products, and super majority of them take Tru Niagen. I will not get into the details of the market, but as you can imagine, anti-aging market is incredibly large, and it remains to be captured by us. I will get into the consumer business and with our Tru Niagen product. This is our flagship product, Tru Niagen, at 1,000 milligrams. It is the most tested NAD booster out there. It is the most efficient and effective way to elevate NAD levels.

Our studies have shown that after 8 weeks, your NAD levels increase by 40% to 50%. This is only one of our pieces of research. We have, as I said earlier, over 45 human clinical studies, over 500 published scientific studies, and many more research collaborations. The skincare opportunity is very interesting to us. We did a pilot launch of Niagen NanoCloud. One of the problems with NR is that it's not stable in water. The way to get around that is to change the format of how you apply your skincare product. This is a product that we developed that has hyaluronic acid and Niagen inside. You apply it to your face or your skin right at the time of use by mixing with a serum of your choice.

Our studies have shown really meaningful benefits for customers, and we did a pilot launch of this earlier this year. We sold out very quickly, and we expect to do a second launch of it later this year in October. You can find our products in many distribution channels. We recently launched at GNC and Sam's Club. We've been at Sprouts nationwide. We are in The Vitamin Shoppe, and internationally, you can find us in Watsons in Hong Kong, Singapore, Malaysia, and Philippines. We're in Australia and New Zealand through our partnership with Matakana Health, and we're on iHerb as well. This is in addition to our own website and our other e-commerce channels. The IV market for NAD, we think is a very meaningful market for us to go after.

It has been around for a little bit, and we estimate that it's about a $500 million market between the IV and injection market. We developed a pharmaceutical-grade version of Niagen. We got on the 503B Category 1 list, and we have launched an IV product through Compound Pharmacy Partners in 2024. We've been working on this ever since. The NAD IV gives us a very important benchmark of why Niagen is superior to NAD. The molecular difference that I described earlier between NAD and Niagen is very visible when you're looking at the IV product. NAD IV, because of that large molecule structure and the phosphate group, NAD molecule cannot enter your cells as you take an IV.

What happens is that it has to break down into different molecules, and it causes inflammation in the body, and it causes a lot of headaches and sweats and stomach pains. Because of that, you have to dial it down, and it ends up taking you 3, 4 hours to do an NAD IV. On the flip side, Niagen IV takes about 30 minutes, and there are no side effects. That is because of that molecular structure that I described earlier. We are now in over 1,700 clinics nationwide. Some of our largest partners are Restore Hyper Wellness and Drip Hydration. We continue to grow this network. Going to the drug development side. We recently made some announcements around our new molecule, NB4168. This is a differentiated molecule that we have, and we think it's better suited for pharmaceutical development.

It has a significantly improved bioavailability and a superior PK profile and a safety profile, which leads us to believe that it will have a higher therapeutic index. This is a very de-risked clinical development opportunity for us, we think. We have done two clinical trials to date on ataxia-telangiectasia using Tru Niagen, the supplement product, and they have had remarkable results. We have many other trials that were done on different diseases like Werner syndrome, citrin deficiency, and Cockayne and Friedreich's ataxia, and all of them have showed meaningful benefit to the patients. We think that ataxia is just the beginning of this program, and we are developing a new formulation for pediatric patients for NB4168. Essentially what the molecule does is that it releases significantly more active moiety into the bloodstream. It is not present in nature. It is not available as a supplement.

We have a much stronger patent portfolio around this molecule, including composition of matter patent. Some of the preclinical work we have done is shown on the right-hand side here. You can see the bioavailability of NR CL versus NB4168. It is significantly higher. It is designed to have superior efficacy. It avoids the gut microbiome, and it essentially is a delayed release of the product. What is ataxia-telangiectasia? This is the first indication that we are going after. Ataxia-telangiectasia is a rare disease. It is a genetic disease where the ATM gene is knocked out in these patients. ATM gene is a very busy gene. It has many different functions. When it doesn't work, it causes many issues in the body, and one of which is NAD depletion. These kids have non-detectable levels of NAD, and because of that, their cells are unable to repair themselves.