Co-Diagnostics, Inc. Announces Q1 2020 Results and Provides Mid-Second Quarter Update

Company reports robust sales of COVID-19 tests as Co-Diagnostics generates net profit through middle of second quarter

News provided by

Co-Diagnostics

May 14, 2020, 16:01 ET

SALT LAKE CITY, May 14, 2020 /PRNewswire/ -- Co-Diagnostics, Inc. (Nasdaq: CODX), a molecular diagnostics company with a unique, patented platform for the development of molecular diagnostic tests, announced today the filing of its operating results for the three-month period ending March 31, 2020, and provided updates on Company developments.

Q1 2020 Highlights:

  • Company commences COVID-19 test sales and reports $1.5 Million of revenue in Q1
  • Gross margins of 71.5% on sales of Logix Smart™ COVID-19 test kits
  • Raised capital with net proceeds of $18 million
  • First US company to receive CE marking for COVID-19 test kit (February 24)

Q2 2020 Mid-Quarter Highlights:

  • Receives FDA Emergency Use Authorization on COVID-19 test kit on April 3, 2020;
  • Company manufactures more than 6 million COVID-19 tests to date, and has ordered components for more than 20 million additional tests to fill existing and expected orders in the near future;
  • Records COVID-19 test and equipment sales of over $18 Million YTD through mid-second quarter (unaudited);
  • Receives COVID-19 test orders from public and private organizations in nearly 50 countries and over 15 states in the U.S.;
  • COVID-19 test kit shows 100% specificity and 100% sensitivity in several independent evaluations;

"Co-Diagnostics has increased production capacity to meet growing demand for our tests," said Dwight Egan, Chief Executive Officer. "We have positioned the company to continue to make an important contribution in meeting the enormous demand for tests around the world. Our value proposition of accurate, high-throughput, and cost-effective tests continues to resonate with customers around the globe."

The Company will host an earnings call at 4:30 pm EDT today. Analysts providing coverage for Co-Diagnostics will also be invited participate in a question and answer session. U.S. callers may dial toll free at 1-877-309-2073. International callers can access the call by dialing +1-646-749-3129. The access code to join the call is: 531-241-589. The call will be recorded and later made available on the Company's website.

About Co-Diagnostics, Inc.:
Co-Diagnostics, Inc., a Utah corporation, is a molecular diagnostics company that develops, manufactures and markets a new, state-of-the-art diagnostics technology. The Company's technology is utilized for tests that are designed using the detection and/or analysis of nucleic acid molecules (DNA or RNA). The Company also uses its proprietary technology to design specific tests to locate genetic markers for use in industries other than infectious disease and license the use of those tests to specific customers.

Forward-Looking Statements:
This press release contains forward-looking statements. Forward-looking statements can be identified by words such as "believes," "expects," "estimates," "intends," "may," "plans," "will" and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made and predictions as to future facts and conditions.  Forward-looking statements in this release include statements regarding the (i) use of funding proceeds, (ii) expansion of product distribution, (iii) acceleration of initiatives in liquid biopsy and SNP detection, (iv) use of the Company's liquid biopsy tests by laboratories, (v) capital resources and runway needed to advance the Company's products and markets, (vi) increased sales in the near-term, (vii) flexibility in managing the Company's balance sheet, (viii) anticipation of business expansion, and (ix) benefits in research and worldwide accessibility of the CoPrimer technology and its cost-saving and scientific advantages. Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances.  Actual results may differ materially from those contemplated or anticipated by such forward-looking statements. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statement relating to matters discussed in this press release, except as may be required by applicable securities laws.

CO – DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



March 31, 2020

December 31, 2019

ASSETS:






Current Assets






Cash and cash equivalents

$

17,369,323

$

893,138

Accounts receivables, net

1,055,738


131,382

Inventory

686,078


197,168

Prepaid expenses

499,327


362,566

Total current assets

19,610,466


1,584,254

Other Assets






Property and equipment, net

276,454


186,832

Investment in joint venture

593,421


434,240

Total other assets

869,875


631,072








Total assets

$

20,480,341

$

2,215,326








LIABILITIES AND STOCKHOLDERS' EQUITY:














Current Liabilities






Accounts payable

$

132,516

$

5,959

Accrued expenses

496,524


200,788

Accrued expenses (related party)

120,000


120,000

Deferred revenue

444,332


1,323

Total current liabilities

1,193,372


328,070

Long-term Liabilities, net of current portion






Accrued expenses-long-term (related party)

120,000


150,000

Total long-term liabilities, net of current portion

120,000


150,000

Total liabilities

1,313,372


478,070








STOCKHOLDERS' EQUITY






Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 and 25,600 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively

—


26








Common stock, $0.001 par value, 100,000,000 shares authorized; 27,451,064 and 17,342,922 shares issued and outstanding, as of March 31, 2020 and December 31, 2019, respectively.

27,451


17,343

Additional paid-in capital

45,172,525


26,687,701

Accumulated deficit

(26,033,007)


(24,967,814)

Total stockholders' equity

19,166,969


1,737,256








Total liabilities and stockholders' equity

$

20,480,341

$

2,215,326

CO – DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) 



For the Three Months
Ended March 31,


2020

2019

Net sales

$

1,548,528

$

3,400

Cost of sales

481,740


452

Gross profit

1,066,788


2,948

Operating expenses:






Sales and marketing

268,483


256,103

Administrative and general

1,459,484


640,363

Research and development

400,022


347,306

Depreciation and amortization

20,748


13,668

Total operating expenses

2,148,737


1,257,440

Loss from operations

(1,081,949)


(1,254,492)

Other expense:






Interest income

7,575


408

Interest expense

—


(106,427)

Gain on disposition of assets

—


850

Gain (loss) on equity method investment in joint venture

9,181


(8,728)

Total other expense

16,756


(113,897)

Loss before income taxes

(1,065,193)


(1,368,389)

Provision for income taxes

—


—

Net loss

$

(1,065,193)

$

(1,368,389)








Basic and diluted income (loss) per common share

$

(0.05)

$

(0.09)








Weighted average common shares outstanding, basic and diluted

22,820,450


16,066,633

SOURCE Co-Diagnostics

Related Links

http://www.codiagnostics.com

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