SAN DIEGO, Aug. 21, 2017 /PRNewswire/ -- MyDx, Inc. (OTCQB: MYDX), a rapidly growing science and technology company that has developed MyDx®, the first multi-use handheld chemical analyzer for consumers, announces its 2Q 2017 results and management analysis.
CannaDx Product Revenue increased to ~$126K in Q2 2017, up ~47% from Q1 2017
MyDx sold out of its signature handheld analyzer in Q1 on stronger than expected demand leading to a backlog of orders and customer deposits that are were filled in Q2.
The Company expects to continue to receive consistent growing demand for its analyzer based on word of mouth and referrals mainly as well as a new marketing initiatives the company launched late June which is generating new customer awareness and product orders from Canada.
The company will focus on deploying the EcoSmartPenTM in the second half of this year as well as expand its customer base for the MyDx360 SAAS service beyond the initial BlackSwan/i+Huntr brand agreement which was not recognized as revenue in this quarter.
Gross profit margins as a percentage of net revenues increased to 78% in Q2, a greater than 32% increase from the same period last year, the highest product margins in company history
The gross product margin was improved by an increase in MyDx Grower Packages sold for $899 on our online store, which yield a higher profit margin compared to the standard $699 retail package and a much higher margin compared to units sold through our distribution channels.
Any anticipated future revenue from the company's software licensing and services are expected to have a further positive impact on the overall gross profit margins
Research and Development Expenses decrease 81% with new accelerated product development approach
For the three months ended June 30, 2017, the Company expended $27,724 for various research and development projects for hardware, database, software and sensor development as compared to $145,885 for the three months ended June 30, 2016. The decrease of $118,161, or 81%, resulted primarily from the Company taking a more economical and streamlined outsourcing approach to developing new products (such as the Eco Smart PenTM, MyDx360TM, AeroDx®).
The company is taking the same approach to launch its next generation of CannaDxTM, AquaDx® and OrganaDx® products.
For the first time in company history, the company has generated a Net Positive Income as a direct result of a decrease in liabilities and gains generated through other income
The Company incurred net income of $2,967,808 compared to a Net Loss of $(936,665) for the three months ended June 30, 2017 and 2016, respectively.
The increase in net income resulted primarily from the decrease of interest expense related to the convertible notes payable, an increase in a gain on fair value of derivative liability, a gain on settlement of debt, and a gain of $135,000 on the forfeiture a technology transfer deposit. These were offset by an increase in derivative expense.
New Product Offering Operating Results
The company updated its CannaDx product webpage (www.mydxlife.com) and launched a Marketing Campaign in Canada which is already yielding new sales from customers in Canada.
The company closed its first big customer under its newly created MyDx360 SaaS Licensing and Services platform with an ~$80K agreement signed in Q2 with BlackSwan.
The company spent a lot of product development time and focus on the creation of the MyDx ECOSmart PenTM, a Bluetooth enabled delivery vaporizer pen capable of actively and passively tracking consumption habits as well as other unique features to be announced, and is on track to deploy this product in the second half of this year.
About MyDx, Inc. MyDx, Inc. (OTCQB: MYDX) is a chemical detection and sensor technology company based in San Diego, California whose mission is to help people Trust & Verify® what they put into their minds and bodies. The Company developed MyDx®, a patented, affordable portable analyzer that provides real-time chemical analysis and fits in the palm of the user's hand. The multi-use MyDx analyzer leverages over a decade of established chemical detection technology to measure chemicals of interest. The Company owns a substantial and growing intellectual property portfolio of patents covering its technology. The MyDx AquaDx®, OrganaDx(TM) and CannaDx(TM) sensors are now commercialized, and the AeroDx® application is next in line. All sensors will be compatible with a MyDx App that empowers consumers to live a healthier life by revealing the chemical composition of what they eat, drink and inhale. For more information, please visit www.cdxlife.com.
Forward-Looking Statements This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this press release that are not statements of historical fact may be considered to be forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, our ability to complete our product testing and launch our product commercially, the acceptance of our product in the marketplace, the uncertainty of the laws and regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission, available at http://ir.cdxlife.com/all-sec-filings or www.sec.gov.