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 on SEC Form 10-Q for the 3 month
period ending March 31, 2019 and provided updates on corporate
developments.
Q1 2019 Financial
Results:
- Revenue for the quarter totaled $3,400;
however, the Company’s Joint Venture in India also recognized
approximately $56,000 in revenue from the sale of the Company’s
primers and probes, which is anticipated to represent the beginning
of sales in the joint venture.
- The Company ended the quarter with cash
and equivalents of $5.42 million and no long-term debt. This
followed the sale of $3 million of preferred shares in January 2019
(which consisted of negotiating the conversion of a $2M note to
preferred stock, and an additional sale of $1M of preferred shares
for cash) leaving the Company debt-free.
- The Company completed a registered
direct offering in the quarter pursuant to its S-3 shelf
registration and sold 3,925,716 common shares, realizing gross
proceeds of approximately $5.5 million.
- Total liabilities and shareholder’s
equity at the end of the quarter was $6.12 million, compared with
$1.55 million at the end of the previous quarter.
- The Company reported a net loss for the
quarter of $1,368,389 compared with a net loss for the same quarter
in 2018 of $1,310,233. Of the increase in net loss of $58,156,
$29,687 was primarily the result of the increased operating
expenses for sales/marketing and R&D (itself offset by a
substantial decrease in general and administrative expenses), and
the remainder resulted from a loss on extinguishment of debt and
interest expense partially offset by a decrease in the loss on
investment related to the joint venture.
Management Discussion
Dwight Egan, Chairman and CEO of Co-Diagnostics, commented, “We
are pleased to report that our momentum has continued throughout
the first quarter of 2019. Co-Diagnostics closed the quarter on
substantially stronger financial footing than it began, and showed
a marked improvement from the same quarter last year as well. This
is evident in the first sales from our joint venture in India,
complete elimination of long-term debt, and a healthy balance sheet
to support our existing revenue-producing initiatives and product
development pipeline.
“This momentum is also evident in our technology and regulatory
milestones. In Q1 the Company received the CE mark for our highly
specific Zika/dengue/chikungunya multiplex assay, built on our
patented CoPrimer™ platform to address the needs of areas where
those diseases are found to occur together but are often
misdiagnosed. More recently we announced the patent filing for our
next-generation sequencing technology that will reduce NGS
preparation and hands-on user time, in an innovative PCR
application that the Company anticipates should provide near-term
revenue opportunities in the US and abroad.
“The Company’s CoPrimer platform was featured at the PAG XXVII
Conference in January 2019, which coincided with the announcement
of the first private label CoPrimer product, manufactured and
marketed by an international leader in the life sciences sector.
The manufacturer has since launched the product in a world-wide
marketing campaign, which we believe affords us the opportunity to
expand the footprint of CoPrimers to the manufacturer’s domestic
and international client base.
“In addition to the Company’s progress in AgBio, infectious
disease, and liquid biopsy, this quarter saw strong demand for our
mosquito vector products following the first distributor conference
hosted in our facilities. The conference was well-attended by
distributors of Co-Diagnostics’ products, and government,
environmental testing and private laboratory customers. The Company
looks forward to making announcements in the near future related to
product roll-outs and sales agreements.
“We expect our financial strength and technological and
regulatory advancements to continue to drive sales growth both
domestically and in India—where the joint venture manufacturing
facility was recently inaugurated—throughout this current quarter
and beyond.”
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, 2019 December 31, 2018
ASSETS: Current
Assets Cash and cash equivalents $ 5,412,593 $ 950,237 Accounts
receivables, net 42,557 13,420 Inventory 18,153 18,153 Prepaid
expenses 103,827 70,103 Total current assets
5,577,130 1,051,913 Other Assets Property and equipment, net
135,820 156,138 Investment in joint venture 408,393
345,121 Total other assets 544,213 501,259
Total assets $ 6,121,343 $ 1,553,172
LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT): Current Liabilities
Accounts payable $ 96,305 $ 148,967 Accrued expenses 121,206
174,444 Accrued expenses (related party) 120,000 120,000 Notes
payable net of discount of $0 and $91,428 — 1,908,572
Total current liabilities 337,511 2,351,983 Long-term Liabilities,
net of current portion Accrued expenses-long-term (related party)
220,000 260,000 Total long-term liabilities, net of
current portion 220,000 260,000 Total liabilities
557,511 2,611,983 Commitments and
contingencies STOCKHOLDERS’ EQUITY (DEFICIT): Convertible
preferred stock, $.001 par value; 5,000,000 shares authorized,
28,000 and no shares issued and outstanding, respectively 28 —
Common stock, $.001 par value, 100,000,000 shares
authorized; 17,015,766 and 12,923,373 shares issued and
outstanding, respectively. 17,016 12,923 Additional paid-in capital
25,609,344 17,622,433 Accumulated deficit (20,062,556 )
(18,694,167 ) Total stockholders’ equity (deficit)
5,563,832 (1,058,811 ) Total liabilities and
stockholders’ equity (deficit) $ 6,121,343 $ 1,553,172
CO – DIAGNOSTICS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) For the
Three MonthsEnded March 31, 2019
2018 Net sales $ 3,400 $ 9,696 Cost of sales 452
— Gross profit 2,948 9,696 Operating expenses: Sales and
marketing 256,103 95,263 Administrative and general 640,363 882,046
Research and development 347,306 297,415 Depreciation and
amortization 13,668 12,403 Total operating expenses
1,257,440 1,287,127 Loss from operations
(1,254,492 ) (1,277,431 ) Other expense: Interest income 408
7,561 Interest expense (106,427 ) — Gain on disposition of assets
850 — Loss on equity method investment in joint venture
(8,728 ) (40,363 ) Total other expense (113,897 )
(32,802 ) Loss before income taxes (1,368,389 ) (1,310,233 )
Provision for income taxes — — Net loss $ (1,368,389
) $ (1,310,233 ) Basic and diluted income (loss) per common
share $ (0.09 ) $ (0.11 ) Weighted average common shares
outstanding, basic and diluted 16,066,633 12,319,030
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190515005316/en/
Andrew BensonHead of Investor Relations+1
801-438-1036investors@codiagnostics.com
Co Diagnostics (NASDAQ:CODX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Co Diagnostics (NASDAQ:CODX)
Historical Stock Chart
From Sep 2023 to Sep 2024