Full Press Release Details
Inc. Reports Third Quarter 2023 Financial Results
grant award from the Bill & Melinda Gates Foundation in the amount of $9.0M for the development of tuberculosis test on Co-Dx
LAKE CITY, November 9, 2023- Co-Diagnostics, Inc. (NASDAQ: CODX), a molecular diagnostics company with a unique, patented platform
for the development of molecular diagnostic tests, today announced financial results for the quarter ended September 30, 2023.
Quarter 2023 Financial Results:
| Revenue of $2.5 million, down from $5.1 million during the prior year primarily due to the anticipated decline in global demand for COVID-19 tests. Grant revenue totaled $2.3 million while product revenue totaled $0.1 million | ||
| Operating expenses of $11.1 million increased by 2.5% from the prior year same period due to investments in our Co-Dx PCR platform* | ||
| Operating loss of $8.9 million compared to operating loss of $6.5 million a year ago | ||
| Net loss of $6.0 million, compared to net loss of $1.4 million in the prior year second quarter, representing a loss of $0.20 per fully diluted share, compared to a loss of $0.04 per fully diluted share in the prior year period | ||
| Adjusted EBITDA loss of $6.5 million | ||
| Repurchased 149,041 shares of common stock at an average price of $1.12 per share for an aggregate purchase price of approximately $0.2 million | ||
| Cash, cash equivalents, and marketable securities of $63.4 million as of September 30, 2023 | ||
| 2023 Recent Business Highlights: | ||
| Continue to expect EUA submission to the FDA for our Co-Dx PCR Pro platform and COVID-19 assay before the end of 2023 | ||
| Received additional grant funding from the Bill & Melinda Gates Foundation in the amount of $9.0M, to be applied towards regulatory and clinical validation activities for our tuberculosis test and additional manufacturing and platform development | ||
| Appointed Ivory Chang as Chief Regulatory Affairs Officer, who previously worked at multiple large, renowned diagnostic companies, and brings many years of experience in in-vitro diagnostic product and point-of-care regulatory submissions to Co-Diagnostics | ||
| Participated in several investor conferences, trade shows, and industry events to share Co-Diagnostics' vision for increasing accessibility of PCR diagnostics worldwide, the Company's unique value proposition, and updates on its new platform |
Egan, Co-Diagnostics' Chief Executive Officer, said, "We are pleased to report $2.3 million in grant revenue, bringing our
total revenue to approximately $2.5 million in the third quarter of 2023. We remain excited for the future of Co-Diagnostics and believe
that the additional grant funding we recently received further validates the disruptive nature of our platform. The Company expects to
finalize an EUA submission to the FDA for the COVID-19 test on our Co-Dx PCR platform by year-end. We anticipate our new platform will
serve as the foundation for Co-Diagnostics' future development initiatives and believe that our patented Co-Primers technology
allows for reliable, affordable high-quality test results and look forward to delivering our unique platform to the market."
remain committed on our strategy and mission and continue to progress in the development of other test indications beyond Covid-19 for
the new platform: TB, multiplex respiratory, and HPV," said Brian Brown, Co-Diagnostics' Chief Financial Officer. "We
are pleased with our progress this year and believe in the potential for the new platform to have a transformative effect on diagnostics
will host a conference call and webcast at 4:30 p.m. EDT today to discuss its financial results with analysts and institutional investors.
The conference call and webcast will be available via:
ir.codiagnostics.com on the Events & Webcasts page
Call: 844-481-2661 (domestic) or 412-317-0652 (international)
call will be recorded and later made available on the Company's website: https://codiagnostics.com.
Co-Dx PCR at-home and point-of-care platform (including the PCR Home , PCR Pro , mobile app, and all associated tests) is
subject to review by the FDA and/or other regulatory bodies and is not currently available for sale.
Co-Diagnostics, Inc.:
Inc., a Utah corporation, is a molecular diagnostics company that develops, manufactures and markets state-of-the-art diagnostics technologies.
The Company's technologies are 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 for its Co-Dx PCR at-home and point-of-care platform
and to locate genetic markers for use in applications other than infectious disease.
press release contains adjusted EBITDA, which is a non-GAAP measure defined as net income excluding depreciation, amortization, income
tax (benefit) expense, net interest (income) expense, stock-based compensation, and one-time transaction related costs. The Company believes
that adjusted EBITDA provides useful information to management and investors relating to its results of operations. The Company's
management uses this non-GAAP measure to compare the Company's performance to that of prior periods for trend analyses, and for
budgeting and planning purposes. The Company believes that the use of adjusted EBITDA provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other companies, many
of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics
used by management in its financial and operational decision-making.
does not consider the non-GAAP measure in isolation or as an alternative to financial measures determined in accordance with GAAP. The
principal limitation of the non-GAAP financial measure is that it excludes significant expenses that are required by GAAP to be recorded
in the Company's financial statements. In order to compensate for these limitations, management presents the non-GAAP financial
measure together with GAAP results. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but
should not be considered a substitute for, or superior to, GAAP results. A reconciliation table of the net income, the most comparable
GAAP financial measure to adjusted EBITDA, is included at the end of this release. The Company urges investors to review the reconciliation
and not to rely on any single financial measure to evaluate the company's business.
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 completion of development and FDA submission for approval of the Co-Dx PCR platform by end of this year. 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. There can be no assurance that any of the anticipated results will occur on a timely basis or at all
due to certain risks and uncertainties, a discussion of which can be found in our Risk Factors disclosure in our Annual Report on Form
10-K, filed with the Securities and Exchange Commission (SEC) on March 16, 2023, and in our other filings with the SEC. 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.
of Investor Relations
INC. AND SUBSIDIARIES
| September 30, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 10,239,898 | $ | 22,973,803 | ||||
| Marketable investment securities | 53,188,999 | 58,289,066 | ||||||
| Accounts receivable, net | 806,704 | 3,453,723 | ||||||
| Inventory, net | 4,520,430 | 5,310,473 | ||||||
| Income taxes receivable | 1,245,854 | 1,870,419 | ||||||
| Prepaid expenses and other current assets | 1,290,146 | 761,187 | ||||||
| Note receivable | 18,750 | 75,000 | ||||||
| Total current assets | 71,310,781 | 92,733,671 | ||||||
| Property and equipment, net | 2,808,339 | 2,539,483 | ||||||
| Deferred tax asset | 4,272,002 | - | ||||||
| Operating lease right-of-use asset | 3,032,337 | 372,115 | ||||||
| Intangible assets, net | 26,479,333 | 26,768,333 | ||||||
| Investment in joint venture | 778,943 | 672,679 | ||||||
| Total assets | $ | 108,681,735 | $ | 123,086,281 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,416,435 | $ | 952,296 | ||||
| Accrued expenses, current | 1,826,639 | 934,447 | ||||||
| Operating lease liability, current | 794,516 | 297,209 | ||||||
| Contingent consideration liabilities, current | 710,651 | 1,689,471 | ||||||
| Deferred revenue | 349,499 | - | ||||||
| Total current liabilities | 5,097,740 | 3,873,423 | ||||||
| Long-term liabilities | ||||||||
| Income taxes payable | 1,359,725 | 1,181,284 | ||||||
| Deferred tax liability | - | 2,417,987 | ||||||
| Operating lease liability | 2,250,393 | 50,708 | ||||||
| Contingent consideration liabilities | 484,332 | 1,042,885 | ||||||
| Total long-term liabilities | 4,094,450 | 4,692,864 | ||||||
| Total liabilities | 9,192,190 | 8,566,287 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Stockholders' equity | ||||||||
| Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | - | - | ||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 35,367,100 shares issued and 30,658,580 shares outstanding as of September 30, 2023 and 34,754,265 shares issued and 30,872,607 shares outstanding as of December 31, 2022 | 35,367 | 34,754 | ||||||
| Treasury stock, at cost; 4,708,520 and 3,881,658 shares held as of September 30, 2023 and December 31, 2022, respectively | (15,416,122 | ) | (14,211,866 | ) | ||||
| Additional paid-in capital | 94,983,030 | 88,472,935 | ||||||
| Accumulated other comprehensive income | 612,649 | 293,140 | ||||||
| Accumulated earnings | 19,274,621 | 39,931,031 | ||||||
| Total stockholders' equity | 99,489,545 | 114,519,994 | ||||||
| Total liabilities and stockholders' equity | $ | 108,681,735 | $ | 123,086,281 |
INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Product revenue | $ | 136,533 | $ | 5,094,456 | $ | 936,296 | $ | 32,816,726 | ||||||||
| Grant revenue | 2,320,565 | - | 2,320,565 | - | ||||||||||||
| Total revenue | 2,457,098 | 5,094,456 | 3,256,861 | 32,816,726 | ||||||||||||
| Cost of revenue | 255,772 | 767,936 | 1,217,108 | 4,965,319 | ||||||||||||
| Gross profit | 2,201,326 | 4,326,520 | 2,039,753 | 27,851,407 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 1,904,395 | 1,889,907 | 5,343,692 | 6,014,280 | ||||||||||||
| General and administrative | 3,147,753 | 3,622,273 | 9,875,613 | 9,012,888 | ||||||||||||
| Research and development | 5,788,789 | 5,037,461 | 16,783,892 | 12,698,632 | ||||||||||||
| Depreciation and amortization | 296,340 | 312,494 | 917,596 | 984,100 | ||||||||||||
| Total operating expenses | 11,137,277 | 10,862,135 | 32,920,793 | 28,709,900 | ||||||||||||
| (Loss) from operations | (8,935,951 | ) | (6,535,615 | ) | (30,881,040 | ) | (858,493 | ) | ||||||||
| Other income, net | ||||||||||||||||
| Interest income | 322,877 | 298,184 | 717,141 | 371,248 | ||||||||||||
| Realized gain on investments | 425,446 | - | 1,254,718 | - | ||||||||||||
| Gain (loss) on disposition of assets | (2,578 | ) | 4,044 | (2,578 | ) | (138,117 | ) | |||||||||
| Gain on remeasurement of acquisition contingencies | 140,296 | 2,886,734 | 1,537,373 | 7,079,446 | ||||||||||||
| Gain (loss) on equity method investment in joint venture | (45,865 | ) | (129,047 | ) | 106,264 | (256,911 | ) | |||||||||
| Total other income, net | 840,176 | 3,059,915 | 3,612,918 | 7,055,666 | ||||||||||||
| Income (loss) before income taxes | (8,095,775 | ) | (3,475,700 | ) | (27,268,122 | ) | 6,197,173 | |||||||||
| Income tax (benefit) | (2,113,581 | ) | (2,114,638 | ) | (6,611,712 | ) | (1,470,058 | ) | ||||||||
| Net income (loss) | $ | (5,982,194 | ) | $ | (1,361,062 | ) | $ | (20,656,410 | ) | $ | 7,667,231 | |||||
| Other comprehensive income (loss) | ||||||||||||||||
| Change in net unrealized gains on marketable securities, net of tax | $ | 33,522 | $ | - | $ | 319,509 | $ | - | ||||||||
| Total other comprehensive income | $ | 33,522 | $ | - | $ | 319,509 | $ | - | ||||||||
| Comprehensive income (loss) | $ | (5,948,672 | ) | $ | (1,361,062 | ) | $ | (20,336,901 | ) | $ | 7,667,231 | |||||
| Earnings (loss) per common share: | ||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (0.04 | ) | $ | (0.70 | ) | $ | 0.24 | |||||
| Diluted | $ | (0.20 | ) | $ | (0.04 | ) | $ | (0.70 | ) | $ | 0.23 | |||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 29,361,300 | 31,321,368 | 29,306,572 | 32,109,213 | ||||||||||||
| Diluted | 29,361,300 | 31,321,368 | 29,306,572 | 33,002,539 |
INC. AND SUBSIDIARIES
AND NON-GAAP MEASURES
| Reconciliation of net income to adjusted EBITDA: | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income (loss) | $ | (5,982,194 | ) | $ | (1,361,062 | ) | $ | (20,656,410 | ) | $ | 7,667,231 | |||||
| Interest income | (322,877 | ) | (298,184 | ) | (717,141 | ) | (371,248 | ) | ||||||||
| Realized gain on investments | (425,446 | ) | - | (1,254,718 | ) | - | ||||||||||
| Depreciation and amortization | 296,340 | 312,494 | 917,596 | 984,100 | ||||||||||||
| Transaction costs | - | 13,038 | 310 | 139,209 | ||||||||||||
| Change in fair value of contingent consideration | (140,296 | ) | (2,886,734 | ) | (1,537,373 | ) | (7,079,446 | ) | ||||||||
| Stock-based compensation expense | 2,172,165 | 2,230,434 | 6,510,708 | 5,138,815 | ||||||||||||
| Income tax provision | (2,113,581 | ) | (2,114,638 | ) | (6,611,712 | ) | (1,470,058 | ) | ||||||||
| Adjusted EBITDA | $ | (6,515,889 | ) | $ | (4,104,652 | ) | $ | (23,348,740 | ) | $ | 5,008,603 |