Co-Diagnostics, Inc. Announces Q2 2020 Results on Form 10-Q

Rhea-AI Summary

Co-Diagnostics, Inc. (Nasdaq: CODX) announced strong Q2 2020 results with revenue of $24.04 million and a net profit of $12.6 million, translating to $0.43 per share. The company reported gross margins of 70% on COVID-19 test sales. Stockholders' equity rose significantly to $33.4 million. As of June 30, 2020, cash reserves were $18.6 million, up $17.7 million from the previous year. CoSara Diagnostics received authorization to manufacture COVID-19 tests in India. The company also reported nearly $50 million in sales orders year-to-date, with plans to launch multiplex testing soon.

Positive

• Q2 2020 revenue of $24.04 million, net profit of $12.6 million.
• Gross margins on COVID-19 tests at 70%.
• Stockholders' equity increased to $33.4 million.
• Cash on hand reached $18.6 million, an increase of $17.7 million over the previous year.
• CoSara Diagnostics authorized to manufacture COVID-19 tests in India.
• Sales orders approaching $50 million year-to-date.

Negative

• None.

SALT LAKE CITY, Aug. 13, 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 3 month period ending June 30, 2020 on SEC Form 10-Q, and provided updates on Company developments.

Q2 2020 Highlights:

• Company continues COVID-19 test sales and reports $24.04 million of revenue in Q2;
• Net profit of $12.6 million in quarter and net income per common share of $0.43;
• Stockholders' equity increased to $33.4 million compared to $1.7 million at the beginning of the year.
• Gross margins of 70% on sales of Logix Smart™ COVID-19 test kits;
• CoSara Diagnostics, Company's India joint venture, receives authorization from CDSCO in India to manufacture and sell COVID-19 tests and records profit for the 2nd Quarter and YTD;
• Received FDA Emergency Use Authorization for COVID-19 test kit on April 3, 2020;
• Cash on hand was $18.6 million as of June 30, 2020, an increase of $17.7 million over 12/31/2019;
• Company is included in the Russell 2000^® and Russell 3000^® Index, widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.

Q3 2020 Mid-Quarter Highlights:

• Company records COVID-19 test and equipment sales orders approaching $50 million YTD, including joint venture sales in India, through mid-third quarter (unaudited);
• Receives purchase orders from public and private organizations in nearly 50 countries and over 25 states in the U.S. YTD;
• Company nears completion of principal design work and verification for Flu A, Flu B, and COVID-19 multiplex panel with anticipated deployment during Q3;
• Company announced that its partner Clinical Reference Lab has received FDA Emergency Use Authorization for CRL Rapid Response™, a saliva-based COVID-19 test that can be self-administered at home, work or any other setting and then tested using Co-Diagnostics' Logix Smart COVID-19 tests based on patented CoPrimer™ technology.

"In the last 4 months since Co-Diagnostics received emergency use authorization from the FDA, the Company has successfully grown our internationally recognized business and brand. With clients in over 50 countries, 25 U.S. states, and validations of test accuracy from regulatory bodies of numerous countries around the world, Co-Diagnostics has established a distribution platform that we believe will continue to support sales and profitability as our tests have gained widespread acceptance in the market. We have created a test menu and established the production capacity to meet demand for tests as the nations of the world continue to battle the pandemic, and believe these efforts will continue to bolster the Company's durability in the months and years to come," said Dwight Egan, Chief Executive Officer.

The Company will host an earnings call at 4:30 pm EDT today. Participants can register for access to the webcast here. The call will be recorded and later made available on the Company's website.

About Emergency Use Authorization:
The Co-Diagnostics SARS-CoV-2 Test has been made available under an emergency access mechanism called an Emergency Use Authorization (EUA). The EUA is supported by the Secretary of Health and Human Service's (HHS's) declaration that circumstances exist to justify the use of in vitro diagnostics (IVDs) under EUA for the detection and/or diagnosis of COVID-19. An IVD made available under an EUA has not undergone the same type of review as an FDA cleared IVD. However, based on the totality of scientific evidence available, it is reasonable to believe that this IVD may be effective in the detection of COVID-19. The EUAs for these tests are in effect for the duration of the COVID-19 emergency, unless terminated or revoked (after which the tests may no longer be used). An FDA cleared IVD should be used instead of an IVD under EUA, when applicable and available.

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)
		June 30, 2020				December 31, 2019
ASSETS:
Current Assets
Cash and cash equivalents		$	18,550,437			$	893,138
Accounts receivables, net			5,349,876				131,382
Inventory			10,110,786				197,168
Prepaid expenses			521,180				362,566
Total current assets			34,532,279				1,584,254
Other Assets
Property and equipment, net			473,376				196,832
Investment in joint venture			1,416,480				434,240
Total other assets			1,889,856				631,072
Total assets		$	36,422,135			$	2,215,326
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities
Accounts payable		$	1,127,709			$	5,959
Accrued expenses			691,385				200,788
Accrued expenses (related party)			120,000				120,000
Deferred revenue			1,045,548				1,323
Total current liabilities			2,984,642				328,070
Long-term Liabilities, net of current portion
Accrued expenses-long-term (related party)			80,000				150,000
Total long-term liabilities, net of current portion			80,000				150,000
Total liabilities			3,064,642				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 June 30, 2020 and December 31, 2019, respectively			—				26
Common stock, $0.001 par value, 100,000,000 shares authorized; 27,991,042 and 17,342,922 shares issued and outstanding, as of June 30, 2020 and December 31, 2019, respectively.			27,991				17,343
Additional paid-in capital			46,726,869				26,687,701
Accumulated deficit			(13,397,367)				(24,967,814)
Total stockholders' equity			33,357,493				1,737,256
Total liabilities and stockholders' equity		$	36,422,135			$	2,215,326

 

 

CO – DIAGNOSTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2020				2019				2020				2019
Net revenue		$	24,040,274			$	61,574			$	25,588,802			$	64,974
Cost of revenue			8,344,674				38,809				8,826,414				39,261
Gross profit			15,695,600				22,765				16,762,388				25,713
Operating expenses:
Sales and marketing			390,191				252,076				658,674				508,179
Administrative and general			2,191,034				807,769				3,650,518				1,448,132
Research and development			750,249				312,590				1,150,271				659,896
Depreciation and amortization			25,218				16,094				45,966				29,762
Total operating expenses			3,356,692				1,388,529				5,505,429				2,645,969
Income (loss) from operations			12,338,908				(1,365,764)				11,256,959				(2,620,256)
Other expense:
Interest income			38,173				19,640				45,748				20,048
Interest expense			—				—				—				(106,427)
Gain on disposition of assets			—				—				—				850
Gain (loss) on equity method investment in joint venture			258,559				1,728				267,740				(7,000)
Total other expense			296,732				21,368				313,488				(92,529)
Income (loss) before income taxes			12,635,640				(1,344,396)				11,570,447				(2,712,785)
Provision for income taxes			—				—				—				—
Net income (loss)		$	12,635,640			$	(1,344,396)			$	11,570,447			$	(2,712,785)
Basic income (loss) per common share		$	0.46			$	(0.08)			$	0.42			$	(0.16)
Diluted income (loss) per common share		$	0.43			$	(0.08)			$	0.40			$	(0.16)
Weighted average common shares outstanding basic			27,582,229				17,017,964				27,605,137				16,544,926
Weighted average common shares outstanding diluted			29,152,222				17,017,964				29,094,475				16,544,926

 

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SOURCE Co-Diagnostics

FAQ

What were Co-Diagnostics' Q2 2020 financial results?

Co-Diagnostics reported Q2 2020 revenue of $24.04 million and a net profit of $12.6 million, equating to $0.43 earnings per share.

How much cash did Co-Diagnostics have as of June 30, 2020?

As of June 30, 2020, Co-Diagnostics had $18.6 million in cash, an increase of $17.7 million from the beginning of the year.

What is the stock symbol of Co-Diagnostics?

The stock symbol for Co-Diagnostics is CODX.

What are the key highlights from Co-Diagnostics' Q2 2020 report?

Key highlights include $24.04 million in revenue, 70% gross margins, and increased stockholders' equity to $33.4 million.

What COVID-19 testing developments did Co-Diagnostics announce?

Co-Diagnostics announced they received FDA Emergency Use Authorization for their COVID-19 test and expected to launch a multiplex panel test.