Co-Diagnostics, Inc. Reports Full Year 2022 Financial Results
Co-Diagnostics, Inc. (NASDAQ: CODX) reported a revenue of $34.2 million for the full year 2022, significantly down from $97.9 million in 2021, primarily due to reduced demand for Logix Smart™ COVID-19 tests. The company faced an operating loss of $27.0 million, compared to an operating income of $46.1 million the previous year. Net loss totaled $14.2 million, translating to a loss of $0.45 per diluted share. Despite these challenges, Co-Diagnostics initiated clinical evaluations for its Co-Dx PCR Home™ platform, signaling a shift towards at-home diagnostics. The company also repurchased 3.9 million shares for approximately $14.2 million.
- Initiated clinical evaluations for Co-Dx PCR Home platform, expanding diagnostics potential.
- Repurchased 3.9 million shares, thereby enhancing shareholder value.
- Cash, cash equivalents, and marketable securities totaled $81.3 million as of December 31, 2022.
- Revenue declined by 65% from the prior year due to lower COVID-19 testing demand.
- Operating loss of $27.0 million, reflecting a significant downturn in profitability.
- Net loss of $14.2 million, contrasting with the prior year's net income of $36.7 million.
Full-year Results Impacted by
Announced Initiation of Clinical Evaluations for Co-Dx PCR Home™ Platform
Full Year 2022 Financial Results:
- Revenue of
$34.2 million $97.9 million - Gross profit of
$28.7 million 84.0% of consolidated revenu - Operating loss of
$27.0 million $46.1 million - Net loss of
$14.2 million $36.7 million $0.45 $1.23 - Adjusted net income, net of goodwill impairment charges, of
$1.2 million $36.7 million $0.04 $1.23 - Adjusted EBITDA loss of
$3.1 million - Repurchased 3.9 million shares of common stock at an average price of
$3.66 $14.2 million - Cash, cash equivalents, and marketable securities of
$81.3 million December 31, 2022 - Cash flow from operations of
$6.6 million December 31, 2022
Full Year 2022 and Recent Business Highlights:
- Expanded the OEM agreement with Bio Molecular Systems for the Co-Dx Box™ magnetic induction PCR cycler to encompass 193 countries worldwide
- Designed and verified two testing products for mpox in response to urgent global health concern generated by that virus
- Received clearance from Indian regulators for JV CoSara hepatitis B and hepatitis C viral load tests, as well as a high-risk HPV multiplex test
- Authorized a
$30.0 million - Recently initiated clinical evaluations for Co-Dx PCR Home platform and initial COVID-19 test
- Completed strategic additions to the
Scientific Advisory Board appointingCarl Wittwer , M.D., Ph.D. as Chairman, as well asKaren C. Carroll , M.D,Noriko Kusukawa , Ph.D., andAnne Wyllie , Ph.D.
Conference Call and Webcast
Webcast: ir.codiagnostics.com on the Events & Webcasts page
Conference Call: 844-481-2661 (domestic) or 412-317-0652 (international)
The call will be recorded and later made available on the Company's website: https://codiagnostics.com
*The Co-Dx PCR Home platform is subject to FDA review and is not currently for sale.
About
Non-GAAP Financial Measures:
This 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. Additionally, this press release contains adjusted net income (loss), which is a non-GAAP measure defined as net income excluding goodwill impairment charges. The Company believes that adjusted EBITDA and adjusted net income (loss) provide useful information to management and investors relating to its results of operations. The Company's management uses these non-GAAP measures 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 and adjusted net income (loss) provide 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 they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making.
Management does not consider the non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of the non-GAAP financial measures is that they exclude 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 measures 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. Reconciliation tables of the net income, the most comparable GAAP financial measure, to adjusted EBITDA and adjusted net income (loss) are 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.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) that are subject to a number of risks and uncertainties. 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 (i) that we continue to see an emphasis on diagnostics shifting out of the centralized lab settings and towards at-home and point-of-care settings, (ii)anticipated development of multiplex panels, and (iii) that we will successfully complete the clinical trials required to support regulatory submissions. 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
CONSOLIDATED BALANCE SHEETS | ||||||||
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| |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 22,973,803 | $ | 88,607,234 | ||||
Marketable investment securities | 58,289,066 | 1,255,266 | ||||||
Accounts receivable, net | 3,453,723 | 20,839,182 | ||||||
Inventory | 5,310,473 | 2,004,169 | ||||||
Income taxes receivable | 1,870,419 | - | ||||||
Prepaid expenses and other current assets | 761,186 | 2,338,444 | ||||||
Note receivable | 75,000 | 75,000 | ||||||
Total current assets | 92,733,670 | 115,119,295 | ||||||
Property and equipment, net | 2,539,483 | 1,933,216 | ||||||
Operating lease right-of-use asset | 372,115 | - | ||||||
- | 14,706,818 | |||||||
Intangible assets, net | 26,768,333 | 27,195,000 | ||||||
Investment in joint venture | 672,679 | 1,004,953 | ||||||
Note receivable | - | 75,000 | ||||||
Total assets | $ | 123,086,280 | $ | 160,034,282 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 952,297 | $ | 607,506 | ||||
Accrued expenses, current | 934,447 | 3,859,652 | ||||||
Operating lease liability, current | 297,209 | - | ||||||
Contingent consideration liabilities, current | 1,689,471 | 5,767,304 | ||||||
Income taxes payable | - | 2,213,088 | ||||||
Deferred revenue | - | 150,000 | ||||||
Total current liabilities | 3,873,424 | 12,597,550 | ||||||
Long-term liabilities | ||||||||
Income taxes payable | 1,181,284 | 1,067,853 | ||||||
Deferred tax liability | 2,417,987 | 7,228,444 | ||||||
Operating lease liability | 50,708 | - | ||||||
Contingent consideration liabilities | 1,042,885 | 4,665,337 | ||||||
Total long-term liabilities | 4,692,864 | 12,961,634 | ||||||
Total liabilities | 8,566,288 | 25,559,184 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Stockholders' equity | ||||||||
Convertible preferred stock, authorized; 0 shares issued and outstanding as of and | - | - | ||||||
Common stock, 34,754,265 shares issued and 30,872,607 shares outstanding as of as of | 34,754 | 33,820 | ||||||
31, 2022 and | (14,211,866) | - | ||||||
Additional paid-in capital | 88,472,934 | 80,271,999 | ||||||
Accumulated other comprehensive income | 293,140 | - | ||||||
Accumulated earnings | 39,931,030 | 54,169,279 | ||||||
Total stockholders' equity | 114,519,992 | 134,475,098 | ||||||
Total liabilities and stockholders' equity | $ | 123,086,280 | $ | 160,034,282 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||
Years Ended | ||||||||
2022 | 2021 | |||||||
Revenue | $ | 34,218,209 | $ | 97,885,603 | ||||
Cost of revenue | 5,481,092 | 11,574,944 | ||||||
Gross profit | 28,737,117 | 86,310,659 | ||||||
Operating expenses | ||||||||
Sales and marketing | 7,344,628 | 13,397,813 | ||||||
General and administrative | 14,262,963 | 11,550,615 | ||||||
Research and development | 17,438,098 | 14,961,916 | ||||||
Depreciation and amortization | 1,282,718 | 335,363 | ||||||
15,388,546 | - | |||||||
Total operating expenses | 55,716,953 | 40,245,707 | ||||||
Income (loss) from operations | (26,979,836) | 46,064,952 | ||||||
Other income (expense) | ||||||||
Interest income | 704,044 | 45,631 | ||||||
Loss on disposition of assets | (138,117) | (44,355) | ||||||
Gain on remeasurement of acquisition contingencies | 7,899,644 | - | ||||||
Loss on equity method investment in joint venture | (332,969) | (430,433) | ||||||
Total other income (expense) | 8,132,602 | (429,157) | ||||||
Income (loss) before income taxes | (18,847,234) | 45,635,795 | ||||||
Income tax provision (benefit) | (4,608,985) | 8,977,231 | ||||||
Net income (loss) | $ | (14,238,249) | $ | 36,658,564 | ||||
Other comprehensive income | ||||||||
Change in net unrealized gains on marketable securities, net of tax | $ | 293,140 | $ | - | ||||
Total other comprehensive income | $ | 293,140 | $ | - | ||||
Comprehensive income (loss) | $ | (13,945,109) | $ | 36,658,564 | ||||
Earnings per common share: | ||||||||
Basic | $ | (0.45) | $ | 1.27 | ||||
Diluted | $ | (0.45) | $ | 1.23 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 31,479,028 | 28,874,555 | ||||||
Diluted | 31,479,028 | 29,903,686 | ||||||
GAAP AND NON-GAAP MEASURES | ||||||||
Reconciliation of net income to adjusted EBITDA: | ||||||||
Years Ended | ||||||||
2022 | 2021 | |||||||
Net income (loss) | $ | (14,238,249) | $ | 36,658,564 | ||||
Interest income | (704,044) | (45,631) | ||||||
Depreciation and amortization | 1,282,718 | 335,363 | ||||||
Transaction costs | 139,342 | 151,305 | ||||||
Change in fair value of contingent consideration | (7,899,644) | - | ||||||
Stock-based compensation expense | 7,543,223 | 5,509,404 | ||||||
Income tax provision | (4,608,985) | 8,977,231 | ||||||
15,388,546 | - | |||||||
Adjusted EBITDA | $ | (3,097,093) | $ | 51,586,236 | ||||
Reconciliation of net income (loss) to adjusted net income (loss): | ||||||||
Years Ended | ||||||||
2022 | 2021 | |||||||
Net income (loss) | $ | (14,238,249) | $ | 36,658,564 | ||||
15,388,546 | - | |||||||
Adjusted net income (loss) | $ | 1,150,297 | $ | 36,658,564 | ||||
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FAQ
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