Co-Diagnostics, Inc. Reports Second Quarter 2023 Financial Results
Co-Dx receives grant awards from the Bill & Melinda Gates Foundation; NIH RADx® Tech to develop tests on our new Co-Dx PCR Home™ platform
Second Quarter 2023 Financial Results:
- Revenue of
$0.2 million $5.0 million - Operating expenses of
$11.7 million 42.1% from the prior year same period due to our pre-commercialization investments in our Co-Dx PCR Home platform* - Operating loss of
$12.0 million $4.1 million - Net loss of
$8.9 million $2.7 million $0.31 $0.08 - Adjusted EBITDA loss of
$9.6 million - Repurchased 0.4 million shares of common stock at an average price of
$1.51 $0.6 million - Cash, cash equivalents, and marketable securities of
$69.1 million
2023 Recent Business Highlights:
- NIH awarded the Company
$1.2 million - The company was awarded two grants by the Bill & Melinda Gates Foundation in the amounts of
$1.33 million $987 K - Signed lease and began build-out of new manufacturing facility with capacity for up to 12 lines of production; first lines expected to be operational by end of 2023
- Received results from a recent usability and analytical study conducted by PATH, which investigated the limit-of-detection and ease-of-use of the Company's Co-Dx PCR Home platform, running the platform's COVID-19 assay
Dwight Egan, Co-Diagnostics' Chief Executive Officer, said, "While sales of our COVID diagnostic kits declined as expected, we continue to strengthen our position as we seek to expand our advanced PCR technology reach beyond the four walls of the lab to the places of greatest unmet need. We remain on track for FDA submission of our new Co-Dx PCR Home platform and initial testing product by the end of this year."
"We remain steadfast in our strategy and continue to progress toward our mission of making affordable, high-quality real-time PCR diagnostics available to all," said Brian Brown, Co-Diagnostics' Chief Financial Officer. "We are making notable progress toward our goals and move into the second half of this year with strong momentum."
Conference Call and Webcast
Co-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:
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 Co-Diagnostics, Inc.:
Co-Diagnostics, Inc., a
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. 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.
Management 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.
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 (i) completion of development and FDA submission for approval of the Co-Dx PCR Home platform by end of this year and (ii) 12 lines of production with first lines expected to be operational by end of 2023. 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.
CO-DIAGNOSTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 13,830,846 | $ | 22,973,803 | ||||
Marketable investment securities | 55,307,146 | 58,289,066 | ||||||
Accounts receivable, net | 1,097,393 | 3,453,723 | ||||||
Inventory, net | 4,691,068 | 5,310,473 | ||||||
Income taxes receivable | 1,439,451 | 1,870,419 | ||||||
Prepaid expenses and other current assets | 981,996 | 761,187 | ||||||
Note receivable | 37,500 | 75,000 | ||||||
Total current assets | 77,385,400 | 92,733,671 | ||||||
Property and equipment, net | 2,795,023 | 2,539,483 | ||||||
Deferred tax asset | 2,012,181 | - | ||||||
Operating lease right-of-use asset | 3,228,774 | 372,115 | ||||||
Intangible assets, net | 26,555,000 | 26,768,333 | ||||||
Investment in joint venture | 824,808 | 672,679 | ||||||
Total assets | $ | 112,801,186 | $ | 123,086,281 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,712,204 | $ | 952,296 | ||||
Accrued expenses, current | 1,628,765 | 934,447 | ||||||
Operating lease liability, current | 772,515 | 297,209 | ||||||
Contingent consideration liabilities, current | 744,172 | 1,689,471 | ||||||
Deferred revenue | 257,999 | - | ||||||
Total current liabilities | 5,115,655 | 3,873,423 | ||||||
Long-term liabilities | ||||||||
Income taxes payable | 1,203,975 | 1,181,284 | ||||||
Deferred tax liability | - | 2,417,987 | ||||||
Operating lease liability | 2,458,072 | 50,708 | ||||||
Contingent consideration liabilities | 591,107 | 1,042,885 | ||||||
Total long-term liabilities | 4,253,154 | 4,692,864 | ||||||
Total liabilities | 9,368,810 | 8,566,287 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders' equity | ||||||||
Convertible preferred stock, authorized; 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | - | - | ||||||
Common stock, 35,348,350 shares issued and 30,788,871 shares outstanding as of June 30, 2023 and 34,754,265 shares issued and 30,872,607 shares outstanding as of December 31, 2022 | 35,348 | 34,754 | ||||||
Treasury stock, at cost; 4,559,479 and 3,881,658 shares held as of June 30, 2023 and December 31, 2022, respectively | (15,249,796) | (14,211,866) | ||||||
Additional paid-in capital | 92,810,883 | 88,472,935 | ||||||
Accumulated other comprehensive income | 579,127 | 293,140 | ||||||
Accumulated earnings | 25,256,815 | 39,931,031 | ||||||
Total stockholders' equity | 103,432,377 | 114,519,994 | ||||||
Total liabilities and stockholders' equity | $ | 112,801,186 | $ | 123,086,281 | ||||
CO-DIAGNOSTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 197,806 | $ | 5,023,226 | $ | 799,763 | $ | 27,722,270 | ||||||||
Cost of revenue | 459,095 | 915,432 | 961,336 | 4,197,383 | ||||||||||||
Gross profit | (261,289) | 4,107,794 | (161,573) | 23,524,887 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing | 1,732,966 | 1,472,225 | 3,439,297 | 4,124,373 | ||||||||||||
General and administrative | 3,713,895 | 2,468,421 | 6,727,860 | 5,390,616 | ||||||||||||
Research and development | 5,981,043 | 3,889,844 | 10,995,103 | 7,661,171 | ||||||||||||
Depreciation and amortization | 305,246 | 424,342 | 621,256 | 671,606 | ||||||||||||
Total operating expenses | 11,733,150 | 8,254,832 | 21,783,516 | 17,847,766 | ||||||||||||
Income (loss) from operations | (11,994,439) | (4,147,038) | (21,945,089) | 5,677,121 | ||||||||||||
Other income | ||||||||||||||||
Interest income | 191,892 | 61,671 | 394,264 | 73,064 | ||||||||||||
Realized gain on investments | 411,190 | - | 829,272 | - | ||||||||||||
(Loss) on disposition of assets | - | (48,740) | - | (142,161) | ||||||||||||
Gain on remeasurement of acquisition contingencies | 359,405 | 812,822 | 1,397,077 | 4,192,712 | ||||||||||||
Gain (loss) on equity method investment in joint venture | (125,193) | (106,525) | 152,129 | (127,864) | ||||||||||||
Total other income | 837,294 | 719,228 | 2,772,742 | 3,995,751 | ||||||||||||
Income (loss) before income taxes | (11,157,145) | (3,427,810) | (19,172,347) | 9,672,872 | ||||||||||||
Income tax provision (benefit) | (2,238,320) | (741,507) | (4,498,131) | 644,580 | ||||||||||||
Net income (loss) | $ | (8,918,825) | $ | (2,686,303) | $ | (14,674,216) | $ | 9,028,292 | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Change in net unrealized gains on marketable securities, net of tax | $ | 107,366 | $ | - | $ | 285,987 | $ | - | ||||||||
Total other comprehensive income | $ | 107,366 | $ | - | $ | 285,987 | $ | - | ||||||||
Comprehensive income (loss) | $ | (8,811,459) | $ | (2,686,303) | $ | (14,388,229) | $ | 9,028,292 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | (0.31) | $ | (0.08) | $ | (0.50) | $ | 0.28 | ||||||||
Diluted | $ | (0.31) | $ | (0.08) | $ | (0.50) | $ | 0.27 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 29,088,159 | 32,472,251 | 29,284,175 | 32,509,664 | ||||||||||||
Diluted | 29,088,159 | 32,472,251 | 29,284,175 | 33,253,612 | ||||||||||||
CO-DIAGNOSTICS, INC. AND SUBSIDIARIES GAAP AND NON-GAAP MEASURES (Unaudited)
| ||||||||||||||||
Reconciliation of net income to adjusted EBITDA: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | (8,918,825) | $ | (2,686,303) | $ | (14,674,216) | $ | 9,028,292 | ||||||||
Interest income | (191,892) | (61,671) | (394,264) | (73,064) | ||||||||||||
Realized gain on investments | (411,190) | - | (829,272) | - | ||||||||||||
Depreciation and amortization | 305,246 | 424,342 | 621,256 | 671,606 | ||||||||||||
Transaction costs | 310 | 47,943 | 310 | 126,171 | ||||||||||||
Change in fair value of contingent consideration | (359,405) | (812,822) | (1,397,077) | (4,192,712) | ||||||||||||
Stock-based compensation expense | 2,169,800 | 1,533,286 | 4,338,542 | 2,908,381 | ||||||||||||
Income tax provision | (2,238,320) | (741,507) | (4,498,131) | 644,580 | ||||||||||||
Adjusted EBITDA | $ | (9,644,276) | $ | (2,296,732) | $ | (16,832,852) | $ | 9,113,254 | ||||||||
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SOURCE Co-Diagnostics
