EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

Co-Diagnostics, Inc. Reports First Quarter 2024 Financial Results

 

SALT LAKE CITY, May 9, 2024— Co-Diagnostics, Inc. (NASDAQ: CODX) (“Co-Dx,” or the “Company”), a molecular diagnostics company with a unique, patented platform for the development of molecular diagnostic tests, today announced financial results for the quarter ended March 31, 2024.

 

First Quarter 2024 Financial Results:

 

  Revenue of $0.5 million, down from $0.6 million during the prior year. Grant revenue totaled $0.2 million while product revenue totaled $0.3 million
  Operating expenses of $10.5 million increased by 4.4% from the prior year due to an increase in research and development costs incurred for the development of tests currently in our pipeline
  Operating loss of $10.3 million compared to operating loss of $10.0 million in Q1 2023
  Net loss of $9.3 million, compared to net loss of $5.8 million in the prior year, representing a loss of $0.31 per fully diluted share, compared to a loss of $0.20 per fully diluted share in the prior year
  Adjusted EBITDA loss of $8.4 million compared to $7.2 million in Q1 2023
 

Cash, cash equivalents, and marketable securities of $50.0 million as of March 31, 2024

 

First Quarter and Recent 2024 Business Highlights:

 

  Appointed Richard Abbott as President of Co-Diagnostics. Also appointed David Nielsen as Chief Operations Officer (COO), Christopher Thurston as Chief Technology Officer (CTO), and Seth Egan as Chief Commercialization Officer (CCO)
  Inaugurated a new manufacturing facility in South Salt Lake to manufacture our patented Co-Primers® oligonucleotides, the Co-Dx™ PCR Pro™ instrument, and test cups for the new Co-Dx PCR platform
  Delivered a keynote address at the 5th Annual MarketsandMarkets conference in London, which included an update of continued expansion of the CoSara manufacturing facility in India to enable greater capacity for in-house manufacturing of reagents, equipment and consumables, along with the ability to manufacture Co-Primers

 

“We are extremely encouraged by our first quarter progress and believe that we are well positioned to meet our 2024 goals,” said Dwight Egan, Co-Diagnostics’ Chief Executive Officer. “Co-Diagnostics was pleased to announce the opening of our new manufacturing facility in Salt Lake and continued facility expansion in India, which will soon enable in-house Co-Primers, instrument, and test manufacturing at a low cost. We remain committed to delivering a 510(k) submission to the FDA for our new instrument and COVID-19 test kit in the near future and driving development of our TB, multiplex respiratory, and HPV tests throughout the remainder of the year.”

 

“This is an exciting time for Co-Diagnostics and we truly believe in the disruptive and unique nature of our new platform. We look forward to beginning clinical evaluations for our multiplex test later this year and plan to provide updates on our new platform and pipeline progress as they come,” said Brian Brown, Co-Diagnostics’ Chief Financial Officer.

 

 
 

 

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.co-dx.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://co-dx.com.

 

*The Co-Dx PCR 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 yet available for sale. The Co-Dx PCR Pro instrument and Co-Dx COVID-19 Test are currently under review by the FDA.

 

About Co-Diagnostics, Inc.:

 

Co-Diagnostics, 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.

 

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, realized gains on investments, and stock-based compensation. 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 that our expansion in India will soon enable in-house manufacturing at a low cost, our commitment to deliver a 510(k) submission to the FDA for our new instrument and COVID-19 test kit in the near future, and our plan to begin clinical evaluations for our multiplex test later 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 14, 2024, 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.

 

Investor Relations Contact:

 

Andrew Benson

Head of Investor Relations

+1 801-438-1036

investors@codiagnostics.com

 

 
 

 

CO-DIAGNOSTICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   March 31, 2024   December 31, 2023 
Assets          
Current assets          
Cash and cash equivalents  $23,099,251   $14,916,878 
Marketable investment securities   26,864,435    43,631,510 
Accounts receivable, net   434,868    303,926 
Inventory, net   1,549,812    1,664,725 
Income taxes receivable   -    26,955 
Prepaid expenses and other current assets   1,750,467    1,597,114 
Total current assets   53,698,833    62,141,108 
Property and equipment, net   3,183,116    3,035,729 
Operating lease right-of-use asset   2,758,757    2,966,774 
Intangible assets, net   26,328,000    26,403,667 
Investment in joint venture   702,427    773,382 
Total assets  $86,671,133   $95,320,660 
Liabilities and stockholders’ equity          
Current liabilities          
Accounts payable  $2,027,607   $1,482,109 
Accrued expenses   1,324,779    2,172,959 
Operating lease liability, current   859,912    838,387 
Contingent consideration liabilities, current   750,877    891,666 
Deferred revenue   306,477    362,449 
Total current liabilities   5,269,652    5,747,570 
Long-term liabilities          
Income taxes payable   679,018    659,186 
Operating lease liability   1,931,164    2,152,180 
Contingent consideration liabilities   438,638    748,109 
Total long-term liabilities   3,048,820    3,559,475 
Total liabilities   8,318,472    9,307,045 
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 March 31, 2024 and December 31, 2023, respectively   -    - 
Common stock, $0.001 par value; 100,000,000 shares authorized; 36,127,096 shares issued and 31,278,418 shares outstanding as of March 31, 2024 and 36,108,346 shares issued and 31,259,668 shares outstanding as of December 31, 2023   36,127    36,108 
Treasury stock, at cost; 4,848,678 shares held as of March 31, 2024 and December 31, 2023, respectively   (15,575,795)   (15,575,795)
Additional paid-in capital   98,379,651    96,808,436 
Accumulated other comprehensive income   226,555    146,700 
Accumulated earnings (deficit)   (4,713,877)   4,598,166 
Total stockholders’ equity   78,352,661    86,013,615 
Total liabilities and stockholders’ equity  $86,671,133   $95,320,660 

 

 
 

 

CO-DIAGNOSTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

   Three Months Ended March 31, 
   2024   2023 
Product revenue  $252,745   $601,957 
Grant revenue   215,109    - 
Total revenue   467,854    601,957 
Cost of revenue   234,505    502,241 
Gross profit   233,349    99,716 
Operating expenses          
Sales and marketing   1,563,682    1,706,331 
General and administrative   2,918,803    3,013,965 
Research and development   5,679,678    5,014,060 
Depreciation and amortization   330,573    316,010 
Total operating expenses   10,492,736    10,050,366 
Loss from operations   (10,259,387)   (9,950,650)
Other income, net          
Interest income   362,733    202,372 
Realized gain on investments   228,070    418,082 
Gain on remeasurement of acquisition contingencies   450,260    1,037,672 
Gain (loss) on equity method investment in joint venture   (70,955)   277,322 
Total other income, net   970,108    1,935,448 
Loss before income taxes   (9,289,279)   (8,015,202)
Income tax provision (benefit)   22,764    (2,259,811)
Net loss  $(9,312,043)  $(5,755,391)
Other comprehensive loss          
Change in net unrealized gains on marketable securities, net of tax   79,855    178,621 
Total other comprehensive income  $79,855   $178,621 
Comprehensive loss  $(9,232,188)  $(5,576,770)
           
Loss per common share:          
Basic and diluted  $(0.31)  $(0.20)
Weighted average shares outstanding:          
Basic and diluted   29,842,874    29,483,540 

 

 
 

 

CO-DIAGNOSTICS, INC. AND SUBSIDIARIES

GAAP AND NON-GAAP MEASURES

(Unaudited)

 

Reconciliation of net loss to adjusted EBITDA:

 

   Three Months Ended March 31, 
   2024   2023 
Net loss  $(9,312,043)  $(5,755,391)
Interest income   (362,733)   (202,372)
Realized gain on investments   (228,070)   (418,082)
Depreciation and amortization   330,573    316,010 
Change in fair value of contingent consideration   (450,260)   (1,037,672)
Stock-based compensation expense   1,571,234    2,168,742 
Income tax provision (benefit)   22,764    (2,259,811)
Adjusted EBITDA  $(8,428,535)  $(7,188,576)