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Company reports robust sales of COVID-19 tests as Co-Diagnostics generates net profit through middle of second quarter  

Salt Lake City, Utah – May 14, 2020 – Co-Diagnostics, Inc. (Nasdaq:CODX) (the Company), a molecular diagnostics company with a unique, patented platform for the development of diagnostic tests, announced today the filing of its operating results for the three-month period ending March 31, 2020, and provided updates on Company developments.

Q1 2020 Highlights:

  • Company commences COVID-19 test sales and reports $1.5 Million of revenue in Q1
  • Gross margins of 71.5% on sales of Logix Smart™ COVID-19 test kits
  • Raised capital with net proceeds of $18 million
  • First US company to receive CE marking for COVID-19 test kit (February 24)

Q2 2020 Mid-Quarter Highlights:

  • Receives FDA Emergency Use Authorization on COVID-19 test kit on April 3, 2020;
  • Company manufactures more than 6 million COVID-19 tests to date, and has ordered components for more than 20 million additional tests to fill existing and expected orders in the near future;
  • Records COVID-19 test and equipment sales of over $18 Million YTD through mid-second quarter (unaudited);
  • Receives COVID-19 test orders from public and private organizations in nearly 50 countries and over 15 states in the U.S.;
  • COVID-19 test kit shows 100% specificity and 100% sensitivity in several independent evaluations;

“Co-Diagnostics has increased production capacity to meet growing demand for our tests,” said Dwight Egan, Chief Executive Officer. “We have positioned the company to continue to make an important contribution in meeting the enormous demand for tests around the world. Our value proposition of accurate, high-throughput, and cost-effective tests continues to resonate with customers around the globe.”

The Company will host an earnings call at 4:30 pm EDT today. Analysts providing coverage for Co-Diagnostics will also be invited participate in a question and answer session. U.S. callers may dial toll free at 1-877-309-2073. International callers can access the call by dialing +1-646-749-3129. The access code to join the call is: 531-241-589. The call will be recorded and later made available on the Company’s website.

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 may include statements regarding the (i) use of funding proceeds, (ii) expansion of product distribution, (iii) acceleration of initiatives in certain verticals or markets, (iv) capital resources and runway needed to advance the Company’s products and markets, (v) increased sales in the near-term, (vi) flexibility in managing the Company’s balance sheet, (vii) anticipation of business expansion, and (viii) 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)

March 31, 2020 December 31, 2019
ASSETS:
Current Assets
Cash and cash equivalents $ 17,369,323 $ 893,138
Accounts receivables, net 1,055,738 131,382
Inventory 686,078 197,168
Prepaid expenses 499,327 362,566
Total current assets 19,610,466 1,584,254
Other Assets
Property and equipment, net 276,454 186,832
Investment in joint venture 593,421 434,240
Total other assets 869,875 631,072
Total assets $ 20,480,341 $ 2,215,326
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities
Accounts payable $ 132,516 $ 5,959
Accrued expenses 496,524 200,788
Accrued expenses (related party) 120,000 120,000
Deferred revenue 444,332 1,323
Total current liabilities 1,193,372 328,070
Long-term Liabilities, net of current portion
Accrued expenses-long-term (related party) 120,000 150,000
Total long-term liabilities, net of current portion 120,000 150,000
Total liabilities 1,313,372 478,070
STOCKHOLDERS’ EQUITY
Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 and 25,600 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively 26
Common stock, $0.001 par value, 100,000,000 shares authorized; 27,451,064 and 17,342,922 shares issued and outstanding, as of March 31, 2020 and December 31, 2019, respectively. 27,451 17,343
Additional paid-in capital 45,172,525 26,687,701
Accumulated deficit (26,033,007 ) (24,967,814 )
Total stockholders’ equity 19,166,969 1,737,256
Total liabilities and stockholders’ equity $ 20,480,341 $ 2,215,326

 

 

 

CO – DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

  For the Three Months
Ended March 31,
 
  2020     2019  
Net sales $ 1,548,528 $ 3,400
Cost of sales 481,740 452
Gross profit 1,066,788 2,948
Operating expenses:
Sales and marketing 268,483 256,103
Administrative and general 1,459,484 640,363
Research and development 400,022 347,306
Depreciation and amortization 20,748 13,668
Total operating expenses 2,148,737 1,257,440
Loss from operations (1,081,949 ) (1,254,492 )
Other expense:
Interest income 7,575 408
Interest expense (106,427 )
Gain on disposition of assets 850
Gain (loss) on equity method investment in joint venture 9,181 (8,728 )
Total other expense 16,756 (113,897 )
Loss before income taxes (1,065,193 ) (1,368,389 )
Provision for income taxes
Net loss $ (1,065,193 ) $ (1,368,389 )
Basic and diluted income (loss) per common share $ (0.05 ) $ (0.09 )
Weighted average common shares outstanding, basic and diluted 22,820,450 16,066,633

Company Contact:
Andrew Benson
Co-Diagnostics Investor Relations
801-438-1036
investors@codiagnostics.com
or
Investor Relations Contact:
Keith Pinder
Landon Capital
+1.404.995.6671
kpinder@landoncapital.net