Press Releases

Co-Diagnostics Reports Strong Second Quarter 2021 Financial Results
Solid quarterly results highlighted by revenue of $27.4 million, pre-tax income of $11.9 million and diluted EPS of $0.33

SALT LAKE CITY, Aug. 12, 2021 /PRNewswire/ -- Co-Diagnostics, Inc. (NASDAQ: CODX), a molecular diagnostics company with a unique, patented platform for the development of molecular diagnostic tests, announced today financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Financial Results:

  • Revenue of $27.4 million, primarily due to sales of the Logix Smart™ COVID-19 Test, representing an increase of 13.8% as compared to the prior year period.
  • Gross profit increased 37.6% to $24.9 million, representing 90.8% of consolidated revenue due to reduced production costs and improved product mix as compared to the prior-year period.
  • Operating income totaled $11.8 million, representing a 19.8% decrease from the prior year period due to increased sales and marketing expenses as a result of increased third-party sales commissions, as well as increased research and development expenses related to the Eikon point of care technology platform.
  • Income before taxes of $11.9 million.
  • Net income of $9.8 million, compared to a net income of $15.0 million in the prior-year first quarter, representing $0.33 per fully diluted share, as compared to $0.51 per fully diluted share in the second quarter of 2020.
  • Cash, cash equivalents, and marketable securities totaled $72.4 million as of June 30, 2021, an increase of $12.3 million from March 31, 2021.
  • Operating cash flows totaled $24.7 million for the year-to-date period ending June 30, 2021, as compared to cash used in operations of $0.3 million during the prior year period.

"We are proud to continue the momentum, delivering another strong quarter following our record results in 2020," said Dwight Egan, Co-Diagnostics' Chief Executive Officer. "Our team has done an excellent job of cultivating distributor relationships throughout the United States and abroad, which is evident in the record sales results this quarter. As new variants of COVID-19 continue to emerge and affect the global population, we remain steadfast in our mission to deliver high-quality diagnostic testing kits to customers throughout the world."

"Looking to the back half of 2021, we are well positioned to maintain our trajectory of growth as our significant investments in talent and R&D continue to yield positive results," continued Egan. "Our Eikon point of care technology platform has experienced several breakthrough technological advancements, including our direct saliva extraction-free PCR protocol, and a groundbreaking instrument designed to be inexpensive, easy to use, and to deliver rapid results while maintaining the superior performance of PCR. The result is a low-cost, small-footprint PCR device that we anticipate could be deployed widely in nearly every setting. We have strong cash reserves with no debt, and despite the substantial R&D investment and impact on EPS, the Eikon platform is the surest way for the Company to position itself for future growth and profitability."

A video animation illustrating the Eikon platform can be seen here.

Second Quarter 2021 Business Highlights:

  • New international CoPrimer™ patent strengthened the Company's intellectual property protection for the technology underpinning the millions of molecular diagnostic test products that have been deployed in laboratories and hospitals in over 50 countries and across the United States.
  • Over 20 million tests sold to-date as of Q3 2021
  • The Logix Smart™ SARS-CoV-2 DS (Direct Saliva) obtained regulatory authorization to be sold as an in vitro diagnostic for the diagnosis of COVID-19 in markets that accept CE markings.
  • CoSara Diagnostics was recognized for its work combating the COVID-19 surge in India and its tireless efforts to increase manufacturing of COVID-19 tests in response to the deadly wave of infections.

Third Quarter 2021 Outlook:
Co-Diagnostics is offering the following guidance for its third quarter of 2021:

  • Revenue to be in the range of $23.0 million to $25.0 million
  • Increased development expenses for our Eikon point of care technology platform
  • Diluted earnings per share forecasted to be in the $0.19 to $0.22 range, with shares outstanding expected to be approximately 30 million and a corporate effective tax rate of approximately 19.0 percent.

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: 877-317-6789 (domestic) or 412-317-6789 (international)

The call will be recorded and later made available on the Company's website: https://codiagnostics.com.

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, (ix) benefits in research and worldwide accessibility of the CoPrimer technology and its cost-saving and scientific advantages, and (x) the impact that known and unknown COVID-19 variants may have on us and our products, our customers and suppliers, including disruptions and inefficiencies in the supply chain. 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, 2021



December 31, 2020


Assets









Current assets









Cash and cash equivalents


$

70,274,078



$

42,976,713


Marketable investment securities



2,109,675




4,335,446


Accounts receivable, net



12,755,952




12,136,833


Inventory



4,120,704




7,995,189


Prepaid expenses



1,039,506




369,028


Deferred tax asset



20,443




547,224


Total current assets



90,320,358




68,360,433


Property and equipment, net



1,192,901




949,639


Investment in joint venture



1,276,202




1,927,125


Total assets


$

92,789,461



$

71,237,197


Liabilities and stockholders' equity









Current liabilities









Accounts payable


$

427,144



$

598,318


Accrued expenses, current



4,001,445




2,849,503


Accrued expenses (related party), current



90,000




120,000


Income taxes payable



47,180




637,560


Deferred revenue



163,134




305,307


Total current liabilities



4,728,903




4,510,688


Long-term liabilities









Accrued expenses, noncurrent



794,615




-


Accrued expenses (related party), noncurrent



-




30,000


Total long-term liabilities



794,615




30,000


Total liabilities



5,523,518




4,540,688


Commitments and contingencies (Note 9)









Stockholders' equity









Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020



-




-


Common stock, $0.001 par value; 100,000,000 shares authorized; 28,889,890 and 28,558,033 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively



28,890




28,558


Additional paid-in capital



52,042,150




49,157,236


Accumulated earnings



35,194,903




17,510,715


Total stockholders' equity



87,265,943




66,696,509


Total liabilities and stockholders' equity


$

92,789,461



$

71,237,197


 

CO-DIAGNOSTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended June 30,



Six Months Ended June 30,




2021



2020



2021



2020


Revenue


$

27,358,140



$

24,040,274



$

47,382,909



$

25,588,802


Cost of revenue



2,504,355




5,975,305




5,776,920




6,457,045


Gross profit



24,853,785




18,064,969




41,605,989




19,131,757


Operating expenses



90.8

%













Sales and marketing



5,853,313




390,191




7,050,859




658,674


General and administrative



2,468,433




2,191,034




5,404,122




3,650,518


Research and development



4,669,160




750,249




6,886,223




1,150,271


Depreciation and amortization



71,714




25,218




138,719




45,966


Total operating expenses



13,062,620




3,356,692




19,479,923




5,505,429


Income from operations



11,791,165




14,708,277




22,126,066




13,626,328


Other income (expense)

















Interest income



10,529




38,173




25,186




45,748


Gain (loss) on equity method investment in joint venture



128,595




258,559




(336,348)




267,740


Total other income (expense)



139,124




296,732




(311,162)




313,488


Income before income taxes



11,930,289




15,005,009




21,814,904




13,939,816


Income tax provision



2,145,076




-




4,130,716




-


Net income


$

9,785,213



$

15,005,009



$

17,684,188



$

13,939,816


Earnings per common share:

















Basic


$

0.34



$

0.54



$

0.62



$

0.50


Diluted


$

0.33



$

0.51



$

0.59



$

0.48


Weighted average shares outstanding:

















Basic



28,794,047




27,582,229




28,728,828




27,605,137


Diluted



29,741,265




29,152,222




29,833,955




29,094,475


 

SOURCE Co-Diagnostics

For further information: Company Contact: Andrew Benson, Head of Investor Relations, +1 801-438-1036, investors@codiagnostics.com; Investor Relations Contact: Zach Mizener, Lambert & Co., +1 616-233-0500, zmizener@lambert.com

Co-Diagnostics, Inc.
2401 South Foothill Dr, Suite D
Salt Lake City, Utah 84109
United States

1 (801) 438-1036

info@codiagnostics.com

© 2016-2020 Co-Diagnostics, Inc. • All Rights Reserved.

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Co-Diagnostics is a molecular diagnostics company with a unique mathematical approach to DNA test design. Our products offer a unique value proposition, making the detection of infectious disease and genetic disorders far more affordable worldwide.

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Co-Diagnostics, Inc.
2401 South Foothill Dr, Suite D
Salt Lake City, Utah 84109
United States

1 (801) 438-1036

info@codiagnostics.com

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© 2016-2020 Co-Diagnostics, Inc. • All Rights Reserved.