PR Newswire | Aug 12, 2021 04:01PM EDT

08/12 15:01 CDT

Co-Diagnostics Reports Strong Second Quarter 2021 Financial ResultsSolid 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

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(tm) 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(tm) 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(tm) 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 WebcastCo-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 andsuppliers, 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, December 31, 2021 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; 100,000,000shares authorized; 28,889,890 and 28,558,033 28,890 28,558shares issued and outstanding as of June 30, 2021and December 31, 2020, respectively

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 5,853,313 390,191 7,050,859 658,674marketing

General and 2,468,433 2,191,034 5,404,122 3,650,518administrative

Research and 4,669,160 750,249 6,886,223 1,150,271development

Depreciation and 71,714 25,218 138,719 45,966amortization

Total operating 13,062,620 3,356,692 19,479,923 5,505,429expenses

Income from 11,791,165 14,708,277 22,126,066 13,626,328operations

Other income(expense)

Interest income 10,529 38,173 25,186 45,748

Gain (loss) onequity method 128,595 258,559 (336,348) 267,740investment injoint venture

Total other income 139,124 296,732 (311,162) 313,488(expense)

Income before 11,930,289 15,005,009 21,814,904 13,939,816income taxes

Income tax 2,145,076 - 4,130,716 -provision

Net income $ 9,785,213 $ 15,005,009 $ 17,684,188 $ 13,939,816

Earnings percommon share:

Basic $ 0.34 $ 0.54 $ 0.62 $ 0.50

Diluted $ 0.33 $ 0.51 $ 0.59 $ 0.48

Weighted averagesharesoutstanding:

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

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SOURCE Co-Diagnostics