Co-Diagnostics, Inc. Announces Q1 2020 Results and Provides Mid-Second Quarter Update

SALT LAKE CITY, May 14, 2020 /PRNewswire/ -- Co-Diagnostics, Inc. (Nasdaq: CODX), a molecular diagnostics company with a unique, patented platform for the development of molecular 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(TM) 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

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.

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, and (ix) 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.



                                                       March 31, 2020                                          December 31, 2019


     Current Assets

     Cash and cash equivalents                                                  $
            17,369,323                              $

     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                            $


     Current Liabilities

     Accounts payable                                                              $
            132,516                                $

     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

      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


      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                            $

                CO - DIAGNOSTICS, INC.



                                                                    For the Three Months
                                                           Ended March 31,

                                                  2020                                   2019

     Net sales                                            $
              1,548,528                   $

     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)              $

      Basic and diluted income (loss)
       per common share                                       $
              (0.05)                 $

      Weighted average common shares
       outstanding, basic and diluted                                 22,820,450                        16,066,633

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SOURCE Co-Diagnostics