CDI(US:CODX)2023-08-09 16:00Financial Performance - Revenue for Q2 2023 was $197,806, a significant decrease of 96.1% compared to $5,023,226 in Q2 2022[37] - Gross profit for Q2 2023 was $(261,289), compared to a gross profit of $4,107,794 in Q2 2022[37] - Net loss for Q2 2023 was $(8,918,825), compared to a net loss of $(2,686,303) in Q2 2022[37] - The company reported a comprehensive loss of $(8,811,459) for Q2 2023, compared to $(2,686,303) in Q2 2022[37] - Net loss for the six months ended June 30, 2023, was $(14,674,216), compared to a net income of $9,028,292 for the same period in 2022[38] - For the six months ended June 30, 2023, the company generated revenues of $799,763, a decrease of $26,922,507 compared to $27,722,270 for the same period in 2022, primarily due to lower sales of the Logix Smart COVID-19 test[169] Operating Expenses - Total operating expenses for Q2 2023 were $11,733,150, an increase of 42.5% from $8,254,832 in Q2 2022[37] - Total operating expenses for the six months ended June 30, 2023, were $21,783,516, an increase from $17,847,766 in the same period of 2022, mainly due to higher personnel expenses and increased investment in research and development[171] - General and administrative expenses increased from $5,390,616 for the six months ended June 30, 2022, to $6,727,860 for the same period in 2023, primarily due to increased insurance and professional fees[172] Cash and Liquidity - Cash and cash equivalents as of June 30, 2023, were $13,830,846, down from $22,973,803 at the end of 2022[36] - Cash used in operating activities was $(10,708,797) for the six months ended June 30, 2023, compared to cash provided of $9,460,222 in the prior year[38] - Cash and cash equivalents at the end of the period were $13,830,846, down from $86,045,405 at the end of June 30, 2022[38] - Net cash provided by investing activities was $2,603,770 for the six months ended June 30, 2023, compared to $(9,600,444) in the same period of 2022[38] Research and Development - Research and development expenses for Q2 2023 were $5,981,043, up from $3,889,844 in Q2 2022[37] - The Company expensed $5,981,043 and $10,995,103 in research and development costs for the three and six months ended June 30, 2023, respectively, compared to $3,889,844 and $7,661,171 for the same periods in 2022, representing increases of 54% and 44%[89] - Research and development expenses rose from $3,889,844 for the three months ended June 30, 2022, to $5,981,043 for the same period in 2023, reflecting increased personnel and clinical trial expenses[186] - Research and development expenses increased from $7,661,171 for the six months ended June 30, 2022, to $10,995,103 for the six months ended June 30, 2023, reflecting a significant rise in personnel-related expenses and clinical trials[208] Assets and Liabilities - Total assets decreased to $112,801,186 as of June 30, 2023, from $123,086,281 at the end of 2022[36] - Total current liabilities increased to $5,115,655 as of June 30, 2023, compared to $3,873,423 at the end of 2022[36] - Total accounts receivable as of June 30, 2023, was $4,510,545, with an allowance for uncollectible accounts of $3,413,152, resulting in a net amount of $1,097,393[65] - The Company recorded a liability for contingent consideration related to acquisitions, with a fair value of $1,335,279 as of June 30, 2023, down from $2,732,356 at December 31, 2022, reflecting a decrease of approximately 51%[101] Taxation - The Company recognized a benefit from income taxes of $2,238,320 for the three months ended June 30, 2023, representing an effective tax rate of 20.1%[144] - The Company’s effective tax rate for the six months ended June 30, 2023, was 23.5%, differing from the U.S. Federal statutory rate of 21.0% due to various factors[144] - The effective tax rate and potential tax exposure items require significant judgment and expertise, with uncertain income tax positions noted in the financial statements[112] Shareholder Activities - The company repurchased 4,559,479 outstanding common shares for a total of $15.2 million under a repurchase program authorized for up to $30 million[175] - The Company has approximately $13.8 million of unrecognized stock-based compensation expense related to outstanding RSUs, expected to be recognized over a weighted-average period of 2.0 years[141] - The Company has a share repurchase program authorized for up to $30.0 million, allowing flexibility in timing and amount of repurchases based on market conditions[147] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings, with a claim against it for $2,860,809.79 related to an alleged breach of contract[219] - The company filed a shelf registration statement with the SEC to register the sale of up to $150 million of its securities, including an equity distribution agreement for up to $50 million of common stock[212] - The company has no off-balance sheet arrangements, ensuring transparency in its financial reporting[214] Product Development - The company is developing a groundbreaking portable PCR device, the Co-Dx PCR Home™ platform, which is currently under FDA review[32] - The Company is developing a groundbreaking portable PCR device and proprietary test cups, which are currently under FDA review and not yet available for sale[164] - The proprietary test design system and reagents have received regulatory approval for various PCR diagnostic tests, including COVID-19, in multiple countries[180] - The Company has developed three multiplexed tests for identifying diseases carried by mosquitoes, aiding municipalities in managing mosquito populations[157]