Co-Diagnostics, Inc Files Q1 2019 Report on Form 10-Q and Updates Corporate Developments

SALT LAKE CITY–(BUSINESS WIRE)–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 on SEC Form 10-Q for the 3 month period ending March 31, 2019
and provided updates on corporate developments.

Q1 2019 Financial Results:

• Revenue for the quarter totaled $3,400; however, the Company’s Joint
  Venture in India also recognized approximately $56,000 in revenue from
  the sale of the Company’s primers and probes, which is anticipated to
  represent the beginning of sales in the joint venture.
• The Company ended the quarter with cash and equivalents of $5.42
  million and no long-term debt. This followed the sale of $3 million of
  preferred shares in January 2019 (which consisted of negotiating the
  conversion of a $2M note to preferred stock, and an additional sale of
  $1M of preferred shares for cash) leaving the Company debt-free.
• The Company completed a registered direct offering in the quarter
  pursuant to its S-3 shelf registration and sold 3,925,716 common
  shares, realizing gross proceeds of approximately $5.5 million.
• Total liabilities and shareholder’s equity at the end of the quarter
  was $6.12 million, compared with $1.55 million at the end of the
  previous quarter.
• The Company reported a net loss for the quarter of $1,368,389 compared
  with a net loss for the same quarter in 2018 of $1,310,233. Of the
  increase in net loss of $58,156, $29,687 was primarily the result of
  the increased operating expenses for sales/marketing and R&D (itself
  offset by a substantial decrease in general and administrative
  expenses), and the remainder resulted from a loss on extinguishment of
  debt and interest expense partially offset by a decrease in the loss
  on investment related to the joint venture.

Management Discussion

Dwight Egan, Chairman and CEO of Co-Diagnostics, commented, “We are
pleased to report that our momentum has continued throughout the first
quarter of 2019. Co-Diagnostics closed the quarter on substantially
stronger financial footing than it began, and showed a marked
improvement from the same quarter last year as well. This is evident in
the first sales from our joint venture in India, complete elimination of
long-term debt, and a healthy balance sheet to support our existing
revenue-producing initiatives and product development pipeline.

“This momentum is also evident in our technology and regulatory
milestones. In Q1 the Company received the CE mark for our highly
specific Zika/dengue/chikungunya multiplex assay, built on our patented
CoPrimer™ platform to address the needs of areas where those diseases
are found to occur together but are often misdiagnosed. More recently we
announced the patent filing for our next-generation sequencing
technology that will reduce NGS preparation and hands-on user time, in
an innovative PCR application that the Company anticipates should
provide near-term revenue opportunities in the US and abroad.

“The Company’s CoPrimer platform was featured at the PAG XXVII
Conference in January 2019, which coincided with the announcement of the
first private label CoPrimer product, manufactured and marketed by an
international leader in the life sciences sector. The manufacturer has
since launched the product in a world-wide marketing campaign, which we
believe affords us the opportunity to expand the footprint of CoPrimers
to the manufacturer’s domestic and international client base.

“In addition to the Company’s progress in AgBio, infectious disease, and
liquid biopsy, this quarter saw strong demand for our mosquito vector
products following the first distributor conference hosted in our
facilities. The conference was well-attended by distributors of
Co-Diagnostics’ products, and government, environmental testing and
private laboratory customers. The Company looks forward to making
announcements in the near future related to product roll-outs and sales
agreements.

“We expect our financial strength and technological and regulatory
advancements to continue to drive sales growth both domestically and in
India—where the joint venture manufacturing facility was recently
inaugurated—throughout this current quarter and beyond.”

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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
			March 31, 2019					December 31, 2018
ASSETS:
Current Assets
Cash and cash equivalents			$	5,412,593				$	950,237
Accounts receivables, net				42,557					13,420
Inventory				18,153					18,153
Prepaid expenses				103,827					70,103
Total current assets				5,577,130					1,051,913
Other Assets
Property and equipment, net				135,820					156,138
Investment in joint venture				408,393					345,121
Total other assets				544,213					501,259
Total assets			$	6,121,343				$	1,553,172
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT):
Current Liabilities
Accounts payable			$	96,305				$	148,967
Accrued expenses				121,206					174,444
Accrued expenses (related party)				120,000					120,000
Notes payable net of discount of $0 and $91,428				—					1,908,572
Total current liabilities				337,511					2,351,983
Long-term Liabilities, net of current portion
Accrued expenses-long-term (related party)				220,000					260,000
Total long-term liabilities, net of current portion				220,000					260,000
Total liabilities				557,511					2,611,983
Commitments and contingencies
STOCKHOLDERS’ EQUITY (DEFICIT):
Convertible preferred stock, $.001 par value; 5,000,000 shares authorized, 28,000 and no shares issued and outstanding, respectively				28					—
Common stock, $.001 par value, 100,000,000 shares authorized; 17,015,766 and 12,923,373 shares issued and outstanding, respectively.				17,016					12,923
Additional paid-in capital				25,609,344					17,622,433
Accumulated deficit				(20,062,556	)				(18,694,167	)
Total stockholders’ equity (deficit)				5,563,832					(1,058,811	)
Total liabilities and stockholders’ equity (deficit)			$	6,121,343				$	1,553,172

CO – DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
			For the Three Months Ended March 31,
			2019					2018
Net sales			$	3,400				$	9,696
Cost of sales				452					—
Gross profit				2,948					9,696
Operating expenses:
Sales and marketing				256,103					95,263
Administrative and general				640,363					882,046
Research and development				347,306					297,415
Depreciation and amortization				13,668					12,403
Total operating expenses				1,257,440					1,287,127
Loss from operations				(1,254,492	)				(1,277,431	)
Other expense:
Interest income				408					7,561
Interest expense				(106,427	)				—
Gain on disposition of assets				850					—
Loss on equity method investment in joint venture				(8,728	)				(40,363	)
Total other expense				(113,897	)				(32,802	)
Loss before income taxes				(1,368,389	)				(1,310,233	)
Provision for income taxes				—					—
Net loss			$	(1,368,389	)			$	(1,310,233	)
Basic and diluted income (loss) per common share			$	(0.09	)			$	(0.11	)
Weighted average common shares outstanding, basic and diluted				16,066,633					12,319,030

Contacts

Andrew Benson
Head of Investor Relations
+1 801-438-1036
investors@codiagnostics.com