NASDAQ:CODX Co-Diagnostics Q1 2023 Earnings Report $0.35 -0.01 (-3.06%) As of 04/25/2025 04:00 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast Co-Diagnostics EPS ResultsActual EPS-$0.20Consensus EPS -$0.23Beat/MissBeat by +$0.03One Year Ago EPSN/ACo-Diagnostics Revenue ResultsActual Revenue$0.60 millionExpected Revenue$1.10 millionBeat/MissMissed by -$500.00 thousandYoY Revenue GrowthN/ACo-Diagnostics Announcement DetailsQuarterQ1 2023Date5/11/2023TimeN/AConference Call DateThursday, May 11, 2023Conference Call Time4:30PM ETUpcoming EarningsCo-Diagnostics' Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled at 4:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptQuarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Co-Diagnostics Q1 2023 Earnings Call TranscriptProvided by QuartrMay 11, 2023 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Afternoon and welcome to the Co Diagnostics First Quarter 2023 Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Andrew Benson, Head of Investor Relations. Operator00:00:30Please go ahead. Speaker 100:00:33Thank you. I'm Andrew Benson and joining me this afternoon are members of the Co Diagnostics management team, including Dwight Egan, Chief Executive Officer And Brian Brown, Chief Financial Officer. We will begin the call with management's prepared remarks and then open up the call to questions from our analysts. Before we begin, we would like to inform the listeners that certain statements made by Co Diagnostics during the course of this call may constitute forward looking statements. Any statement about company objectives, expectations, beliefs, plans, objectives, assumptions of future events or performance are forward looking statements. Speaker 100:01:08For example, statements concerning 2023 financial and operational guidance, the development, regulatory clearance, commercialization And features of new products, plans and objectives of management and market trends are all forward looking statements. This includes statements The company's forthcoming Kodiak's PCR home testing platform, which is subject to FDA review and is not yet available for sale. The company believes these statements are based on reasonable assumptions. However, these statements are not guarantees of performance and involve known and unknown risks And uncertainties that may cause the actual results to be materially different from any future results expressed or implied by such statements. Important factors which could cause actual results to differ materially from those in these forward looking statements are detailed in Co Diagnostics' filings with the SEC. Speaker 100:01:57Co Diagnostics assumes no obligation and expressly disclaims any duty to update any forward looking statements to reflect events or circumstances occurring after this call or to reflect the occurrence of unanticipated events. In addition, the company may discuss certain non GAAP financial measures during today's call. These non GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. We refer you to The company's earnings release is out shortly before this call, which may contain reconciliations to the non GAAP financial measures presented to their most comparable GAAP results. At this time, I would like to turn the call over to Co Diagnostics' Chief Executive Officer, Dwight Egan. Speaker 100:02:36Dwight? Speaker 200:02:37Thank you, Andrew, and thank you all for joining us. Today, we would like to share our perspective on our recent performance, discuss progress against our long term strategy and discuss actions we are taking to position the business as we navigate near term headwinds. Afterwards, we will take questions from analysts. We remain confident in our strategy and have established Several goals to help guide and measure our progress for the remainder of the year. First, we are targeting completion of the clinical evaluations for our initial Kodiak's PCR home product and device and submission to the FDA by the end of the calendar year. Speaker 200:03:20Next, we expect to commence clinical evaluations for our ABC plus RSV test in this coming flu season. Here, I am referring to both the tests that will be utilized on the new platform as well as that which will be sold to our Centralized laboratory customers and distributor base. We believe the high throughput clinical laboratory market will continue to play a significant role In diagnostic testing for some time, we intend to continue to develop products to service that sector, Of which the ABC plus RSV test is only 1. Other tests are currently in various stages of design and development. A mainstay of our mission for the last decade has been reduction of healthcare costs around the globe by democratizing infectious disease testing. Speaker 200:04:12Soon, this vision will be made possible by bringing a platform with a high degree of quality and diagnostics directly to both the Developed and less developed world, we are now closer than ever to achieving our goal of preventing the spread of infectious disease by making high quality PCR diagnostics accessible to communities all around the world. Thanks to the progress in the clinical trials for our Kodiak's PCR home platform and its initial test. Now an update on clinical trials. There are currently 5 sites Conducting clinical trials for the new platform in 4 different states. We anticipate the evaluations and Subsequent FDA submission will be concluded by the end of the year. Speaker 200:04:59And while we can't discuss at this time the details of the study results That we have seen thus far, we are pleased to report that the usability scores for overall ease of use as reported by trial participants and help play a key role in giving patients and physicians the power to know and to make informed timely health care decisions, Whether at the point of care or at home, the first test on the CodeX PCR home undergoing this regulatory effective in detecting COVID-nineteen, we are proving to the world that this highly advanced but simple to use first of its kind testing platform Has a role in the post COVID shift in diagnostics from the laboratory to the point of care and even the home. These trials validate the technology and the format that we have already begun applying to other diseases, including a respiratory disease multiplex panel With ABC plus RSV and a test for tuberculosis. I now want to highlight the recognition the new platform is Already receiving from governmental and non governmental organizations alike. Recently, we were notified that we had been selected To receive multiple grants for our respiratory multiplex and tuberculosis tests on our new platform. Speaker 200:06:34While we are unable to announce the details of these We believe the recognition from these prominent organizations is a testament to the platform technology we are bringing to market, including the new device and our patented co primer technology. One grant is related to the ABC plus RSV respiratory on the Kodiak's PCR Home platform as well as additional platform enhancements and was a monumental task That involve a thorough investigation by industry experts into every aspect of the platform, its design, history, The chemistry of the reagents and the individuals responsible with making our vision a reality. Other grants relate to a tuberculosis product being designed and verified on the Kodiak's PCR home platform in preparation for validation and clinical trials. Tuberculosis, abbreviated MTB or just TB, has been highly endemic in certain geographic regions for generations. And despite all advances in modern medicine still took the lives of 1,600,000 people in 2021. Speaker 200:07:44Some of the uptick in TB incidences and deaths since 2020 may be the result of funding that might otherwise have been allocated to TB being reappropriated to COVID related concerns. This has created an urgency among NGOs to slow the Spread of the disease through increased access to gold standard real time diagnostics, exactly in line with our mission and our new platform. The global addressable TB diagnostics market is expected to grow from $2,070,000,000 in 2022 to $3,130,000,000 By 2029, we believe the interest among NGOs in our new platform partially reflects their refocus on eradicating TB. We regard these grants as being in lockstep with the natural evolution of our vision and strategic plan, The company's first CE marking received 5 years ago this July was for our LogicSmart MTB test built using our co primers technology. The difference between then and now is we have grown beyond mere aspirations and now find ourselves fully in execution mode With internationally recognized technology, world renowned experts and a point of care platform different from anything the world has ever seen, I want to emphasize that our new platform has been designed and engineered to be versatile and durable with long term disruptive Potential as a diagnostic medical device, harnessing the power of our patented battle tested co primers technology coupled with other proprietary IP, We believe this platform sets a new benchmark for compact point of care testing that unlocks the multiplexing potential of real time PCR. Speaker 200:09:29Our research and planning indicate that multiplex tests can overcome a major price and convenience hurdle with respiratory disease Allowing patients to test for multiple diseases with a single sample for a single affordable price. The innovative sample collection cup and sample processing design is also ideal for other multiplex testing panels, Such as our planned sexually transmitted infections test. One of the most important innovations over the last year was the ability to test and go, Where an end user does not need to maintain proximity to the device or return to it following the run time and instead receives their result For departments and ministries of health to quickly identify and track outbreaks and to provide resources and information where they are needed before diseases spread among a community or region, the cloud based data system where analysis takes place also allows Patients to send test results to their physician or other authorized parties as directed by the end user Being guided by ongoing analysis provided by a respected field marketing research firm that has not only helped us focus in on what we believe will potentially Be the most accessible high throughput locations for our initial launch, but has also provided invaluable usability feedback For the device itself, on everything from the price to the packaging as we better understand the size, scope And needs of the platform's total addressable market. Speaker 200:11:223 years ago, our agility allowed us to quickly develop, test And receive clearance for our LogicSmart COVID-nineteen test and to achieve record financial results by providing gold standard PCR diagnostic testing At a time when the need was greatest. As we move into our next stage of growth, we believe the advancements in our at home point of care real time PCR testing Team of experts working diligently to achieve our shared company vision, growing product pipeline, strong cash position, Future grant funding support and our practice of letting financial intelligence drive our cash management has positioned Co Diagnostics to execute Against our strategic growth initiatives and to pave a pathway for continued success, we already have several manufacturing lines built for the string lines built for the new device and testing cups and have recently signed a new lease to add to our production capacity. Headcount has grown over 66% compared to prior year quarter. Our investments in talent and R and D remain positive indicators of the progress we are achieving to drive further value for our shareholders. This is facilitated by our strong cash position that reflects our to this point and provides the necessary flexibility as we remain in the forefront of the challenging diagnostic landscape. Speaker 200:12:47This concludes my initial remarks. Let me now turn things over to Brian Brown for a review of the key metrics and numbers. Brian? Thanks, Dwight, Speaker 300:12:56And thank you everyone for joining today's call. The decline in global COVID testing had an unfavorable impact on sales of our LOGICS Smart COVID-nineteen tests and resulted in a decline in our financial results compared to the prior year period. For the Q1 of 2023, revenue decreased 97.3 percent to $600,000 as compared to $22,700,000 in the prior year same period. Gross profit for the year Decreased to $100,000 compared to $19,400,000 in the prior year comparable period. Our gross margin percentage of 16.6 percent for the Q1 decreased from 85.5% in the prior year period, reflecting a larger percentage of fixed costs in our cost of revenue as compared to recognized revenue. Speaker 300:13:51Total operating expenses for the 3 months ended March 31, 2023 were $10,100,000 an approximate increase of 5% compared to $9,600,000 in the Q1 of fiscal 2022. The increase was driven by elevated research and development expenses as we work towards achieving our 2023 company goals and initiatives. This increase in research and development expenses was partially offset by a decrease in variable compensation and third party commissions. Research and development expenses in the Q1 were $5,000,000 compared to $3,800,000 in the prior year period. The increase primarily reflects continued investment in our at home and point of care KodiX PCR home platform and other company initiatives. Speaker 300:14:46With clinical trials for our platform ongoing, we continue to invest additional time and resources to bring our revolutionary diagnostic testing platform to market. For the Q1 of 2023, Income before taxes decreased to a loss of $8,000,000 as compared to income of $13,100,000 achieved in the prior year same The loss can be attributed to decreased global demand for COVID testing. We experienced an income tax benefit For the Q1 of $2,300,000 representing an effective tax rate of 28.2%. As stated on previous calls, Our effective tax rate will differ from the U. S. Speaker 300:15:30Federal statutory rate of 21.0 percent due to state taxes, permanent items and discrete items. Net loss for the Q1 of 2023 was $5,800,000 or a loss of $0.20 per fully diluted share compared to net income of $11,700,000 or $0.34 per fully diluted share in the prior for the same period. Adjusted EBITDA for the Q1 of 2023 was a loss of $7,200,000 compared to an adjusted EBITDA gain of $14,700,000 in the prior year period. We continue to be deliberate in our actions as we manage the health and flexibility of our balance sheet to ensure positioning for long term growth. As we make further progress on clinical trials of our platform, we remain deliberate and discerning while we evaluate opportunities that enhance our capabilities or the timing to bring our platform to market. Speaker 300:16:34Cash, cash equivalents and marketable securities ended the quarter at $75,300,000 down from $81,300,000 in December on December 31, 2022. As was highlighted in Dwight's remarks, we were recently notified that we were selected to receive multiple grants, which will provide us with additional financial resources And flexibility as we continue to progress on bringing our new at home and point of care platform to market. Our balance sheet remains solid and we remain committed to maintaining a strong cash position, while also preserving the health and flexibility of our balance sheet. Our highly liquid, no debt balance sheet enables us to utilize our resources to achieve short and long term goals and enables us to opportunistically allocate capital with the goal of maximizing long term value for shareholders. Turning now to our guidance. Speaker 300:17:35Our near term focus will be concentrated on maximizing the use of cash and cash preservation in order to allow us the greatest opportunity to achieve our 2023 and future company development and our operational goals. Internally, company's success will not be based on income statement captions. Rather, it will be measured on achievement of the development and operational goals As a result, we will not be providing financial guidance at this time. Our solid cash position provides us with the foundation to navigate near term uncertainty and deploy capital In a disciplined manner in support of our long term strategy, including our at home endpoint of care Kodiak's PCR home platform. 2023 will be a monumental year for the company and one that will position us for the long term future. Speaker 300:18:31We continue to consider additional ways to increase returns and create greater value for shareholders. With that, I will now turn the presentation back over to Dwight. Speaker 200:18:42Thank you, Brian. We will now take calls from our analysts. Operator? Operator00:18:48We will now begin the question and answer session. The first question is from Yi Chen of H. C. Wainwright. Please go ahead. Speaker 400:19:15Hey, I'm Chetan on behalf of Yu Chen. I just have a couple of quick questions. The first one being On the current clinical evaluations, is it specific to COVID-nineteen or any other infections? The second question being around readouts. Would you be able to provide any clinical readouts during the year as you get some data from your Ongoing clinical evaluations. Speaker 400:19:53Thank you. Speaker 200:19:56To the first part of your question, the current Clinical trial is in support of an FDA submission for emergency use authorization on the COVID-nineteen test only. As I stated in my remarks, we anticipate having a multiplex test, Which would include flu A, flu B, COVID-nineteen and RSV in conjunction with the upcoming Flu season. Those are the current contemplated EUA submission Speaker 400:20:41Thank you. Any color on the readouts, potential clinical readouts this year? Speaker 200:20:49Yes. We're not giving any other guidance with respect to the interim results than we gave in our prepared remarks. We're in the middle of gathering data from 5 different locations throughout the United States And we're very pleased with what's been happening with the user study element of that. And we We'll provide some guidance on some of the other metrics as appropriate in the future. Speaker 400:21:25Good. Thank you. Operator00:21:29The next question is from Theodore O'Neil of Litchfield Hills Research. Please go ahead. Speaker 500:21:34Thanks very much. So, Dwight, on the multiple grants that you're getting for the development, is this funding the PCR platform and particular diseases or certain disease diagnostics for that platform or both? Speaker 200:21:54It's really targeted to both of those elements, Theo. Certainly, we have a large focus as I stated in my prepared remarks. 1 of the grants is Typically targeted to the multiplex fluab COVID and RSV panel. That's just a very critical panel in terms of everything that we plan to do with This device will handle a large number of different pathogens. This is real time PCR. Speaker 200:22:43So just kind of think in your head, what can you diagnose with real time PCR and it gives you an idea of the scope of what This device would be able to undertake. Another grant is specifically targeted in the TB realm, for example. And TV is just an awful situation in so many different countries of the world. As we're able to give you more detail On these grants, we will do so in future press releases. And we're just So pleased to see this recognition from both government and non government entities that have recognized How much work and innovation has gone into this product. Speaker 200:23:30As we said in our prepared remarks, This is something that the world has never seen before in terms of the device. So we think it's going to have a broad impact In COVID, on an ongoing basis, but eventually COVID will be tested in conjunction with our Multiplex upper respiratory panel and tuberculosis, sexually transmitted infections And other things in the future. Speaker 500:23:59And it sounded I think I heard this on your prepared remarks that you're Going to be building these yourself, but is there if this runs the way you hope it will next year, will you have the facilities in place And or how will you if you need to outsource some of this, some of the manufacturing? Speaker 200:24:20With respect to our capacity, we already have a number of lines that have been built For both the instrument and the collection cups, we just committed to another large A facility to greatly enhance that production capability. And I think, Theo, that That will handle us for the foregoing future. The next step will be Probably some kind of outsourcing, but we have a lot of we are building a lot of capacity just right here in Salt Lake City to handle our anticipated needs in the near and interim term. Speaker 500:25:11Okay. Thank you very much. Operator00:25:18There are no additional questions at this time. This I would like to turn the conference back over to Dwight Egan for closing remarks. Speaker 200:25:30So for some time now, we've shared our confidence in the experts' opinions that the post pandemic world would eventually arrive at a new normal, Where we will have to learn how to coexist with COVID. Simply put, COVID will continue to persist along with influenza, RSV and other respiratory diseases, including the common cold and tuberculosis. And in just the same way, As much of the world has had to reset its expectations in this post pandemic reality, we believe it is important for Kodiak's to do the same. The worldwide shift to at home point of care testing for a wide array of pathogens is well underway and we envision co diagnostics being a major player in this New space. We recognize that this shift in the diagnostics landscape is occurring as well as the reduction or elimination in COVID testing mandates And the need to redefine what success looks like for CodeDx on a short and long term basis As we not only navigate, but embrace the new normal diagnostic testing. Speaker 200:26:39It is our versatility beyond COVID that we believe has attracted so much attention to the Kodiak's PCR home platform to address pathogens that were endemic before COVID as well as others that may yet arise. It also forms the foundation upon which we will build our future as we achieve the milestones we lay out For ourselves, whether for the new platform or for our existing and successful centralized laboratory vertical. Thank you to our shareholders as well as to the whole Kodiak's family of employees, distributors and consultants for joining us in this broad and significant undertaking. We Operator00:27:22The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallCo-Diagnostics Q1 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsQuarterly report(10-Q) Co-Diagnostics Earnings HeadlinesCo-Diagnostics price target lowered to $1 from $1.50 at H.C. WainwrightMarch 30, 2025 | markets.businessinsider.comCo-Diagnostics targets 2025 clinical evaluations for TB and HPV tests in India and South AfricaMarch 27, 2025 | msn.comTrump’s tariffs just split the AI market in twoTrump’s tariff just split the AI market – among others – in two. One group of AI companies—the ones relying on cheap foreign hardware—just saw their costs shoot through the roof. For the other group of AI companies, they were just handed a massive competitive advantage. Make no mistake, AI as a whole is still a game-changer for the global economy. But within the AI sector, Trump’s tariffs have created a huge divergence.April 26, 2025 | Traders Agency (Ad)Co-Diagnostics, Inc. (CODX) Q4 2024 Earnings Call TranscriptMarch 27, 2025 | seekingalpha.comCo-Diagnostics, Inc. Reports Full Year 2024 Financial ResultsMarch 27, 2025 | prnewswire.comUncovering Potential: Co-Diagnostics's Earnings PreviewMarch 27, 2025 | benzinga.comSee More Co-Diagnostics Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Co-Diagnostics? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Co-Diagnostics and other key companies, straight to your email. Email Address About Co-DiagnosticsCo-Diagnostics (NASDAQ:CODX), a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.View Co-Diagnostics ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step In Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 6 speakers on the call. Operator00:00:00Afternoon and welcome to the Co Diagnostics First Quarter 2023 Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Andrew Benson, Head of Investor Relations. Operator00:00:30Please go ahead. Speaker 100:00:33Thank you. I'm Andrew Benson and joining me this afternoon are members of the Co Diagnostics management team, including Dwight Egan, Chief Executive Officer And Brian Brown, Chief Financial Officer. We will begin the call with management's prepared remarks and then open up the call to questions from our analysts. Before we begin, we would like to inform the listeners that certain statements made by Co Diagnostics during the course of this call may constitute forward looking statements. Any statement about company objectives, expectations, beliefs, plans, objectives, assumptions of future events or performance are forward looking statements. Speaker 100:01:08For example, statements concerning 2023 financial and operational guidance, the development, regulatory clearance, commercialization And features of new products, plans and objectives of management and market trends are all forward looking statements. This includes statements The company's forthcoming Kodiak's PCR home testing platform, which is subject to FDA review and is not yet available for sale. The company believes these statements are based on reasonable assumptions. However, these statements are not guarantees of performance and involve known and unknown risks And uncertainties that may cause the actual results to be materially different from any future results expressed or implied by such statements. Important factors which could cause actual results to differ materially from those in these forward looking statements are detailed in Co Diagnostics' filings with the SEC. Speaker 100:01:57Co Diagnostics assumes no obligation and expressly disclaims any duty to update any forward looking statements to reflect events or circumstances occurring after this call or to reflect the occurrence of unanticipated events. In addition, the company may discuss certain non GAAP financial measures during today's call. These non GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. We refer you to The company's earnings release is out shortly before this call, which may contain reconciliations to the non GAAP financial measures presented to their most comparable GAAP results. At this time, I would like to turn the call over to Co Diagnostics' Chief Executive Officer, Dwight Egan. Speaker 100:02:36Dwight? Speaker 200:02:37Thank you, Andrew, and thank you all for joining us. Today, we would like to share our perspective on our recent performance, discuss progress against our long term strategy and discuss actions we are taking to position the business as we navigate near term headwinds. Afterwards, we will take questions from analysts. We remain confident in our strategy and have established Several goals to help guide and measure our progress for the remainder of the year. First, we are targeting completion of the clinical evaluations for our initial Kodiak's PCR home product and device and submission to the FDA by the end of the calendar year. Speaker 200:03:20Next, we expect to commence clinical evaluations for our ABC plus RSV test in this coming flu season. Here, I am referring to both the tests that will be utilized on the new platform as well as that which will be sold to our Centralized laboratory customers and distributor base. We believe the high throughput clinical laboratory market will continue to play a significant role In diagnostic testing for some time, we intend to continue to develop products to service that sector, Of which the ABC plus RSV test is only 1. Other tests are currently in various stages of design and development. A mainstay of our mission for the last decade has been reduction of healthcare costs around the globe by democratizing infectious disease testing. Speaker 200:04:12Soon, this vision will be made possible by bringing a platform with a high degree of quality and diagnostics directly to both the Developed and less developed world, we are now closer than ever to achieving our goal of preventing the spread of infectious disease by making high quality PCR diagnostics accessible to communities all around the world. Thanks to the progress in the clinical trials for our Kodiak's PCR home platform and its initial test. Now an update on clinical trials. There are currently 5 sites Conducting clinical trials for the new platform in 4 different states. We anticipate the evaluations and Subsequent FDA submission will be concluded by the end of the year. Speaker 200:04:59And while we can't discuss at this time the details of the study results That we have seen thus far, we are pleased to report that the usability scores for overall ease of use as reported by trial participants and help play a key role in giving patients and physicians the power to know and to make informed timely health care decisions, Whether at the point of care or at home, the first test on the CodeX PCR home undergoing this regulatory effective in detecting COVID-nineteen, we are proving to the world that this highly advanced but simple to use first of its kind testing platform Has a role in the post COVID shift in diagnostics from the laboratory to the point of care and even the home. These trials validate the technology and the format that we have already begun applying to other diseases, including a respiratory disease multiplex panel With ABC plus RSV and a test for tuberculosis. I now want to highlight the recognition the new platform is Already receiving from governmental and non governmental organizations alike. Recently, we were notified that we had been selected To receive multiple grants for our respiratory multiplex and tuberculosis tests on our new platform. Speaker 200:06:34While we are unable to announce the details of these We believe the recognition from these prominent organizations is a testament to the platform technology we are bringing to market, including the new device and our patented co primer technology. One grant is related to the ABC plus RSV respiratory on the Kodiak's PCR Home platform as well as additional platform enhancements and was a monumental task That involve a thorough investigation by industry experts into every aspect of the platform, its design, history, The chemistry of the reagents and the individuals responsible with making our vision a reality. Other grants relate to a tuberculosis product being designed and verified on the Kodiak's PCR home platform in preparation for validation and clinical trials. Tuberculosis, abbreviated MTB or just TB, has been highly endemic in certain geographic regions for generations. And despite all advances in modern medicine still took the lives of 1,600,000 people in 2021. Speaker 200:07:44Some of the uptick in TB incidences and deaths since 2020 may be the result of funding that might otherwise have been allocated to TB being reappropriated to COVID related concerns. This has created an urgency among NGOs to slow the Spread of the disease through increased access to gold standard real time diagnostics, exactly in line with our mission and our new platform. The global addressable TB diagnostics market is expected to grow from $2,070,000,000 in 2022 to $3,130,000,000 By 2029, we believe the interest among NGOs in our new platform partially reflects their refocus on eradicating TB. We regard these grants as being in lockstep with the natural evolution of our vision and strategic plan, The company's first CE marking received 5 years ago this July was for our LogicSmart MTB test built using our co primers technology. The difference between then and now is we have grown beyond mere aspirations and now find ourselves fully in execution mode With internationally recognized technology, world renowned experts and a point of care platform different from anything the world has ever seen, I want to emphasize that our new platform has been designed and engineered to be versatile and durable with long term disruptive Potential as a diagnostic medical device, harnessing the power of our patented battle tested co primers technology coupled with other proprietary IP, We believe this platform sets a new benchmark for compact point of care testing that unlocks the multiplexing potential of real time PCR. Speaker 200:09:29Our research and planning indicate that multiplex tests can overcome a major price and convenience hurdle with respiratory disease Allowing patients to test for multiple diseases with a single sample for a single affordable price. The innovative sample collection cup and sample processing design is also ideal for other multiplex testing panels, Such as our planned sexually transmitted infections test. One of the most important innovations over the last year was the ability to test and go, Where an end user does not need to maintain proximity to the device or return to it following the run time and instead receives their result For departments and ministries of health to quickly identify and track outbreaks and to provide resources and information where they are needed before diseases spread among a community or region, the cloud based data system where analysis takes place also allows Patients to send test results to their physician or other authorized parties as directed by the end user Being guided by ongoing analysis provided by a respected field marketing research firm that has not only helped us focus in on what we believe will potentially Be the most accessible high throughput locations for our initial launch, but has also provided invaluable usability feedback For the device itself, on everything from the price to the packaging as we better understand the size, scope And needs of the platform's total addressable market. Speaker 200:11:223 years ago, our agility allowed us to quickly develop, test And receive clearance for our LogicSmart COVID-nineteen test and to achieve record financial results by providing gold standard PCR diagnostic testing At a time when the need was greatest. As we move into our next stage of growth, we believe the advancements in our at home point of care real time PCR testing Team of experts working diligently to achieve our shared company vision, growing product pipeline, strong cash position, Future grant funding support and our practice of letting financial intelligence drive our cash management has positioned Co Diagnostics to execute Against our strategic growth initiatives and to pave a pathway for continued success, we already have several manufacturing lines built for the string lines built for the new device and testing cups and have recently signed a new lease to add to our production capacity. Headcount has grown over 66% compared to prior year quarter. Our investments in talent and R and D remain positive indicators of the progress we are achieving to drive further value for our shareholders. This is facilitated by our strong cash position that reflects our to this point and provides the necessary flexibility as we remain in the forefront of the challenging diagnostic landscape. Speaker 200:12:47This concludes my initial remarks. Let me now turn things over to Brian Brown for a review of the key metrics and numbers. Brian? Thanks, Dwight, Speaker 300:12:56And thank you everyone for joining today's call. The decline in global COVID testing had an unfavorable impact on sales of our LOGICS Smart COVID-nineteen tests and resulted in a decline in our financial results compared to the prior year period. For the Q1 of 2023, revenue decreased 97.3 percent to $600,000 as compared to $22,700,000 in the prior year same period. Gross profit for the year Decreased to $100,000 compared to $19,400,000 in the prior year comparable period. Our gross margin percentage of 16.6 percent for the Q1 decreased from 85.5% in the prior year period, reflecting a larger percentage of fixed costs in our cost of revenue as compared to recognized revenue. Speaker 300:13:51Total operating expenses for the 3 months ended March 31, 2023 were $10,100,000 an approximate increase of 5% compared to $9,600,000 in the Q1 of fiscal 2022. The increase was driven by elevated research and development expenses as we work towards achieving our 2023 company goals and initiatives. This increase in research and development expenses was partially offset by a decrease in variable compensation and third party commissions. Research and development expenses in the Q1 were $5,000,000 compared to $3,800,000 in the prior year period. The increase primarily reflects continued investment in our at home and point of care KodiX PCR home platform and other company initiatives. Speaker 300:14:46With clinical trials for our platform ongoing, we continue to invest additional time and resources to bring our revolutionary diagnostic testing platform to market. For the Q1 of 2023, Income before taxes decreased to a loss of $8,000,000 as compared to income of $13,100,000 achieved in the prior year same The loss can be attributed to decreased global demand for COVID testing. We experienced an income tax benefit For the Q1 of $2,300,000 representing an effective tax rate of 28.2%. As stated on previous calls, Our effective tax rate will differ from the U. S. Speaker 300:15:30Federal statutory rate of 21.0 percent due to state taxes, permanent items and discrete items. Net loss for the Q1 of 2023 was $5,800,000 or a loss of $0.20 per fully diluted share compared to net income of $11,700,000 or $0.34 per fully diluted share in the prior for the same period. Adjusted EBITDA for the Q1 of 2023 was a loss of $7,200,000 compared to an adjusted EBITDA gain of $14,700,000 in the prior year period. We continue to be deliberate in our actions as we manage the health and flexibility of our balance sheet to ensure positioning for long term growth. As we make further progress on clinical trials of our platform, we remain deliberate and discerning while we evaluate opportunities that enhance our capabilities or the timing to bring our platform to market. Speaker 300:16:34Cash, cash equivalents and marketable securities ended the quarter at $75,300,000 down from $81,300,000 in December on December 31, 2022. As was highlighted in Dwight's remarks, we were recently notified that we were selected to receive multiple grants, which will provide us with additional financial resources And flexibility as we continue to progress on bringing our new at home and point of care platform to market. Our balance sheet remains solid and we remain committed to maintaining a strong cash position, while also preserving the health and flexibility of our balance sheet. Our highly liquid, no debt balance sheet enables us to utilize our resources to achieve short and long term goals and enables us to opportunistically allocate capital with the goal of maximizing long term value for shareholders. Turning now to our guidance. Speaker 300:17:35Our near term focus will be concentrated on maximizing the use of cash and cash preservation in order to allow us the greatest opportunity to achieve our 2023 and future company development and our operational goals. Internally, company's success will not be based on income statement captions. Rather, it will be measured on achievement of the development and operational goals As a result, we will not be providing financial guidance at this time. Our solid cash position provides us with the foundation to navigate near term uncertainty and deploy capital In a disciplined manner in support of our long term strategy, including our at home endpoint of care Kodiak's PCR home platform. 2023 will be a monumental year for the company and one that will position us for the long term future. Speaker 300:18:31We continue to consider additional ways to increase returns and create greater value for shareholders. With that, I will now turn the presentation back over to Dwight. Speaker 200:18:42Thank you, Brian. We will now take calls from our analysts. Operator? Operator00:18:48We will now begin the question and answer session. The first question is from Yi Chen of H. C. Wainwright. Please go ahead. Speaker 400:19:15Hey, I'm Chetan on behalf of Yu Chen. I just have a couple of quick questions. The first one being On the current clinical evaluations, is it specific to COVID-nineteen or any other infections? The second question being around readouts. Would you be able to provide any clinical readouts during the year as you get some data from your Ongoing clinical evaluations. Speaker 400:19:53Thank you. Speaker 200:19:56To the first part of your question, the current Clinical trial is in support of an FDA submission for emergency use authorization on the COVID-nineteen test only. As I stated in my remarks, we anticipate having a multiplex test, Which would include flu A, flu B, COVID-nineteen and RSV in conjunction with the upcoming Flu season. Those are the current contemplated EUA submission Speaker 400:20:41Thank you. Any color on the readouts, potential clinical readouts this year? Speaker 200:20:49Yes. We're not giving any other guidance with respect to the interim results than we gave in our prepared remarks. We're in the middle of gathering data from 5 different locations throughout the United States And we're very pleased with what's been happening with the user study element of that. And we We'll provide some guidance on some of the other metrics as appropriate in the future. Speaker 400:21:25Good. Thank you. Operator00:21:29The next question is from Theodore O'Neil of Litchfield Hills Research. Please go ahead. Speaker 500:21:34Thanks very much. So, Dwight, on the multiple grants that you're getting for the development, is this funding the PCR platform and particular diseases or certain disease diagnostics for that platform or both? Speaker 200:21:54It's really targeted to both of those elements, Theo. Certainly, we have a large focus as I stated in my prepared remarks. 1 of the grants is Typically targeted to the multiplex fluab COVID and RSV panel. That's just a very critical panel in terms of everything that we plan to do with This device will handle a large number of different pathogens. This is real time PCR. Speaker 200:22:43So just kind of think in your head, what can you diagnose with real time PCR and it gives you an idea of the scope of what This device would be able to undertake. Another grant is specifically targeted in the TB realm, for example. And TV is just an awful situation in so many different countries of the world. As we're able to give you more detail On these grants, we will do so in future press releases. And we're just So pleased to see this recognition from both government and non government entities that have recognized How much work and innovation has gone into this product. Speaker 200:23:30As we said in our prepared remarks, This is something that the world has never seen before in terms of the device. So we think it's going to have a broad impact In COVID, on an ongoing basis, but eventually COVID will be tested in conjunction with our Multiplex upper respiratory panel and tuberculosis, sexually transmitted infections And other things in the future. Speaker 500:23:59And it sounded I think I heard this on your prepared remarks that you're Going to be building these yourself, but is there if this runs the way you hope it will next year, will you have the facilities in place And or how will you if you need to outsource some of this, some of the manufacturing? Speaker 200:24:20With respect to our capacity, we already have a number of lines that have been built For both the instrument and the collection cups, we just committed to another large A facility to greatly enhance that production capability. And I think, Theo, that That will handle us for the foregoing future. The next step will be Probably some kind of outsourcing, but we have a lot of we are building a lot of capacity just right here in Salt Lake City to handle our anticipated needs in the near and interim term. Speaker 500:25:11Okay. Thank you very much. Operator00:25:18There are no additional questions at this time. This I would like to turn the conference back over to Dwight Egan for closing remarks. Speaker 200:25:30So for some time now, we've shared our confidence in the experts' opinions that the post pandemic world would eventually arrive at a new normal, Where we will have to learn how to coexist with COVID. Simply put, COVID will continue to persist along with influenza, RSV and other respiratory diseases, including the common cold and tuberculosis. And in just the same way, As much of the world has had to reset its expectations in this post pandemic reality, we believe it is important for Kodiak's to do the same. The worldwide shift to at home point of care testing for a wide array of pathogens is well underway and we envision co diagnostics being a major player in this New space. We recognize that this shift in the diagnostics landscape is occurring as well as the reduction or elimination in COVID testing mandates And the need to redefine what success looks like for CodeDx on a short and long term basis As we not only navigate, but embrace the new normal diagnostic testing. Speaker 200:26:39It is our versatility beyond COVID that we believe has attracted so much attention to the Kodiak's PCR home platform to address pathogens that were endemic before COVID as well as others that may yet arise. It also forms the foundation upon which we will build our future as we achieve the milestones we lay out For ourselves, whether for the new platform or for our existing and successful centralized laboratory vertical. Thank you to our shareholders as well as to the whole Kodiak's family of employees, distributors and consultants for joining us in this broad and significant undertaking. We Operator00:27:22The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by