Highlights:
- Q1 2016 revenues rise to approximately $161,000 from zero in year-ago quarter
- Q1 2016 net loss narrows by approximately $1.6 million year over year
- Q1 2016 operating expenses continued to decrease by $162,000 from Q4 2015
- Global sales outside the U.S. continue to be robust and diverse
- First mass-market distribution deal to begin ramping-up in current second quarter
- Company ahead of financial plan, expects to reach profitability by year-end
LA JOLLA, Calif., May 20, 2016 (GLOBE NEWSWIRE) -- MyDx, Inc. (OTCQB:MYDX), producer of its patented MyDx™ (My Diagnostic) product line, the first battery operated, handheld, chemical analyzer for consumers, today reported financial results for its first quarter of 2016 ended March 31, 2016 and provided an updated positive outlook for the current fiscal year.
Company Reports First Quarter 2016 Financial Results
For the first quarter ended March 31, 2016, the Company reported that revenues of $161,000 compared with zero a year ago when it was still in the research and development stage. The Company’s first quarter of 2016 represents its third full quarter of revenues, nearly all of which were sold directly to consumers via the Company’s website at www.cdxlife.com/cdxshop/.
In the first quarter of 2016, the Company’s net loss narrowed to ($544,510) year over year compared with a net loss of ($2.1 million) in the year-ago quarter.
MyDx Enters Into Initial $4 Million Distribution Deal in First Quarter of 2016
The Company’s $4 million distribution agreement with Nanolux Technology, Inc., announced on April 5, 2016, requires far higher levels of production along with training and dissemination of supporting marketing materials to upwards of 1,000 separate retailers nationwide of indoor agricultural equipment featuring Nanolux’s state of the art products – all of which is in process and being aggressively implemented.
MyDx Revenues to Ramp-Up Beginning in the Current Second Quarter
With its Nanolux distribution agreement beginning to ramp-up in the current quarter, the Company is aggressively advancing the reconfiguration of its manufacturing capacity and supply chain management to achieve greater scale and efficiency.
With the valuable legal cannabis grower prosumer market covered nationally through Nanolux, management is actively pursuing similar distribution deals on the legal marijuana dispensary side of the business to cover that important prosumer market vertical. Rather than expend management resources on a large number of small such distribution deals, it is focused on creating one or more large regional or national distribution agreements that provide scale and accelerate the Company’s business plan to build a strong national brand for its proprietary hand-held chemical analyzer beginning with its CannaDx Sensor.
The Company is confident that the growing demand for its unique, patented MyDx Analyzer with the CannaDx Sensor is strongly supported by both the domestic and international markets. While national surveys show consumer attitudes toward cannabis consumption trending positively following Colorado’s pioneering and increasingly successful “experiment” with legalized, regulated recreational cannabis sales, a substantial number of state ballot initiatives to legalize cannabis sales are scheduled for the U.S. November election.
MyDx CEO Sees Company Reaching Profitability Ahead of Plan in 2016
The Company is continuing to streamline its R&D, sales and marketing, and general and administrative expenses as it successfully transitions from a complete R&D company to a sales and marketing organization with a strong pipeline of new Analyzer sensors in its development pipeline through the end of 2017.
Commenting on his updated outlook for 2016, Daniel R. Yazbeck, MyDx Chairman and CEO, said, “To get the most bang for our buck, we plan to continue to leverage our marketing dollars through public and media relations, which has returned a high ROI to date, as well as in direct support of major distribution agreements that will produce a positive piggyback effect on consumer direct sales as well.”
“Global sales remain strong given that we spend minimal marketing dollars outside the U.S. In addition to the U.S., we are evaluating several countries for major distribution agreements as well as localized marketing initiatives for cannabis friendly tradeshows, events and targeted advertising opportunities abroad,” Mr. Yazbeck said. “All of which supports our updated outlook for reaching profitability by year-end 2016.”
About MyDx
MyDx, Inc. (OTCQB:MYDX) is a chemical detection and sensor technology company based in San Diego, California whose mission is to help people Trust & Verify™ what they put into their minds and bodies. The Company has developed MyDx, a patented, affordable portable analyzer that provides real-time chemical analysis and fits in the palm of consumers’ hands. The multi-use MyDx leverages over a decade of established electronic nose technology to measure chemicals of interest. It owns a substantial and growing intellectual property portfolio of patents covering its technology. With its Canna sensor commercialized, it has four other sensors being developed in its lab that are compatible with the MyDx Analyzer and App. For more information, please visit www.cdxlife.com.
Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this press release that are not statements of historical fact may be considered to be forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, our ability to complete our product testing and launch our product commercially, the acceptance of our product in the marketplace, the uncertainty of the laws and regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission, available at www.sec.gov.
[Financial Tables to Follow]
| MyDx, INC. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| For the three months ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net revenues | $ | 161,258 | $ | - | ||||
| Cost of goods sold | 91,326 | - | ||||||
| Gross profit | 69,932 | - | ||||||
| Operating Expenses | ||||||||
| Research and development | 95,207 | 768,328 | ||||||
| Sales and marketing | 145,293 | 394,634 | ||||||
| General and administrative | 354,312 | 660,997 | ||||||
| Total operating expenses | 594,812 | 1,823,959 | ||||||
| Loss from operations | (524,880 | ) | (1,823,959 | ) | ||||
| Interest expense, net | 18,831 | (293,806 | ) | |||||
| Loss before provision for income taxes | (543,710 | ) | (2,117,765 | ) | ||||
| Provision for income taxes | 800 | 800 | ||||||
| Net loss | $ | (544,510 | ) | $ | (2,118,565 | ) | ||
| Basic and diluted loss per share | $ | (0.02 | ) | $ | (0.20 | ) | ||
| Weighted average shares used in computing net loss per share | ||||||||
| Basic and diluted | 22,182,752 | 10,656,742 | ||||||
| MyDx, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 34,769 | $ | 143,680 | ||||
| Accounts receivable | 25,123 | 10,702 | ||||||
| Inventory | 373,586 | 451,973 | ||||||
| Prepaid expenses and other current assets | 15,393 | 51,978 | ||||||
| Total current assets | 448,872 | 658,333 | ||||||
| Property and equipment, net | 211,718 | 233,064 | ||||||
| Other assets | 98,731 | 104,365 | ||||||
| Total assets | $ | 759,320 | $ | 995,762 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 601,482 | $ | 619,528 | ||||
| Customer deposits | 2,206 | 9,467 | ||||||
| Accrued liabilities | 290,291 | 281,761 | ||||||
| Current portion of leases payable | 2,822 | 2,773 | ||||||
| Due to related party | 1,075 | 1,075 | ||||||
| Convertible notes payable, current | 159,739 | 50,574 | ||||||
| Total current liabilities | 1,057,616 | 965,178 | ||||||
| Convertible note payable - Related Party | 175,000 | 175,000 | ||||||
| Convertible notes payable | 202,763 | 200,274 | ||||||
| Other long-term obligations | 1,997 | 2,721 | ||||||
| Total liabilities | 1,437,375 | 1,343,173 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' deficit: | ||||||||
| Common stock, $0.001 par value, 375,000,000 shares authorized; 22,216,928 and 22,081,928 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 22,217 | 22,081 | ||||||
| Additional paid-in capital | 9,741,802 | 9,528,072 | ||||||
| Accumulated deficit | (10,442,074 | ) | (9,897,564 | ) | ||||
| Total stockholders' deficit | (678,055 | ) | (347,411 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 759,320 | $ | 995,762 | ||||