Second Quarter Highlights:
- Revenues Jumps 73% Higher, Sequentially, to $279,000
- Gross Margin Scales 37% Higher, Sequentially, to 59%
- Operating expenses decreased by $1.1 million, or 53%, from ($2.1 million) to ($990,000) year-over-year
- Highly Anticipated New Product Launch on Schedule for Fourth Quarter 2016
LA JOLLA, Calif., Aug. 15, 2016 (GLOBE NEWSWIRE) -- MyDx, Inc. (OTCQB:MYDX), a rapidly growing chemical detection company, today announced its financial results for the second quarter ended June 30, 2016 and provided an updated, positive outlook on the balance of 2016.
Company Reports Second Quarter Results
For the second ended June 30, 2016, the Company reported revenues rose 73% to a record $279,000, sequentially from the first quarter, 2016, and compares with zero revenues in the year-ago quarter when it was still in the research and development stage. Revenues for the quarter were driven primary by the sales of its MyDx® analyzer with the CannaDx™ sensor.
As a result of the Company’s improved operating efficiencies, its operating expenses were reduced by approximately 53%, year over year, down from $2.1 million to $990,000. The decrease in operating expenses reflects a 75% reduction in R&D expenditures from $585,000 to $146,000; a 79% decrease in sales and marketing expenditures from $278,000 to $58,000; and, a 37% decrease in general and administrative expenses from $1.2 million to $786,000. Despite the decrease in R&D expenditures, the Company has reported record R&D advancements in accelerating the launch of OrganaDx™, AquaDx™ and AeroDx™.
The Company’s second quarter 2016 net loss decreased by approximately 55%, year over year, from ($2.1 million), ($0.20) per share, to ($937,000), $(0.04) per share.
Company’s Most Successful Quarter Yet
The second quarter was MyDx’s most productive quarter to date, highlighted by:
- Signed a major distribution agreement for its CannaDx product line with Nanolux Technology, Inc., announced April 5
- An exceptionally large volume of positive media coverage, worldwide, reported May 3
- Surprisingly robust, early global sales of its MyDx chemical analyzer with CannaDx sensor as disclosed May 5
- Launch of its updated, data and feature-rich CannaDx smart phone App for both iOS and Android platforms announced June 1
- Signed an agreement with Arrow Electronics, a Fortune 150 company, to scale its supply chain and contract manufacturing capabilities for its MyDx product line disclosed June 22
MyDx CEO Sees Continued Growth in the Second Half of 2016
As stated in its news release report on its first quarter, ended March 31, 2016, the Company has streamlined operations with R&D, sales and marketing, and general and administrative expenses continuing to trend sharply lower throughout the first half of 2016.
Today, MyDx is an efficient new product development, sales and marketing organization with an exciting line up of new sensors for its multi-purpose chemical analyzer -- that address global mass markets -- being readied for launch in the fourth quarter of 2016 and into 2017.
Commenting on the Company’s historically successful second quarter results, Daniel Yazbeck, MyDx Chairman and CEO, said, “CannaDx continues to capture market share with momentum, building a strong word-of-mouth and social media buzz amongst our consumers and purveyors of legal cannabis while simultaneously generating valuable brand awareness globally for our multi-purpose MyDx chemical analyzer.
“Coupled with its sophisticated smart phone application, the MyDx analyzer is a unique product that for the first time places the unrivalled power of testing for chemicals where it belongs – in the hands of consumers.
Company Prepares for Launch of New Revenue Channels
“Building on the market’s acceptance of our patented technology, as demonstrated through the success of our CannaDx analyzer, we are excited to prepare for the launch of our next sensor, AquaDx, which places real-time affordable water quality testing and tracking in the hands of consumers.
The next stage of our growth will include the development of the Company’s distribution channels in markets beyond cannabis. Our business strategy will include the creation of an international team that will focus on areas around the globe that have a need for our products, in particular areas that have issues with chemical contaminants in their water, air and food. We have secured efficient, world class manufacturing and supply chain management to support our growth strategy. Our goal remains to continue to help consumers globally, expand profitability and enhance shareholder value,” Mr. Yazbeck concluded.
Company Six Months Ended June 30, 2016: Revenues Up, Expenses Down
For the six months ended June 30, 2016, the Company reported revenues of $441,000 compared with zero revenues in the year-ago period when it was still in the research and development stage.
Operating expenses decreased by $2.3 million, or 60%, from $3.9 million to $1.6 million, for the six months ended June 30, 2016. The dramatic decrease in operating expenses reflects R&D expenditures decreased by $1.1 million, or 82%; sales and marketing expenses decreased by $469,000, or 70%, and, general and administrative expenses decreased by $759,000 or 40%.
MyDx’s first-half, 2016, net loss decreased by nearly two thirds, year over year, from ($4.36 million), or $(0.41) per share, to ($1.5 million), or $(0.07) per share.
About MyDx, Inc.
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 developed MyDx®, a patented, affordable portable analyzer that provides real-time chemical analysis and fits in the palm of the user’s hand. The multi-use MyDx analyzer 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 CannaDx sensor commercialized, it has three other sensors being developed in its lab that are compatible with the MyDx Analyzer and App that will empower consumers to test the chemical composition of what they eat, drink and inhale. 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.
| MyDx, INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net Revenues | $ | 279,382 | $ | - | $ | 440,640 | $ | - | ||||||||
| Cost of goods sold | 114,363 | - | 205,689 | - | ||||||||||||
| Gross profit | 165,019 | - | 234,951 | - | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and development | 145,885 | 585,084 | 241,092 | 1,353,414 | ||||||||||||
| Sales and marketing | 58,319 | 278,019 | 203,612 | 672,653 | ||||||||||||
| General and administrative | 785,945 | 1,238,056 | 1,140,258 | 1,899,053 | ||||||||||||
| Total operating expenses | 990,149 | 2,101,159 | 1,584,962 | 3,925,120 | ||||||||||||
| Loss from operations | (825,130 | ) | (2,101,159 | ) | (1,350,011 | ) | (3,925,120 | ) | ||||||||
| Interest expense, net | 36,550 | 743 | 55,380 | 441,761 | ||||||||||||
| Loss on settlement of debt | 73,935 | - | 73,935 | - | ||||||||||||
| Loss before provision for income taxes | (935,615 | ) | (2,101,902 | ) | (1,479,326 | ) | (4,366,881 | ) | ||||||||
| Provision for income taxes | 1,050 | - | 1,850 | 800 | ||||||||||||
| Net loss | $ | (936,665 | ) | $ | (2,101,902 | ) | $ | (1,481,176 | ) | $ | (4,367,681 | ) | ||||
| Basic and diluted loss per share | $ | (0.04 | ) | $ | (0.20 | ) | $ | (0.07 | ) | $ | (0.41 | ) | ||||
| Weighted average shares used in computing net loss per share | ||||||||||||||||
| Basic and diluted | 22,647,732 | 10,689,072 | 22,415,242 | 10,683,955 | ||||||||||||
| MyDx, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 190,369 | $ | 143,680 | ||||
| Accounts receivable | 11,067 | 10,702 | ||||||
| Inventory | 380,906 | 451,973 | ||||||
| Prepaid expenses and other current assets | 15,809 | 51,978 | ||||||
| Total current assets | 598,151 | 658,333 | ||||||
| Property and equipment, net | 190,372 | 233,064 | ||||||
| Other assets | 96,231 | 104,365 | ||||||
| Total assets | $ | 884,754 | $ | 995,762 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Asset based loans | $ | 271,370 | $ | - | ||||
| Accounts payable | 1,009,526 | 619,528 | ||||||
| Customer deposits | 6,380 | 9,467 | ||||||
| Accrued liabilities | 283,641 | 281,761 | ||||||
| Current portion of leases payable | 2,873 | 2,773 | ||||||
| Due to related party | 1,075 | 1,075 | ||||||
| Convertible notes payable, current | 210,795 | 50,574 | ||||||
| Total current liabilities | 1,785,660 | 965,178 | ||||||
| Convertible note payable - Related Party | 125,000 | 175,000 | ||||||
| Convertible notes payable | 244,507 | 200,274 | ||||||
| Other long-term obligations | 22,878 | 2,721 | ||||||
| Total liabilities | 2,178,045 | 1,343,173 | ||||||
| Commitments and contingencies (Note 11) | ||||||||
| Stockholders' deficit: | ||||||||
| Common stock, $0.001 par value, 375,000,000 shares authorized; 23,543,834 and 22,081,928 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 23,544 | 22,081 | ||||||
| Additional paid-in capital | 10,061,905 | 9,528,072 | ||||||
| Accumulated deficit | (11,378,740 | ) | (9,897,564 | ) | ||||
| Total stockholders' deficit | (1,293,291 | ) | (347,411 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 884,754 | $ | 995,762 | ||||