Co-Diagnostics Reports 89% Revenue Decline and $7.5 Million Net Loss in Q1 2025

Co-Diagnostics, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $50,277, a decrease of approximately 89% compared to $467,854 in the same period of 2024. The drop in revenue was primarily attributed to a reduction in product and grant revenues, which fell sharply from $252,745 and $215,109, respectively, in the previous year. The company's gross profit also decreased to $28,687 from $233,349, reflecting the impact of lower sales volumes.

Operating expenses for the quarter were reduced to $8.6 million, down from $10.5 million in the prior year, largely due to decreased stock-based compensation and lower personnel-related expenses. Sales and marketing expenses saw a notable decline, falling to $657,030 from $1.6 million, while research and development costs decreased to $4.9 million from $5.7 million. Despite these reductions, Co-Diagnostics reported a net loss of $7.5 million, an improvement from the $9.3 million loss recorded in the first quarter of 2024.

In terms of operational metrics, the company’s cash and cash equivalents stood at $1.9 million as of March 31, 2025, alongside marketable investment securities valued at $19.6 million. The total current assets amounted to $23.8 million, significantly higher than the current liabilities of $5.4 million. The company utilized $8.7 million in cash for operating activities during the quarter, slightly more than the $8.5 million used in the same period last year. Cash provided by investing activities was $7.4 million, a decrease from $16.7 million in the previous year, primarily due to the timing of investment redemptions.

Strategically, Co-Diagnostics is focused on the development of its Co-Dx PCR platform, which aims to enhance point-of-care and at-home testing capabilities. The company withdrew its 510(k) application for the Co-Dx PCR Pro instrument after discussions with the FDA regarding shelf-life stability. The company plans to submit an enhanced version of the test following further clinical evaluations. As of March 31, 2025, Co-Diagnostics had sold 833,806 shares under its at-the-market agreement, generating net proceeds of $0.6 million, with $16.5 million remaining available for future issuances.

Looking ahead, Co-Diagnostics faces substantial uncertainty regarding its ability to continue as a going concern, as indicated in its filing. The company is exploring additional financing options, including equity and debt, to support its operations and strategic initiatives. However, the ability to secure such financing is contingent on market conditions and investor sentiment, which may impact the company's operational viability in the near term.