What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-11-10 compared with 2022-08-11 · 99 added, 100 removed, 167 unchanged (54% of the section changed)

74 unchanged sentences

PCR home testing platform”) designed to bring affordable, reliable gold-standard polymerase chain reaction (“PCR”)

to patients in point-of-care and even at-home settings.

to patients in point-of-care and at-home settings.

diagnostics systems enable dependable, low-cost, molecular testing for organisms and genetic diseases by automating historically complex

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OF OPERATIONS

Three Months Ended June 30, 2022 Compared to the Three Months ended June 30, 2021

the three months ended June 30, 2022, we generated revenues of $5,023,226, compared to revenues of $27,358,140 for the three months ended

June 30, 2021.

The decrease in revenue of $22,334,914 was primarily due to lower sales of our Logix Smart™ COVID-19 test developed

in response to the current COVID-19 pandemic.

Of the total revenue in the three months ended June 30, 2022, $74,989 related to the sale

of third party manufactured equipment and consumables, which we sourced and sold to customers to facilitate the sales of our COVID-19

test compared to $164,470 of revenue from the sales of such equipment for the three months ended June 30, 2021.

recorded cost of revenues of $915,432 for the three months ended June 30, 2022, compared to $2,504,355 for the three months ended June

The decrease in revenues combined with a larger percentage of fixed product production costs resulted in a lower cost of revenues

and gross margin percentage.

Of the total cost of sales during the three months ended June 30, 2022, $88,636 was from equipment sold

to our customers compared to $131,403 for equipment sold to customers for the three months ended June 30, 2021.

incurred total operating expenses of $8,254,832 for the three months ended June 30, 2022, compared to total operating expenses of $13,062,620

for the three months ended June 30, 2021.

The decrease in operating expenses was due to a decrease in business activities experienced

as a result of our decrease in revenue, variable compensation, third party sales commissions reflected in sales and marketing, and a

lower investment in third-party research and development.

sales and marketing expenses for the three months ended June 30, 2022 were $1,472,225, compared to $5,853,313 for the three months ended

June 30, 2021.

The decrease was primarily a result of decreased variable compensation, such as bonuses and commissions, and decreased

third-party sales commissions, partially offset by increased stock-based compensation expense.

and administrative expenses decreased from $2,468,433 for the three months ended June 30, 2021 to $2,468,421 for the three months ended

June 30, 2022.

The slight decrease in general and administrative expenses was primarily due to decreased variable compensation expense,

partially offset by increased activity to support the growth of our business, including increased insurance expense and professional

and advisory fees related to our recent acquisitions, as well as increased stock-based compensation expense.

research and development expenses decreased from $4,669,160 for the three months ended June 30, 2021 to $3,889,844 for the three months

ended June 30, 2022.

The primary decrease in expenses was a result of decreased expenditures to third parties related our point-of-care

device development, partially offset by increases in personnel expenses related to our acquisitions of IdMo and ACI on December 31, 2021.

Three Months Ended September 30, 2022 Compared to the Three Months ended September 30, 2021

the three months ended September 30, 2022, we generated revenues of $5,094,456, compared to revenues of $30,101,353 for the three months

ended September 30, 2021.

The decrease in revenue of $25,006,897 was primarily due to lower sales of our Logix Smart™ COVID-19

test developed in response to the current COVID-19 pandemic.

recorded cost of revenues of $767,936 for the three months ended September 30, 2022, compared to $3,311,255 for the three months ended

September 30, 2021.

The decrease in revenues combined with a larger percentage of fixed product production costs resulted in a lower

cost of revenues and gross margin percentage.

incurred total operating expenses of $10,862,135 for the three months ended September 30, 2022, compared to total operating expenses

of $13,159,977 for the three months ended September 30, 2021.

The decrease in operating expenses was due to a decrease in business activities

experienced as a result of our decrease in revenue, variable compensation, third party sales commissions reflected in sales and marketing,

and a lower investment in third-party research and development.

These decreases were partially offset by increased stock-compensation

sales and marketing expenses for the three months ended September 30, 2022 were $1,889,907, compared to $4,253,091 for the three months

ended September 30, 2021.

The decrease was primarily a result of decreased variable compensation, such as bonuses and commissions, and

decreased third-party sales commissions, partially offset by increased stock-based compensation expense.

and administrative expenses increased from $2,919,498 for the three months ended September 30, 2021 to $3,622,273 for the three months

ended September 30, 2022.

The increase in general and administrative expenses was primarily due to increased insurance expense and professional,

legal, and advisory fees, as well as increased stock-based compensation expense, partially offset by decreased variable compensation

research and development expenses decreased from $5,893,350 for the three months ended September 30, 2021 to $5,037,461 for the

three months ended September 30, 2022.

The primary decrease in expenses was a result of decreased expenditures to third parties

related our point-of-care device development, partially offset by increases in personnel expenses related to our acquisitions of

IdMo and ACI on December 31, 2021, the primary focus of which relates to the point-of-care device development, as well as

increased stock-based compensation expense.

Income (Expense)

the three months ended June 30, 2022 we had total other income of $719,228, compared to total other income of $139,124 for the three

months ended June 30, 2021.

The increase was due primarily to a change in the fair value of contingent consideration liabilities recorded

in conjunction with the acquisitions of IdMo and ACI, partially offset by a loss from our India joint venture.

realized a net loss for the three months ended June 30, 2022 of $2,686,303, compared with net income for the three months ended June

the three months ended September 30, 2022 we had total other income of $3,059,915, compared to total other expense of $53,561 for the

three months ended September 30, 2021.

The increase was due primarily to a change in the fair value of contingent consideration liabilities

recorded in conjunction with the acquisitions of IdMo and ACI.

realized a net loss for the three months ended September 30, 2022 of $1,361,062, compared with net income for the three months ended

September 30, 2021 of $11,475,966.

The decrease in net income was primarily the result of a decrease in revenues, partially offset by

a decrease of operating expenses, as well as changes in the fair value of acquisition contingencies.

Additionally, we recorded an income

tax benefit of $2,114,638 for the three months ended September 30, 2022, compared to income tax expense of $2,100,594 for the three months

ended September 30, 2021.

Nine Months Ended September 30, 2022 Compared to the Nine Months ended September 30, 2021

the nine months ended September 30, 2022, we generated revenues of $32,816,726, compared to revenues of $77,484,262 for the nine months

ended September 30, 2021.

The decrease in revenue of $44,667,536 was primarily due to lower sales of our Logix Smart™ COVID-19

test developed in response to the current COVID-19 pandemic.

recorded cost of revenues of $4,965,319 for the nine months ended September 30, 2022, compared to $9,088,175 for the nine months ended

September 30, 2021.

The decrease in revenues combined with a larger percentage of fixed product production costs resulted in a lower

cost of revenues and gross margin percentage.

incurred total operating expenses of $28,709,900 for the nine months ended September 30, 2022, compared to total operating expenses of

$32,639,900 for the nine months ended September 30, 2021.

The decrease in operating expenses was due to a decrease in business activities

experienced as a result of our decrease in revenue, variable compensation, and third party sales commissions reflected in sales and marketing,

partially offset by increased stock-based compensation expense.

sales and marketing expenses for the nine months ended September 30, 2022 were $6,014,280, compared to $11,303,950 for the nine months

ended September 30, 2021.

The decrease was primarily a result of decreased variable compensation, such as bonuses and commissions, and

decreased third-party sales commissions, partially offset by increased stock-based compensation expense.

and administrative expenses increased from $8,323,620 for the nine months ended September 30, 2021 to $9,012,888 for the nine months

ended September 30, 2022.

The increase in general and administrative expenses was primarily due to increased insurance expense and professional,

legal, and advisory fees, as well as increased stock-based compensation expense, partially offset by decreased variable compensation

research and development expenses decreased slightly from $12,779,573 for the nine months ended September 30, 2021 to $12,698,632

for the nine months ended September 30, 2022.

The primary increase in expenses was a result of increases in personnel expenses

related to our acquisitions of IdMo and ACI on December 31, 2021, the primary focus of which relates to the point-of-care device

development, partially offset by a decrease in third-party research and development investment, as well as

increased stock-based compensation expense.

Income (Expense)

the nine months ended September 30, 2022 we had total other income of $7,055,666, compared to total other expense of $364,723 for the

nine months ended September 30, 2021.

The increase was due primarily to a change in the fair value of contingent consideration liabilities

recorded in conjunction with the acquisitions of IdMo and ACI.

realized net income for the nine months ended September 30, 2022 of $7,667,231, compared with net income for the nine months ended September

30, 2021 of $29,160,154.

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Additionally, we recorded an income tax benefit

of $741,507 for the three months ended June 30, 2022, compared to income tax expense of $2,145,076 for the three months ended June 30,

Six Months Ended June 30, 2022 Compared to the Six Months ended June 30, 2021

the six months ended June 30, 2022, we generated revenues of $27,722,270, compared to revenues of $47,382,909 for the six months ended

June 30, 2021.

The decrease in revenue of $19,660,639 was primarily due to lower sales of our Logix Smart™ COVID-19 test developed

in response to the current COVID-19 pandemic.

Of the total revenue in the six months ended June 30, 2022, $438,939 related to the sale

of third party manufactured equipment and consumables, which we sourced and sold to customers to facilitate the sales of our COVID-19

test compared to $430,985 of revenue from the sales of such equipment for the six months ended June 30, 2021.

recorded cost of revenues of $4,197,383 for the six months ended June 30, 2022, compared to $5,776,920 for the six months ended June

The decrease in revenues combined with a larger percentage of fixed product production costs resulted in a lower cost of revenues

and gross margin percentage.

Of the total cost of sales during the six months ended June 30, 2022, $463,318 was from equipment sold to

our customers compared to $334,039 for equipment sold to customers for the six months ended June 30, 2021.

incurred total operating expenses of $17,847,766 for the six months ended June 30, 2022, compared to total operating expenses of $19,479,923

for the six months ended June 30, 2021.

The decrease in operating expenses was due to a decrease in business activities experienced as

a result of our decrease in revenue, variable compensation, third party sales commissions reflected in sales and marketing, and a lower

investment in third-party research and development.

sales and marketing expenses for the six months ended June 30, 2022 were $4,124,373, compared to $7,050,859 for the six months ended

June 30, 2021.

The decrease was primarily a result of decreased variable compensation, such as bonuses and commissions, and decreased

third-party sales commissions, partially offset by increased stock-based compensation expense.

and administrative expenses decreased from $5,404,122 for the six months ended June 30, 2021 to $5,390,616 for the six months ended June

The slight decrease in general and administrative expenses was primarily due to decreased variable compensation expense, partially

offset by increased activity to support the growth of our business, including increased insurance expense and professional and advisory

fees related to our recent acquisitions, as well as increased stock-based compensation expense.

research and development expenses increased from $6,886,223 for the six months ended June 30, 2021 to $7,661,171 for the six months ended

June 30, 2022.

The primary increase in expenses was a result of increases in personnel expenses related to our acquisitions of IdMo and

ACI on December 31, 2021, partially offset by a decrease in third-party research and development investment.

Income (Expense)

the six months ended June 30, 2022 we had total other income of $3,995,751, compared to total other expense of $311,162 for the six months

ended June 30, 2021.

The increase was due primarily to a change in the fair value of contingent consideration liabilities recorded in

conjunction with the acquisitions of IdMo and ACI, partially offset by a loss from our India joint venture.

realized net income for the six months ended June 30, 2022 of $9,028,292, compared with net income for the six months ended June 30,

2021 of $17,684,188.

The decrease in net income was primarily the result of a decrease in revenues, partially offset by a decrease of

operating expenses, as well as changes in the fair value of acquisition contingencies.

Additionally, we recorded income tax expense of

$644,580 for the six months ended June 30, 2022, compared to $4,130,716 for the six months ended June 30, 2021.

of $1,470,058 for the nine months ended September 30, 2022, compared to income tax expense of $6,231,310 for the nine months ended September

and Capital Resources

June 30, 2022, we had cash and cash equivalents of $86,045,405 that could readily be converted into cash if needed.

Additionally, our

total current assets of June 30, 2022, were $114,567,459 compared to total current liabilities of $6,716,136.

cash provided by operating activities during the six months ended June 30, 2022 was $9,460,222, compared to $24,694,101 for the six months

ended June 30, 2021.

The decrease in cash from operating activities was primarily due to decreased revenues, increases in inventory,

and the impact of non-cash items.

used $9,600,444 of cash in investing activities during the six months ended June 30, 2022, primarily from purchases of marketable securities,

offset by maturities of marketable investments and purchases of property and equipment, compared to cash from investing activities of

$2,158,365 during the six months ended June 30, 2021.

cash used in financing activities was $2,421,607 for the six months ended June 30, 2022, compared to net cash provided by financing activities

of $444,899 for the same period in the prior year.

This decrease is due to the repurchase of outstanding common shares during the current

September 30, 2022, we had cash and cash equivalents of $81,507,983.

Additionally, we had $4,982,350 of marketable securities that could

readily be converted into cash if needed.

Additionally, our total current assets of September 30, 2022, were $101,915,715 compared to

total current liabilities of $6,012,209.

cash provided by operating activities during the nine months ended September 30, 2022 was $10,578,544, compared to $36,202,945 for the

nine months ended September 30, 2021.

The decrease in cash from operating activities was primarily due to decreased revenues, increases

in inventory, and the impact of non-cash items.

used $4,861,292 of cash in investing activities during the nine months ended September 30, 2022, primarily from purchases of

marketable securities, offset by maturities of marketable investments and purchases of property and equipment, compared to cash

provided by investing activities of $3,028,192 during the nine months ended September 30, 2021.

cash used in financing activities was $12,816,503 for the nine months ended September 30, 2022, compared to net cash provided by financing

activities of $450,398 for the same period in the prior year.

This decrease is due to the repurchase of outstanding common shares during

the current fiscal year.

commencing sales of our Logix Smart™ COVID-19 test in March 2020, we have used our cash generated from those sales to fund the

1 unchanged sentence

We have increased our work force primarily in the area of

research and development to complete development of additional tests to enable us to use our distributor network to sell other products

throughout the world and remain profitable in the future.

In March 2022 our board of directors authorized the repurchase of up to $30.0

million of the company’s outstanding common stock.

We have no obligation to repurchase any shares under the repurchase program

and may suspend or discontinue it at any time without prior notice.

During the six months ended June 30, 2022 we have repurchased 532,440

outstanding common shares under the repurchase program.

research and development to develop the Co-Dx PCR home testing platform and complete development of additional tests to enable us to

use our distributor network to sell other products throughout the world and remain profitable in the future.

In March 2022 our board

of directors authorized the repurchase of up to $30.0 million of the company’s outstanding common stock.

We have no obligation

to repurchase any shares under the repurchase program and may suspend or discontinue it at any time without prior notice.

nine months ended September 30, 2022 we have repurchased 3,414,326 outstanding common shares under the repurchase program.

believe that our existing capital resources and the cash generated from future sales will be sufficient to meet our projected operating

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis