Todos Medical sees 2Q revenue rocket to $1.7M, driven by sales from its coronavirus distribution business

Todos Medical Ltd, a medical diagnostics company, posted second-quarter results that saw its revenue rocket more than 50 times year-over-year fueled by its coronavirus (COVID-19) distribution business.

For the period ended June 30, 2021, Todos reported revenue of $1.7 million, compared to $32,000 in the second quarter of 2020.

Todos, which has a strong presence in New York and Tel Aviv, chalked up the revenue increase to sales from the company’s COVID-19 product distribution business.

Investors responded well, sending Todos shares nearly 6.4% higher to $0.04 on the OTC Markets.

READ: Todos Medical launches Tollovid Daily via subscription model

Todos narrowed its operating loss to $1,662,0000 in 2Q 2021, compared to an operating loss of $1,719,000 in the same period a year earlier.

“The decrease in net loss was a result of increased gross margin dollars coupled with decreases in R&D expenses and sales and marketing expenses, partially offset by an increase in general and administrative expenses,” said the company.

The company said net income per share in 2Q 2021 was $0.01, on 575.9 million weighted average shares, compared to a net loss of $0.01 per share on 189.9 million weighted average shares in 2Q 2020.

Todos had cash of $308,000 and trade receivables of $1,792,000 as of June 30, 2021.

Similarly, total assets for the company at the end of June totaled $17,258,000, compared to $6,009,000 on December 31, 2020.

“While we achieved significant business milestones in the second quarter, we also witnessed several key improvements to our financial condition as well,” Todos CFO Daniel Hirsch said in an earnings statement.

“Our asset base was expanded significantly through our acquisition of Provista while our deficit decreased by $2 million, with a significant portion of our outstanding debt being convertible into preferred equity upon the Company’s uplisting to a national stock exchange. We expect further improvements to our balance sheet in the 3Q as we work to position the company for a potential uplisting.”

Todos recently acquired Alpharetta, Georgia-based Provista Diagnostics, and its proprietary Videssa breast cancer blood test. Provista also has a diagnostic testing lab running COVID-19 PCR testing, primarily for the medical and entertainment industries.

The company said it has begun “ramping up” Provista’s automated testing capacity as well as expanding its testing capabilities to include COVID variant testing and neutralizing antibody testing. Todos noted that when at full capacity the lab has automation in place to do up to “20,000 PCR tests, over 1,500 cPass neutralizing antibody tests, and 5,000 variant tests on a daily basis.”

Todos also sees a significant market opportunity for breast cancer screening for women under 40 because current diagnostic tools do not recommend mammogram screening for this demographic.

“We made significant strides in the 2Q to position Todos for future growth on several fronts, including receiving $6.3 million in crossover investments led by Yozma Global Genomic Fund priced at $0.0599 per share,” said Todos CEO Gerald E. Commissiong.

“On the business front, the acquisition of Provista gives us the ability to establish a commercial ready test addressing a multi-billion market opportunity. It also provides us with a CLIA/CAP lab to drive growth in COVID-related testing as well as expanding into other high-volume testing through our automation capabilities.”

Commissiong added that the launch of the firm’s Phase 2 trial for Tollovir as a COVID antiviral candidate is a “potential game-changer.”

“We are excited about our plans to further expand the trial into India later this year,” said Commissiong. “The receipt of additional certificates of free sale for our Tollovid in the second and third quarter also bolsters our ability to capitalize on 3CL protease inhibition in the immune support market.”

Commissiong spelled out the company’s priorities.

“As we move through the second half of 2021, we are focused on ramping testing volume at Provista, growing revenue at our COVID distribution business, and continuing the development and commercialization of our antivirals, supplements and diagnostic solutions,” said Commissiong. “We also continue to work to position the company to achieve an uplisting to a national stock exchange.”

In a separate announcement, Todos said it has struck an agreement with holders of the company’s convertible notes that provides for a 90-day moratorium on conversions and a 90-day prohibition on sales of shares by those noteholders issued as a result of conversion notices submitted after September 1, 2021.

“We are very pleased to have received the support from our existing convertible note holders with this lockup agreement,” said Commissiong.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors