MyDx Inc (OTCMKTS:MYDX) shares slumped 16.17% last week to $0.0140 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.01 to $0.95. The company has a market cap of $741K at 251.15 million shares outstanding.
MyDx Inc is a science and technology company that was formerly known as Brista Corp. It develops and commercializes technology and devices to measure chemicals of interest in solid, liquid or gas samples. Its product MyDx is a portable chemical sensor with a hand-held analyzer and associated mobile application. This MyDx device includes MyDx Analyzer and MyDx App with interchangeable sensors allows users to test for pesticides in food, fruits, herbs, plants and vegetables, chemicals in water, and toxins in the air through nanotechnology.
MyDx device has an interface designed to communicate through Bluetooth with associated mobile application, which is downloadable on the iPhone operating system, Android or Windows smartphone. The company also has a CannaDx Sensor, which measures the levels of chemicals with interest in Cannabis, including Cannabinoids and Terpenes and the Total Canna Profile of the plant, which should enjoy stronger interest and demand now that several states have legalized the use of recreational or medical marijuana in the November 8 vote.
For the three months ended September 30, 2016 and 2015, the MyDx Inc had net revenues of $134,240 and $219,180, respectively. This decline was due to cumulative buildup of nearly one year of pre-sales of CannaDx shipments in 2015. Also, the company incurred operating expenses in the amount of $1,976,382 compared to $1,447,564 in the same period last year as a direct result of new investments made to create and launch a new global licensing model, with an initial emphasis across the greater China region. Still, gross profit as a percentage of net revenues held steady at a healthy 40.2% for the third quarter.
Over the last nine months, we streamlined our operations across the board, reducing our operating cash burn by 83% year over year, which solidifies our path towards becoming cashflow positive by the end of the fourth quarter and profitable in 2017,” remarked MyDx Inc CEO Daniel Yazbeck. ““During the third quarter, while completing the development, branding and launch of the AquaDx and OrganaDx product lines, we have been working diligently to create, negotiate and close a landmark Asian licensing distribution deal.”
He added that MyDx Inc closed a 5-year $2.5 million high-margin transaction with their first licensing partner in China who will market and distribute the OrganaDx, AquaDx, and AeroDx product lines in that region. Also, the report indicated that the CannaDx iOS app rose to the top of the Apple Store charts following the successful November 8 vote. Aside from that, MyDx Inc was also able to triple its number of product lines launching two new Sensor Chips for its Analyzer that address major, global mass markets.
We believe 2017 will be a watershed year for MyDx and its shareholders as we expand on our new products launches and licensing model. We extend our sincere thanks to our partners, customers, shareholders and industry advocates for their continued support of our mission,” Yazbeck concluded.
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