MyDx Forecasts Possible 2016 Profitability

LA JOLLA, Calif. — MyDx, Inc producer of its patented MyDx™ (My Diagnostic) product line, provided an positive outlook for the current fiscal year as it begins a major distribution effort with indoor-grow-system specialist Nanolux Technology Inc.

MyDX’s $4 million distribution agreement with Nanolux, announced last month, requires far higher levels of production along with training and dissemination of supporting marketing materials to upwards of 1,000 separate retailers nationwide of indoor agricultural equipment featuring Nanolux’s state-of-the-art products – all of which is in process and being aggressively implemented.

The MyDx device distributed by Nanolux is a handheld chemical profiler of raw cannabis flower, covering cannabinoids and terpines. The device analyzes vapors from a small sample and reports results via Bluetooth to a smartphone app.

With its Nanolux distribution agreement beginning to ramp-up in the current quarter, the Company is aggressively advancing the reconfiguration of its manufacturing capacity and supply-chain management to achieve greater scale and efficiency.

With the valuable legal cannabis grower prosumer market covered nationally through Nanolux, management is actively pursuing similar distribution deals on the legal marijuana dispensary side of the business to cover that important prosumer market vertical. Rather than expend management resources on a large number of small such distribution deals, it is focused on creating one or more large regional or national distribution agreements that provide scale and build a strong national brand for its proprietary hand-held chemical analyzer beginning with its CannaDx Sensor.

The Company is confident that the growing demand for its patented MyDx Analyzer with the CannaDx Sensor is strongly supported by both the domestic and international markets.

For the first quarter ended March 31, MyDx reported that revenues of $161,000 compared with zero a year ago when it was still in the research and development stage. The Company’s first quarter of 2016 represents its third full quarter of revenues, nearly all of which were sold directly to consumers.

In the first quarter of 2016, the Company’s net loss narrowed to $544,510 year over year compared with a net loss of $2.1 million in the year-ago quarter.

The company is continuing to streamline its R&D, sales and marketing, and general and administrative expenses as it successfully transitions from a complete R&D company to a sales and marketing organization with a strong pipeline of new Analyzer sensors in its development pipeline through the end of 2017.

“Global sales remain strong given that we spend minimal marketing dollars outside the U.S. ,” said Daniel Yazbeck, MyDx chairman/CEO. ” In addition to the U.S., we are evaluating several countries for major distribution agreements as well as localized marketing initiatives for cannabis-friendly tradeshows, events and targeted advertising opportunities abroad — all of which supports our updated outlook for reaching profitability by year-end 2016.”