CANNAINVESTOR Magazine September / October 2016 | Page 104

Ticker Symbol ( OTCQB ) “ MYDX ”
Fiscal Year
Dec . 31
Recent price
$ 0.18
Market Cap
$ 4 million
Insider Ownership
47 %
Shares Out ( May 17 , 2016 ) 22.2M
MyDx , Inc . ( OTCQB : MYDX ) is a science and technology company that produces and markets the first battery operated , multi-use handheld chemical analyzer for consumers . Its patented MyDx™ ( My Diagnostic ) product line is comprised of the MyDx device that connects via Bluetooth to a smart phone app to analyze the chemical effect of what consumers eat , drink and inhale ( see : www . cdxlife . com / cdxshop ).
The San Diego-based Company launched its first product sensor , CannaDxTM , in late 2015 to address the explosive growth in the cannabis market and enable consumers to affordably identify the chemical composition of cannabis at the point of care . A June 2015 study in the Journal of the American Medical Association of 75 edible cannabis products sold found 83 % of them mislabeled the THC content . MyDx also has three new sensors in its commercialization pipeline for analyzing pesticides in food , chemicals in water , and toxins in the air .
MyDx expects to reach profitability in 2016 . The MyDx analyzer retails for $ 699 and includes the hardware ( analyzer and sensor ), smart phone app and one-time disposable inserts . It is multi-use and houses interchangeable sensors for different applications ( cannabis , water , food , air ). By connecting to its Android or iOS smartphone MyDx app , it leverages a crowd-sourced cloud-based database . US sales are expected to jump as its first major distribution deal takes effect in the current quarter . Global sales are diverse and exceeding estimates .
MyDx Highlights
• Unique , Next-Generation Hand-held Technology
• Addresses Multi-billion dollar Global Markets
• First-Mover Advantage
• Unrivalled Competitive Advantages , Market Leadership
The Analyzer has a blended gross margin starting at about 50 % and is expected to scale with higher volumes the Company is now preparing to manufacture . The MyDx Analyzer requires one-time use “ sample inserts ,” that are priced at $ 1.29 and provide a recurring revenue stream with gross margins of approximately 80 %. Additionally , the Company generates revenue on premium warranties and other ancillary sales .
Goals and Catalysts for Exponentially Increasing Earnings Power include :
1 ) CannaDX : The US cannabis testing market is forecast to reach $ 800 to $ 900 million by 2020
2 ) Major Nanolux Tech - CannaDx distribution deal ( targets growers ) signed Q2 valued at $ 4M +
3 ) Upgraded manufacturing and supply chain
• Patented , IP , Erects High Barriers to Entry
• Veteran Industry Management Team
• Solid Gross Margins that Scale with Volume
4 ) Launch three new sensors that address different , multi-billion dollar global markets
5 ) Steep revenue ramp starting Q3-16
• Valuable , Growing , Intellectual Property
Portfolio
Phil Sugarman , VP Investor Relations ( 818 ) 280-6800 psugarman @ irpartnersinc . com
6 ) Numerous US States have ballot initiatives to legalize medical or recreational pot in November
7 ) Led by CEO Daniel Yazbeck , former Pfizer Scientist and Market Developer to Panasonic .
This document contains " forward-looking statements " as that term is defined in Section 27 ( a ) of the Securities Act of 1933 , as amended , and Section 21 ( e ) of the Securities Exchange Act of 1934 , as amended . Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans , performance and developments , as well as other statements relating to future operations and results . Any statements in this document that are not statements of historical fact may be considered to be forward-looking statements . These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties , including but not limited to risks associated with the uncertainty of future financial results , additional financing requirements , development of new products , our ability to complete our product testing and launch our product commercially , the acceptance of our product in the marketplace and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission , available at www . sec . gov . CANNAINVESTOR Magazine