SQI Diagnostics Reports First Quarter Financial Results
TORONTO, Ontario--(BUSINESS WIRE)-- SQI Diagnostics Inc. (TSX-V: SQD), a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, today announced its financial and operational results for the first quarter-ended December 31, 2012.
Highlights for the quarter-ended December 31, 2012
Our sales team completed twelve in person sales meetings which were the result of a significant number of prospecting and qualifying tele-meetings, trade show and scientific conference presentations.
On October 14-18, 2012 the Company launched its SQiDlite system at the American Association of Pharmaceutical Scientists (AAPS) Annual Meeting and Exposition.
On November 12-16, 2012 the Company presented at the European Bioanalysis Forum Open Symposium which highlighted our ability to multiplex and automate immunogenicity tests.
Verification work advanced on the Ig_PLEX Celiac DGP Panel. The Company has made significant progress on issues encountered in its initial verification testing and now expects validation to commence in the second fiscal quarter of 2013 followed shortly by completion and submission of applications for regulatory approval in both Canada and the United States.
SQI was asked to participate in the Emerging Technologies Action Program Committee (ETAPC), an industry working group comprising industry leaders. The Committee focuses on evaluating the potential of emerging technologies for biologics quantification and its current interest is in technologies in multiplexing and automation that result in cost reductions. The Company was and continues to be an active participant in ETAPC.
Subsequent to quarter end the Company announced a collaboration with Algorithme Pharma to develop a multiplex proof of concept assay targeted at immunogenicity testing of heparin and heparin-based low molecular weight (LMWT) biosimilar compounds. As the first step in marketing the commercial product SQI and Algorithme will present the results of the proof of concept studies at the upcoming 14th Annual Immunogenicity for Biotherapeutics Conference in Baltimore 18-20 March, in a presentation titled "A Novel Approach for Multiplexed Detection, Isotyping, and Quantitation of IgG, IgA, and IgM PF4/Heparin Antibodies using SQI Diagnostics' Ig_Plex™ Technology".
During the quarter the Company announced that it had established a special committee to review strategic alternatives to maximize growth and shareholder value. At this time the Company's advisers have generated interest from a number of parties that are at various stages of the process. Further information regarding the strategic process can be found in the Company's MD&A available on SEDAR.
"SQI made significant progress in generating customer interest in its Diagnostic Tools and Services offerings during the quarter through a variety of sales and marketing initiatives," said Andrew Morris, CFO of SQI Diagnostics. "We believe that our Algorithme Pharma collaboration and the expected positive outcome of our proof of concept studies will generate additional sales for the Diagnostic Tools and Services business."
For the quarter-ended December 31, 2012, SQI recorded a net loss of $1,563,000 or $0.04 per share, compared to a net loss of $1,650,000 or $0.05 per share for the quarter-ended December 31, 2011.
R&D expenditures for the quarter-ended December 31, 2012, excluding amortization and stock-based compensation were $784,000 compared to $959,000 for the quarter-ended December 31, 2011. With fewer projects in active development the Company reduced expenditures on salaries, lab consumables, scientific consultants, partnering and validation costs. During the quarter the Company focussed its R&D efforts on resolving issues encountered in its initial verification testing of the Celiac DGP assay and now expects validation to commence in the second fiscal quarter of 2013 followed shortly by completion and submission of applications for regulatory approval in both Canada and the United States. In the first quarter of fiscal 2012, prior to the business realignment, the Company had six projects in active development.
Corporate and general expenses, excluding stock-based compensation totaled $390,000 for the three months ended December 31, 2012 compared to $392,000 for the three months ended December 31, 2011. The Company's cost cutting efforts reduced or maintained the spending levels on other general and administrative costs.
Sales and marketing expenses, excluding stock based compensation, totalled $109,000 for the three months ended December 31, 2012 compared to $89,000 for the three months ended December 31, 2011. The increase in sales and marketing expenses for the three months ended December 31, 2012 compared to the three months ended December 31, 2011 was primarily a result of increased expenditures on conferences and marketing materials.
At December 31, 2012, current assets were $2,203,000 compared to $4,208,000 at September 30, 2012. Working capital as at December 31, 2012 was $1,784,000 compared to $3,190,000 at September 30, 2012.
Detailed financial statements and the MD&A are available at www.sedar.com.
About SQI Diagnostics
SQI Diagnostics is a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. The Company's proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality. For more information, please visit www.sqidiagnostics.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "believe", "in the process", "is subject to" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our need for additional capital to sustain our business, statements with respect to sales of our IgX plex™ Celiac product and SQiDworks and other analytical systems, agreements and future agreements to sell our products, the success of our Diagnostic Tools and Services business and our intent to build near-term revenue streams from this business, the completion of our second-generation SQiDlite platform, the build-out of our portfolio of quantitative tests, the successful regulatory filing and receipt of regulatory approvals for our later stage quantitative diagnostic kits , the acceleration of our revenue ramp, general economic and market segment conditions, competitor activity, technology changes and regulatory approvals. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found atwww.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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SQI Diagnostics Inc.
Andrew Morris, 416.674.9500 ext. 229
Chief Financial Officer
KEYWORDS: North America Canada
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