[December 13, 2012] |
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SQI Diagnostics Reports Fourth Quarter and Annual Financial Results
TORONTO --(Business Wire)--
SQI Diagnostics Inc. (TSX-V: SQD), a life sciences company that
develops and commercializes proprietary technologies and products for
advanced microarray diagnostics, today announced its financial and
operational results for the fourth quarter and year ended September 30,
2012.
Highlights for the fiscal year ended September 30, 2012
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The Company's sales efforts focussed on generating multiple
opportunities in the Diagnostic Tools and Services segment. The
prospects were grouped into the following general categories:
Immunology Diagnostic Manufacturers, Contract Research Organizations
and Blood Bank Testing Manufacturers. These targets were progressed to
varying degrees including what the Company believes are proposals to
significant opportunities, some of which resulted in site visits to
SQI to assess the Company's platforms and capabilities to develop
products on an OEM basis. A letter of intent was executed during
fiscal 2012 with a leading CRO governing a collaboration for the
development of a proof of concept immunogenicity assay ("Ig_PLEX") to
detect, measure and quantify multiple isotypes and sub-class
antibodies to a therapeutic protein in a single assay.
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Our IVD sales efforts focussed on increasing product adoption at our
existing customer. The Company also entered into a Letter of Intent
with Integrated Sciences for the distribution of our IVD products in
Australia and we expect this relationship to create additional sales
opportunities that we expect will be leveraged by the completion of
our next quantitative Celiac product for which we expect to file for
regulatory clearances in the US, Canada and Europe.
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The Company completed the development of IgX PLEX Celiac DGP
Quantitative assay and progressed this assay into the verification
stage.
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A white paper was published and is available on the Company's website
detailing the performance of our 8-plex cytokine inflammation panel.
The Company's 8-plex RUO antibody panel for the quantification of
cytokines progressed to final development. Monitoring cytokine
expression represents a major segment of the RUO immunoassay market
and this panel's development is targeted as a demonstration panel for
the Company's Diagnostic Tools and Services segment.
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The Company commenced work on a proof of concept assay which extended
our antibody isotype detection to include the Ig subclass to meet the
needs of customers who are required to demonstrate the biosafety of
protein therapeutics. Subsequent to the year end the Company was
invited to present at the European Bioanalysis Forum Open Symposium to
provide pharmaceutical companies and CROs with the technical basis of
our ability to multiplex and automate immunogenicity and other
multi-biomarker tests and the economic benefits of using our
technologies.
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Subsequent to the year end the Company launched its SQiDlite system at
American Association of Pharmaceutical Scientists Annual Meeting and
Exposition targeting pharmaceutical companies and CROs with
bioanalytical testing needs in the various phases of drug development
and clinical trials. Management believes that these and other direct
sales efforts to have been very successful and expects that they will
result in either paid proof of concept projects and/or initiating
turn-key RUO agreements for our Diagnostics Tools and Services
products and services.
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Completed two separate private placements for total gross proceed of
approximately $10.7 million.
"With the traction developing on our Diagnostics Tools and Services
Business we believe significant progress is being made on our business
model." said Andrew Morris, CFO of SQI Diagnostics. "We believe that the
expected initiation of commercial projects and the regulatory submission
of additional Ig_PLEX products in fiscal 2013 will create additional
commercial opportunities and success in the coming year."
Financial Results
The Company has converted to International Financial Reporting Standards
for fiscal 2012.
For the year ended September 30, 2012, the Company recorded a net loss
of $6,311,000 ($0.17 net loss per share) compared to a net loss of
$10,744,000 ($0.32 net loss per share) for the year ended September 30,
2011.
For the quarter-ended September 30, 2012, the Company recorded a net
loss of $1,727,000 ($0.04 net loss per share) compared to a net loss of
$3,896,000 ($0.11 net loss per share) for the quarter-ended September
30, 2011.
R&D expenditures, excluding amortization and stock based compensation,
for the year ended September 30, 2012 were $3,057,000 compared to
$5,456,000 for the year ended September 30, 2011. R&D expenditures,
excluding amortization and stock based compensation, for the
quarter-ended September 30, 2012 were $820,000 compared to $1,400,000
for the quarter-ended September 30, 2011. With fewer projects in active
development the Company reduced expenditures on salaries, lab
consumables, scientific consultants, partnering and validation costs. In
addition, the Canada Revenue Agency concluded an audit of the Company's
SR&ED claims for the 2008, 2009 and 2010 fiscal years which resulted in
a $504,000 investment tax credit being recorded in the fiscal 2012 year
as compared to $300,000 in the fiscal 2011 year. The Company is
continuing to progress the celiac quantitative assay, the vasculitis
quantitative assay through the verification and/or final development
stage.
Corporate and general expenses, excluding stock-based compensation,
totaled $1,801,000 for the year ended September 30, 2012 compared to
$3,636,000 for the year ended September 30, 2011. Corporate and general
expenses, excluding stock-based compensation, totaled $501,000 for the
three months ended September 30, 2012 compared to $2,111,000 for the
year ended September 30, 2011. The decrease in corporate and general
expenses is primarily related to a reduction in profession fees, travel
and other securities filing costs related to proposed acquisition and
related US IPO. Both were abandoned in the first quarter of 2012.
At September 30, 2012, current assets were $4,208,000 compared to
$1,266,000 at September 30, 2011. Working capital as at September 30,
2012 was $3,190,000 compared to ($1,322,000) at September 30, 2011.
Detailed financial statements and the MD&A are available at www.sedar.com.
About SQI Diagnostics SQI Diagnostics is a life sciences
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.
FORWARD-LOOKING INFORMATION 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,
SQiDlite 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 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 at www.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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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