|[February 14, 2013]
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 proo of concept studies will
generate additional sales for the Diagnostic Tools and Services
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
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 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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