TORONTO, Jan. 23 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD), a medical
systems automation company focused on evolving laboratory-based biomarker
testing, today announced its financial and operational results for the fourth
quarter and year ended September 30, 2008.
- Announced positive results from external validation tests for its
automated SQiDworks(TM) platform and its lead test, the
QuantiSpot RA(TM) microarray consumable, which were conducted at
The Cleveland Clinic in Cleveland, Ohio, and Mount Sinai Hospital in
- Received ISO 13485 Certification for its quality management system
- Subsequent to year end, submitted a FDA 510(k) Medical Device License
Filing for its SQiDworks platform and QuantiSpot RA microarray
- Subsequent to year end, received a Class II Medical Device License
from Health Canada for its SQiDworks platform and QuantiSpot RA
microarray consumable test
"The past year was exceptional for SQI from a product development and
operational perspective," said Claude Ricks, CEO of SQI Diagnostics. "Our
commercialization strategy progressed significantly, highlighted by our 510(k)
filing to the FDA for our automated platform and microarray consumable.
Despite the challenging market conditions, we also fortified the Company's
cash position by raising more than $9 million over a period of eight months.
We are looking forward to the upcoming fiscal year as an opportunity for SQI
to steadily build on its commercial initiatives and expand its menu of
autoimmune consumable tests."
On May 4, 2007, the Company began trading on the TSX Venture under the
symbol SQD. In 2007, SQI Diagnostics Inc. changed its year end from December
14 to September 30.
For the quarter ending September 30, 2008, SQI recorded a net loss of
$926,404 or $0.05 per share, compared to $946,214 or $0.05 per share for the
quarter ending September 30, 2007. The decreased loss for the quarter ending
September 30, 2008 was primarily related to the recognition of a cash-based
Scientific Research and Experimental Development (SRED) tax credit, compared
to the same quarter in 2007 when no SRED credit recognition occurred.
Before the offsetting effect of the SRED tax credit, R&D expenses for the
quarter ending September 30, 2008 were $704,205 compared to $682,877 for the
quarter ending September 30, 2007. The increased R&D costs before SRED effects
for the quarter ending September 30, 2008 was related primarily to higher R&D
salary expense of $473,296 in the quarter ending September 30, 2008 compared
to $447,319 the quarter ending September 30, 2007 with the net addition of two
lab resources and a change in the composition of the lab team to a more senior
group of scientists.
Corporate expenses, which include administrative salaries and related
expenses; general and administrative expenses; advertising and promotion
expenses; travel expenses; interest expenses and professional and consulting
fees totaled $379,914 for the quarter ending September 30, 2008 compared to
$314,648 for the quarter ending September 30, 2007. The primary reasons for
the corporate expenses increasing from the fiscal period 2007 to 2008 were the
shorter fiscal period in 2007, as well as an increase in leased space and
thus, occupancy costs in fiscal 2008.
At September 30, 2008, current assets were $4,362,230 compared to
$3,674,792 at September 30, 2007. Working capital as at September 30, 2008 was
$3,244,418 compared to $3,417,917 at September 30, 2007. As at September 30,
2008, there were 22,217,478 common shares issued and outstanding.
Subsequent to the year end, the Company completed a non-brokered private
placement resulting in gross proceeds of CDN$4,664,375 through the issuance of
3,731,500 common shares at $1.25 per common share. The shares issued through
the private placement are subject to a four-month hold period.
Management believes that the cash on hand at September 30, 2008, combined
with that raised subsequent to the year end, will be sufficient to fund
Company operations to the middle of 2010.
Detailed financial statements and the MD&A are available at
About SQI Diagnostics
SQI Diagnostics is a medical systems company that develops proprietary
technology in multiplexing, miniaturization and automation. SQI provides
laboratories the ability to simultaneously analyze multiple biomarkers,
deliver accurate and quantitative patient results in less time, significantly
reduce labor, and increase profits...All in One Drop. Please visit
www.sqidiagnostics.com for more information.
Certain information in this press release is based on beliefs and
assumptions of the Company's senior management and information currently
available to it that may constitute forward-looking information within the
meaning of securities laws. Such statements reflect the current views of the
Company with respect to future events and are subject to certain risks and
uncertainties. Actual results, events, and performance may differ materially.
Readers are cautioned not to place undue reliance on these forward-looking
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy
of this news release.
For further information:
For further information: Chief Financial Officer, Andrew Morris, (416)
674-9500 ext. 229, firstname.lastname@example.org; Media and Investor Relations:
Adam Peeler, (416) 815-0700 ext. 225, email@example.com