TORONTO, Jan. 25 /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, 2009.
- Subsequent to year end, announced that the U.S. Food and Drug
Administration (FDA) cleared the Company's automated SQiDworks(TM)
Diagnostics Platform and its multiplexed IgXPLEX(TM) Rheumatoid
Arthritis (RA) assay for marketing in the United States;
- Received a Class II Medical Device License from Health Canada for its
SQiDworks platform and RA assay;
- Accelerated the development, verification and validation of
additional clinical panels of biomarkers to multiplex including the
highest-demand autoimmune test panels for celiac disease, vasculitis,
lupus and inflammatory bowel diseases (Crohn's disease, ulcerative
- Subsequent to year end, completed a private placement resulting in
gross proceeds of $6,594,786, which strengthened the Company's
balance sheet and diversified its institutional shareholder base;
- Following year end, entered into an evaluation agreement for
placement of a SQiDworks platform in the first calendar quarter of
2010 at a major Canadian reference laboratory. Under the terms of the
agreement, the customer will have 90 days to evaluate the performance
of the SQiDworks system for use with the Company's test panels for
aiding in the diagnosis of rheumatoid arthritis. Upon successful
completion of the evaluation the customer will have the right, but
not the obligation to begin purchasing consumables for its commercial
"SQI's accomplishments in 2009 were prerequisites for the commercial success that we are building towards in 2010 and beyond," said Andrew Morris, CFO of SQI Diagnostics. "As our marketing strategy gains more traction, and we get closer to launching additional content for clinical laboratories to utilize with our multiplexing diagnostics platform, SQI will continue its transition into a revenue generating company."
For the year ending September 30, 2009, SQI recorded a net loss of $5,909,976 or $0.23 per share, compared to a net loss of $3,785,579 or $0.18 per share per share for the year ending September 30, 2008.
For the quarter ending September 30, 2009, SQI recorded a net loss of $1,615,689 or $0.06 per share, compared to $926,404 or $0.05 per share per share for the quarter ending September 30, 2008. The increased loss for the quarter ending September 30, 2009 was primarily related to typical increases in wage and wage-related expenses in both the Corporate and Research and Development groups, stock option expenses, and consulting expenses.
Gross Research and Development (R&D) expenditures were $3,448,916 for the year ending September 30, 2009 compared to $2,961,978 for the year ending September 30, 2008.
R&D expenditures for the three month period ended September 30, 2009 were $872,859, compared to the $704,205 for the three month period ended September 30, 2008. The increase in R&D expense for the three month period ended September 30, 2009 compared to the same period in the prior year resulted from an increase in R&D activity with an increased number of assay panels in development, and to regulatory validation efforts related to the SQiDworks-IgXplex Rheumatoid Arthritis assay system.
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 $338,823 for the quarter ended September 30, 2009 compared to $379,914 for the quarter ended September 30, 2008.
At September 30, 2009, current assets were $3,609,080 compared to $4,362,230 at September 30, 2008. Working capital as at September 30, 2009 was $ 3,239,810 compared to $3,244,418 at September 30, 2008.
Subsequent to the year ended September 30, 2009, the Company completed a private placement resulting in the issuance of 2,398,104 units for gross proceeds of $6,594,786. Each unit is comprised of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $4.00, expiring December 4, 2011.
Management believes that cash on hand at September 30, 2009, plus cash generated subsequent to the year-end will be sufficient to fund Company operations for at least 12 months. A successful commercial launch and generation of forecasted revenue in the 2010 and 2011 fiscal years would extend this period.
Detailed financial statements and the MD&A are available at www.sedar.com.
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 patient results in less time, significantly reduce labour, and increase profits...All in One Drop. For more information please visit www.sqidiagnostics.com.
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 statements.
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.
SOURCE SQI Diagnostics Inc.
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