TORONTO, May 26 /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 second
quarter ended March 31, 2009.
- Announced that its validation and development partner, Mount Sinai
Services, Inc. in Toronto began offering SQI's QuantiSpot(TM) RA
(Rheumatoid Arthritis) test system to its customers. Mount Sinai
Services' customer base consists of other hospital laboratories,
companies performing clinical trials and reference labs;
- Received authorization from the European Union to CE Mark the
Company's Automated SQiDworks(TM) Diagnostics Platform and QuantiSpot
Rheumatoid Arthritis Assay;
- Continued working with the United States Food and Drug Administration
(FDA) with the objective of receiving clearance to sell the SQiDworks
Platform and QuantiSpot RA test kit in the United States. In response
to questions from the FDA, the Company is in the final process of
collecting a data set to supplement information it previously
provided and expects to deliver this supplementary information to the
FDA in the coming weeks. Management has reviewed preliminary results
from this data set and believes it will address the questions posed
by the FDA, and that the time that will be taken by the FDA to review
the supplementary information will not materially affect the overall
commercialization timelines for its products.
- Raised gross proceeds of CDN$1,664,375 in the second tranche of a
non-brokered private placement. The first tranche, which closed in
the prior quarter, brought in gross proceeds of CDN$3,000,000
"Commercially, we moved our SQiDworks Diagnostics Platform and QuantiSpot
Rheumatoid Arthritis Assay forward in the second quarter through our
initiative with Mount Sinai Services, our authorization to CE Mark the
technology, and in our interaction with the FDA to gain clearance to sell the
system in the U.S.," said Andrew Morris, CFO of SQI Diagnostics. "We also
strengthened our balance sheet with capital that will be utilized in part to
ensure we achieve significant market penetration if our technology is approved
in the U.S."
For the quarter ending March 31, 2009, the Company recorded a net loss of
$1,472,559 ($0.06 per share) compared to a net loss of $521,274 ($0.03 per
share) for the quarter ended March 31, 2008. The increased loss for the
quarter ended March 31, 2009, was primarily related to increases in wage and
wage-related expenses and consulting expenses.
Research and Development expenses increased in the quarter ending March
31, 2009 to $849,736 compared to $85,142 during the quarter ended March 31,
2008. The difference was related primarily to an increase in R&D activity with
an increased number of assay panels in development, and regulatory validation
efforts related to QuanitSpot Rheumatoid Arthritis.
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 $230,711 for the quarter ended March 31, 2009 compared to
$185,561 for the quarter ended March 31, 2008. The major contributors to the
increases between the periods were costs related to travel for supplier
quality validation, salary-related executive compensation increases and
currency exchange costs.
At March 31, 2009, current assets were $6,344,527 compared to $4,362,230
at September 30, 2008. Working capital as at March 31, 2009 was $5,128,989
compared to $3,244,418 at September 30, 2008.
Management believes that the cash on hand at March 31, 2009 will be
sufficient to fund Company operations to the middle of 2010. The successful
commercial launch and generation of revenue in the 2009 fiscal year would
extend that period.
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. In particular, statements about the likelihood and timing of
the anticipated launch of the Company's Automated SQiDworks(TM) Diagnostics
Platform and QuantiSpot Rheumatoid Arthritis Assay in the United States
involve forward-looking information. 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.
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