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Press ReleasesSQI Diagnostics Reports First Quarter 2009 Financial ResultsReleased: Feb 20, 2009 Toronto , Ontario , February 24, 2009 – 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 first quarter ended December 31, 2008. Highlights
"During our first quarter, we delivered on several key clinical milestones and strengthened our financial position," said Andrew Morris, CFO of SQI Diagnostics. "We are going to build on these accomplishments going forward by expediting our commercialization efforts in Canada and the European Union, while continuing to work with the FDA to receive its clearance to sell our SQiDworks™ Platform and QuantiSpot RA test kit in the United States." Financial ResultsFor the quarter ending December 31, 2008, SQI had a net loss $1,467,452 or $0.07 per share, compared to the quarter ending December 31, 2007 of $1,013,922 or $0.05 per share. The increased loss for the quarter ending December 31, 2008 was primarily related to increases in wage and wage-related expenses and consulting expenses. Research and Development expenses increased in the quarter ending December 31, 2008 to $815,152 compared to $698,660 during the quarter ending December 31, 2007.The difference was related primarily to an increase in R&D salaries resulting from an increase in staffing from 23 to 28 full-time R&D employees from December 2007 to 2008. 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 increased by $83,800 to $241,027 for the quarter ending December 31, 2008 compared to $157,195 for the quarter ending December 31, 2007. The major contributors to the increases between the periods was currency-related exchange loss timing differences, interest expenses related to the SR&ED receivable loan and expenses resulting from corporate re-branding and web design and re-launch. At December 31, 2008, current assets were $6,042,946 compared to $4,362,230 at September 30, 2008.Working capital as at December 31, 2008 was $4,929,995 compared to $3,244,418 at September 30, 2008. Subsequent to the year end, the Company completed a non-brokered private placement resulting in gross proceeds of $1,664,375 through the issuance of 1,331,500 common shares at $1.25 per common share. Management believes that the cash on hand at December 31, 2008, combined with that raised subsequent to the year end, 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 www.sedar.com. About SQI Diagnostics For further information please contact:
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. |
