SQI Diagnostics Reports Fourth Quarter and Year End Financial Results
Toronto, Ontario, January 25, 2010 — 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.
"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
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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.