Revenue Up 800% Year-over-Year
TORONTO, Jan. 30,
2023 /CNW/ - SQI Diagnostics Inc. (TSXV: SQD)
(OTCQB: SQIDF), a leader in the science of lung health that
develops and manufactures respiratory health and precision medicine
tests today reported its financial and operational results for the
fourth quarter and fiscal year ended September 30, 2022.
"Last fiscal year we witnessed the transition of SQI from an
R&D organization to a commercial company. We earned
record revenues of $8.1 million in
fiscal 2022 up significantly from $0.9
million in fiscal 2021. Our development work in 2022
resulted in regulatory approvals for our RALI-Dx IL-6 Severity
Triage Test product in 2023 with the installation of
sqidlite instruments for evaluation and
clinical use in two Toronto
hospitals and our Exact COVID19 Antibody Test product. We are
excited about our commercial prospects for our RALI-Dx product and
launching EXACT COVID-19 Antibody testing in this quarter and
furthering our commercial successes." said Andrew Morris, President and CEO of SQI
Diagnostics.
Q4 2022 Financial Highlights
- Sales of $1.2M in Q4 2022 were
significantly higher, compared to $0.1M in Q4 2021. The increase in sales is
attributed to the COVID-19 human testing business acquired during
the second quarter of fiscal 2022.
- Gross profit was ($0.5M) in Q4
2022, compared to $0.1M in Q4 2021
driven by the COVID-19 human testing business. The negative gross
profit in Q4 2022 is a result of an adjustment to provisional
amounts in the purchase price allocation from Precision
Biomonitoring Inc in Q2 2022; prior to this change, gross profit
was $0.5M.
- Corporate & General expenses were $0.4M in Q4 2022, compared to $0.9M in Q4 2021. The decrease is mainly related
to lower stock-based compensation on account of a credit and to the
reallocation of financing fees to interest expense partially offset
by higher professional fees and salaries & wages expense.
- The R&D expense category, which includes Manufacturing,
Quality and Engineering was $1.6M in
Q4 2022, compared to $1.8M in Q4
2021. The decrease was due to lower stock-based compensation on
account of a credit as higher salaries & wages of $0.4M due to the absence of the CEWS in Q4 2022
were fully offset by lower laboratory costs of $0.4M.
- Net loss was ($7.8M) of
($0.02) per share, compared to
($2.8M) or ($0.01) per share.
- Cash and cash equivalents were $1.3M as of September 30,
2022.
- Net working capital was $(7.6M)
as of September 30, 2022, compared to
$0.7M on September 30, 2021; the working capital deficit
is due to the $7.5M short term credit
facility used to acquire the COVID-19 PCR business from Precision
Biomonitoring Inc in Q2 2022.
Fiscal 2022 Financial Highlights
- Sales were $8.1M in 2022,
compared to $0.9M in 2021. The
increase is due to the Company's acquisition of the PCR testing
business from Precision Biomonitoring Inc in Q2 2022.
- Gross Profit was $3.1M in 2022
compared with $0.8M in 2021. The
increase is due to the Company's acquisition of the PCR testing
business from Precision Biomonitoring Inc in Q2 2022.
- Corporate and general expenses were $5.9 in 2022 compared with $2.5M in 2021. The increase is due to higher
stock-based compensation expense of $1.1M primarily due to 2021 reversal of previous
CEO stock based compensation in addition to the new CEO's
compensation expense over 12 months compared to 1 month in 2021,
higher professional fees (legal, recruiting and investor relations)
of $.9M, higher salaries & wages
of $.3M and higher general expenses
of $1.0M, which includes, transition
costs of $.3M software subscriptions
of $.2M and the absence of any bad
debt recovery while Q4 2021 had a recovery of $.4M.
- Research and development expenses were $7.3 in 2022 compared with $7.5 in 2021. The decrease is due to lower
R&D consulting costs as several projects that required the use
of external consultants were completed in fiscal 2021.
- Net loss was $(18.5M) or
($0.05) per share, compared to
$(10.5M) or ($0.03) per share in 2022.
Q4 2022 Corporate Highlights
- The Company received its Medical Device Single Audit Program
(MDSAP) certification in September
2022. MDSAP allows a single audit of a medical device
manufacturer's Quality Management System (QMS), which satisfies the
requirements of multiple regulatory jurisdictions.
- The Company's clinical data for its RALI-Dx IL6 test was
published in the article "A biomarker assay to risk-stratify
patients with symptoms of respiratory tract infection", by the
influential European Regulatory Journal
About SQI Diagnostics
SQI Diagnostics is a leader in the science of lung health. The
Company develops and manufactures respiratory health and precision
medicine tests that run on SQI's fully automated systems. The
Company's tests simplify and improve COVID-19 antibody monitoring,
Rapid Acute Lung Injury testing, donor organ transplant
informatics, and immunological protein and antibody testing. SQI
Diagnostics is driven to create and market life-saving testing
technologies that help more people in more places live longer,
healthier lives. For more information, please visit
www.sqidiagnostics.com.
Contact:
Chief Financial Officer
Morlan Reddock
437-235-6563
mreddock@sqidiagnostics.com
FORWARD-LOOKING INFORMATION
This press release contains certain words and statements,
which may constitute "forward-looking statements" within the
meaning of applicable securities laws relating to future events or
future performance and reflect the current expectations and
assumptions of the Company regarding its growth, results of
operations, performance, business prospects and opportunities.
These statements generally can be identified by use of
forward-looking words such as "may", "would", "could", "will",
"should", "expect", "plan", "estimate", "anticipate", "intends",
"believe", "potential", or "continue" or the negative thereof or
similar variations. The Company's actual results and performance
discussed herein could differ materially from those expressed or
implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Important factors that could cause actual results to
differ materially from expectations include, among other things,
general economic and market factors, competition, the effect of the
global pandemic and consequent economic disruption, and the factors
detailed in the Company's ongoing filings with the securities
regulatory authorities, available at www.sedar.com. Although the
forward-looking statements contained herein are based on what we
consider to be reasonable assumptions based on information
currently available to us, there can be no assurance that actual
events, performance or results will be consistent with these
forward looking statements, and our assumptions may prove to be
incorrect. Readers are cautioned not to place undue reliance on
these forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements either as a result of new information, future events or
otherwise, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE SQI Diagnostics Inc.