TORONTO, Jan. 26, 2022 /CNW/ - SQI Diagnostics Inc.
('SQI" or the "Company") (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, 2021.
"While growth was not as robust as we would have liked in
this past quarter due to a number of overlapping internal and
external factors including changes in the leadership team, we are
confident that steps we've taken in recent weeks and months —
including making high-value acquisitions and attracting new talent
— will improve our performance going forward," said
Andrew Morris, CEO. "We're
confident we have the right team and the correct focus to continue
leading the way in lung health science."
Q4 2021 Financial Highlights
- Sales were $0.1M, compared to
$0.3M in Q4 2021. The decrease was
driven mainly by a reduction in RALI-Dx™ IL-6 Severity Triage Test
kit sales which accounted for the majority of sales in the prior
year quarter as research & development activities ramped up to
support submission for regulatory approval. Submission for the
RALI-Dx™ IL-6 Severity Triage Test took place in Q2 2021, and
therefore these sales saw a decrease in Q4 2021.
- Gross profit was $0.1M, compared
to $0.2M in Q4 2021
- SG&A expense was $1M,
compared to $1.8M in Q4 2021. The
reduction was mainly due to the absence of certain costs that were
incurred in Q4 2020, including higher legal & recruitment and
stock option expenses related to the employment of the Company's
former CEO. A recovery of stock option expense due to their
forfeiture upon the exit of the former CEO also contributed to an
overall reduction in costs compared to the prior year quarter.
- R&D expense was $1.6M,
compared to $1.1M in Q4 2021 due to
higher clinical and regulatory costs to bring products through the
approval process.
- Cash and investments were $2.3M
as of September 30, 2021
- Net working capital was $0.7M as
of September 30, 2021 compared to
$2.2M at September 30, 2020
Fiscal 2021 Financial Highlights
- Sales were $0.9M in 2021,
compared to $1M in 2020. In 2020, the
Company recognized an instrument sale for approx. $0.1M with no corresponding sale in the current
year.
- Gross Profit was $0.8M in 2021
compared with $0.8M in 2020.
- SG&A expenses were $3.2M in
2021 compared with $4.1M in 2020. The
reduction in expenses in 2021 was mainly due to recovery of a
previously written off balance from a customer, lower legal and
recruitment costs, and a lower stock option expense due to
forfeiture of the former CEO's stock options.
- Net loss was $(2.6M) or
($0.01) per share, compared to
$(2.8M) or ($0.01) per share in Q4 2021.
Corporate Highlights during the Quarter:
- Appointment of Mr. Andrew Morris
as Chief Executive Officer.
- Subsequent to the quarter, submission of RALI-Dx™ IL-6 Severity
Triage Test for an Interim Order to Health Canada
- Subsequent to the quarter, the company completed a private a
placement of 26.9M units of the
Company at a price of $0.19 per unit,
for gross proceeds of $5.1M.
- Subsequent to the quarter, the company signed a definitive
agreement to acquire substantially all of the assets underlying
Precision Biomonitoring Inc.'s human diagnostics COVID-19 PCR
testing business and its TripleLock molecular diagnostic testing
technology for aggregate cash and share consideration of
$6.8M (the "PBI Acquisition").
Completion of the PBI Acquisition is subject to customary
conditions including, but not limited to, the completion of
satisfactory due diligence and the approval of the TSX Venture
Exchange Inc.
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 COVID19 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
416.674.9500 ext. 277
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, risks related
to the failure to obtain necessary regulatory and TSX Venture
Exchange approvals for the PBI Acquisition and the financing of
same, 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.