TORONTO, Aug. 29 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD - News), a medical systems automation company focused on evolving laboratory-based biomarker testing, today announced its financial results for the fiscal third quarter, ended June 30, 2008.
“During the quarter, we solidified our financial position, and received ISO 13485 certification for our quality management system thereby validating our capabilities to develop and manufacture high-quality platform systems and tests for the healthcare market,” said Claude Ricks, CEO of SQI Diagnostics. “We leveraged both of these developments to advance the commercialization program for our fully-automated SQiDworks(TM) platform and QuantiSpot(TM) RA, our lead test for rheumatoid arthritis, which we expect to launch in early fiscal 2009.”
Highlights for the quarter
- SQI was awarded its ISO 13485:2003 certification for its quality management system for the Design and Development, Production, Distribution, Installation and Servicing of its In Vitro Diagnostics systems (Microarray Platforms and Consumable Kits). This significant milestone further reinforces SQI Diagnostics’ efforts to develop and manufacture high-quality tests and medical systems for the healthcare sector.
- The Company raised CDN$3.66 million through the sale of 2,439,500 common shares at a price of CDN$1.50 per share. Proceeds from the Financing will be used to fund research and development, for working capital and general corporate purposes.
- SQI presented at the AACC 40th Annual Oak Ridge Conference - Breakthrough Technologies for Clinical Diagnostics in San José, CA. The presentation focused on the sensitivity and specificity of anti-citrullinated peptide (CCP) detection, a key component of SQI Diagnostics’ multi-analyte QuantiSpot(TM) RA panel on SQI Diagnostics’ automated SQiDworks(TM) platform.
- The Company announced that the Royal Bank of Canada agreed to provide it with financing of $730,000 in the form of a non-revolving credit facility.
Financial Results
On May 4, 2007, the Company began trading on the TSX Venture under the symbol SQD. In 2007, SQI Diagnostics Inc. changed its year end from December 14 to September 30.
For the quarter ending June 30, 2008, the Company recorded a net loss of $1,323,804 or $0.06 per share compared to a loss of $1,171,998 or $0.07 per share for the quarter ending June 30, 2007. Losses for the current quarter increased compared to the same quarter a year earlier primarily due to increased labour and laboratory, and external testing expenses related to research and development activity on the Company’s SQiDworks platform and its lead QuantiSpot autoimmune assays for the detection and quantification of biomarkers for rheumatoid arthritis and antiphospholipid syndrome.
Net research and development expenses for the quarter ending June 30, 2008 were $828,032 compared to $685,442 for the period ending June 30, 2007. Research and development expenses increased during the quarter ending June 30, 2008 compared to the same period last year due to an increase in R&D salary and benefit expenses, lab costs attributed to the production of QuantiSpot test kits for verification studies, and to fees paid to SQI’s validation partners to prepare for validation studies on the Company’s QuantiSpot RA assay and SQiDworks Platform.
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 $266,656 for the quarter ending June 30, 2008 compared to $422,569 for quarter ending June 30, 2007. Corporate expenses were higher in the quarter ending June 30, 2007 compared to the same period in the current year primarily due to higher professional costs and other costs related to completing the Company’s going-public transaction.
At June 30, 2008 the Company had working capital of $4,773,127 compared to $3,408,917, at September 30, 2007, and current assets of $5,099,933 as compared to $3,674,792 at September 30, 2007. As at June 30, 2008, there were 22,217,478 common shares issued and outstanding.
About SQI Diagnostics
SQI Diagnostics is a medical systems automation company focused on evolving laboratory-based biomarker testing. Using automation and proprietary miniaturization technologies, SQI Diagnostics significantly improves the economies of scale for laboratories performing multiple biomarker testing at high volumes, allowing them to deliver patient results faster using less labour and fewer resources. SQI Diagnostics’ platform has a user-friendly interface, high sample throughput and offers a more efficient alternative to current testing options. SQI Diagnostics’ initial products target the $1.4 billion autoimmune disease market, with initial products for rheumatoid arthritis and thrombosis scheduled for launch in 2008. SQI Diagnostics is based in Toronto, Canada. For further information please visit www.sqidiagnostics.com.
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.
For further information
Chief Financial Officer, Andrew Morris, (416) 674-9500 ext. 229, amorris@sqidiagnostics.com Investor Relations, Adam Peeler, (416) 815-0700 ext. 225, apeeler@equicomgroup.com
Source: SQI Diagnostics Inc.
