SQI Diagnostics Inc. (“SQI” or the “Company”) (TSX-V: SQD) (OTCQB: SQIDF), today reported its financial and operational results for the three and nine months ended June 30, 2020.
| TORONTO, Aug. 27, 2020 /PRNewswire/ - SQI Diagnostics Inc. (“SQI” or the “Company”) (TSX-V: SQD) (OTCQB: SQIDF), today reported its financial and operational results for the three and nine months ended June 30, 2020. SQI is a Toronto-based life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced multiplexed diagnostics. Business Highlights
Mr. Rob Chioini, CEO of SQI stated, “I am very happy to be working with the SQI team. We have been diligently evaluating the business and we see great potential to grow the Company across multiple, exciting revenue-stream opportunities. We plan to share our strategic vision shortly.” Q3 2020 and year-to-date Financial Results Overview For the quarter ended June 30, 2020, the Company recorded a net loss of $1,473,000 ($0.01 net loss per share) as compared to a net loss of $1,888,000 ($0.01 net loss per share) for the same period last year. For the nine months ended June 30, 2020, the Company recorded a net loss of $5,756,000 ($0.02 net loss per share) as compared to the net loss of $5,214,000 ($0.03 net loss per share) for the same period last year. The net loss in the current period was lower than the net loss in the corresponding prior year period primarily due to lower expenses in Research & Development (“R&D”), offsetting lower revenue for the period. The net loss in the nine-month period was higher than the net loss in the equivalent period last year due to lower revenue as expenses were essentially flat when compared to the same prior year period. Per share values are based on the weighted average shares outstanding in the relevant period. For the quarter and nine months ended June 30, 2020, there was an average of 277,149,000 and 253,688,000 shares outstanding, respectively. Total revenues for the quarter ended June 30, 2020 were $296,000 compared to $540,000 for the equivalent period last year. Total revenues for the nine months ended June 30, 2020 were $772,000 compared to $1,251,000 for the same period last year. Product revenue, which includes revenue from kit sales was $266,000 for the current quarter compared to $313,000 for the same period last year. Product revenue was $528,000 for the nine months ended June 30, 2020 compared to $846,000 for the same period last year. The decrease in product revenue was due to the loss of one customer, which accounted for a material percentage of revenue in the same prior year period. Revenue from services in the third quarter was $30,000 compared to $227,000 in the corresponding period last year. Revenue from services for the nine months ended June 30, 2020 was $244,000 compared to $405,000 in the same period last year. Service revenues were lower in the third quarter of 2020 compared to the same prior year period due to the recognition of revenue from a large contract to develop multiple lung transplant products in the third quarter of 2019. Research and development (“R&D”) expenditures, excluding amortization and stock-based compensation, for the quarter ended June 30, 2020 were $572,000 compared to $1,145,000 for the same period last year. R&D expenditures, excluding amortization and stock-based compensation, for the nine months ended June 30, 2020 were $2,774,000 compared to $2,717,000 for the same period last year. R&D expenses remained essentially unchanged for the nine-month periods as lower salaries and wages, which included payments received under the Canada Emergency Wage Subsidy program were offset by higher laboratory costs and supplies as well as a lower amount of Scientific Research and Experimental Development (“SRED”) tax credit. Laboratory costs and supplies were lower during the quarter and higher during the nine months ended June 30, 2020, when compared with the corresponding periods prior year. These costs tend to vacillate due to the timing of R&D projects. Corporate and general expenses, excluding stock-based compensation, totaled $523,000 for the quarter ended June 30, 2020 as compared to $397,000 for the same period last year. Corporate and general expenses, excluding stock-based compensation, totaled $1,330,000 for the nine months ended June 30, 2020 when compared to $1,087,000 for the same period last year due to higher professional fees. Professional fees include legal, investor relations and consulting fees. Professional fees were higher in the current quarter compared to the same period last year due to higher legal and recruiting costs. Sales and marketing expenses, excluding stock-based compensation, decreased to $161,000 for the quarter ended June 30, 2020 compared to $316,000 for the same period last year and decreased to $805,000 for the nine -month ended June 30, 2020 compared to $964,000 for the same period last year. The reduction in sales and marketing costs is attributable to lower headcount and travel & marketing costs. Non-cash, stock-based compensation charges decreased to $70,000 for the quarter ended June 30, 2020 compared to $130,000 for the same period last year. Non-cash, stock-based compensation charges decreased to $305,000 for the nine months ended June 30, 2020 compared to $429,000 for the same period last year. The reduction is a result of forfeitures of stock options associated with the departure of certain employees as well as a delay in the granting of stock options to employees when compared to the same period in 2019. At June 30, 2020, current assets were $5,388,000 including $4,320,000 of cash compared to $4,494,000 including $3,444,000 of cash at September 30, 2019. At June 30, 2020, the Company had a $3,975,000 working capital surplus compared to a working capital deficit of $217,000 at September 30, 2019. The higher surplus is due to a change in the classification of debentures which matured in the second quarter of 2020 and were subsequently extended; this extension changed the classification from a current liability to a long-term liability in the period. Higher cash from financing activities also contributed to the working capital surplus. Detailed financial statements and the management’s discussion and analysis (MD&A) will also be made available on the Company website at www.sqidiagnostics.com and at www.sedar.com. Financial and Business Highlights for the Quarter and Year to Date: Corporate Financing Transactions: Warrants and Options During June 2020, a total of 29,011,117 warrants were exercised by certain insiders of the Company for total gross proceeds of $3,111,000. A total of 25,000,005 of the warrants issued in connection with a March 2019 private placement were exercised at a price $0.11 per share while 4,011,112 warrants issued in connection with the debt refinancing conducted in this fiscal year’s second quarter being exercised at a price $0.09 per share. On June 10th, 195,000 options were exercised at a weighted average price $0.15 for gross proceeds of $30,000. For more information, please contact: Chief Financial Officer About SQI Diagnostics Forward-looking Statements Such statements, risks and uncertainties are detailed in the Company’s ongoing filings with the securities regulatory authorities, and are available to the public at www.sedar.com. 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 securities laws. 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.
SOURCE SQI Diagnostics Inc. | ||
Company Codes: OtherOTC:SQIDF, OTC-QB:SQIDF, TorontoVE:SQD |
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