SQI Diagnostics Inc. (TSX-V: SQD), a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, today announced its financial and operational results for the first quarter-ended December 31, 2012.
Highlights for the quarter-ended December 31, 2012
Our sales team completed twelve in person sales meetings which were the result of a significant number of prospecting and qualifying tele-meetings, trade show and scientific conference presentations.
On October 14-18, 2012 the Company launched its SQiDlite system at the American Association of Pharmaceutical Scientists (AAPS) Annual Meeting and Exposition.
On November 12-16, 2012 the Company presented at the European Bioanalysis Forum Open Symposium which highlighted our ability to multiplex and automate immunogenicity tests.
Verification work advanced on the Ig_PLEX Celiac DGP Panel. The Company has made significant progress on issues encountered in its initial verification testing and now expects validation to commence in the second fiscal quarter of 2013 followed shortly by completion and submission of applications for regulatory approval in both Canada and the United States.
SQI was asked to participate in the Emerging Technologies Action Program Committee (ETAPC), an industry working group comprising industry leaders. The Committee focuses on evaluating the potential of emerging technologies for biologics quantification and its current interest is in technologies in multiplexing and automation that result in cost reductions. The Company was and continues to be an active participant in ETAPC.
Subsequent to quarter end the Company announced a collaboration with Algorithme Pharma to develop a multiplex proof of concept assay targeted at immunogenicity testing of heparin and heparin-based low molecular weight (LMWT) biosimilar compounds. As the first step in marketing the commercial product SQI and Algorithme will present the results of the proof of concept studies at the upcoming 14th Annual Immunogenicity for Biotherapeutics Conference in Baltimore 18-20 March, in a presentation titled "A Novel Approach for Multiplexed Detection, Isotyping, and Quantitation of IgG, IgA, and IgM PF4/Heparin Antibodies using SQI Diagnostics' Ig_Plex™ Technology".
During the quarter the Company announced that it had established a special committee to review strategic alternatives to maximize growth and shareholder value. At this time the Company's advisers have generated interest from a number of parties that are at various stages of the process. Further information regarding the strategic process can be found in the Company's MD&A available on SEDAR.
"SQI made significant progress in generating customer interest in its Diagnostic Tools and Services offerings during the quarter through a variety of sales and marketing initiatives," said Andrew Morris, CFO of SQI Diagnostics. "We believe that our Algorithme Pharma collaboration and the expected positive outcome of our proof of concept studies will generate additional sales for the Diagnostic Tools and Services business."
For the quarter-ended December 31, 2012, SQI recorded a net loss of $1,563,000 or $0.04 per share, compared to a net loss of $1,650,000 or $0.05 per share for the quarter-ended December 31, 2011.
R&D expenditures for the quarter-ended December 31, 2012, excluding amortization and stock-based compensation were $784,000 compared to $959,000 for the quarter-ended December 31, 2011. With fewer projects in active development the Company reduced expenditures on salaries, lab consumables, scientific consultants, partnering and validation costs. During the quarter the Company focussed its R&D efforts on resolving issues encountered in its initial verification testing of the Celiac DGP assay and now expects validation to commence in the second fiscal quarter of 2013 followed shortly by completion and submission of applications for regulatory approval in both Canada and the United States. In the first quarter of fiscal 2012, prior to the business realignment, the Company had six projects in active development.
Corporate and general expenses, excluding stock-based compensation totaled $390,000 for the three months ended December 31, 2012 compared to $392,000 for the three months ended December 31, 2011. The Company's cost cutting efforts reduced or maintained the spending levels on other general and administrative costs.
Sales and marketing expenses, excluding stock based compensation, totalled $109,000 for the three months ended December 31, 2012 compared to $89,000 for the three months ended December 31, 2011. The increase in sales and marketing expenses for the three months ended December 31, 2012 compared to the three months ended December 31, 2011 was primarily a result of increased expenditures on conferences and marketing materials.
At December 31, 2012, current assets were $2,203,000 compared to $4,208,000 at September 30, 2012. Working capital as at December 31, 2012 was $1,784,000 compared to $3,190,000 at September 30, 2012.