Jun 1 2010
SQI Diagnostics Inc. (TSX-V: SQD), a medical systems automation company focused on evolving laboratory-based biomarker testing, today announced its financial and operational results for the second quarter ended March 31, 2010.
Highlights - Completed the installation of an automated SQiDworks(TM) Diagnostics Platform and finalized validation studies at a major Canadian laboratory. Subsequent to quarter end, the laboratory informed SQI that its own validation was complete. SQI is optimistic that it will be able to convert this successful validation to commercial revenue in the second half of fiscal 2010; - Completed the development of the Celiac 4-plex panel and subsequent to the quarter end began validation procedures for the panel; - Finished internal procedures to advance SQI's vasculitis panel to the proof-of-concept stage. Subsequent to the quarter end, the Company completed proof of concept and moved the vasculitis panel into the development stage; and, - Subsequent to quarter end, announced the signing of a development agreement with Silliker, Inc., a leading internationally accredited company dedicated to improving nutrition, food safety and quality, for the commercialization of a botulism toxin panel that will run on SQI's SQiDman(TM) analytical system.
"We advanced our pipeline of autoimmune test panels and made important headway with prospective lab customers that could benefit from SQI's faster, more efficient technology for biomarker testing," said Andrew Morris, CFO of SQI Diagnostics. "As we develop more content - or test panels - to the commercial stage, the cost savings opportunity for our potential customers that test for multiple autoimmune conditions increases, thereby widening our capacity to generate material revenue."
For the quarter ended March 31, 2010, the Company recorded a net loss of $2,021,000 or $0.07 per share compared to a net loss of $1,473,000 or $0.06 per share for the quarter ended March 31, 2009.
The increased loss for the quarter ending March 31, 2010 was primarily related to greater activity and expenses in the discovery efforts for and development of several IgXplex assays, and increases in research and development wages and wage-related expenses owing to an increase in personnel supporting our R&D efforts. R&D expenditures for the three month period ended March 31, 2010 were $1,273,000 versus $850,000 for the three month period ended March 31, 2009. The increase year-over-year related primarily to increased R&D salaries and related expenses, laboratory consumable costs and laboratory operating expenses due to the increased R&D activity.
Sales and marketing expenses also increased in the quarter compared to the previous year owing to an increase in the number of sales and marketing personnel and to an increase in sales calls and associated expenses.
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 $116,000 for the quarter ended March 31, 2010 compared to $86,000 for the quarter ended March 31, 2009.
At March 31, 2010, current assets were $6,879,000 compared to $3,649,000 at September 30, 2009. Working capital as at March 31, 2010 was $6,332,000 compared to $7,916,000 at December 31, 2009.
Management believes that cash on hand at March 31, 2010 will be sufficient to fund Company operations for at least 12 months. A successful commercial launch and generation of revenue in the 2010 and 2011 fiscal years would extend this period.