SQI Diagnostics Inc. (TSX-V: SQD), a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, today announced its financial and operational results for the three and six months ended March 31, 2012.
Highlights for the quarter-ended March 31, 2012
- The Company identified and developed a strong pipeline of prospective customers for its Diagnostic Tools and Services business and completed several site due diligence visits. The prospects were generally grouped into the following categories: Immunology Diagnostic Manufacturers, Contract Research Organizations and Blood Bank Testing Manufacturers.
- On February 14, 2012 the Company announced it entered into an agreement with Integrated Sciences Pty Ltd, of Australia governing the sale and distribution of SQI's IVD products in the Australian marketplace. Integrated Sciences has experience and customer exposure with high volume reference laboratories. The Company believes Integrated Sciences will be a valued partner through which to introduce the SQiDworks platform and IgX PLEX celiac qualitative assay. Additionally, a reciprocal Memorandum of Understanding between the Department of Health of Canada and the Australian Therapeutic Goods Administration, signed in 2007, is expected to reduce the regulatory burden to begin the marketing efforts in the Australian marketplace.
- During the quarter ended March 31, 2012 the Company continued development of our first RUO assay, an 8-plex antibody panel for the quantification of cytokines. Monitoring cytokine expression represents a major segment of the RUO immunoassay market. Performance to date is on par with, or exceeds, currently available multiplexed assays.
- On May 11, 2012 and May 17, 2012 the Company completed a non-brokered private placement in two tranches issuing an aggregate total of 2,802,858 units for gross proceeds of $4,905,000. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share at a price of $2.50 for a period of two years from the date of issuance. The Company believes that it will complete the third tranche of this proposed Private Placement subsequent to the filing of the Financial Statements and Management Discussion and Analysis of Financial Condition and Results of Operations for the quarter ended March 31, 2012. The total proceeds from this third tranche are not currently known.
"In the second quarter we continued to build on the commercial momentum created in the first quarter," said Andrew Morris, CFO of SQI Diagnostics. "We anticipate that the successful site due diligence visits by our target customers at SQI will lead to the conversion of them to Diagnostic Tools and Services customers and these conversions will generate near term revenues from products and services."
The Company has converted to International Financial Reporting Standards for fiscal 2012.
For the quarter-ended March 31, 2012, the Company recorded a net loss of $1,350,000 ($0.04 net loss per share) compared to a net loss of $1,890,000 ($0.06 net loss per share) for the quarter-ended March 31, 2011.
R&D expenditures, excluding amortization and stock-based compensation, for the quarter-ended March 31, 2012 were $606,000 compared to the $1,114,000 for the quarter-ended March 31, 2011. R&D expenditures, excluding amortization and stock based compensation, for the six months ended March 31, 2012 were $1,565,000 compared to the $2,612,000 for the six months ended March 31, 2011. On November 30, 2011 the Company announced a restructuring which stream-lined product development such that fewer projects were in active development. This resulted in reduced expenditures on salaries, lab consumables, scientific consultants, partnering and validation costs. The Company is continuing to progress the celiac quantitative assay, the vasculitis assay, and cytokines panel through the final development stage.
Corporate and general expenses, excluding stock-based compensation, totalled $380,000 for the three months ended March 31, 2012 compared to $420,000 for the three months ended March 31, 2011. Increased occupancy costs were offset by a reduction in other costs as a result of the corporate restructuring and a reduction in professional and consulting costs primarily related to a reduction in recruiting and investor relations fees.
At March 31, 2012, current assets were $1,500,000 compared to $1,266,000 at September 30, 2011. Working capital as at March 31, 2012 was $416,000 compared to ($1,322,000) at September 30, 2011.