Revenue Up 800% Year-over-Year
TORONTO, Jan. 30, 2023 /PRNewswire/ – SQI Diagnostics Inc. (TSXV: SQD) (OTCQB: SQIDF), a leader in the science of lung health that develops and manufactures respiratory health and precision medicine tests today reported its financial and operational results for the fourth quarter and fiscal year ended September 30, 2022.
“Last fiscal year we witnessed the transition of SQI from an R&D organization to a commercial company. We earned record revenues of $8.1 million in fiscal 2022 up significantly from $0.9 million in fiscal 2021. Our development work in 2022 resulted in regulatory approvals for our RALI-Dx IL-6 Severity Triage Test product in 2023 with the installation of sqidlite instruments for evaluation and clinical use in two Toronto hospitals and our Exact COVID19 Antibody Test product. We are excited about our commercial prospects for our RALI-Dx product and launching EXACT COVID-19 Antibody testing in this quarter and furthering our commercial successes.” said Andrew Morris, President and CEO of SQI Diagnostics.
Q4 2022 Financial Highlights
Sales of $1.2M in Q4 2022 were significantly higher, compared to $0.1M in Q4 2021. The increase in sales is attributed to the COVID-19 human testing business acquired during the second quarter of fiscal 2022.
Gross profit was ($0.5M) in Q4 2022, compared to $0.1M in Q4 2021 driven by the COVID-19 human testing business. The negative gross profit in Q4 2022 is a result of an adjustment to provisional amounts in the purchase price allocation from Precision Biomonitoring Inc in Q2 2022; prior to this change, gross profit was $0.5M.
Corporate & General expenses were $0.4M in Q4 2022, compared to $0.9M in Q4 2021. The decrease is mainly related to lower stock-based compensation on account of a credit and to the reallocation of financing fees to interest expense partially offset by higher professional fees and salaries & wages expense.
The R&D expense category, which includes Manufacturing, Quality and Engineering was $1.6M in Q4 2022, compared to $1.8M in Q4 2021. The decrease was due to lower stock-based compensation on account of a credit as higher salaries & wages of $0.4M due to the absence of the CEWS in Q4 2022 were fully offset by lower laboratory costs of $0.4M.
Net loss was ($7.8M) of ($0.02) per share, compared to ($2.8M) or ($0.01) per share.
Cash and cash equivalents were $1.3M as of September 30, 2022.
Net working capital was $(7.6M) as of September 30, 2022, compared to $0.7M on September 30, 2021; the working capital deficit is due to the $7.5M short term credit facility used to acquire the COVID-19 PCR business from Precision Biomonitoring Inc in Q2 2022.
Fiscal 2022 Financial Highlights
Sales were $8.1M in 2022, compared to $0.9M in 2021. The increase is due to the Company’s acquisition of the PCR testing business from Precision Biomonitoring Inc in Q2 2022.
Gross Profit was $3.1M in 2022 compared with $0.8M in 2021. The increase is due to the Company’s acquisition of the PCR testing business from Precision Biomonitoring Inc in Q2 2022.
Corporate and general expenses were $5.9 in 2022 compared with $2.5M in 2021. The increase is due to higher stock-based compensation expense of $1.1M primarily due to 2021 reversal of previous CEO stock based compensation in addition to the new CEO’s compensation expense over 12 months compared to 1 month in 2021, higher professional fees (legal, recruiting and investor relations) of $.9M, higher salaries & wages of $.3M and higher general expenses of $1.0M, which includes, transition costs of $.3M software subscriptions of $.2M and the absence of any bad debt recovery while Q4 2021 had a recovery of $.4M.
Research and development expenses were $7.3 in 2022 compared with $7.5 in 2021. The decrease is due to lower R&D consulting costs as several projects that required the use of external consultants were completed in fiscal 2021.
Net loss was $(18.5M) or ($0.05) per share, compared to $(10.5M) or ($0.03) per share in 2022.
Q4 2022 Corporate Highlights
The Company received its Medical Device Single Audit Program (MDSAP) certification in September 2022. MDSAP allows a single audit of a medical device manufacturer’s Quality Management System (QMS), which satisfies the requirements of multiple regulatory jurisdictions.
The Company’s clinical data for its RALI-Dx IL6 test was published in the article “A biomarker assay to risk-stratify patients with symptoms of respiratory tract infection”, by the influential European Regulatory Journal
About SQI Diagnostics
SQI Diagnostics is a leader in the science of lung health. The Company develops and manufactures respiratory health and precision medicine tests that run on SQI’s fully automated systems. The Company’s tests simplify and improve COVID-19 antibody monitoring, Rapid Acute Lung Injury testing, donor organ transplant informatics, and immunological protein and antibody testing. SQI Diagnostics is driven to create and market life-saving testing technologies that help more people in more places live longer, healthier lives. For more information, please visit www.sqidiagnostics.com.
Chief Financial Officer
This press release contains certain words and statements, which may constitute “forward-looking statements” within the meaning of applicable securities laws relating to future events or future performance and reflect the current expectations and assumptions of the Company regarding its growth, results of operations, performance, business prospects and opportunities. These statements generally can be identified by use of forward-looking words such as “may”, “would”, “could”, “will”, “should”, “expect”, “plan”, “estimate”, “anticipate”, “intends”, “believe”, “potential”, or “continue” or the negative thereof or similar variations. The Company’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the effect of the global pandemic and consequent economic disruption, and the factors detailed in the Company’s ongoing filings with the securities regulatory authorities, available at www.sedar.com. Although the forward-looking statements contained herein are based on what we consider to be reasonable assumptions based on information currently available to us, there can be no assurance that actual events, performance or results will be consistent with these forward looking statements, and our assumptions may prove to be incorrect. Readers are cautioned not to place undue reliance on these forward-looking statements. 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 law.
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Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE SQI Diagnostics Inc.