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SQI Diagnostics Reports Second Quarter 2009 Financial Results

^{Published on 2009-05-26 13:40:09, Last Modified on 2009-05-26 13:41:43 - Market Wire}
 

 TORONTO, May 26 /CNW/ - 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, 2009. Highlights - Announced that its validation and development partner, Mount Sinai Services, Inc. in Toronto began offering SQI's QuantiSpot(TM) RA (Rheumatoid Arthritis) test system to its customers. Mount Sinai Services' customer base consists of other hospital laboratories, companies performing clinical trials and reference labs; - Received authorization from the European Union to CE Mark the Company's Automated SQiDworks(TM) Diagnostics Platform and QuantiSpot Rheumatoid Arthritis Assay; - Continued working with the United States Food and Drug Administration (FDA) with the objective of receiving clearance to sell the SQiDworks Platform and QuantiSpot RA test kit in the United States. In response to questions from the FDA, the Company is in the final process of collecting a data set to supplement information it previously provided and expects to deliver this supplementary information to the FDA in the coming weeks. Management has reviewed preliminary results from this data set and believes it will address the questions posed by the FDA, and that the time that will be taken by the FDA to review the supplementary information will not materially affect the overall commercialization timelines for its products. - Raised gross proceeds of CDN$1,664,375 in the second tranche of a non-brokered private placement. The first tranche, which closed in the prior quarter, brought in gross proceeds of CDN$3,000,000 "Commercially, we moved our SQiDworks Diagnostics Platform and QuantiSpot Rheumatoid Arthritis Assay forward in the second quarter through our initiative with Mount Sinai Services, our authorization to CE Mark the technology, and in our interaction with the FDA to gain clearance to sell the system in the U.S.," said Andrew Morris, CFO of SQI Diagnostics. "We also strengthened our balance sheet with capital that will be utilized in part to ensure we achieve significant market penetration if our technology is approved in the U.S." Financial Results For the quarter ending March 31, 2009, the Company recorded a net loss of $1,472,559 ($0.06 per share) compared to a net loss of $521,274 ($0.03 per share) for the quarter ended March 31, 2008. The increased loss for the quarter ended March 31, 2009, was primarily related to increases in wage and wage-related expenses and consulting expenses. Research and Development expenses increased in the quarter ending March 31, 2009 to $849,736 compared to $85,142 during the quarter ended March 31, 2008. The difference was related primarily to an increase in R&D activity with an increased number of assay panels in development, and regulatory validation efforts related to QuanitSpot Rheumatoid Arthritis. 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 $230,711 for the quarter ended March 31, 2009 compared to $185,561 for the quarter ended March 31, 2008. The major contributors to the increases between the periods were costs related to travel for supplier quality validation, salary-related executive compensation increases and currency exchange costs. At March 31, 2009, current assets were $6,344,527 compared to $4,362,230 at September 30, 2008. Working capital as at March 31, 2009 was $5,128,989 compared to $3,244,418 at September 30, 2008. Management believes that the cash on hand at March 31, 2009 will be sufficient to fund Company operations to the middle of 2010. The successful commercial launch and generation of revenue in the 2009 fiscal year would extend that period. Detailed financial statements and the MD&A are available at[ www.sedar.com ]. About SQI Diagnostics SQI Diagnostics is a medical systems company that develops proprietary technology in multiplexing, miniaturization and automation. SQI provides laboratories the ability to simultaneously analyze multiple biomarkers, deliver accurate and quantitative patient results in less time, significantly reduce labor, and increase profits...All in One Drop. Please visit [ www.sqidiagnostics.com ] for more information. Certain information in this press release is based on beliefs and assumptions of the Company's senior management and information currently available to it that may constitute forward-looking information within the meaning of securities laws. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties. In particular, statements about the likelihood and timing of the anticipated launch of the Company's Automated SQiDworks(TM) Diagnostics Platform and QuantiSpot Rheumatoid Arthritis Assay in the United States involve forward-looking information. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. 

For further information: Chief Financial Officer, Andrew Morris, (416) 674-9500 ext. 229, [ amorris@sqidiagnostics.com ]; Media and Investor Relations, Adam Peeler, (416) 815-0700 ext. 225, [ apeeler@equicomgroup.com ]