New Business Contributes $1.1M in Revenue
TORONTO, Aug. 29,
2022 /CNW/ - 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
third quarter for fiscal year ending September 30, 2022.
"This quarter saw another healthy revenue improvement
year-over-year as customers continued to engage in PCR testing
using Biomeme's mobile test which currently detects all variants of
COVID-19. We are cautiously optimistic that COVID-19 testing will
continue into the fall months and have secured the distribution
rights for Quidel's Sofia 2 Flu +
SARS Antigen Fluorescent Immunoassay (FIA) product which is capable
of testing for both Influenza A virus (Flu A) and Influenza B virus
(Flu B) as well as COVID-19 on a single test cartridge" said
Andrew Morris, President and CEO of
SQI Diagnostics.
Q3 2022 Financial
Highlights
- Sales of $1.2M in Q3 2022 were
significantly higher, compared to $0.3M in Q3 2021. The increase in sales is
attributed to the COVID-19 human testing distribution business
acquired during the second quarter of fiscal 2022.
- Gross profit was $.4M in Q3 2022,
compared to $0.3M in Q3 2021 driven
by the COVID-19 human testing distribution business.
- SG&A expense was $1.5M in Q3
2022, compared to ($1.5M) in Q3 2021.
The difference in SG&A expense is mainly related to a Q3 2021
credit of $2.5M due to the reversal
of stock option expense recognized previously for the former CEO
and the partial recovery of approximately $0.4M that had been previously written-off.
SG&A expenses were also impacted year-over-year due to higher
professional fees of $0.4M, higher
administration costs of $0.5M and
higher salaries and wages of $0.4M
owing to a severance payment in Q3 2021 for the previous CEO.
- The R&D expense category, which includes Manufacturing,
Quality and Engineering was $1.7M in
Q3 2022, compared to $1.9M in Q3
2021. R&D expense decreased year-over-year mainly due to
$.5M lower spend in laboratory costs
and supplies primarily due to lower consulting costs Additionally,
in Q3 2021, the Company was eligible to claim the Canada Emergency Wage Subsidy, the absence of
which has eliminated the offset to costs in the current quarter.
These higher costs were offset by approximately $0.5M lower spend in laboratory costs and
supplies.
- Cash and cash equivalents were $4.0M as of June 30,
2022.
- Net working capital was $(4.4M)
as of June 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.
Q3 2022 Corporate
Highlights
- During the quarter, the Company issued secured debenture
purchased by insiders of the Company with a principal amount of
$4,050,000 which bears an interest
rate of 8% and will mature in 2 years from the date of
issuance.
- The Company also extended the maturity date of the $7,500,000 Credit Facility entered with Pivot
Financial & the Insider Lenders in Q2 2022 to October 28, 2022.
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.
Contact:
Chief Financial Officer
Morlan Reddock
437-235-6563
mreddock@sqidiagnostics.com
FORWARD-LOOKING
INFORMATION
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE SQI Diagnostics Inc.