New Business Contributes $1.1M in Revenue
TORONTO, Aug. 29, 2022 /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 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
. We are cautiously optimistic that
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
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
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
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
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 DiagnosticsSQI 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
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 .
Chief Financial Officer
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Company Codes: OTC-QB:SQIDF, TorontoVE:SQD, OTC-BB:SQIDF, OTC-PINK:SQIDF