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 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 .
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 . 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.
Company Codes: OTC-QB:SQIDF, TorontoVE:SQD, OTC-BB:SQIDF, OTC-PINK:SQIDF
Digital diagnostics deals with a common tool in which a person can easily collaborate across the entire application lifecycle by allowing quick isolation and resolution of issues. This new technology supports to progress in medical care system by contributing in the precision and correctness of the diagnostics output. Digital diagnostics categorizes, prioritizes and reports on hitches.
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Digital diagnostics tracks regular scans through every inch of your portfolio, from websites and widgets to social and mobile. The process of digital diagnostics is now a common term for many medical device applications, the installed software delivers deep drill down into transactions from the end user through the back end.
Digital diagnostics makes use of unified tools to hold the entire classification of medical device providers, consumers and healthcare professionals and hence grades in enhanced care quality and access, improved patient engagement, closing communication gaps, improved decision making by consumers and medical device providers & reduction in healthcare cost.
Healthcare experts recommend that through digital diagnostics, programmed health assessments can be carried out virtually and electronically. The terrestrial barriers can be concentrated with this technology by making it conceivable to diagnose patients placed away from the diagnostic center and clinics.
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The global digital diagnostics market is segmented on the basis of product type, end users and region. The product type include Oxitone, Cerora Borealis, Oto, Midmark IQvitals, IQecg, IQholter, IQspiro and IQstress, Lifepatch, Intelligent Breast Exam (iBE), Biomeme device, iBrain, Fever Smart, HealthPatch MD, VitalPatch, BioStampRC, Qardioarm, Qardiobase, and Qardiocore, HxM BT, HxM Smart, and BioHarness 3 and others.
Currently, manufacturing companies have established their individual mobile applications and software programs to make remote diagnostics conceivable. During the forecast period, it is projected that more cutting-edge high-end programs will be produced by the companies to diagnose patients irrespective of their physical existence in the diagnostic facility.
The integration of medical codes linked with healthcare informatics software solutions requires additional IT investments. This IT trend will attract numerous start-up vendors and medical outsourcing solutions providers in the digital diagnostic market during the forecast period. The U.S. is a major market for digital diagnostics services because of advanced and improved healthcare IT infrastructure, launching reliable healthcare data prototypes. Advancement in information & technology and medical health applications, help minimize errors and heighten working procedures.
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The key mass drivers supporting the market growth of digital diagnostics are growing awareness related to daily health diagnostics, patients are expected to prefer digital diagnostic over laboratory or hospital visit, and this technology platform is estimated to surge the approachability for patients as well as medical practitioners.
Digital diagnostics market often depresses entry barriers, causing established boundaries between sectors to tumble. Moreover the nature of digital technology causes value chains to disaggregate, generating opportunities for focused, fast-moving entrants. New market competitors often scale up rapidly at lower cost and returns may grow swiftly as more customers will connect to the online network.
Expertise technology companies like Google, Microsoft & Apple are capitalizing significantly in this canvas. The initial utilizers of digital tools are individuals or parents, people with health issues and young adults. Even though still in its emerging stage, digital diagnostics market seems to offer a mix of suitability, customization, accessibility or simply the need to have a digital device. For e.g. Accenture is now offering better software tools to access the information from both the ends, such as from end user to the physician directly within seconds. For healthier patient experience. Information fed electronically or manually to mobile applications, such as “Well Docs BlueStar”, is analysed to guide the individual and send the synchronized data to their physician to track the progress. This optimises time and treatment proficiencies.
Based on geography, the global digital diagnostics market is segmented into five key regions, North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America is the leading regional market for digital diagnostics and is trailed by Europe due to the existence of a large number of population suffering with diseases, and high patient awareness related to disease diagnosis in these regions.
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Some countries from Asia–Pacific and Latin America are expected to enter the market late because of lack of digital infrastructure, and accessibility to advanced technology. However, rising healthcare expenditure, developing healthcare infrastructure and increasing awareness related to the disease diagnosis. However, poor healthcare facilities in underdeveloped and emerging countries which lack appropriate healthcare infrastructure and trained staff is anticipated to affect the adoption in these countries.
Some of the major players in the global digital diagnostics market include Neurovigil, Inc., Oxitone Medical Ltd., Cerora, CellScope, MidMark Corp., MC10, Inc., Qardio, Inc., Vital Connect, Fever Smart, UE LifeSciences, Inc., Biomeme, Medtronic, Inc. and others.
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The MedCity INVEST Precision Medicine healthcare conference on December 9-11 draws healthcare and life science executives and investors as we spotlight progress in the development of diagnostics, clinical trial innovation, AI in drug development, and reimbursement models for cell and gene therapy.
To view the full agenda, click here.
To register, click here.
10:30 AM–11:30 AM ET: Clinical Trial Design Trends
Remote monitoring for clinical trials has the potential to transform clinical trial design, enabling a more diverse pool of participants, potentially easing recruitment obstacles and help patients fit participation into their lifestyles. How far have we come since Pfizer’s first remote monitoring pilot? Which technologies/use cases are proving effective? What are some of the challenges ahead?
Moderator: Frank Vinluan, Business Journalist
Peyton Howell, EVP and Chief Commercial & Strategy Officer, Parexel
Viraj Narayanan, Vice President, Life Sciences & Strategic Partnerships, COTA
Clay Williams, Founder/CEO, Medaptive Health, Inc.
12:30 –1:30 PM ET: Investment Trends in Precision Medicine
Join us for a discussion on investments year-to-date for health-tech and life science companies and the impact of M&A deals from 2019. How have investment strategies and priorities changed? How do they work with startups/growth stage companies? How are strategic investors changing the investment landscape? What have they learned from investment missteps and successes?
Moderator: Peter Micca, Partner, Deloitte
Julie Grant, General Partner, Canaan
Jeffrey Low, M.D., Principal, Novo Growth
Christopher McFadden, Managing Director, KKR Credit
2:30–4:00 PM ET
Pitch Perfect: Presentations from Life Science Startups
Life Science companies share different approaches to addressing some of the pain points in healthcare. Each startup with have 4 minutes to pitch followed by 6 minutes of Q&A with the judges.
Biomeme’s end-to-end mobile platform empowers users to take real-time PCR everywhere they need it, from sample collection to data management.
The company started out by creating the first iPhone add-on capable of performing molecular diagnostics. Since its inception, Biomeme has used advanced biology and chemistry along with world-class hardware and software engineering to create elegant solutions to complex problems. Over the years its team has grown, and along the way Biomeme has built the leading mobile molecular diagnostics platform.
CEO: Max Perelman
Headquarters: Philadelphia, PA
EpiVario is a preclinical stage biotechnology company that is developing neuroepigenetic modulators to treat memory related psychiatric disorders. The company’s newly discovered epigenetic regulatory mechanism provides a target for treating memory-related neuropsychiatric disorders, since it plays a critical role in consolidating trauma-induced fear and stress responses, in addition to cue-induced craving that underlies various addiction disorders. Based on this paradigm-shifting finding, EpiVario is developing pharmacotherapeutics to treat anxiety and addiction disorders, including PTSD and alcohol use disorder.
CEO: Thomas Kim
Headquarters: Philadelphia, PA
Gregor Diagnostics is a molecular diagnostics company focused on developing a new screening test for prostate cancer. Prostate cancer screening has been a hotly debated topic over the last two decades because of the overdiagnosis and overtreatment caused by current screening methods. Gregor is developing a better solution that can limit these issues, while still saving men from this deadly disease.
CEO: Tobias Zutz
Headquarters: Madison, WI
SOLUtion is an early-stage life science company developing more patient friendly drug delivery systems for reconstitutable drugs. We specifically aim to improve the administration efficacy of life-saving injectable medication with our TwistJect auto-injector for people living with adrenal insufficiency including Addison’s Disease and Congenital Adrenal Hyperplasia.
CEO: Julia Anthony
Headquarters: Philadelphia, PA
Stingray Therapeutics is an immune oncology company leading the charge to bring the next generation of new immune oncology agents forward. Today, all our immune oncology therapeutics are in only one arm of the immune system – adaptive immunity. But the immune system has two major arms that synergistically work together, adaptive and innate immunity. The company’s program in innate immunity inhibits the direct negative regulator of the major pathway, adding innate immunity into the fight against cancer, and has the promise of making immune oncology therapy dramatically more effective.
CEO: Jonathan Northrup
Headquarters: Houston, TX
TrialSpark is a technology company that helps bring treatments to patients faster.
Today, clinical trials are the bottleneck to bringing life-saving treatments to patients. Trials are slow, inefficient, and expensive. TrialSpark believes that it can use technology to accelerate the pace of clinical trials and bridge the gap between medical research and patients who need treatment.
Client Growth Director: Joe Zaccaria
Headquarters: New York, NY
Wayne Barz is Chief Investment Officer, Ben Franklin Technology Partners – Northeast PA
Rena Rosenberg is a Partner with Robin Hood Ventures