SQI Diagnostics Reports Third Quarter 2021 Results

Rhea-AI Summary

SQI Diagnostics Inc. (TSXV: SQD; OTCQB: SQIDF) reported its Q3 2021 financial results, showing sales of $0.3M, consistent with Q3 2020. SG&A expenses increased to $1.2M, partly due to stock option recovery for the former CEO. R&D expenses rose to $2.0M, reflecting intensified efforts for FDA product approvals. The net loss was $0.7M, an improvement from $1.5M in Q3 2020. Cash and investments stood at $5.0M, up from $2.6M year-on-year. Corporate highlights included a $3.9M funding boost and progress toward FDA approval for a COVID-19 Home Antibody Test.

Positive

• Sales remained stable at $0.3M compared to Q3 2020.
• Increased cash and investments to $5.0M, up from $2.6M year-on-year.
• Funding of $3.9M secured through warrants exercised by insiders.
• Legal settlement recovery of $407,000 improves financial position.

Negative

• SG&A expenses rose by 71% to $1.2M, affecting profitability.
• R&D expenses increased to $2.0M, indicating higher investment without immediate returns.

TORONTO, Aug. 18, 2021 /PRNewswire/ - SQI Diagnostics Inc. (TSXV: SQD) (OTCQB: SQIDF), a precision medicine company that discovers, develops and commercializes innovative rapid diagnostic testing for healthcare professionals, patients and consumers worldwide, today reported its financial and operational results for the third quarter of fiscal year 2021, ended June 30^th, 2021. 

Q3 2021 Financial Highlights

• Sales were $0.3M, compared to $0.3M in Q3 2020
• SG&A expense was ($1.2M), compared to $0.7M in Q3 2020 due primarily to a recovery of expense on stock options awarded to the Company's former CEO
• R&D expense was $2.0M, compared to $0.8M in Q3 2020 due to expanded efforts to bring products through the approval process
• Net loss was $0.7M or ($0.00) per share, compared to $1.5M or ($0.01) per share in Q3 2020
• Cash and investments were $5.0M as of June 30, 2021, compared to $2.6M as of September 30, 2020
• Net working capital was $4.1M as of June 30, 2021, compared to $2.2M as of September 30, 2020

Corporate Highlights during the Quarter:

• Received $3.9 million dollars in funding via warrant exercise by Insiders
• Increased investments in Clinical development to support application to the FDA for the Company's COVID-19 Home Antibody Test
• Settled legal dispute with a previous customer resulting in a partial recovery of an amount previously written-off totaling $407,000
• The Company's former CEO, Rob Chioini departed in May 2021and was replaced by the Board Chair, Clive Beddoe, as Interim CEO

About SQI Diagnostics

SQI Diagnostics is a life sciences and diagnostics company that is leading the way in healthcare utilizing state-of-the-art technology to rapidly diagnose, triage and provide medical insights to patients. We strive to improve people's lives and assist their healthcare providers by providing quality clinical health information backed by years of research and clinical data. For more information, please visit www.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.

FAQ

What were SQI Diagnostics' Q3 2021 sales figures?

SQI Diagnostics reported sales of $0.3M for Q3 2021, the same as Q3 2020.

How did SQI Diagnostics' net loss change in Q3 2021?

The net loss for SQI Diagnostics in Q3 2021 was $0.7M, an improvement from $1.5M in Q3 2020.

What are the R&D expenses reported by SQI Diagnostics for Q3 2021?

R&D expenses for Q3 2021 were $2.0M, up from $0.8M in the same quarter last year.

What corporate highlights did SQI Diagnostics achieve in Q3 2021?

SQI Diagnostics secured $3.9M in funding from warrant exercises and made advancements towards FDA approval for its COVID-19 test.