SeqLL Announces Fourth Quarter and Year End 2022 Financial Results

Rhea-AI Summary

SeqLL Inc. (NASDAQ: SQL; SQLLW) reported its financial results for the year ended December 31, 2022, indicating total revenues of $0.079 million, down 63% from $0.21 million in 2021. Gross profits also decreased by 49%, totaling $0.078 million. Research and development expenses surged 196% to $1.57 million, reflecting a return to pre-pandemic activity levels. General and administrative expenses rose 15% to $2.5 million. The net loss for the year increased by 11% to $4.09 million. Cash, cash equivalents, and investments amounted to $6.2 million as of year-end.

Positive

• Increase in interest and dividend income to $0.045 million from $0.036 million.
• Decrease in interest expense by 56% to $90,748 due to reduced indebtedness.

Negative

• Total revenues decreased by 63% year-over-year.
• Gross profits dropped by 49%, reflecting reduced business activity.
• Research and development expenses soared by 196%, indicating increased operational costs.
• Net loss attributable to common stockholders increased by 11% to $4.09 million.

BILLERICA, Mass., March 17, 2023 (GLOBE NEWSWIRE) -- SeqLL Inc. (“SeqLL” or the “Company”) (NASDAQ: SQL; SQLLW), a technology company providing life sciences instrumentation and research services, today announced its operating and financial results for the fourth quarter and year ended December 31, 2022.

Year End 2022 Results and Financial Highlights

• Total revenues for the year ended December 31, 2022 were $0.079 million compared to $0.21 million during the year ended December 31, 2021, representing a decrease of 63%. The change in revenue was primarily a result of the reduction in research services and business activities due to the slow-down during the COVID-19 pandemic.
  
  
• Gross profits were $0.078 million for the year ended December 31, 2022; as compared to $.15 million for the year ended December 31, 2021. The change represents a decrease of approximately 49%.
  
  
• Research and development expenses for the year ended December 31, 2022 increased 196% to $1.57 million compared to $0.53 million for the year ended December 31, 2021. The increase in expense was primarily a result of research and development activities returning to the levels of pre-COVID-19 pandemic. The company anticipates these expenditures to increase over the year of 2023 and beyond as it grows its research and development efforts to advance certain projects that were on hold during the COVID-19 pandemic.
  
  
• General and administrative expenses for the year ended December 31, 2022 were $2.5 million compared to $2.2 million for the year ended December 31, 2021, an increase of $0.3 million or 15%. The increase in general and administrative expenses was primarily related to the increase in operating expense as a public company, including addition of accounting, legal, insurance, and audit related expenses. General and administrative expenses will continue to increase to support ongoing financial reporting and compliance activities.
  
  
• We recognized interest and dividend income for the year ended December 31, 2022 of $0.045 million compared with $0.036 million for the year ended December 31, 2021. This primarily relates to dividend income earned on the Company’s investment in equity securities. The Company expects to see increases in interest income over the next twelve months based on the current interest rates and market conditions.
  
  
• We recognized interest expense of $90,748 and $208,289 in the year ended December 31, 2022 and 2021, respectively, representing a decrease of $117,541, or 56%. The decrease in interest expense was due to a decrease in our outstanding indebtedness as a result of the conversion of $2.1 million in notes to equity concurrently with the consummation of our initial public offering on August 31, 2021.
  
  
• Net loss attributable to common stockholders increased by $391,275, or 11%, to $4,094,833 as compared to $3,703,558 for the year ended December 31, 2022. This increase in net loss is primarily attributable to increased operating expenses as a public company and our progressive return to research and development activities to levels of pre-COVID-19 pandemic. This increase in operating expenses was partially offset by the decrease in the interest expense and the loss on extinguishment of the convertible notes in the year ended December 31, 2021 in the amount of $934,257.
  
  
• Cash, cash equivalents and investments, as of December 31, 2022, were $6.2 million.
  
  
• As of December 31, 2022, the Company had 11,886,379 shares of common stock outstanding.
  
  

About True Single Molecule Sequencing (tSMS) Technology
SeqLL’s collaborators are thoroughly committed to using only our tSMS platform in their scientific research due to its unique RNA and DNA sequencing and related services. Our true single molecule sequencing platform is NGS technology offers maximum flexibility and avoids many of the challenges common for standard NGS approaches. It that enables direct sequencing of millions of individual molecules not requiring PCR amplification at any stage of the process and a simple, economical sample prep protocols. Therefore, it captures a precise sample composition, without bias and loss of diversity and rare species. Our tSMS platform is ideally suited for RNA biomarker discovery and diagnostic assay developments, including challenging applications for the standard NGS platform, such as low quantity, difficult or degraded samples of cell-free DNA, FFPE-isolated nucleic acids, ancient DNA and forensic samples.

About SeqLL, Inc.
SeqLL Inc. (“SeqLL”) is a technology company providing life sciences instrumentation and research services in collaborative partnerships aimed at the development of novel scientific assets and intellectual property across multiple “omics” fields. The Company leverages its expertise with its True Single Molecule Sequencing (“tSMS®”) platform to empower scientists and researchers with improved genetic tools to better understand the molecular mechanisms of disease that is essential to the continued development of new breakthroughs in genomic medicine, and that hopefully address the critical concerns involved with today’s precision medicine. In sum, our experienced team works with our collaborators to develop innovative solutions tailored to the needs of each specific project.

Forward Looking Statements
This press release contains certain forward-looking statements, including those related to the applicability and viability of the Company’s technology to quantifying RNA molecules from blood and other statements that are predictive in nature. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward- looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including its registration statement on Form S-1, as amended, under the caption "Risk Factors."

Contacts:

John W. Kennedy
Tel: (914) 727-7764
Email: jwkenned@seqll.com

SeqLL Inc.
Consolidated Balance Sheets

		December 31,
		2022				2021
Assets
Current assets
Cash and cash equivalents		$	2,180,525			$	4,015,128
Marketable securities			4,036,014				5,933,364
Accounts receivable, net of allowance for doubtful accounts of $6,016			21,214				30,714
Other receivables			60,000				34,965
Inventory			165,852				224,155
Prepaid expenses			171,859				186,056
Total current assets			6,635,464				10,424,382
Other assets
Property and equipment, net			530,108				265,267
Operating lease right-of-use asset			1,129,715				-
Other assets			118,954				50,488
Total assets		$	8,414,241			$	10,740,137
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	622,436			$	871,364
Accrued expenses			495,462				311,405
Non-convertible promissory notes - current			-				1,375,000
Current portion of operating lease liability			110,114				-
Total current liabilities			1,228,012				2,557,769
Non-current liabilities
Operating lease liability, less current portion			1,444,343				-
Non-convertible promissory notes - long-term			1,375,000				-
Total non-current liabilities			2,819,343				-
Total liabilities			4,047,355				2,557,769
Commitments and contingencies (Note 14)
Stockholders’ equity
Preferred stock, $0.00001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding			-				-
Common stock, $0.00001 par value; 80,000,000 shares authorized; 11,886,379 shares issued and outstanding			119				119
Additional paid-in capital			22,853,000				22,596,100
Accumulated deficit			(18,508,684	)			(14,413,851	)
Accumulated other comprehensive income			22,451				-
Total stockholders’ equity			4,366,886				8,182,368
Total liabilities and stockholders’ equity		$	8,414,241			$	10,740,137

SeqLL Inc.
Consolidated Statements of Operations and Comprehensive Loss

		December 31,
		2022				2021
Revenue
Sales		$	1,177			$	48,021
Grant revenue			77,482				161,974
Total revenue			78,659				209,995
Cost of sales			690				57,690
Gross profit			77,969				152,305
Operating expenses
Research and development			1,568,266				530,076
General and administrative			2,506,851				2,170,857
Total operating expenses			4,075,117				2,700,933
Operating loss			(3,997,148	)			(2,548,628	)
Other (income) and expenses
Interest and dividend income			(44,879	)			(36,463	)
Other income			-				(190,193	)
Unrealized (gain)/loss on marketable equity securities			(54,508	)			43,078
Realized loss on marketable equity securities			106,324				-
Change in fair value of convertible notes			-				195,962
Loss on extinguishment of convertible notes			-				934,257
Interest expense			90,748.00				208,289
Net loss			(4,094,833	)			(3,703,558	)
Other comprehensive income
Unrealized gain on marketable debt securities			22,451				-
Total comprehensive loss		$	(4,072,382	)		$	(3,703,558	)
Net loss per share - basic and diluted		$	(0.34	)		$	(0.51	)
Weighted average common shares - basic and diluted			11,886,379				7,216,001

Source: SeqLL, Inc

 

FAQ

What were SeqLL's total revenues for 2022?

SeqLL's total revenues for 2022 were $0.079 million, a 63% decrease from $0.21 million in 2021.

How much did SeqLL's net loss increase in 2022?

SeqLL's net loss attributable to common stockholders increased by 11% to $4.09 million in 2022.

What were SeqLL's cash and investments as of December 31, 2022?

As of December 31, 2022, SeqLL had cash, cash equivalents, and investments totaling $6.2 million.

How did SeqLL's research and development expenses change in 2022?

Research and development expenses increased by 196% to $1.57 million in 2022.

What was the gross profit for SeqLL in 2022?

SeqLL's gross profit for 2022 was $0.078 million, a decrease of 49% from the previous year.