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SQI Diagnostics Q4 Revenues Drop 67 Percent

NEW YORK – SQI Diagnostics on Wednesday reported that its year-over-year revenues for the fourth quarter fell 67 percent, driven mainly by a reduction in Rali-Dx IL-6 Severity Triage Test kit sales.

For the three months ended Sept. 30, 2021, the Toronto-based firm posted revenues of C$100,000 (US$78,881) compared to C$300,000 in the prior-year quarter.

Its fourth quarter R&D spending rose 45 percent year over year to C$1.6 million from C$1.1 million, while its SG&A spending dropped 44 percent year over year to C$1.0 million from C$1.8 million.

The firm did not provide a net loss amount for the fourth quarter.

It exited the quarter with C$2.3 million in cash and investments.

For fiscal year 2021, SQI posted revenue of C$900,000, down 10 percent year over year from C$1.0 million.

In 2020, the company recognized an instrument sale for approximately C$100,000 but had no such sale in 2021.

The firm said its 2021 net loss was C$2.6 million, or C$.01 per share, compared to a net loss of C$2.8 million, or C$.01 per share, a year ago.

Its R&D spending for 2021 rose 65 percent year over year to C$7.6 million from C$4.6 million, while its SG&A spending decreased 22 percent to C$3.2 million from C$4.1 million in fiscal 2020. The reduction in expenses in 2021 was mainly due to recovery of a previously written-off balance from a customer, lower legal and recruitment costs, and a lower stock option expense due to forfeiture of the former CEO's stock options.

The firm noted that in the fourth quarter it appointed Andrew Morris as CEO.

Following Q4, SQI completed a private placement of 26.9 million shares at C$0.19 per share for gross proceeds of C$5.1 million, and inked an agreement to acquire the assets of Precision Biomonitoring's human diagnostics COVID-19 PCR testing business and TripleLock molecular diagnostic testing technology for aggregate cash and share consideration of C$6.8 million.