SQLLW - SeqLL Announces Fourth Quarter and Year End 2022 Financial Results
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