2 Safe harbour statement This presentation may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements, including comments predicting the timing of financings, strategic partnering, regulatory actions, or the capabilities of the platform. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company’s expectations are correct. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement. This presentation should not be considered an official disclosure document of the Company. This document is for information purposes only and is not intended to be used to solicit the sale of securities. SQI Diagnostics™ Inc. PRIVATE and CONFIDENTIAL – NOT FOR DISTRIBUTION without the express written consent of SQI Diagnostics Inc.
Multiplexing, Miniaturization and Automation. Analyzemultiple biomarkers, Deliveraccurate patient results in less time, Reduce labor, and Increase profits… All in One Drop SQI Diagnostics 3
SQiDworks™ – the first fully-automated multiplexing workstation for diagnostic microarrays. IgXplex™ Patented Microarray Assay providing 3 strategic customers benefits Confidence, Profit and Growth 4
SQiDworks & RA Assay 5 United States European Union cleared for sale in Canada
Value creation 6 1st ID panels filed Complete AI panels SQiDmanlaunch U.S. market launch Scale up capital FDA clearance Technology investment Health Cdaapproval RA panel validation Fully automatedsystem A-G-M calibration 2005 2006 2007 2008 2009 2010 2011 Printing optimization Automated arrayscanning Surface optimization Multipexed array demo Microarray concept
8 Current multiple biomarker testing is labour intensive SINGLE biomarker testing MULTIPLE biomarker testing 1test 1unit of reagents 1unit of labour 1result 6tests 6units of reagents 6units of labour 6results No economies of scale for multiple testing!
Study of 324 clinical laboratories by Chi Solutions in 2008 8.9% Send Outs 6.0% Other 57.9%Labor & Benefits 2.4% Depreciation 1.5% Repair 0.6% Lease/Rental 20.9%Supplies 9
Evolution with Purpose: 4th Generation 10 SQI Diagnostics’ IgXplex: The Next Generation Immunoassay
16 SQI Diagnostics biomarker testing 74 patients | 9 biomarkers requiring 1 “plate” Traditional manual biomarker testing 74 patients | 9 biomarker requiring 18 “plates” SQI Diagnostics value proposition: dramatic economies of scale Automated micro array technology powering a technology shift… ~ 4 minutes perbiomarker Technician ‘hands-on’ time ~ 3 secondsper biomarkerTechnician ‘hands-on’ time 80 X Reduction
17 Profit increases by up to $40 per patient in 9-plex panel Current Method IgX-Plex 18 microtiter plates required 36 minutes / patient 0.3 minutes / patient Costs Total: $42.55 Total: $82.58 Total: $82.58
Sales Funnel Labs in USA 14,000 “Current” Target Market 300 60 Current Focus Accounts 20 Meetings Completed/Scheduled 6–10 Target Installs for 2010 Completed Validation (to date) 1 18 18 All in One Drop
19 Current Product Pipeline Candidate Panels Insight Proof of Concept Assay Develop Automation Verification Multisite Validation Regulatory Submission RA v2 Vasculitis-4x Auto Hep Renal Food Intolerance Lupus-12x Celiac-4x IBD-8x APS-9x Thyroid-3x Customer Delivery BOTX-3x Infliximab(RUO)-3x Six-Month Internal Development Timeframe
21 Company overview Headquarters: Toronto, Ontario Founded: 1999 Symbol: TSX.V SQD Financial data : 27,193,000 shares issued and outstanding 32,279,000 shares on a fully diluted basis $26.5 million raised since 2004 $8.543 million current assets as at December 31, 2009 Cash in place through 2011 Cash burn rate of ~$625,000 per month
Cover to be like annual report 2009 AGM, March 30, 2010