SQI Diagnostics Inc. announced that it is moving to strategically focus on what is now its core business: creating precision Point of Care (POC) products in respiratory health. As a result of SQI's strategic shift to focus on POC, the Company intends to focus on three products:  The RALI-fast™ Severity Triage POC Test – the multiplexed, point of care version of the RALI-Dx™ IL-6 Severity Triage Test — helps clinicians identify which patients with SARS-CoV-2 will have a severe inflammatory response and has already been evaluated in a clinical study in the University Health Network (UHN) intensive care unit SQI's TORdx LUNG Test measures up to four inflammatory biomarkers in a series of perfusate samples drawn from an Ex Vivo Lung Perfusion (EVLP) system supporting a donor lung before transplantation to a recipient. The TORdx LUNG Test helps predict recipient outcome should the organ be transplanted.

SQI will be engaging with the US FDA and initiate clinical studies across four sites in North America to support regulatory approval for the product. SQI's partnership with Owlstone Medical to develop non-invasive breath diagnostic products to monitor the health of lung transplant recipients. Initial clinical studies at UHN are under review and expected to be initiated in Second Quarter 2023.

As a part of SQI's new strategy going forward, the Company has reduced its workforce from approximately 44 full-time employees to 20 full-time employees to focus on maintaining and developing the Company's key capabilities of clinical and regulatory expertise, managing outsourced product development and outsourced manufacturing. The Company expects to reduce its payroll and cash burn by approximately 50% on a monthly basis. In connection with this evolution of the Company's strategy, SQI intends to entertain offers from potential buyers for the Company's now, non-core business that is based on lab-based instruments.

The Company's leadership will remain intact, including regulatory, clinical and finance roles.