Kane Biotech Announces First Quarter 2023 Financial Results
May 25 2023 - 4:05PM
Kane Biotech Inc. (TSX- V:KNE; OTCQB:KNBIF) (the “Company” or “Kane
Biotech”), a biotechnology company engaged in the research,
development and commercialization of technologies and products that
prevent and remove microbial biofilms, today announced its first
quarter 2023 financial results.
First Quarter Financial
Highlights:
- Total revenue for the three months ended March 31, 2023, was
$677,617, an increase of 20% compared to $565,433 in the three
months ended March 31, 2022.
- License and royalty revenue for the three months ended March
31, 2023 was $138,180, an increase of 66% compared to $83,349 in
the three months ended March 31, 2022.
- Revenue from product and services sales for the three months
ended March 31, 2023 was $539,437, an increase of 12% from $482,084
in the three months ended March 31, 2022.
- Gross profit for the first quarter of 2023 was $345,047, an
increase of 88% compared to $183,621 for the quarter ended March
31, 2022.
- Total operating expenses for the three months ended March 31,
2023, were $1,360,793, a decrease of 4% compared to $1,420,097 for
the three months ended March 31, 2022.
- Loss for the first quarter of 2022 was ($1,244,684) an increase
of 8% compared to ($1,152,164) for the quarter ended March 31,
2022. This increase is primarily attributable to higher financing
costs in the current period and a higher non-cash fair value
adjustment on government loan advances in the comparative
period.
Detailed financial information about Kane
Biotech can be found in its March 31, 2023. Financial Statements
and Management Discussion and Analysis on SEDAR and the Company’s
website.
“To date, 2023 has seen Kane achieve three
important milestones in the commercialization of its technologies.
First, the licensing of Kane’s clinically proven pet dental care
line to Skout’s Honor Pet Supply Co. (“Skout’s Honor”) will greatly
accelerate expansion into the U.S. pet retail market. Skout’s Honor
have built an enviable network of retailers across North America
and it is expected that their new dental line will reach the
shelves of the majority of US retailers, both big and small, by the
end of this year.” said Marc Edwards, Kane’s President and CEO.
“Second, distribution agreements for our coactiv+™ Antimicrobial
Wound Gel were signed earlier this year with ProgenaCare Global LLC
(“ProgenaCare”) in the United States bringing our effective,
differentiated and accessible product to the annual USD $200
million U.S. wound gel market and with Salud Pharma S.A (“Salud
Pharma”) covering Colombia, Panama and Costa Rica representing our
first global distribution agreement in wound care. Finally, the
510(k) clearance from the United States Food and Drug
Administration (“FDA”) that we just announced today will not only
open the door to multiple additional markets throughout the world,
but will also allow Kane to use this first product clearance as a
predicate product for additional 510(k) devices.”
Recent Corporate
Developments:
- On May
25, 2023, the Company announced that it had received 510(k)
clearance of its coactiv+™ Antimicrobial Wound Gel from the FDA for
the management of ulcers (including diabetic foot and leg ulcers
and pressure ulcers), 1st and 2nd degree burns, partial & full
thickness wounds, large surface area wounds and surgical incisions
for adult populations.
- On April 20, 2023 the Company
announced that it had signed a distribution agreement with
ProgenaCare for its coactiv+™ Antimicrobial Wound Gel in the United
States wound care market. ProgenaCare will have exclusive
distribution rights in the United States wound care market for
Kane’s coactiv+™ Antimicrobial Wound Gel and Kane will receive a
$500,000 USD upfront payment from ProgenaCare once it obtains
510(k) clearance from the FDA.
- On April 18, 2023, the Company
announced that it had signed a licensing agreement with Skout’s
Honor for its patented coactiv+™ technology in pet oral care
applications. Skout’s Honor has been granted a ten-year license for
the non-exclusive use of Kane’s coactiv+™ technology under their
own brand in North America while STEM will continue to
commercialize its bluestem™ line of pet oral care products. STEM
will receive a $500,000 USD licensing fee from Skout’s Honor to be
paid over the course of the agreement as well as an ongoing royalty
on all Skout’s Honor’s sales of products that use the coactiv+™
technology. The Company also announced that Kevin Cole, STEM’s
President and CEO, will be departing the company.
- On March 2, 2023, the Company
announced that it had entered into a formal agreement with Pivot
Financial I Limited Partnership (“Pivot”) to amend the terms of the
credit facility stated in the amended and restated credit agreement
between Pivot and the Company dated August 31, 2021 by increasing
the size of the Credit Facility from $4 million to $5 million,
increasing the interest rate from 14% to 15% and extending the
maturity date from February 28, 2023 to August 31, 2023.
- On Jan 4, 2023, the Company
announced that it had signed a distribution agreement with Salud
Pharma for its coactiv+™ Antimicrobial Wound Gel wound care and
DermaKB™ scalp care products. Once Kane obtains 510(k) approval
from the FDA, Salud Pharma through its distribution partners will
register and commercialize Kane’s coactiv+™ Antimicrobial wound gel
throughout Colombia, Panama, and Costa Rica via wound care centers
and pharmacies and will also import and distribute Kane’s DermaKB™
(www.dermaKB.com) line of scalp detoxifier and shampoos.
Kane Biotech is pleased to invite all interested parties to
participate in a conference call on Thursday, May 25, 2023 at
4:30pm ET during which time the results will be discussed.
Conference Call
Kane Biotech is pleased to invite all interested
parties to participate in a conference call on Thursday, May 25,
2023 at 4:30pm ET to review the financial results and discuss
business developments in the period.
Participants can access the call using this
link: Q1 2023. A webcast of the call will be
available on the Company's website at kanebiotech.com under
"News/Events" in the Investors section of the Kane Biotech website
at ir.kanebiotech.com.
About Kane Biotech
Kane Biotech is a biotechnology company engaged
in the research, development and commercialization of technologies
and products that prevent and remove microbial biofilms. The
Company has a portfolio of biotechnologies, intellectual property
(80 patents and patents pending, trade secrets and trademarks) and
products developed by the Company's own biofilm research expertise
and acquired from leading research institutions. StrixNB™,
DispersinB®, Aledex™, bluestem™, bluestem®, silkstem™, goldstem™,
coactiv+™, coactiv+®, DermaKB™ and DermaKB Biofilm™ are trademarks
of Kane Biotech Inc. The Company is listed on the TSX Venture
Exchange under the symbol "KNE" and on the OTCQB Venture Market
under the symbol “KNBIF”.
For more information:
Marc
Edwards |
Ray
Dupuis |
Nicole
Sendey |
Chief Executive
Officer |
Chief Financial
Officer |
Investor Relations/PR |
Kane Biotech Inc |
Kane Biotech Inc |
Kane Biotech Inc |
medwards@kanebiotech.com |
rdupuis@kanebiotech.com |
nsendey@kanebiotech.com |
+1 (514)
910-6991 |
+1 (204)
298-2200 |
+1 (204) 453-1301 |
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution Regarding Forward-Looking
InformationThis press release contains certain statements regarding
Kane Biotech Inc. that constitute forward-looking information under
applicable securities law. These statements reflect
management’s current beliefs and are based on information currently
available to management. Certain material factors or assumptions
are applied in making forward-looking statements, and actual
results may differ materially from those expressed or implied in
such statements. These risks and uncertainties include, but are not
limited to, risks relating to the Company’s: (a) financial
condition, including lack of significant revenues to date and
reliance on equity and other financing; (b) business, including its
early stage of development, government regulation, market
acceptance for its products, rapid technological change and
dependence on key personnel; (c) intellectual property including
the ability of the Company to protect its intellectual property and
dependence on its strategic partners; and (d) capital structure,
including its lack of dividends on its common shares, volatility of
the market price of its common shares and public company costs.
Further information about these and other risks and uncertainties
can be found in the disclosure documents filed by the Company with
applicable securities regulatory authorities, available
at www.sedar.com. The Company cautions that the foregoing list
of factors that may affect future results is
not exhaustive.
KANE BIOTECH INC. |
|
Selected Financial Results |
|
|
|
|
|
|
Statement of Comprehensive Loss |
Three months ended March 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
Total Revenue |
$ |
677,617 |
|
|
$ |
565,433 |
|
|
|
|
|
|
|
Gross Profit |
|
345,047 |
|
|
|
183,621 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
General and administration |
|
1,052,837 |
|
|
|
1,068,248 |
|
|
|
|
|
|
|
Research |
|
307,956 |
|
|
|
351,849 |
|
|
|
|
|
|
|
Total operating expenses |
|
1,360,793 |
|
|
|
1,420,097 |
|
|
|
|
|
|
|
Loss
from operations |
$ |
(1,015,746 |
) |
|
$ |
(1,236,476 |
) |
|
|
|
|
|
|
Loss
and comprehensive loss for the period |
$ |
(1,244,684 |
) |
|
$ |
(1,152,164 |
) |
|
|
|
|
|
|
Loss and comprehensive loss for the period |
|
attibutable to shareholders |
$ |
(1,201,102 |
) |
|
$ |
(1,108,591 |
) |
|
|
|
|
|
|
Basic and diluted loss per share for the
period |
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
and diluted |
|
124,833,906 |
|
|
|
114,817,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Financial Position |
March
31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
Cash
and cash equivalents |
$ |
990,078 |
|
|
$ |
1,104,091 |
|
|
|
|
|
|
|
Other current assets |
|
1,962,979 |
|
|
|
1,992,654 |
|
|
|
|
|
|
|
Non-current assets |
|
2,512,145 |
|
|
|
2,523,090 |
|
|
|
|
|
|
|
Total Assets |
$ |
5,465,202 |
|
|
$ |
5,619,835 |
|
|
|
|
|
|
|
Current liabilities |
$ |
7,589,265 |
|
|
$ |
6,341,562 |
|
|
|
|
|
|
|
Non-current liabilities |
|
3,293,660 |
|
|
|
3,415,984 |
|
|
|
|
|
|
|
Shareholders' equity |
|
(5,417,723 |
) |
|
|
(4,137,711 |
) |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
5,465,202 |
|
|
$ |
5,619,835 |
|
|
|
|
|
|
|
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