Kane Biotech Announces First Quarter 2022 Financial Results
May 26 2022 - 3:05PM
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 2022 financial results.
First Quarter Financial Highlights:
- Total revenue in the three months ended March 31, 2022, was
$565,433, an increase of 50% compared to $376,039 in the three
months ended March 31, 2021.
- In the three months ended March 31, 2022, royalty revenue
increased by 27% to $47,477 compared to $37,495 in the three months
ended March 31, 2021.
- Revenue from product and services sales for the three months
ended March 31, 2022 was $482,084, an increase of 56% from $309,276
in the three months ended March 31, 2021. The increase is due
mainly to higher pet retail and online sales from the Company’s
STEM Animal Health (“STEM”) subsidiary, as well as higher
DermaKB™ sales.
- Gross profit for the first quarter of 2022 was $183,621, an
increase of 11% compared to $165,876 for the quarter ended March
31, 2021.
- Total operating expenses for the three months ended March 31,
2022, were $1,420,097, an increase of 23% compared to $1,149,611
for the three months ended March 31, 2021. The increase is
primarily due to higher research expenditures related to the
Company’s DispersinB® Hydrogel and coactiv+™ Antimicrobial Hydrogel
programs.
- Loss for the first quarter of 2021 was ($1,152,164) an increase
of 14% compared to ($1,010,892) for the quarter ended March 31,
2021.
Detailed financial information about Kane Biotech can be found
in its March 31, 2022. Financial Statements and Management
Discussion and Analysis on SEDAR and the Company’s website.
“In our first quarter, we made great progress across our
commercialization pillars. We have experienced strong
year-over-year sales growth in animal health, and anticipate this
to continue, particularly with STEM Animal Health receiving the
seal of acceptance by the VOHC (Veterinary Oral Health Council),”
stated Marc Edwards, Kane Biotech’s Chief Executive Officer.
“We saw very compelling results in our DispersinB® Hydrogel
pre-clinical trials, in advance of the clinical trial set to
commence this summer. Kane is collaborating with the FDA on our
coactiv+™ 510(k) application for which a positive pre-submission
meeting was recently held and a clear path forward was established.
We continue to see robust growth in the sales of our DermaKB™ line
of scalp care products, due largely to increased product sales on
Amazon. Finally, our recent appointment of Dr. Gregory Schultz, as
Chief Scientific Officer, further established Kane as THE Biofilm
company.”
Recent Corporate Developments:
- On May 18, 2022, the Company announced that it has obtained ISO
13485:2016 certification for its quality management system specific
to its ongoing efforts to design and develop novel medical devices
for the wound care market.
- On May 17, 2022, the Company announced the closing of its
non-brokered private placement offering of up to 10,000,000 common
shares at a price of $0.10 per share for gross proceeds of up to
$1,000,000. The offering was fully subscribed with Marc Edwards,
CEO of Kane Biotech acquiring 3.1M shares, more than doubling his
previous position.
- On April 7, 2022, the Company announced that STEM was awarded
the prestigious Veterinary Oral Health Council (“VOHC”) Seal of
Acceptance in the Helps Control Tarter category for its pet oral
care water additive. VOHC acceptance triggers approximately $1.3
million in milestone payments from STEM’s licensing partners. This
certification also results in minimum royalty payments to STEM in
future periods.
- On April 5, 2022, the Company announced that Dr. Gregory
Schultz, a world-renowned expert on biofilms, was appointed Chief
Scientific Officer. Gordon Guay, PhD, Kane’s outgoing Chief
Scientific Officer, has been appointed Chairman of Kane’s
Scientific Advisory Board and Scientific Advisor to the CEO.
- On March 24, 2022, the Company announced it had successfully
completed safety and biocompatibility studies for its DispersinB®
Hydrogel product in preparation for human clinical trials later
this year. All product required for clinical trials has been
manufactured, tested, and packaged by Dow Development Laboratories,
LLC.
- On February 10, 2022, the Company announced that it had signed
collaboration agreements with Dr. James Doub, MD, Assistant
Professor of Medicine, University of Maryland School of Medicine’s
Institute of Human Virology, and the University of Texas Medical
Branch (UTMB) to study the use of DispersinB® with Prosthetic Joint
Infection (PJI) patients.
Kane Biotech is pleased to invite all interested parties to
participate in a conference call on Thursday, May 26, 2022 at
4:30pm ET during which time the results will be discussed.
Conference Call details:Date: Thursday May 26,
2022
Time: 4:30 p.m. ET
Live Call: 1-877-268-9044 (Canada and the United States)
1-706-679-2995 (International)
Replay: 1-404-537-3406
Conference ID: 8674975
Webcast URL: https://edge.media-server.com/mmc/p/sp8wmtiw
The call will also be broadcast live and archived on the
Company's website at www.kanebiotech.com under "News/Events" in the
Investors section. A live and archived audio webcast of the
conference call will also be available on the investor relations
page of Kane Biotech’s corporate
website. www.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 (81 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:
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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 (250) 327-8675 |
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. |
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Selected Financial Results |
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Statement of Comprehensive Loss |
Three months ended March 31, |
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2022 |
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2021 |
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Total Revenue |
$ |
565,433 |
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$ |
376,039 |
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Gross Profit |
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183,621 |
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165,876 |
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Operating expenses |
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General and administration |
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1,068,248 |
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829,266 |
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Research |
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351,849 |
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320,345 |
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Total operating
expenses |
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1,420,097 |
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1,149,611 |
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Loss from operations |
$ |
(1,236,476 |
) |
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$ |
(983,735 |
) |
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Loss and comprehensive loss for the period |
$ |
(1,152,164 |
) |
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$ |
(1,010,892 |
) |
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Loss and comprehensive loss for the period |
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attributable
to shareholders |
$ |
(1,108,591 |
) |
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$ |
(908,467 |
) |
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Basic and diluted loss per share for the
period |
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$ |
(0.01 |
) |
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$ |
(0.01 |
) |
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Weighted average shares outstanding - basic |
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and
diluted |
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114,817,239 |
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108,624,524 |
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Statement of Financial Position |
March
31, |
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December 31, |
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2022 |
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2021 |
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Cash and cash equivalents |
$ |
915,936 |
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$ |
1,153,090 |
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Other current assets |
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1,542,630 |
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1,727,320 |
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Non-current assets |
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3,220,365 |
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3,253,883 |
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Total Assets |
$ |
5,678,931 |
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$ |
6,134,293 |
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Current liabilities |
$ |
5,019,339 |
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$ |
4,721,009 |
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Non-current liabilities |
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3,262,077 |
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2,980,298 |
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Shareholders' equity |
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(2,602,485 |
) |
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(1,567,014 |
) |
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Total liabilities and shareholders' equity |
$ |
5,678,931 |
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$ |
6,134,293 |
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