Kane Biotech Announces Fourth Quarter and Full Year 2023 Financial Results
March 26 2024 - 3:05PM
Kane Biotech Inc. (TSX- V:KNE; OTCQB:KNBIF) (the “Company” or “Kane
Biotech”) today announces its fourth quarter and full year 2023
financial results.
On December 20, 2023, Kane Biotech announced that it received a
non-binding offer for its interest in STEM Animal Health. The terms
of the offer remain confidential but specify that Kane will sell
its ownership of STEM. In addition, pursuant to the terms of the
offer, Kane received a US $625,000 deposit. The parties have agreed
to collaborate using their best efforts to enter into a binding
share purchase agreement with respect to the sale of STEM within 90
days.
On March 20, 2024, Kane announced that it has extended the
exclusivity period from March 19, 2024 until March 31, 2024 and
that it has received additional deposits totaling US $900,000. All
deposits will be applied towards the sale price of Kane’s interest
in STEM.
Fourth Quarter Financial Highlights:
- License and royalty income for the three months ended December
31, 2023 was $250,740, an increase of 66% compared to $151,173 in
the three months ended December 31, 2022. The increase is due
mainly to incremental license and royalty income associated with
Skout’s Honor’s launch of its oral care product line as well as
increased royalty revenue from Animalcare in the current
period.
- Product revenue for the three months ended December 31, 2023
was $490,829, an increase of 9% compared to $450,313 in the three
months ended December 31, 2022. The increase is due mainly to
higher online sales of bluestemTM products in the current
period.
- Total revenue for the three months ended December 31, 2023 was
$764,997, an increase of 11% compared to $691,655 in the three
months ended December 31, 2022.
- Gross profit for the fourth quarter of 2023 was $398,234, an
increase of 24% compared to $320,653 for the fourth quarter ended
December 31, 2022.
- Total operating expenses for the three months ended December
31, 2023 were $1,734,547, an increase of 96% compared to $884,298
for the three months ended December 31, 2022. The increase is
primarily due to short-term compensation expense adjustments in the
comparative period as well as higher non-cash long-term incentive
expense and higher contract research expenditures related to the
Company’s coactiv+TM Antimicrobial Wound Gel product development in
the current period.
- Loss for the fourth quarter of 2023 was ($1,611,894), an
increase of 92% compared to ($838,150) for the quarter ended
December 31, 2022.
2023 Full Year Financial Highlights:
- License and royalty income for the twelve months ended December
31, 2023 was $730,864, a decrease of 22% compared to $932,532 in
the twelve months ended December 31, 2022. Excluding the one-time
revenue recognition in the prior period associated with contractual
Veterinary Oral Health Council milestone payments received from
licensing partners, license and royalty income increased by 46% in
the current period over the comparative period. The increase is due
mainly to incremental license and royalty income associated with
Skout’s Honor’s launch of its oral care product line as well as
increased royalty revenue from Dechra and Animalcare in the current
period.
- Product revenue for the twelve months ended December 31, 2023
was $1,872,418, an increase of 25% compared to $1,496,548 in the
twelve months ended December 31, 2022. The increase is due mainly
to higher online and pet retail sales of bluestemTM products in the
current period.
- Total revenue for the twelve months ended December 31, 2023 was
$2,817,776 an increase of 6% compared to $2,668,352 in the twelve
months ended December 31, 2022.
- Gross profit for the twelve months ended December 31 2023 was
$1,389,051, a decrease of 2% compared to $1,413,229 for the twelve
months ended December 31, 2022.
- Total operating expenses for the twelve months ended December
31, 2023 were $5,474,723, an increase of 15% compared to $4,777,038
for the twelve months ended December 31, 2022. The increase is
primarily due to higher long-term compensation expense and employee
separation costs incurred in the current period as well as higher
government assistance received in the comparative period partially
offset by lower contract research expenditures incurred in the
current period.
- Loss for the year ended December 31, 2023 was ($5,270,053), an
increase of 38% compared to ($3,824,000) for the year ended
December 31, 2022. Contributing to the higher loss were
higher finance expenses in the current period and higher non-cash
fair value adjustments on government loan advances in the
comparative period.
Detailed financial information about Kane Biotech can be found
in its December 31, 2023 Financial Statements and Management
Discussion and Analysis on SEDAR and the Company’s website.
“In 2023 and early 2024 we signed multiple licensing and
distribution agreements, received US FDA clearance of our revyve™
Antimicrobial Wound Gel, strengthened our Board and signed a
non-binding offer for the sale of Kane’s interest in STEM Animal
Health,” said Marc Edwards, President & CEO. “I am extremely
proud of everything we have accomplished and look forward to more
exciting developments throughout the remainder of 2024.”
2023 and 2024 YTD Corporate Highlights:
- On April 20, 2023, Kane Biotech
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 May 25, 2023, the Company
announced that on May 24, 2023 it received 510(k) clearance of its
coactiv+™ Antimicrobial Wound Gel from the U.S. Food and Drug
Administration (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 December 20, 2023, the Company
announced that it received a non-binding offer for its interest in
STEM Animal Health.
- On March 8, 2024, Kane Biotech
announced that at the Bioscience Association of Manitoba (“BAM”)
annual awards dinner held on March 7, 2024, the Company received
the BAM Company of the Year award. The Bioscience Company of the
Year award acknowledges a private sector company based in Manitoba
that has distinguished itself in the past year through demonstrated
leadership, significant achievement and paving the road toward
future wealth and job creation in the region.
- On February 22, 2024, Kane Biotech
announced that at the special meeting of the shareholders of the
Company held on February 20, 2024, Dr. Robert Huizinga was elected
as a director of the Company. The Company also announced that Dr.
Huizinga had been appointed by the directors of the Company as
Executive Chair of the Company.
- On January 31, 2024, the Company
announced that if it had filed a patent on its revyve™
Antimicrobial Would Gel Spray, a follow-on product to its FDA
510(k) cleared revyve™ Antimicrobial Would Gel and would be
introducing it at the Boswick Burn and Wound Care Symposium on the
same date
- On November 16, 2023, Kane Biotech
announced that Dr. John Coleman had been appointed to the Board of
Directors of Kane Biotech.
- On November 02, 2023, the Company
announced the launch of the newly rebranded revyve™ Antimicrobial
Wound Gel (formerly coactiv+™ Antimicrobial Wound Gel). The product
rebranding was being unveiled as part of Kane’s participation in
the Symposium on Advanced Wound Care (SAWC) Fall forum.
- On September 12, 2023, the Company
announced that it had fully subscribed and closed its previously
announced non-brokered private placement offering of $500,000 and
that it had entered into a further amending agreement to its credit
facility with Pivot Financial I Limited Partnership (“Pivot”)
increasing the size of the credit facility from $5 million to $6
million.
- 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.
- On March 2, 2023, Kane Biotech
announced that it had entered into a formal amending agreement with
Pivot, increasing the size of the non-revolving term loan under the
Credit Facility from $4 million to $5 million.
- On January 4, 2023, Kane Biotech
announced that it had signed a distribution agreement with Salud
Pharma S.A. for its coactiv+™ Antimicrobial Wound Gel wound care
and DermaKB™ scalp care products.
Detailed financial information about Kane Biotech can be found
in its December 31, 2023 Financial Statements and Management
Discussion and Analysis on SEDAR and the Company’s website.
Conference Call
Kane Biotech management will host a conference call on Tuesday,
March 26, 2024 at 4:30 p.m. ET to review the financial results and
discuss business developments in the period.
Participants must register for the call using this link:
Pre-registration to Q4 to receive the dial-in numbers and unique
PIN to access the call seamlessly. It is recommended that you join
10 minutes before the event, though you may pre-register at any
time. A webcast of the call will be available on the Company's
website at www.kanebiotech.com in the Investor 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 (67 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™, DermaKB Biofilm™, and revyve™ 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 |
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Chief Executive Officer |
Chief Financial Officer |
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Kane Biotech Inc |
Kane Biotech Inc |
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medwards@kanebiotech.com |
rdupuis@kanebiotech.com |
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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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Consolidated Statements of Comprehensive Loss |
Three months endedDecember 31, |
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Twelve months endedDecember 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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Total revenue, continuing operations |
$ |
39,770 |
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$ |
23,372 |
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$ |
148,980 |
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$ |
156,733 |
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Gross profit, continuing operations |
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34,300 |
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35,164 |
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109,470 |
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112,029 |
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Operating expenses, current operations |
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General and administration |
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872,899 |
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484,739 |
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2,412,956 |
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2,533,613 |
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Research |
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419,736 |
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189,926 |
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1,053,900 |
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1,036,021 |
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Total operating expenses, continuing
operations |
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1,292,635 |
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674,665 |
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3,466,856 |
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3,569,634 |
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Loss prior to other expenses, continuing
operations |
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(1,258,335 |
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(639,501 |
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(3,357,386 |
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(3,457,605 |
) |
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Net other expenses, continuing operations |
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264,090 |
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293,848 |
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1,204,959 |
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564,033 |
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Loss and comprehensive loss for the period, |
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continuing operations |
$ |
(1,522,425 |
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$ |
(933,349 |
) |
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$ |
(4,562,345 |
) |
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$ |
(4,021,638 |
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Income (loss) and comprehensive income (loss) |
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from discontinued operations |
$ |
(89,469 |
) |
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$ |
95,199 |
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$ |
(707,708 |
) |
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$ |
197,638 |
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Net loss and comprehensive loss |
$ |
(1,611,894 |
) |
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$ |
(838,150 |
) |
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$ |
(5,270,053 |
) |
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$ |
(3,824,000 |
) |
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Net loss and comprehensive loss attributable
to |
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shareholders |
$ |
(1,641,701 |
) |
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$ |
(806,431 |
) |
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$ |
(5,034,103 |
) |
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$ |
(3,889,892 |
) |
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Basic and diluted loss per share for the
period |
$ |
(0.01 |
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$ |
(0.01 |
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$ |
(0.04 |
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$ |
(0.03 |
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Weighted average shares outstanding - basic |
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and diluted |
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131,844,567 |
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124,830,202 |
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127,119,957 |
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120,702,074 |
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Consolidated Statements of Financial Position |
December 31, |
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December 31 |
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2023 |
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2022 |
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Cash and cash equivalents |
$ |
749,248 |
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$ |
1,104,901 |
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Other current assets |
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502,164 |
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1,991,844 |
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Assets held-for-sale - current |
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2,471,694 |
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- |
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Non-current assets |
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1,799,008 |
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2,523,090 |
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Assets held-for-sale - non-current |
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158,805 |
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- |
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Total assets |
$ |
5,680,919 |
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$ |
5,619,835 |
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Current liabilities |
$ |
10,273,267 |
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$ |
6,341,562 |
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Liabilities held-for-sale - current |
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621,133 |
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- |
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Non-current liabilities |
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2,366,593 |
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3,415,984 |
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Liabilities held-for-sale - non-current |
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829,318 |
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- |
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Shareholders' deficit |
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(8,409,392 |
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(4,137,711 |
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Total liabilities and shareholders' equity |
$ |
5,680,919 |
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$ |
5,619,835 |
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