Kane Biotech Announces Fourth Quarter and Full Year 2018 Financial Results
March 25 2019 - 4:15PM
Kane Biotech Inc. (TSX-V:KNE), (the “Corporation” or “Kane
Biotech”), a biotechnology company engaged in the research,
development and commercialization of technologies and products that
prevent and remove microbial biofilms, today announces its Fourth
Quarter and Full Year 2018 Financial Results.
Key Highlights of Kane Biotech include the
following:
- Announced the appointment of Marc Edwards as President and CEO
as of September 10, 2018.
- Announced new manufacturing partner for its bluestem™ product
line, which reduced manufacturing-related fixed costs by more than
$200,000 (CAD) per year.
- Announced the formation of a Scientific Advisory Board, chaired
by Board of Director Rivka Gluck, comprising of world-leading
experts in human health and industrial biotech and includes Gordon
Guay, PH.D. and Robert Huizinga, PH.D.
- Appointed Gordan Guay, Ph.D. to Chief Scientific Officer of the
Company.
- Experienced significant year-over-year growth in online North
American sales of its bluestem™ brand of oral care products on
Amazon
- Announced launch dates for four new bluestem™ products; powder
water additive, dental wipe, small and medium sized dental chews
and medium and large sized rawhide chews in early 2019.
- Announced its new human health strategy focusing efforts on the
development of a wound care hydrogel containing Kane’s patented
enzyme DispersinB® and that it had renewed its exclusive worldwide
license agreement with Rutgers University.
- Secured largest single purchase order in the history of the
company for $440,000 (CAD) of bluestem™ products to one of the
largest pet retail operations in North America.
- Signed a non-exclusive Distribution Agreement with a major
Chinese distributor and secured its first order valued at $25,000
(USD).
“We are excited to end 2018 with the largest single purchase
order in the history of the company which was fulfilled in January
2019 and begin 2019 by formalizing our first agreement with a
Chinese distributor,” stated Marc Edwards, Chief Executive Officer
of Kane Biotech. “In addition, our online sales of bluestem™ have
grown at record pace, primarily driven by our strong distribution
partnership with Amazon. We look forward to building on this
momentum in the coming year and capitalizing on further sales
growth with our differentiated product line.”
2018 Financial Highlights:
Total Revenues:
- For the quarter ended December 31, 2018 were $157,158 an
increase of 56% compared to $100,437 for the quarter ended
December 31, 2017.
- For the full year ended December 31, 2018 were $506,273 an
increase of 20% compared to $420,471 for the full year ended
December 31, 2017.
License and Royalty Revenues:
- For the quarter ended December 31, 2018 were $29,124, an
increase of 10% compared to $26,439 for the quarter ended
December 31, 2017.
- For the full year ended December 31, 2018 were $111,333, an
increase of 52% compared to $73,400 for the full year ended
December 31, 2017.
Product and Services Revenues:
- For the quarter ended December 31, 2018
were $128,034, an increase of 73% compared to $73,998 for
the quarter ended December 31, 2017.
- For the full year ended December 31, 2018
were $394,940 an increase of 14% compared to $347,071 for
the full year ended December 31, 2017.
Gross Profit:
- For the quarter ended December 31, 2018 was $70,768, an
increase of $99,491 compared to $(28,723) for the quarter
ended December 31, 2017.
- For the full year ended December 31, 2018 was $115,471, an
increase of $178,850 compared to $(63,379) for the full year
ended December 31, 2017.
Total Operating Expenses:
- For the quarter ended December 31, 2018 were $783,550, a
decrease of 7% compared to $842,949 for the quarter ended December
31, 2017.
- For the full year ended December 31, 2018 were $3,294,303, an
increase of 1% compared to $3,246,511 for the full year ended
December 31, 2017.
Loss:
- For the quarter ended December 31, 2018 was ($622,497), a
decrease of 29% compared to ($871,918) for the quarter ended
December 31, 2017.
- For the full year ended December 31, 2018 was ($3,260,999), a
decrease of 4% compared to ($3,401,006) for the full year ended
December 31, 2017.
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Select Income
Statement Information: |
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Kane Biotech Inc. (TSX:V:KNE) |
Q4 2018 |
Q4 2017 |
% Change |
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2018 |
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2017 |
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% Change |
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Total Revenue |
$157,158 |
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$100,437 |
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56% |
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$506,273 |
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$420,471 |
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20% |
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License and Royalty Revenue 1 |
$29,124 |
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$26,439 |
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10% |
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$111,333 |
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$73,400 |
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52% |
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Product and Services Revenue 2 |
$128,034 |
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$73,998 |
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73% |
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$394,940 |
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$347,071 |
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14% |
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Gross Profit $ 3 |
$70,768 |
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($28,723) |
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- |
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$115,471 |
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($63,279) |
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- |
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Total Operating Expenses |
$783,550 |
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$842,949 |
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-7% |
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$3,294,303 |
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$3,246,511 |
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1% |
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General and Administration 3 |
$403,945 |
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$544,466 |
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-26% |
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$2,371,777 |
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$2,395,933 |
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-1% |
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Research |
$379,605 |
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$298,483 |
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27% |
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$922,526 |
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$850,578 |
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8% |
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Loss for the Period |
($622,497) |
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($871,918) |
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-29% |
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($3,260,999) |
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($3,401,006) |
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-4% |
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Loss per Share (Post Consolidation) |
($0.008) |
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($0.011) |
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-29% |
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($0.041) |
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($0.055) |
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-27% |
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1 In accordance with the adoption of IFRS 15 Revenue
from Contracts with Customers which went in to effect January 1,
2018, the |
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upfront payment of $500,000 USD received from Dechra
upon signing the License Agreement in March 2017 has been restated
as |
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deferred license revenue on the Statement of Financial
Position retroactive to March 2017 and is now being recognized over
the |
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10-year life of the agreement. |
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2 Product and Services Revenue in Q1 - Q3, 2018
included only a small amount of international StrixNB sales as this
technology was |
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licensed to Dechra for the North American veterinary
channel in Q1 2017. |
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3 Certain expenses previously recorded as general and
administrative expenses in 2017 and 2018 have been reclassified as
cost of sales. |
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Selected Cash
Flow Information |
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Kane Biotech Inc. (TSX:V:KNE) |
Q4 2018 |
Q4 2017 |
% Change |
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2018 |
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2017 |
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% Change |
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Cash, end of period |
$75,425 |
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$1,975,723 |
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-96% |
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$75,425 |
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$1,975,723 |
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-96% |
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Cash, beginning of period |
$121,529 |
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$2,527,306 |
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-95% |
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$1,975,723 |
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$739,568 |
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167% |
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Operating activities |
($603,845) |
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($420,790) |
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44% |
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($2,853,997) |
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($2,015,756) |
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42% |
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Financing activities |
$600,000 |
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($64,485) |
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- |
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$1,100,000 |
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$3,481,547 |
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-68% |
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Investing activities |
($42,259) |
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($66,308) |
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-36% |
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($146,301) |
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($229,636) |
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-36% |
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Detailed financial information about Kane Biotech can be found
in its December 31, 2018 Financial Statements and Management
Discussion and Analysis on SEDAR and on the Corporation’s
website. All amounts referenced herein are in Canadian
dollars.
The Corporation’s Fourth Quarter 2018 Earnings Conference Call
and Business Update is scheduled on Tuesday, March 26, 2019 at
4:00pm E.T. to discuss its financial results for the fourth quarter
2018, in conjunction with the filing of its Financial Statements
for the fourth quarter ended December 30, 2018.
Marc Edwards, Chief Executive Officer and Ray Dupuis, Chief
Financial Officer of Kane Biotech, will host the call and provide
an update on the Company’s business strategy including product
developments, licensing and business development and other
initiatives in progress. There will be an opportunity for
participants dialed-in via conference call to ask questions to
management in a Q&A session taking place following his prepared
remarks. To participate in the call, please dial 1-877-268-9044
(toll-free) in the U.S. and Canada. The conference ID number for
both the call and webcast is 6958649.
Event: |
Kane Biotech Investor
Update |
Date: |
Tuesday, March 26,
2019 |
Time: |
4:00pm (Eastern
Time) |
Participant
Dial-in: |
1-877-268-9044 (toll
free) |
Conference
ID: |
6958649 |
Webcast
Link: |
https://edge.media-server.com/m6/p/yfay2q7s |
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 at 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 Corporation has a portfolio of
biotechnologies, intellectual property (66 patents and patents
pending, trade secrets and trademarks) and products developed by
the Corporation’s own biofilm research expertise and acquired from
leading research institutions. StrixNB(TM), DispersinB(R),
Aledex(R), bluestem(TM), AloSera(TM), coactiv+(TM) and
Kane(R) are trademarks of Kane Biotech Inc. The Corporation is
listed on the TSX Venture Exchange under the symbol "KNE".
For more
information, please visit www.kanebiotech.com or
contact: |
Marc Edwards |
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Chief Executive
Officer |
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Kane Biotech Inc. |
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+1 (514) 910-6991 |
medwards@kanebiotech.com |
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Grant Humphrey |
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Vice President, Sales
and Business Development |
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Kane Biotech Inc. |
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+1 (204) 914-5089 |
ghumphrey@kanebiotech.com |
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Joe Green |
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US. Investor
Relations |
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Edison Inc. |
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+1 (646) 653-7030 |
jgreen@edisongroup.com |
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 Information
This 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.
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