Kane Biotech Announces Second Quarter 2019 Financial Results
August 21 2019 - 4:30PM
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 Second
Quarter 2019 Financial Results.
Key Highlights include the following:
- Announced $3.8M in non-dilutive government funding from Western
Economic Diversification Canada, the total amount the company
applied for, in the form of interest-free repayable contributions
to be paid back over five years starting in April 2023
- Announced three new additions to the Kane team: Lori
Christofalos (Director of Quality and Compliance), Michel Stebenne
(VP of Animal Health), and Shabnam Bashiri (Manager of Quality
Control)
- Announced a share purchase by Marc Edwards, CEO, an exercise of
warrants for a total value of $280,000, the reimbursement of $1.05M
in cash advances back to insiders, and the extension of the expiry
date of its 500,000 loan from Individual Investment
Corporation
- Announced an exclusive distribution agreement with major
Chinese distributor Eetoys Pet Products; Eetoys will distribute
Kane’s Oral Care products (bluestem and StrixNB) to over 2,000
retailers across China
- Secured a large order from leading Quebec pet products retailer
Mondou; Mondou carries Kane’s entire bluestem line and is working
with Kane to expand its toothpaste line to meet growing demand
- Announced a new agreement with FreeMind Group, a renowned
expert in securing non-dilutive funding from a variety of public
and private sources
- Announced $50,000 CAD in funding from the Government of
Canada’s CanExport SMEs program to be used to accelerate growth in
Brazil, China, and the UK
“We had some transformative events this quarter, including the
WED funding, recent additions to our growing team, and a number of
new partnerships with established brands,” stated Marc Edwards,
Chief Executive Officer of Kane Biotech. “I believe we’re
positioned very well for accelerated growth over the next year. We
continue to see growth in the sales and distribution of our Animal
Health products, and we are in the late stages of development for
our first Human Health product, a DispersinB hydrogel for wound
care. We have a robust team in place and the resources necessary to
expand our existing product portfolio and to develop novel products
for new markets.”
“I am very excited about Kane’s success so far throughout 2019,
and I look forward to providing a deep dive into our operating
activities and future priorities during the business update video
conference on September 10,” concluded Mr. Edwards.
Kane Biotech will be hosting its first-ever business update on
September 10, 2019. The update video will
feature multiple members of Kane’s team and will be available on
the company’s website after market close on the tenth.
Second Quarter 2019 Financial Highlights
Total Revenues:
- For the quarter ended June 30, 2019 were $221,290, an increase
of 97% compared to $112,578 for the quarter ended June 30,
2018.
- For the six months ended June 30, 2019 were $842,547, an
increase of 279% compared to $222,240 for the six months ended June
30, 2018.
License and Royalty Revenues:
- For the quarter ended June 30, 2019 were $44,877, an increase
73% of compared to $25,986 for the quarter ended June 30,
2018.
- For the six months ended June 30, 2019 were $95,639, an
increase of 71% compared to $55,851 for the six months ended June
30, 2018.
Product and Services Revenues:
- For the quarter ended June 30, 2019 were $176,413, an increase
of 104% compared to $86,592 for the quarter ended June 30,
2018.
- For the six months ended June 30, 2019 were $746,908, an
increase of 349% compared to $166,389 for the six months ended June
30, 2018.
Gross Profit on Product and Services Revenues:
- For the quarter ended June 30, 2019 were $37,631 compared to
$(6,897) for the quarter ended June 30, 2018.
- For the six months ended June 30, 2019 were $197,718 compared
to $(42,126) for the six months ended June 30, 2018.
Total Operating Expenses:
- For the quarter ended June 30, 2019 were $1,035,983, an
increase of 47% compared to $702,381 for the quarter ended June 30,
2018. Increased expenses were mainly due to one-time legal fees and
growing investment in our Human Health initiatives.
- For the six months ended June 30, 2019 were $1,866,105, an
increase of 19% compared to $1,569,311 for the six months ended
June 30, 2018.
Income (loss):
- For the quarter ended June 30, 2019 income was $1,675,462,
compared to a loss of ($684,946) for the quarter ended June 30,
2018.
- For the six months ended June 30, 2019 income was $1,018,071
compared to a loss of $(1,557,974) for the six months ended June
30, 2018.
Selected Income Statement Information
Kane Biotech Inc. (TSX:V:KNE) |
Q2, 2019 |
Q2, 2018 |
% Change |
June YTD, 2019 |
June YTD, 2018 |
% Change |
Total Revenue |
$221,290 |
$112,578 |
97% |
$842,547 |
$222,240 |
279% |
License and Royalty Revenue* |
$44,877 |
$25,986 |
73% |
$95,639 |
$55,851 |
71% |
Product and Services Revenue** |
$176,413 |
$86,592 |
104% |
$746,908 |
$166,389 |
349% |
Gross Profit $ (Product and Services) |
$37,631 |
($6,897) |
- |
$197,718 |
($42,126) |
- |
Total Operating Expenses |
$1,035,983 |
$702,381 |
47% |
$1,866,105 |
$1,569,311 |
19% |
General and Administration |
$675,778 |
$579,025 |
17% |
$1,271,462 |
$1,212,360 |
5% |
Research |
$360,205 |
$123,356 |
192% |
$594,643 |
$356,951 |
67% |
Income (loss) for the Period |
$1,675,462 |
($684,946) |
- |
$1,018,071 |
($1,557,974) |
- |
Income (loss) per Share |
$0.021 |
($0.009) |
- |
$0.013 |
($0.019) |
- |
1 In accordance with the adoption of IFRS 15 Revenue from Contracts
with Customers which went in to effect January 1, 2018,
the upfront payment of $500,000 USD received from Dechra upon
signing the License Agreement in March 2017 has been restated as
deferred license revenue on the Statement of Financial Position
retroactive to March 2017 and is now being recognized over the
10-year life of the
agreement. |
2 Certain expenses previously recorded as general and
administrative expenses in 2018 have been reclassified as cost of
sales. |
|
Selected Cash Flow Information
Kane Biotech Inc. (TSX:V:KNE) |
Q2, 2019 |
Q2, 2018 |
% Change |
June YTD, 2019 |
June YTD, 2018 |
% Change |
Cash, end of period |
$1,329,270 |
$342,156 |
288% |
$1,329,270 |
$342,156 |
288% |
Cash, beginning of period |
$122,788 |
$1,244,828 |
-90% |
$75,425 |
$1,975,723 |
-96% |
Operating activities |
$1,423,168 |
($870,710) |
- |
$1,031,888 |
($1,583,327) |
- |
Financing activities |
($200,000) |
- |
- |
$250,000 |
- |
- |
Investing activities |
($16,686) |
($31,962) |
-48% |
($28,043) |
($50,240) |
-44% |
|
Detailed financial information about Kane Biotech can be found
in its June 30, 2019 Financial Statements and Management Discussion
and Analysis on SEDAR and on the Corporation’s website. All amounts
referenced herein are in Canadian dollars.
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 (56 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 EdwardsChief Executive OfficerKane Biotech
Inc.
+1
(514) 910-6991medwards@kanebiotech.com
Ray DupuisChief Financial OfficerKane Biotech Inc.+1 (204)
298-2200rdupuis@kanebiotech.com
Joe Green US. Investor Relations Edison Inc.+1 (646)
653-7030jgreen@edisongroup.com
Laine YonkerUS. Investor RelationsEdison Inc. +1 (646) 653
7035lyonker@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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