Kane Biotech Announces Third Quarter 2019 Financial Results
November 14 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 Third
Quarter 2019 Financial Results.
Key Highlights include the following:
- Released inaugural business update video featuring
presentations from several key members of the Kane team. To view
the full video, please click here.
- 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 an expansion of Kane’s Exclusive License and
Distribution Agreement with Dechra Veterinary Products to include
South America. The agreement now covers both North and South
America, and Kane anticipates further expansion to new territories
in the coming quarters.
- Awarded a non-repayable contribution of up to CAD $340,680 from
the National Research Council of Canada Industrial Research
Assistance program (NRC IRAP). The contribution covers the period
from October 7, 2019 to May 31, 2021.
- Retained GR Consulting to develop and implement the
out-licensing strategy for Kane’s DispersinB® wound care Hydrogel
for both the United States and European markets.
- Successfully shipped first order to Mondou, a leader in the
distribution of products, services, and accessories for the health
and well-being of pets in Quebec.
“We’ve had a very exciting 2019 so far and our third
quarter quarter really set the stage for some significant
growth,” stated Marc Edwards, CEO of Kane Biotech. “We’ve
successfully launched our animal health products across several new
markets and now have a presence in North America, South America,
and Asia. We’ve also made significant progress in regard to our
human health portfolio and are targeting to have our first product
to market in 2020. As we began the year, we made a number of
bold commitments to our shareholders and I’m pleased to say that
I’m more confident than ever that we will achieve all these
commitments and surpass most. The fourth quarter of 2019 and
all four quarters of 2020 will see a number of major inflection
points for the company.”
Third Quarter 2019 Financial
Highlights
Total Revenues:
- For the quarter ended September 30, 2019 were $286,838, an
increase of 127% compared to $126,559 for the quarter ended
September 30, 2018.
- For the nine months ended September 30, 2019 were $1,129,385,
an increase of 240% compared to $332,031 for the nine months ended
September 30, 2018.
License and Royalty Revenues:
- For the quarter ended September 30, 2019 were $51,477, an
increase 95% of compared to $26,358 for the quarter ended September
30, 2018.
- For the nine months ended September 30, 2019 were $147,116, an
increase of 125% compared to $65,441 for the nine months ended
September 30, 2018.
Product and Services Revenues:
- For the quarter ended September 30, 2019 were $235,361, an
increase of 135% compared to $100,201 for the quarter ended
September 30, 2018.
- For the nine months ended September 30, 2019 were $982,269, an
increase of 268% compared to $266,590 for the nine months ended
September 30, 2018.
Gross Profit on Product and Services Revenues:
- For the quarter ended September 30, 2019 were $64,845 compared
to $4,662 for the quarter ended September 30, 2018.
- For the nine months ended September 30, 2019 were $262,562
compared to $(37,504) for the nine months ended September 30,
2018.
Total Operating Expenses:
- For the quarter ended September 30, 2019 were $912,058, a
decrease of 3% compared to $941,442 for the quarter ended September
30, 2018.
- For the nine months ended September 30, 2019 were $2,778,163,
an increase of 11% compared to $2,510,753 for the nine months ended
September 30, 2018.
Income (loss):
- For the quarter ended September 30, 2019 the loss was
($821,554), compared to a loss of ($979,920) for the quarter ended
September 30, 2018.
- For the nine months ended September 30, 2019 income was
$196,516 compared to a loss of $(2,554,661) for the nine months
ended September 30, 2018.
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Selected Income Statement Information |
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Kane Biotech Inc. (TSX:V:KNE) |
Q3, 2019 |
Q3, 2018 |
% Change |
Sep YTD, 2019 |
Sep YTD, 2018 |
% Change |
|
Total Revenue |
$286,838 |
|
$126,559 |
|
127 |
% |
$1,129,385 |
|
$332,031 |
|
240 |
% |
|
License and Royalty Revenue* |
$51,477 |
|
$26,358 |
|
95 |
% |
$147,116 |
|
$65,441 |
|
125 |
% |
|
Product and Services Revenue** |
$235,361 |
|
$100,201 |
|
135 |
% |
$982,269 |
|
$266,590 |
|
268 |
% |
|
Gross Profit $ (Product and Services) |
$64,845 |
|
$4,622 |
|
- |
|
$262,562 |
|
($37,504 |
) |
- |
|
|
Total Operating Expenses |
$912,058 |
|
$941,442 |
|
-3 |
% |
$2,778,163 |
|
$2,510,753 |
|
11 |
% |
|
General and Administration |
$672,239 |
|
$755,473 |
|
-11 |
% |
$1,943,701 |
|
$1,967,833 |
|
-1 |
% |
|
Research |
$239,819 |
|
$185,969 |
|
29 |
% |
$834,462 |
|
$542,921 |
|
54 |
% |
|
Income (loss) for the Period |
($821,554 |
) |
($979,920 |
) |
-16 |
% |
$196,516 |
|
($2,554,661 |
) |
- |
|
|
Income (loss) per Share |
($0.010 |
) |
($0.012 |
) |
-19 |
% |
$0.002 |
|
($0.032 |
) |
- |
|
|
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. |
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Selected Cash Flow Information |
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Kane Biotech Inc. (TSX:V:KNE) |
Q3, 2019 |
Q3, 2018 |
% Change |
Sep YTD, 2019 |
Sep YTD, 2018 |
% Change |
|
Cash, end of period |
$341,330 |
|
$121,529 |
|
181 |
% |
$341,330 |
|
$121,529 |
|
181 |
% |
|
Cash, beginning of period |
$1,329,270 |
|
$342,156 |
|
288 |
% |
$75,425 |
|
$1,975,723 |
|
-96 |
% |
|
Operating activities |
($935,598 |
) |
($666,825 |
) |
40 |
% |
$96,290 |
|
($2,250,152 |
) |
- |
|
|
Financing activities |
($24,759 |
) |
$500,000 |
|
- |
|
$225,241 |
|
$500,000 |
|
- |
|
|
Investing activites |
($27,583 |
) |
($53,802 |
) |
-49 |
% |
($55,626 |
) |
($104,042 |
) |
-47 |
% |
Detailed financial information about Kane Biotech can be found
in its September 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 Edwards |
|
Chief Executive Officer |
|
Kane Biotech Inc. |
|
+1 (514) 910-6991 |
medwards@kanebiotech.com |
|
|
Ray Dupuis |
|
Chief Financial Officer |
|
Kane Biotech Inc. |
|
+1 (204) 298-2200 |
rdupuis@kanebiotech.com |
|
|
Joe Green |
|
US. Investor Relations |
|
Edison Inc. |
|
+1 (646) 653-7030 |
jgreen@edisongroup.com |
|
|
Laine Yonker |
|
US. Investor Relations |
|
Edison Inc. |
|
+1 (646) 653 7035 |
lyonker@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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