Kane Biotech Announces Fourth Quarter and Full Year 2021
WINNIPEG, Manitoba, March 24, 2022 (GLOBE NEWSWIRE) — Kane Biotech Inc. (TSX-V: KNE; OTCQB: KNBIF) (the “Company” or “Kane Biotech”), today announced its fourth quarter and full year 2021 financial results.
Fourth Quarter Financial Highlights
- Total revenue for the quarter ended December 31, 2021 was $411,693, an increase of 60% compared to $257,339 for the quarter ended December 30, 2020. This increase is mainly attributable to the increase in pet retail sales.
- Gross profit for the fourth quarter of 2021 was $187,315, an increase of 82% from $102,717 for the quarter ended December 31, 2020.
- Total operating expenses for the quarter ended December 31, 2021 amounted to $1,490,686, an increase of 28% compared to $1,168,493 for the quarter ended December 31, 2020. This increase is mainly due the increase in research expenses related to the Company’s DispersinB.® human wound care program.
- The loss for the fourth quarter of 2021 was ($1,257,173) compared to ($945,795) for the quarter ended December 31, 2020.
- Cash as of December 31, 2021 was $1,153,090 compared to $1,007,923 as of December 31, 2020.
2021 Financial Highlights
- Total revenue for the year ended December 31, 2021 was $1,607,775, an increase of 20% from $1,341,574 for the year ended December 31, 2020. This increase is primarily attributable to higher pet retail sales and a lower proportion of sales rebates recorded in the current fiscal year. period, partially offset by the permanent store closures in the United States in the fourth quarter of 2020 of one of the company’s major pet retail customers.
- Gross profit for the year ended December 31, 2021 was $568,441, an increase of 8% from $526,859 for the year ended December 31, 2020.
- Total operating expenses for the year ended December 31, 2021 were $5,451,998, an increase of 15% from $4,751,232 for the year ended December 31, 2020. This increase is largely attributable to an increase of $627,208 in non-cash compensation expense recorded in the endpoints. Excluding this non-cash expense, total operating expenses increased by 1% in 2021 compared to 2020.
- The loss for the year ended December 31, 2021 was ($4,849,912), an increase of 26% from ($3,845,976) for the year ended December 31, 2020.
2021 Corporate Highlights:
Wound care and surgery
- Reported positive results of DispersinB® in vivo biocompatibility and safety studies in preparation for human clinical trials expected to begin later this year. Dispersin B® The wound gel has undergone an extensive preclinical testing program showing that it is safe, non-toxic and non-irritating, and has passed all biocompatibility tests. Additionally, DispersinB® the wound gel significantly accelerated the healing of infected and uninfected skin wounds compared to controls.
- Signed a new manufacturing partnership with Dow Development Laboratories, LLC (“DDL”) for process scale-up and manufacturing of DispersinB® wound gel according to good manufacturing practices (GMP).
- Advanced product development efforts related to the company’s coactiv+™ wound gel, positioning Kane to receive 510(k) clearance from the FDA in the second half of 2022.
- Obtained two patents from the European Patent Office offering broad protection for the company’s coactiv+™ technology.
- STEM Animal Health Inc.’s (“STEM”) Pet Oral Hygiene Water Additive efficacy trials met the primary endpoint. STEM pet oral care products are scientifically formulated with Kane’s patented coactiv+™ technology to safely break down plaque and tartar biofilm.
- STEM has begun shipping orders of bluestem™ products to PetSmart® Canada, Canada’s largest retailer of specialty pet services. Bluestem™ oral care products are distributed in all 150 stores and available on PetSmart®the online store of.
- Kane received a milestone payment from Dechra Veterinary Products LLC in the amount of $125,000 in anticipation of Dechra’s commercial launch in South America in 2022.
- Kane’s DermaKB™ scalp care products grew in popularity, with fourth quarter 2021 sales doubling third quarter 2021 sales due to the company’s retail product expansion on Amazon.ca and Amazon .com and its strategic advertising efforts.
- DermaKB™ has been recognized by the Canadian Dermatology Association’s Expert Advisory Board under its Skin Health Program (SHP), which identifies skincare products that are fragrance-free or unscented , have low irritation potential and do not contain the most common allergens.
- The Company has entered into an amended and restated credit agreement with Pivot Financial Inc. (“Pivot”) which amends and restates the existing credit agreement with Pivot dated November 5, 2020, increasing the credit facility by 1.48 million to $2.5 million.
- Subsequent to year-end, the Company announced its intention to undertake a $1 million fundraising in March 2022.
“I am proud of Kane’s accomplishments in 2021,” said Marc Edwards, President and CEO of Kane Biotech. “Growth opportunities have been seized in each of our strategic pillars – animal health, dermatology, wound care and surgery. Combined with our fourth quarter results, we left 2021 poised for growth and momentum that will further drive revenue in 2022.”
Kevin Cole, President and CEO of STEM, added, “2021 has been a foundation year for STEM Animal Health, including rebuilding our supply chain to support our future growth plans. We look forward to continuing to accelerate the growth achieved in the fourth quarter through 2022 and beyond. »
Detailed financial information about Kane Biotech can be found in its December 31, 2021 financial statements and its MD&A on SEDAR and on the company’s website.
Conference call details:
Kane Biotech is pleased to invite all interested parties to participate in a conference call on Thursday, March 24, 2022 at 4:30 p.m. ET during which the results will be discussed.
|Participant’s toll-free number:||(877) 268-9044|
|Participant’s international telephone number:||(706) 679-2995|
|Audio Replay (valid for 7 days after live call)|
A live and archived audio webcast of the conference call will also be available on the Investor Relations page of Kane Biotech’s 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 eliminate microbial biofilms. The Company has a portfolio of biotechnology, intellectual property (81 patents and pending patents, trade secrets and trademarks) and products developed by its own expertise in biofilm research 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:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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 about Kane Biotech Inc. that constitute forward-looking information under applicable securities laws. These statements reflect management’s current beliefs and are based on information currently available to management. Certain important factors or assumptions are applied to make forward-looking statements, and actual results may differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, risks relating to: (a) the financial condition of the Company, including the absence of significant revenues to date and the dependence on shareholders’ equity and other funding; (b) the business, including its early stage of development, government regulation, market acceptance of its products, rapid technological change and dependence on key personnel; (c) intellectual property, including the Company’s ability to protect its intellectual property and its dependence on its strategic partners; and (d) the capital structure, including the absence of dividends on its common stock, the volatility of the market price of its common stock and the costs of the public company. Further information on these and other risks and uncertainties may be found in the disclosure documents filed by the Company with the relevant securities authorities, available at www.sedar.com. The Company cautions that the foregoing list of factors that could affect future results is not exhaustive.
|KANE BIOTECH INC.|
|Selected financial results|
|Declaration of comprehensive loss||Three months ended December 31||Year ended December 31|
|Total revenue||$||411 693||$||257,339||$||1,607,775||$||1,341,574|
|General and administrative||950 727||906 237||4,074,748||3,425,105|
|Total operating expenses||1,483,375||1,168,493||5,444,687||4,751,232|
|Loss and overall loss for the period||$||(1,257,172||)||$||(945,795||)||$||(4,849,912||)||$||(3,845,976||)|
|Loss and comprehensive loss for the period attributable to shareholders||$||(1,268,816||)||$||(816,505||)||$||(4,604,566||)||$||(3,716,686||)|
|Basic and diluted loss per share for the period||$||(0.01||)||$||(0.01||)||$||(0.04||)||$||(0.03||)|
|Weighted average number of shares outstanding – basic and diluted||114 813 535||108,613,535||114 813 535||108,613,535|
|Statement of financial position||The 31st of December,||The 31st of December,|
|Cash and cash equivalents||$||1,153,090||$||1,007,923|
|Other current assets||1,727,320||1,730,687|
|Total liabilities and equity||$||6,134,293||$||5,035,619|