Kane Biotech Inc. (TSX-V: KNE; OTCQB: KNBIF) announced its third quarter 2024 financial results, highlighted by the first commercial sale of its revyve™ Antimicrobial Wound Gel. The company recorded $594,705 in sales from revyve™ to its US distributor ProgenaCare. This marks a pivotal moment for Kane Biotech as it transitions towards commercial viability.
Financial Performance
The third quarter of 2024 saw Kane Biotech achieve a total revenue of $1,282,698, a significant increase from $27,003 in the same period last year. This revenue comprised $597,677 in product sales and $685,021 in product services revenue, derived from animal health manufacturing and quality control services post-sale of STEM Animal Health operations. Gross profit for the quarter stood at $558,754, compared to $23,491 in Q3 2023. The net loss decreased by 45% to $(678,636) from continuing operations, compared to a net loss of ($1,244,099) for the quarter ending September 30, 2023.
Operating expenses for the three months ended September 30, 2024, totaled $1,170,064, an 18% increase compared to $994,801 for the same period in 2023. This rise is primarily attributed to higher employee compensation, consulting fees, travel, and investor relations expenses.
Corporate Developments
Kane Biotech has been active on the corporate front, securing several key achievements:
- Distribution Agreements: The company signed multiple international distribution agreements to expand the reach of revyve™ Wound Gel.
- Health Canada Approval: revyve™ Antimicrobial Wound Gel received approval from Health Canada as a Class 2 Medical Device, enabling immediate promotion and sales in Canada.
- Acquisition Plans: Kane Biotech entered a binding term sheet to acquire FB Dermatology, an Italian company with operations in Italy and Australia, and product sales throughout Europe, Australia, and New Zealand. The acquisition is expected to close around January 31, 2025.
- Product Donation: The company donated 2,000 ounces of revyve™ Antimicrobial Wound Gel to the Ukraine medical relief effort to aid in the healing of severe and chronic wounds resulting from the war.
- XSONX Distribution Agreement: An exclusive five-year distribution agreement was signed with XSONX LLC for Kane Biotech to distribute XSONX’s Wound Hygiene System in Canada, Australia, New Zealand, and the Gulf Cooperation Council (GCC) Countries.
- NRC IRAP Funding: Kane Biotech is receiving advisory services and up to $75,000 in funding through the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to collaborate on a research and development project for its DispersinB® Wound Gel.
- Warrant Exercise: The company announced the exercise of an aggregate of five million warrants at an exercise price of $0.10 per common share, resulting in total proceeds of $500,000.
- FDA Update: The US FDA had eliminated its usage limitation on the Company’s 510(k) cleared revyve™ Antimicrobial Wound Gel.
- MDSAP Certification: Kane Biotech received ISO 13485:2016 Medical Device Single Audit Program (MDSAP) Quality Certification as a designer, developer, and manufacturer of medical devices.
Leadership Commentary
"In the third quarter, we recorded our first commercial sale of revyve™ Antimicrobial Wound Gel, signed two new revyve™ Wound Gel product distribution agreements in the Middle East, received our MDSAP Quality Certification, and were awarded $200,000 in NRC IRAP funding," said Marc Edwards, President & CEO of Kane Biotech. "And already in the fourth quarter, we have been awarded an additional $75,000 in NRC IRAP funding, signed an exclusive five-year distribution agreement for XSONX’s Wound Hygiene System, signed an agreement to acquire FB Dermatology, and received Health Canada approval of our revyve™ Antimicrobial Wound Gel. We continue to execute on our strategic plan and are positioning the Company for success in 2025 and beyond."
Kane Biotech is positioning itself for continued growth and expansion in the wound care market, driven by its innovative biofilm technology and strategic partnerships.
