Kane Biotech (KNE) Q3 2024 earnings summary

Executive summary

• Achieved first commercial sales of Revive/revyve Antimicrobial Wound Gel, driving significant revenue growth in Q3 2024.

• Entered licensing and distribution agreements for DermaKB, Revive/revyve, and XSONX products, expanding global market reach, including the Middle East.

• Announced acquisition of FB Dermatology, broadening international presence and adding new technologies.

• Secured ISO 13485:2016 MDSAP quality certification, enabling broader regulatory approvals and market access.

• Achieved regulatory milestones, including Health Canada approval and US FDA removal of usage limitation for Revive/revyve Wound Gel.

Financial highlights

• Q3 2024 total revenue was CAD 1,283,000 (USD 1,282,698), up from CAD 27,000 (USD 27,003) in Q3 2023, mainly due to Revive/revyve sales and post-sale services.

• Gross profit reached CAD 559,000 (USD 558,754), compared to CAD 23,000 (USD 23,491) year-over-year.

• Operating expenses increased 18% to CAD 1,170,000, driven by higher compensation, consulting, travel, and investor relations costs.

• Net loss from continuing operations decreased 45% to CAD 679,000 (USD 678,636) from CAD 1,244,000 in Q3 2023.

• Cash and cash equivalents as of September 30, 2024, were CAD 544,000 (USD 544,377).

Outlook and guidance

• Anticipates new distribution agreements in and outside Canada before year-end and expects OTC approval for Revive wound gel by Health Canada.

• Plans to close FB Dermatology acquisition by January 31, 2025, and launch additional clinical trials and products in early 2025.

• Management highlights ongoing execution of strategic plan, positioning for further growth in 2025 and beyond.