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spk01: Good day, and thank you for standing by, and welcome to Kean Biotech Q1 2022 Financial Results Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that this call is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your host today, Nicole Sendeh, Cain Biotech Investor Relations and Public Relations Specialist. You may begin.
spk00: Thank you. Good afternoon and welcome, everyone, to Cain Biotech's quarterly earnings conference call. We are delighted to have you join us today. This call will cover CAIMS financial and operating results for the first quarter of 2022, along with a discussion of some of our recent highlights and goals for 2022 and beyond. Following our prepared remarks, we will open the conference call to a question and answer session. Our call today will be led by CAIMS Chief Executive Officer Mark Edwards. Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call contain certain forward-looking information and statements within the meaning of securities law, which may not be based on historical fact, including without limitation statements containing the words believe, should, may, plan, will, estimate, predict, continue, anticipate, potential, intends, expects, or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, events, or developments to be materially different from any future results, events, or developments expressed or implied by such forward-looking statements. Such factors include, among others, the company's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market the company's products, the ability to protect its intellectual property, and dependence upon collaborative partners. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements are made as of the date hereof, and the company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events, or developments. I will now pass our call on to King's Chief Financial Officer, Ray Dupuit.
spk02: Thank you, Nicole. Before I turn the call over to Mark for an update on our commercial activities, I would like to provide a brief update on our first quarter 2022 financial results. To streamline things, all the numbers that I will mention have been rounded and are therefore approximate. The following figures are all in Canadian dollars. For the three months ended March 31st, 2022, the company recorded total revenues of $565,000. a 50% increase compared to $376,000 for the same period in 2021. In the three months ended March 31, 2022, royalty revenue increased by 27% to $47,000 compared to $37,000 in the three months ended March 31, 2021. Revenue from product and services sales for the three months ended March 31, 2022, was $482,000, an increase of 56%, from $309,000 in the three months ended March 31st, 2021. This increase is due mainly to higher pet retail and online sales from the company's STEM animal health subsidiary, as well as higher DermaKB sales. Gross profit for the first quarter of 2022 was $183,000, an increase of 11% compared to $165,000 for the three months ended March 31st, 2021. First quarter 2022 operating expenses were $1.4 million, an increase of 23% compared to $1.1 million for the same quarter in 2021. The increase is primarily due to higher research expenditures related to the company's dispersant B hydrogel and CoActive Plus antimicrobial hydrogel programs. The company recorded a first quarter 2022 loss of $1.1 million, or $0.01 per share, compared with a loss of 1 million or one cent per share for the same quarter ended March 31st, 2021. Cash as of March 31st, 2022 was 915,000 compared to 1.2 million as of December 31st, 2021. With that, I will now turn the call over to Mark.
spk03: Thank you, Ray. And thank you everyone for tuning in. In our first quarter of 2022, We continue to make great progress across all three of our commercialization pillars. We've experienced strong year-over-year sales growth, as Ray mentioned earlier, in our animal health, and expect this to continue, particularly with the stem animal health, receiving the seal of acceptance by the VOHC, which is the Veterinary Oral Health Council, in April. of this year, just after the end of the first quarter. The two products that will carry this VOHC seal of acceptance are VetroDent from our licensing partner, DECRA, in all of the Americas, and Plactive, which is the product that Animal Care, our strategic partner, will be commercializing in Europe, and it also marked the launch of Plactive, and adoption rates seem to be very, very strong right out of the gate, so we're very excited to see what animal care will be able to do with Plactive. Secondly, the first quarter saw some very, very compelling results for our dispersant B hydrogel preclinical trials. I've mentioned it before, but I think it's worth highlighting there, are the test wounds using the dispersant B hydrogel healed much better and much faster than the control. And with that, we've got our clinical trials that are set to commence this summer, and we'll have an announcement coming shortly in that regard. In addition to what we're doing with dispersant B, we've got our co-active plus 510K application with which we're collaborating with the FDA. And we recently had our pre-submission meeting and have a clear path forward and well established. On the wound care side, our strategic partner discussions are going very, very well, making good progress there. and look forward to sharing some positive news as soon as we can. Then another big step towards commercializing both our hydrogels is last week we now obtained our ISO 1345 certification. for our quality management system specific to our ongoing efforts to design and develop novel medical devices and manufacturing processes for the wound care market. I want to congratulate our entire team for that achievement, but in particular want to thank Laurie Christophoulis, our VP of Quality, who really did the heavy lifting there to get us where we are today. We continue to see some robust growth in the sales of our Derma KB line, although they still remain modest. And again, growing that as we work on a potential licensing deal. And that is, we mainly have Amazon to thank for that. Their sales on Amazon are going very, very well. In addition to the sales going very, very well, what's really encouraging is we've got some very, very strong testimonials. Anybody who's interested there, I'd invite you to look those up either on Amazon, on Google, on Facebook, where we seem to be really helping a lot of people that had tried some very, very harsh solutions and really our product seems to be helping them a lot there. And then finally, another big announcement in Q1 was the appointment of Greg Schultz as our chief scientific officer. So he will be following in the footsteps of Gordy Guay. Gordy is going to stay on as an advisor to myself and is heading up our scientific advisory board. But Greg Schultz is Professor Emeritus at the University of Florida. and really the godfather of biofilm. So it really further established Kane as the biofilm company, and we're very, very excited to have Greg as part of the team and helping us grow our business. So that will wrap up my remarks for today. I will now pass the call over to our operator to begin the question and answer session. Thank you very much.
spk01: Thank you. As a reminder, to ask a question, you'll need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by. We compiled the Q&A roster. And I am showing no further questions. I would now like to turn the call back over to Mark Edwards for closing response.
spk03: So just want to thank everyone for tuning in. very, very excited with everything that's going on at Kane today. And it's a tough market going on there. And I just want to tell everybody that I was pretty excited to have the opportunity to grow my position within Kane significantly there to wrap up our last race. So just after the end of the quarter, we announced that we had closed our million-dollar financing, and I acquired a little over 3 million shares there, and really think that's a great opportunity. So thank you very much, everyone, for tuning in, and we'll keep... Keep things moving forward. Have a great day.
spk01: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
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