Kane Biotech Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Kean Biotech Quarter 3, 2021 financial results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press 3 and 0 on your touchtone telephone. And as a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Lorne Gerber, Head of Investor Relations, sir, you may begin.

Thank you, Mel. Good afternoon, everyone. We're delighted to have you join us today for Cain Biotech's Q3 2021 results conference call. With me to review the financial and operating results for the third quarter ended September 30th, 2021, are Cain's CEO, Mark Edwards, and its CFO, Ray Dupree. Following prepared remarks, we will open the lines and take your questions. Before handing it over to Ray, let me caution you that our comments and discussion will include forward-looking information within the meaning of applicable securities legislation. Forward-looking information will include, among other things, forecasts and projections which involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from such forecasts and projections. Therefore, although we believe that anticipated future results, performance, or achievements expressed or implied by the forward-looking information are based on reasonable assumptions and expectations, you should not place undue reliance on such forward-looking information. Now I'll hand the call over to CFO Ray Dupree to discuss the Q3 2021 results, and then Mark will provide an update and outlook for our business. With that, Ray.

Thank you, Lorne. To streamline things, all of the numbers I will mention are rounded and are therefore approximate. The following figures are all in Canadian dollars. Revenue from product sales in the three months ended September 30th, 2021 was just over $438,000, an increase of 53% compared to just under $287,000 in the three months ended September 30th, 2020. This increase is due mainly to sales attributable to a new agreement with PetSmart Canada and the financial reporting reclassification in the current period amongst revenue, cost of sales, and general and administrative expenses retroactive to the beginning of 2021. In the three months ended September 30th, 2021, the company recognized license revenue associated with license and milestone payments received from Animal Care and DECRA in 2021. License revenue increased by 114% from the comparative period. Gross profit for the third quarter of 2021 was just under $132,000, an increase of 2%, compared to just over $129,000 for the quarter ended September 30, 2020. Total operating expenses for the three months ended September 30, 2021 were just over $1.7 million, an increase of 38% compared to just over $1.2 million for the quarter ended September 30, 2020. Loss for the third quarter 2021 was just under $1.6 million, an increase of 53% compared to just over $1 million for the quarter ended September 30th, 2020. Cash at September 30th, 2021 was just under $1.3 million compared to just over $1 million at December 31st, 2020. Further detailed financial information concerning CAEN's third quarter 2021 financial results is available on our website and on CDAR. With that, I will now turn it over to Mark.