Kane Biotech Inc.

Good day, and thank you for standing by. Welcome to Cain Biotech Q4 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentations, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your first speaker today, to Nicole Sandy, Investor Relations Advisor for Kean. Please go ahead. Thank you.

Good afternoon and welcome, everyone, to Kean Biotech's quarterly earnings conference call. We are delighted to have you join us today. This call will cover Kean's financial and operating results for the fourth quarter and year-ended December 31, 2021. 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 Kean's 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, believes, 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 hand the call over to Chief Financial Officer Ray Dupuis. Please go ahead, Ray.

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 fourth quarter and full year 2021 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 December 31st, 2021, the company recorded total revenues of $412,000. a 60% increase compared to $257,000 for the same period in 2020. This increase is primarily attributable to increased pet retail sales. Gross profit for the fourth quarter 2021 was $187,000, an increase of 82% compared to $103,000 for the three months ended December 31, 2020. Fourth quarter 2021 operating expenses were $1.5 million, an increase of 28% compared with $1.2 million for the three-month end of December 31, 2020. This increase is largely attributable to increased research expenditures related to the company's dispersant bee human wound care program. The company recorded a fourth quarter 2021 loss of $1.3 million or $0.01 per share compared with a loss of $946,000 or $0.01 per share for the same three-month period in 2020. Moving to the results for the full year ended December 31st, 2021, the company recorded total revenues of 1.6 million, a 20% increase compared to 1.3 million in 2020. This increase is primarily attributable to increased pet retail sales and a lower proportion of sales discounts recorded in the current period, partially offset by the permanent US store closures in Q4 2020 of one of the company's major pet retailers. Gross profit for the full year 2021 was $568,000, an increase of 8% compared to $527,000 for 2020. Full year 2021 operating expenses were $5.4 million compared to $4.8 million in 2020. This increase is largely achievable to a $627,000 increase in non-cash compensation expense recorded in the current period. Excluding this non-cash expense, total operating expenses increased by 1% in 2021 over 2020. The company recorded a 2021 loss of $4.8 million or $0.04 per share compared to a loss of $3.8 million or $0.03 per share in 2020. At December 31st, 2021, the company had cash of $1.2 million compared to $1 million as of December 31st, 2020. With that, I will now turn the call over to Mark.