Kane Biotech Inc.

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.

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.

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.