Kane Biotech Inc.

Good afternoon, and thank you for standing by. Welcome to Cain Biotech's first quarter 2023 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference call will be open to questions. If you have a question, simply press star 1-1 on your telephone. If you would like to withdraw your question, simply press star 1-1 again. This conference is being recorded today, May 25, 2023. I would now like to turn the conference call over to Nicole Cain Biotech's investor relations advisor. Please go ahead.

Thank you, operator. 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 Cain's financial and operating results for the first quarter of 2023 along with a discussion of some of our recent highlights and goals for 2023 and beyond. Following our prepared remarks, we will open the conference call to a question and answer period. Our call today will be led by Cane'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 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 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 summary and update on our first quarter 2023 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. Total revenue for the three months ended March 31, 2023 was $678,000, an increase of 20% compared to $565,000 in the three months ended March 31, 2022. License and royalty revenue for the three months ended March 31, 2023 was $138,000, an increase of 66% compared to $83,000 in the three months ended March 31, 2022. This increase is due primarily to VOHC certification received in the second quarter of 2022, which has had a favorable impact on both license and royalty revenues recognized in subsequent periods. Revenue from product and services sales for the three months ended March 31, 2023 was $539,000, an increase of 12%, from $482,000 in the three months ended March 31, 2022. The increase is due primarily to higher demand for contract manufacturing services during the current period. Gross profit for the first quarter, 2023, was $345,000, an increase of 88% compared to $184,000 for the quarter ended March 31, 2022. This increase is due primarily to higher license and royalty revenue recognized as well as higher profit margins realized on product sales in the current period. Total operating expenses for the three months ended March 31, 2023 were $1,361,000, a decrease of 4% compared to $1,420,000 for the three months ended March 31, 2022. Contributing to this decrease were salary-related cost reductions that affected the current period lost for the first quarter of 2022 was $1,245,000, an increase of 8% compared to $1,152,000 for the quarter ended March 31, 2022. This increase is primarily attributable to higher financing costs in the current period, as well as a higher non-cash fair value adjustment on government loan advances received in the comparative period. Cash at March 31, 2023, was $991,000. compared to 1,105,000 at December 31, 2022. With that, I will now turn the call over to Mark.