- Kane Biotech (KNE) has released a mixed third quarter report, boasting increasing revenue but also deepening losses
- The company’s revenue in the third quarter reached just under C$287,00, an increase of 48 per cent compared to around $194,000 in 2019’s same quarter
- The company attributed the revenue spike to higher online sales and a larger customer base
- Nevertheless, the company’s operating expenses also jumped 37 per cent this quarter to more than $1.2 million, hampering its margins and dragging it to a net loss of $1.03 million
- Meanwhile, the company recently bolstered its cash funds with a one-year credit agreement with Pivot Financial for a term loan worth $1.48 million
- Kane Biotech remains unchanged and is trading at 15 cents per share
Kane Biotech (KNE) has released a mixed third quarter report, boasting increasing revenue but also deepening losses.
The company is currently developing and commercialising technologies and products that prevent and remove microbial biofilms, a build-up of microorganisms that lie on the surface of standing bodies of water.
The company’s revenue in the third quarter reached C$286,934, an increase of 48 per cent compared to $194,483 in 2019’s same quarter. The company attributed the revenue spike to higher online sales and a larger customer base.
The bump in revenue translated to an 11 per cent bump to the company’s gross profit at just over $129,000.
Nevertheless, the company’s operating expenses also jumped 37 per cent this quarter to more than $1.2 million, hampering its margins and dragging it to a net loss of $1.03 million.
This quarters’ loss represents a 25 per cent hike on last year’s third quarter loss of $821,554.
Shrugging off the cash hit, the company recently bolstered its available funds with a one-year credit agreement with Pivot Financial for a term loan worth $1.48 million.
President and Chief Executive Officer of Kane Biotech Marc Edwards was pleased with the company’s progress during the quarter.
“The STEM Animal Health transaction demonstrates the potential global growth of our animal care products and allows Kane Biotech to become a truly global company, giving us access to new markets and revenue,” he said
“We continue trials in the U.S. and Canada for our human products and the provisional results look very positive and will allow us to grow that segment going forward with a view to returning shareholder value,” he added.
Kane Biotech remains unchanged and is trading at 15 cents per share at 10:34am EST.
