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Khiron Life Sciences Reports 2021 Fiscal Year End Results


Isail4fun
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Khiron Life Sciences Reports 2021 Fiscal Year End Results

7:15 AM ET, 05/02/2022 - PR Newswire

2021 total revenue increased over 60% YoY to $12.8 million compared to the previous yearCorporation's medical cannabis sales in 2021 increased to $4.6 million, representing 36% of total revenueThe Corporation forecasts Q1 2022 sales revenue of ~ $4.5 million for the quarterGross profit increased over 230% YoY to $4.9 million, driven by the continuous growth of the highly profitable medical cannabis segmentGermany and the U.K. now represents more than 30% of the Corporation's medical cannabis sales as of Q4 2021

TORONTO, May 2, 2022 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Corporation") (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), the global medical cannabis leader expanding throughout Latin America and Europe, announced today its financial results for the year ended and quarter ended December 31, 2021. These filings are available for review on the Corporation's SEDAR profile at www.sedar.com. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

 

Summary of Key Financial Results:

 

3 Months Ended Dec 31 2021

3 Months EndedDec 31 2020

Year Ended inDec 31 2021

Year Ended in Dec 2020

Canadian dollars ('000s)

 

$

$

$

$

Revenues

3,636

2,518

12,795

8,017

     Medical Cannabis

2,011

234

4,608

370

Gross profit before fair value adjustments

1,083

402

4,912

1,481

     Gross profit from Medical Cannabis before fair value adjustments

1,068

60

3,379

180

General and administrative costs

5,304

5,842

22,539

26,593

Net loss (2)

(19,502)

(2,374)

(33,129)

(24,039)

Adjusted EBITDA (1) 

(5,649)

(4,336)

(17,379)

(18,762)

Net loss per share (basic and diluted)

0.11

0.02

0.20

0.20

Weighted average shares outstanding

179,144

130,292

164,517

120,294

(1)

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization or in this case loss) is a non-International Financial Reporting Standards ("IFRS") measure calculated as net loss before tax as reported under IFRS and adding back share-based compensation expense, transaction fees, unrealized gain on changes in fair value of biological assets, depreciation and non-recurring items. Refer to the "Non-IFRS Measures" note below for further information and the Corporation's MD&A for a reconciliation.

(2)

In 2021, the Corporation has reported a one-time, non-cash write-off of the intangible asset associated with the Uruguay cultivation license and will continue to focus on export of finished product from Colombia into Brazil and generating demand through its Zerenia™ clinics and external doctor education. The Corporation has taken the appropriate inventory write-downs in 2021 and is discontinuing sales of the Kuida™ product line, focusing on its high growth/ high margin medical cannabis products and expansion of its medical cannabis clinic network in LatAm and Europe.

Annual 2021 Highlights:The Corporation continues to benefit from increasing patient awareness and favorable regulatory progress internationally.Gross margins, before fair value adjustments of 73% on its medical cannabis revenue stream in 2021 compared to 49% for the previous year 2020.The Corporation continues to prudently manage expenses, with 2021 general and administrative ("G&A") expenses declining over 15% year-over-year.

Key Operating Statistics

 

3 Months Ended Dec 31 2021

3 Months Ended Dec 31 2020

Year Ended inDec 31 2021

Year Ended in Dec 2020

 

Medical Cannabis

       

     Revenue generating countries (#)

5

2

5

2

     Latin America (Bottles)

19,752

3,370

54,651

4,130

     Europe (Grams)

45,905

3,870

133,140

6,870

Health Services

       

     Patient interactions (#)

36,700

28,457

140,915

99,145

Management commentary, subsequent events and 2022 Highlights:

Alvaro Torres, Khiron CEO and Director, comments, "2021 was a transformational year for the Corporation, using a unique patient-oriented strategy has allowed us to continue demonstrating quarterly growth, with a strong commitment to improving the quality of patients' lives. Khiron's focus includes creating a meaningful brand that resonates with patients and doctors, selling highly profitable products, creating unique real-world data demonstrating the positive effects of cannabis for medical usage, and finally, diversifying our geographic revenue streams." 

Mr. Torres added, "The success we have experienced in Europe so far is due to Khiron's ability to leverage our novel understanding of medical cannabis in Latin America, driven by our health services strategy and validated by the extraordinary evidence we build every day from the data generated in our clinics. Khiron is currently one of the top-selling brands of medical cannabis in the UK, and we have grown our market share rapidly in Germany. We recently opened our first hybrid Zerenia™ clinic in the UK, and we have received excellent adoption from both patients and doctors."

Mr. Torres continues, "In Colombia, growth was partly due to our efforts to ensure insurance coverage for patients by the country's principal insurance companies. To date, in Colombia, our Zerenia™ Clinics have served more than 20,000 individual patients with medical cannabis. In Peru, we obtained key final product registrations ("Alixen"), and we will continue to grow as we introduce new THC-based formulations to the Peruvian market. During the second half of the year, we sold our first Khiron-branded product in Brazil, a market of more than 230 million people. We are currently completing construction of our first clinic in Rio de Janeiro, and introducing THC-based medications, which will position us as one of the top companies in medical cannabis in this country. As we focus on our B2C medical cannabis strategy, Khiron has also decided to discontinue sales of our KuidaTM CBD-based cosmetics product line. Although we are very proud of the brand we created, it is clear that our biggest growth opportunities are within the medical cannabis sector, where revenue is increasing quickly. In addition, the Company no longer requires our cannabis cultivation license in Uruguay as we are currently exporting our products directly from Colombia. The Uruguay asset was purchased in 2019 for a total consideration of approximately 8.5 million shares."

"These significant efforts from our team at Khiron provide confidence that 2022 will continue to be a very positive year for our entire corporation, as we support the well-being of our patients across the globe, and fuel Khiron's continued international expansion." comments Alvaro Torres, Chief Executive Officer and Director of the Corporation.


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