Kane Biotech Inc KNBIF

Cash available vs expenses

[francoisl13]

Looking at the Q2 financials they had approximately 1M in cash available at the end of the QTR. They spent over 900K during Q2 so, if the spending keeps going at the same pace they'll be out of money by end of Q3.
Despite the fact that the sales of the STEM Animal division allowed them to have a cleaner balance sheet it might not stay clean for very long if the sales of Revyve doesn't ramp up quickly.
They will also have to spend some money on the UofMiami acne trial which is coming soon, that will put some more pressure on the cash they have.
P.S. I believe that all expenses related to the DispersinB phase1 trial is going to be taken care of by the US Dept. of Defense.
The above are 'food for thoughts'...

[KevinOleary]

They said the acne trial is just $100k, but if the university pays it costs nothing.

[francoisl13]

I wonder if university have budget to do this? If so, they might do it and ask for some sort of payback based on future sales or something -- I'm not familair with how universities research is financed...any lights peole could bring on this would be appreciated. The above being said...if it cost 100K and they still have 900K of expenses in Q3 well, here goes the million dollar they have in

[KevinOleary]

If dispersin came from uni research they would have the ip and take a royalty. That's why kne has to pay a royalty to the guy who licensed it to them. U of M aren't going to get any future revenue from doing this study. It's just a half face paint with 2 competing products, so U of M is not creating ip.

[francoisl13]

Make sense. Then, it means that KNE will pay for this trial. This is getting me back to my original point that if they don't control their expenses better going forward they will likely have to find a way to raise money (debt, new shares, etc...) to stay afloat unless Revyve sales picks up and cover the expenses for the next little while. To follow...

[francoisl13]

@kevinOleary -- Despite the fact that they've been able to clean their balance sheet, are you not a little worry about KNE's financial situation considering the rate at which they spend money and the lack of product sales to support what's coming? Just curious to hear oyur point of view on this specific topic.

[KevinOleary]

There are too many things going on for me to have a clue what their short term cash needs will be. They have done lots of financings, so they know not to leave it to the last minute which makes me think there is going to be enough cash coming in to sustain them. There aren't any European companies in their Revyve distributor list so they may be looking for a big one who would provide an

[francoisl13]

Interesting comment. Thanks for taking the time to share your point of view. 

[KevinOleary]

Marc bought at $.15 last month so we should be good.