Khiron Life Sciences Corp. (OTCQX: KHRNF) reported its financial results for the quarter ending September 30, 2021 with total revenue of C$3.5 million growing over last year’s revenue of C$1.9 million for the same time period. Khiron also delivered a 50% year-over-year reduction in a net loss of –$3.3 million versus –$6.7 million for the same quarter in 2020.
“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits. Prescription growth were driven by our patient-focused operations in Colombia and Germany. In the first 9 months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600% while maintaining medical cannabis margins of over 89%. ” comments Alvaro Torres, Chief Executive Officer and Director of the Company.
Mr. Torres continues, “As expected, Europe is becoming a more significant region for Khiron, representing 31% of our medical cannabis revenue. With the opening of Zerenia Clinics in the UK, we have now established an international clinic footprint that will continue to drive sustainable growth in the future. A year ago, our company was just starting medical cannabis sales in Colombia, and now we have 15 clinics, in 5 countries, and soon in Mexico. We are very excited about our quarterly growth rate, and the growing evidence that Khiron is fulfilling its mission to improve the quality of life of our patients.”
Khiron noted that it is starting the fourth quarter with a cash balance of $15.4 million and a working capital balance of $26 million, However, in the company filing it cautioned that the company must prudently manage its cash and maintain its liquidity amidst the material uncertainty of incoming cash flows. In the filing, the company stated, “While the company will avail itself of financial relief measures, management believes that the company should have sufficient liquidity to continue operations for at least the next twelve months, satisfy all commitments and repay its liabilities arising from normal business operations as they become due.” Khiron said it has implemented cost reductions in salaries, marketing, and
other administrative functions and that capital expenditure programs were postponed, where possible.