Khiron Life Sciences (TSXV: KHRN) reported its second quarter financials this morning, recording $1.67 million in revenues for the three month period ended June 30, 2020, despite extensive lockdowns experienced within the firms home country of Colombia. The company reported a net loss of $5.7 million for the quarter.
Service revenues during the quarter amounted to $1.6 million, while product revenues totaled out at $0.1 million. Cost of sales came in at 1.4 million, resulting in a gross profit before fair value adjustments of $0.3 million. Revenues were down on a quarter over quarter basis due to strict lockdown measures that were in place during the quarter. The firms health centres saw a decline in visits as a result, along with the cancellation of surgeries.
The company was quick to react to the developing pandemic however, with total expenses coming in at $6.6 million for the quarter, of which $4.5 million were attributable to general and administrative expenses. This compares to expenses of $9.7 million in the first quarter, of which $5.8 million was administrative expenses.
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Looking to the balance sheet, the company appears to have significantly reduced its cash outflows, with the company seeing its cash position fall from $24.5 million to $20.2 million, representing outflows of $4.3 million, as compared to $12 million in the first quarter and $10 million in the fourth quarter of 2019. Accounts receivable climbed marginally from $3.8 million to $4.0 million, while inventories rose to $2.7 million from $1.1 million. Total current assets overall fell from $35.2 million to $30.1 million.
Accounts payable meanwhile remained stagnant, remaining at $5.8 million through the quarter. The firms current portion of long term debt rose slightly however, from $1.0 million to $1.1 million, resulting in total current liabilities climbing to $6.9 million from $6.8 million.
Outside of hard figures, the company had several significant developments throughout the quarter as well that should be denoted, including:
- Surpassing 1,000 patients in Colombia
- Authorization for CBD medical cannabis sales in Peru
- Authorization for sale of high-THC medical cannabis in Colombia
- Signed an exclusive agreement with Medlive for distribution of medical cannabis through 3,000 clinics in Brazil
- Entered the German medical cannabis market via a partnership with Nimbus Health
- Launched a telehealth platform in Colombia to assist with the COVID-19 response
Khiron Life Sciences last traded at $0.47 on the TSX Venture.
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