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.
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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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.