Khiron Life Sciences Corp. (TSXV: KHRN) reported this morning its financial statements for the quarter ending June 30, 2021. The results highlighted a quarterly revenue of $2.8 million, marginally lower from Q1 2021’s revenue of $2.8 million but a climb from Q2 2020’s revenue of $1.7 million.
Breaking down the topline revenue figure, service revenues contributed the largest share with $1.9 million, down from last quarter’s $2.2 million. Sales from medical cannabis products saw a notable quarter-on-quarter increase to $0.8 million from $0.6 million while wellness products revenue marginally declined to $0.03 million from $0.04 million.
Gross margin saw a sizable jump to 65.2% this quarter from 55.0% last quarter and 60.4% for the same period last year. The company relayed that this resulted from the increase in medical cannabis product sales offsetting the decline in health service margins due to geo-political events and a surge of COVID-19 cases in Colombia.
With quarterly operating expenses at $6.5 million, the firm ended with a net loss of $4.8 million compared to the previous quarter’s $5.5 million net loss and last year’s $5.7 million net loss. This translates to $0.03 loss per share.
Calibrating for financial items, adjusted EBITDA for the quarter came in at a loss of $3.9 million compared to losses of $4.0 million and $3.9 million from the prior quarter and year, respectively.
The company decreased its cash and cash equivalents position throughout the first six months of 2021, ending with a balance of $9.4 million from a starting figure of $21.6 million. The cash burn is attributable to the total net loss for the period. The company’s current assets and current liabilities ended at $25.9 million and $7.2 million, respectively.
The cannabis firm said it continues to expand its networks, partnerships, and distribution channels, leading to an anticipated global medical cannabis monthly revenue of $1 million by Q1 2022.
Khiron Life Sciences last traded at $0.32 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.