Mr. Marc Edwards reports

KANE BIOTECH ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Kane Biotech Inc. has released its first quarter 2023 financial results.

First quarter financial highlights:

• Total revenue for the three months ended March 31, 2023, was $677,617, an increase of 20 per cent compared with $565,433 in the three months ended March 31, 2022.
• License and royalty revenue for the three months ended March 31, 2023, was $138,180, an increase of 66 per cent compared with $83,349 in the three months ended March 31, 2022.
• Revenue from product and services sales for the three months ended March 31, 2023, was $539,437, an increase of 12 per cent from $482,084 in the three months ended March 31, 2022.
• Gross profit for the first quarter of 2023 was $345,047, an increase of 88 per cent compared with $183,621 for the quarter ended March 31, 2022.
• Total operating expenses for the three months ended March 31, 2023, were $1,360,793, a decrease of 4 per cent compared with $1,420,097 for the three months ended March 31, 2022.
• Loss for the first quarter of 2022 was ($1,244,684) an increase of 8 per cent compared with ($1,152,164) for the quarter ended March 31, 2022. This increase is primarily attributable to higher financing costs in the current period and a higher non-cash fair value adjustment on government loan advances in the comparative period.

Detailed financial information about Kane Biotech can be found in its March 31, 2023. Financial statements and management discussion and analysis on SEDAR and the company's website.

"To date, 2023 has seen Kane achieve three important milestones in the commercialization of its technologies. First, the licensing of Kane's clinically proven pet dental care line to Skout's Honor Pet Supply Co. will greatly accelerate expansion into the U.S. pet retail market. Skout's Honor have built an enviable network of retailers across North America and it is expected that their new dental line will reach the shelves of the majority of U.S. retailers, both big and small, by the end of this year," said Marc Edwards, Kane's president and chief executive officer. "Second, distribution agreements for our coactiv+ Antimicrobial Wound Gel were signed earlier this year with ProgenaCare Global LLC in the United States bringing our effective, differentiated and accessible product to the annual $200-million (U.S.) U.S. wound gel market and with Salud Pharma S.A. covering Colombia, Panama and Costa Rica representing our first global distribution agreement in wound care. Finally, the 510(k) clearance from the United States Food and Drug Administration (FDA) that we just announced today will not only open the door to multiple additional markets throughout the world, but will also allow Kane to use this first product clearance as a predicate product for additional 510(k) devices."

Recent corporate developments

On May 25, 2023, the company announced that it had received 510(k) clearance of its coactiv+ Antimicrobial Wound Gel from the FDA for the management of ulcers (including diabetic foot and leg ulcers and pressure ulcers), first and second degree burns, partial and full thickness wounds, large surface area wounds and surgical incisions for adult populations.

• On April 20, 2023, the company announced that it had signed a distribution agreement with ProgenaCare for its coactiv+ Antimicrobial Wound Gel in the United States wound care market. ProgenaCare will have exclusive distribution rights in the United States wound care market for Kane's coactiv+ Antimicrobial Wound Gel and Kane will receive a $500,000 (U.S.) upfront payment from ProgenaCare once it obtains 510(k) clearance from the FDA.
• On April 18, 2023, the company announced that it had signed a licensing agreement with Skout's Honor for its patented coactiv+ technology in pet oral care applications. Skout's Honor has been granted a 10-year licence for the non-exclusive use of Kane's coactiv+ technology under their own brand in North America while STEM will continue to commercialize its bluestem line of pet oral care products. STEM will receive a $500,000 (U.S.) licensing fee from Skout's Honor to be paid over the course of the agreement as well as a continuing royalty on all Skout's Honor's sales of products that use the coactiv+ technology. The company also announced that Kevin Cole, STEM's president and chief executive officer, will be departing the company.
• On March 2, 2023, the company announced that it had entered into a formal agreement with Pivot Financial I LP to amend the terms of the credit facility stated in the amended and restated credit agreement between Pivot and the company dated Aug. 31, 2021, by increasing the size of the credit facility from $4-million to $5-million, increasing the interest rate from 14 per cent to 15 per cent and extending the maturity date from Feb. 28, 2023, to Aug. 31, 2023.
• On Jan 4, 2023, the company announced that it had signed a distribution agreement with Salud Pharma for its coactiv+ Antimicrobial Wound Gel wound care and DermaKB scalp care products. Once Kane obtains 510(k) approval from the FDA, Salud Pharma through its distribution partners will register and commercialize Kane's coactiv+ Antimicrobial wound gel throughout Colombia, Panama and Costa Rica via wound care centres and pharmacies, and will also import and distribute Kane's DermaKB line of scalp detoxifier and shampoos.

Kane Biotech is pleased to invite all interested parties to participate in a conference call on Thursday, May 25, 2023, at 4:30 p.m. ET during which time the results will be discussed.

Conference call

Kane Biotech is pleased to invite all interested parties to participate in a conference call on Thursday, May 25, 2023, at 4:30 p.m. ET to review the financial results and discuss business developments in the period.

A webcast of the call will be available on the company's website news/events in the investors section of the Kane Biotech website.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. The company has a portfolio of biotechnologies, intellectual property (80 patents and patents pending, trade secrets, and trademarks) and products developed by the company's own biofilm research expertise and acquired from leading research institutions. StrixNB, DispersinB, Aledex, bluestem, silkstem, goldstem, coactiv+, DermaKB and DermaKB Biofilm are trademarks of Kane Biotech.

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