Kalytera Therapeutics Inc (OTCMKTS:KALTF) kicked off May with the release of results for the financial year ended December 31, in which it revealed a $6.9 million net income.
The company revealed that its FY18 performance was a good one that reflected in the net income of $6.9 million USD equivalent to $0.04 per common share. This was a notable improvement from the $31.9 million net loss equivalent to a $0.26 per Common Share net loss for its 2017 fiscal year.
Kalytera attributes the performance to its income of about $12.9 million as a result of the updated fair value of its liabilities related to its Talent Biotechs, Ltd acquisition. The firm also believes that the performance was courtesy of the roughly $14.2 million it received that is associated with a revised valuation of its outstanding derivative securities.
The net loss in the 2017 financial year was largely associated with financial expenses that amounted to $9.0 million and a $7.9 million expense associated with warrants and debentures valuation. The warrants and debentures were issued in December 2017. There were also other expenses that weighed down on the net loss in 2017.
Kalytera also had some operating expenses that were higher in 2018 compared to the figures reported in 2017. For instance, its 2018 research and development expenses were roughly $7.7 million compared to about $1.7 million reported in the previous year. The company’s general and administrative expenses (G&A expenses) in 2017 amounted to $3.2 million compared to $3.4 million in 2018.
Kalytera’s cash and cash equivalents shrunk from $3.7 million as of December 31, 2017, to $227,000 by December 31, 2018. This is because the company used a mix of cash and equity to pay its creditors. Israel’s Salzman Group was Kalytera’s largest creditor in 2018.
The company announced the closure of its public offering on April 26 this year after collecting about $6.8 million USD in proceeds. Kalytera is confident that it has enough cash to cater to its operating costs especially as it approaches the completion of a Phase 2 program evaluating CBD’s efficacy in preventing GVHD.