Business
Kalytera Reports 2018 Financial Results
Kalytera Reports 2018 Financial Results.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\nSAN FRANCISCO and TEL AVIV, Israel, May 01, 2019 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the \"Company\" or \"Kalytera\") today reported financial results for the year ended December 31 2018. (All dollars U.S. unless otherwise noted.)\n Investors should note that the Company’s TSXV ticker symbol was recently changed from \"KALY\" to \"KLY\". For 2018, the Company recorded net income of approximately $6.9 million ($0.04 per Common Share), compared with a net loss of approximately $31.9 million ($0.26 per Common Share) in 2017. The change from a net loss in 2017 to net income in 2018 is primarily due to a gain of approximately $14.2 million recorded in 2018 in connection with updated valuations of the Company’s outstanding derivative securities, as well as income of approximately $12.9 million related to the an update of the fair-value of contingent liabilities that relate to the Company’s acquisition of Talent Biotechs, Ltd. (“Talent”) in 2017. Additional factors relating to the change from a net loss in 2017 to net income in 2018 are an expense of approximately $7.9 million recorded in 2017 in connection with the valuation of warrants and debentures, and approximately $9.0 million of finance expenses, both of which relate to the issuance costs of warrants and debentures that were issued in December 2017, as well as other expenses recorded in 2017 of approximately $9.6 million to update the fair-value of contingent liabilities that relate to the Company’s acquisition of Talent. Operating Expenses For 2018, research and development expenditures increased to approximately $7.7 million, from approximately $1.7 million in 2017. The increase in research and development expenses by approximately $6.0 million is primarily due to an increase in development activities related to the Company’s lead product development program evaluating cannabidiol (\"CBD\") for the prevention and treatment of graft versus host disease  (\"GVHD\"); research and development activities related to the Company’s product development program evaluating its proprietary cannabinoid compound for the treatment of pain; and other research and development projects. General and administrative expenses remained consistent between 2017 and 2018, with 2018 G&A expenses ...