Good afternoon, and thank you for standing by. Welcome to Kane Biotech's Q2 2024 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference call will be open to questions. If you have a question, please press star then one one on your touchtone phone. If you would like to withdraw your question, please press star one one again. This conference is being recorded today, August 29, 2024 . I would now like to turn the conference over to Ray Dupuis, Kane Biotech's Chief Financial Officer. Please go ahead.
Thank you, operator. Good afternoon, and welcome everyone to Kane Biotech's Q2 2024 Earnings Conference Call. We are delighted to have you join us today. This call will cover Kane's financial and operating results, along with a discussion of some of our recent highlights and goals for the range of 2024 and beyond. Following our prepared remarks, we will open the conference call to a question-and-answer session. Our call today will be led by Kane's Chief Executive Officer, Marc Edwards. Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call contain certain forward-looking information and statements within the meaning of securities law, which may not be based on historical fact, including without limitation, statements containing the words believes, should, may, plan, will, estimate, predict, continue, anticipates, potential, intends, expects, or other similar expressions.
Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, events, or developments to be materially different from any future results, events, or developments expressed or implied by such forward-looking statements. Such factors include, among others, the company's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market the company's products, the ability to protect essential intellectual property, and dependence upon collaborative partners. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements are made as of the date thereof, and the company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future results, events, or developments.
For Q2 2024 financial results, all the numbers that I will mention have been rounded and are therefore approximate. The following figures are all in Canadian dollars. The Q2 2024 financial results reflect the closing of a sale of Kane Biotech's 67% interest in its STEM Animal Health subsidiary, which took place on April 12, 2024. The company recorded a gain of CAD 10.4 million on this transaction, which is offset by income tax loss carried forwards for income tax purposes. The following Q2 income statement results include the results of STEM Animal Health up to April 11, 2024. License and royalty income for the three months ended June 30, 2024, was CAD 300,000, an increase of 74% compared to 173,000 in the three months ended June 30, 2023.
The increase is due mainly to the company recognizing as licensed revenue the outstanding balance in contract liabilities related to the exclusive license and distribution agreement with Dechra Veterinary Products. There are no further obligations to Dechra under this agreement upon the sale of STEM. Product and services revenue for the three months ended June thirtieth, twenty twenty-four, was CAD 510,000, an increase of 5% compared to 484,000 in the three months ended June 30, 2023 . The increase is due mainly to incremental contract manufacturing revenue from Dechra subsequent to the sale of STEM, offset by the discontinuance of animal health product sales upon the sale of STEM.
Total revenue for the three months ended June 30, 2024, was CAD 810,000, an increase of 23% compared to 657,000 in the three months ended June 30, 2023. Gross profit for the Q2 of 2024 was CAD 464,000, an increase of 41% compared to 330,000 for the Q2 of 2023. Total operating expenses for the three months ended June 30, 2024, were CAD 1,520,000, an increase of 76% compared to CAD 866,000 for the three months ended June 30, 2023.
The increase, which is one-time and mostly non-cash, is primarily due to the combined effect totaling approximately CAD 700,000 of an adjustment to accrued salaries and short-term compensation expense in the comparative period, and expenditures related to the manufacturing scale-up of the company's Revive Antimicrobial Wound Gel in the current period. Net income for the Q2 of 2024 was CAD 9.2 million, compared to a net loss of CAD 968,000 for the quarter ended June 30, 2024. Net income in the current quarter reflects the gain on the sale of STEM Animal Health. Cash from continuing operations as of June 30, 2024, was CAD 1,010,000.
In connection with the completion of the sale of Kane's 67% equity in STEM Animal Health, a portion of the net sales proceeds was used to repay the loan from Pivot Financial of CAD 6.7 million. With that, I will now turn the call over to Marc.
Thank you, Ray, and thank you everyone for being on today's call. I have to say, it really feels like this flywheel we've been building and pushing on is finally starting to gain some momentum, and that everything we've been putting in place is coming to fruition. That certainly started at the beginning of the quarter with the sale of STEM to Dechra Veterinary Products. That allowed us to clean up our balance sheets, pay off all our interest-bearing debts, and refocus the company on biofilm-mitigated topical infections, with a strong emphasis on chronic non-healing wounds. A quick side note here. I wanna say thank you again to the team at Pivot Financial. They were real partners and really helped us out over these last few difficult years.
They were great partners, and thank you once again. Now, with regards to Revive, there has been a lot of activity starting at the end of the quarter when we completed the scale-up manufacturing process with our manufacturing partner, Halo. Now, for a variety of reasons, the order did not officially get released until the following Tuesday, which was the first business day of Q3 . So today's numbers do not reflect that shipment of our Revive Antimicrobial Wound Gel to ProGeniCare. Shortly after that, we announced that we had obtained our ISO 13485 Medical Device Single Audit Program, or MDSAP, certification, which has now allowed us to file for regulatory approval in Canada.
To be clear, the file has been submitted, but we needed to make some administrative adjustments to the file, and it is now moving forward. With the U.S. FDA 510(k) clearance, it's an accelerated process with Health Canada, so we're still hopeful to get the approval this quarter. More great news followed when the FDA agreed to remove the dosage limitation on our Revive Antimicrobial Wound Gel. This provides a clear pathway for our Revive Antimicrobial Wound Gel Spray. We believe the spray will be a key product in the burn market and will have strong military appeal. Also, with regards to our usage limitations, Salud Pharma, our partner in Colombia, Panama, and Costa Rica, had been waiting for that limitation removal to file a regulatory approval.
The dossier has now been submitted, and we're hopeful sales will start early next year. Finally, we signed two new distribution agreements with distributors in the United Arab Emirates and Qatar, with more deals to come before year-end. Now, I do read some of the discussion forums and wanna take a minute to address why we chose to build a network of local distributors, rather than sign a worldwide distribution agreement with a larger player. There's a number of reasons, but in a nutshell, we've chosen partners that are more dedicated to the brand, have a greater influence on. We have a greater influence on their success, and it also eliminates the risk of a global partner taking on the product and not giving it the full energy that it deserves.
Also, as we grow our portfolio, we can quickly add these new products to that, to that network. So a lot of exciting things going on with, with Revive. More distribution and line extensions to come, this year. Now, with regards to our DispersinB, and in particular, the trials, in acne, we're making very good progress at the University of Miami. We're still hopeful to start the acne proof of concept trial this year. We're finalizing the schedule at the university, and, we'll update investors on our progress shortly. We'll also be providing a more detailed updates on acne and the scientific rationale, explaining why we believe DispersinB will be a game changer. Dr. Jeffrey Kaplan has been doing a lot of research on this front, and the results are very compelling.
A good example of that is a publication we announced this morning. With regards to DispersinB and wound care, we're addressing all of the FDA's feedback and still believe we have a clear path forward to initiate the trial in H1 of next year. I also wanna highlight a few other successes we've had since my Q1 remarks. So we signed licensing agreements with I-MED Pharma for DispersinB. I-MED's a great little company, a great company out of Montreal. I wouldn't call them little, as well as Omni-Biotics for our DermaKB line. Finally, we announced CAD 200,000 of funding from NRC IRAP to expand our Revive portfolio. Once again, it's exciting to see our flywheel that we're building gaining some real momentum.
So with that, I'll turn it over to you, Victor, if there are any questions.
Thank you. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. One moment for any questions, and at this time, I'm not showing any questions. I would now like to turn it back to Marc Edwards, our CEO, for closing remarks.
Thank you, Victor. Thank you everyone for tuning in today. If investors do have any questions, please feel free to reach out. In closing, I just wanna say, I've been working very closely with our Executive Chairman these past few weeks, doing a little non-deal roadshow with investors and wanted to salute Dr. Robert Huizenga. It's been a real pleasure, and he's a tremendous contribution to the team and really a big part of our successes. It's not just good timing on his part there. He's really helping us push this up the hill. So thank you very much for everyone, and yeah, thanks for tuning in.
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.