Kelyniam Global Releases 2nd Quarter 2021 Financials Maintains Profitability - Covid Challenges Continue

Rhea-AI Summary

Kelyniam Global (OTC:KLYG) reported financial results for the first half of 2021, showing a revenue decline of 3.25% to $1,224,059 compared to $1,265,235 in 2019. Operating income fell significantly from $181,395 to $47,167, with net income dropping from $184,567 to $5,544. Delays from the Covid-19 pandemic affected surgery schedules, impacting revenue generation. Kelyniam announced that $144,000 of its Paycheck Protection Plan loan will be forgiven, affecting the 3rd quarter's accounting. The company is also addressing FDA audit findings amid supply chain delays.

Positive

• Kelyniam maintained profitability despite ongoing Covid-19 challenges.
• The company will benefit from the forgiveness of a $144,000 Paycheck Protection Plan loan.

Negative

• Total revenue decreased by 3.25% compared to 2019.
• Operating income reduced from $181,395 to $47,167.
• Net income fell sharply from $184,567 to $5,544.
• Supply chain delays have hindered the completion of FDA audit requirements.

CANTON, Conn., Aug. 23, 2021 /PRNewswire/ -- Kelyniam Global (OTC:KLYG), a maker of custom cranial implants, today announced results for its half year ended June 30, 2021. 

"Period comparisons for 2021 and 2020 are very difficult to evaluate due to the multiple effects of the Covid 19 pandemic in 2020.  The second quarter of 2020 results were uniquely affected due to a backlog of surgeries after the lifting of state mandated restrictions.  We have not seen a similar rebound effect yet in 2021. Despite ongoing surgery delays in 2021 due to the pandemic, Kelyniam continued to operate profitably during the 1^st half of the year," said Ross Bjella, Kelyniam's CEO. 

Financial performance for the six months ended June 30, 2021 compared to the six months over the same period in 2019 includes:

• Total revenue of $ 1,224,059 compared to $1,265,235, a decrease of 3.25% in sales revenue
• Operating income of $47,167 compared to $181,395
• Net Income $5,544 compared to $184,567 over the prior year

The complete financials can be found on the company's website at www.Kelyniam.com.

Events that significantly affected the quarter financially included:

• Kelyniam will be issuing US GAAP-basis financials going forward associated with a new SEC rule on the submission of current financial information through the broker portal of OTC Markets.
• The Company was notified in early July that it's second balance of the Paycheck Protection Plan loan balance of $144,000 was to be forgiven. The accounting effects of this forgiveness will occur in the 3^rd quarter.

Pursuant to a previous set of FDA 483 observations in 2019, the Company was audited in July 2021.  While the Company successfully remediated several of the '19 findings, the pandemic created supply chain delays making it impossible for the company to complete the validation of certain equipment and processes identified during the previous audit.  Kelyniam continues to work with the FDA to resolve these recent audit observations, primarily around document control and certain process and equipment validations.  The Company will provide its response to the FDA during the next two weeks.

Kelyniam Inc., specializes in the rapid production of custom prosthetics utilizing computer aided design and computer aided manufacturing of advanced medical grade polymers.  The Company develops, manufactures, and distributes custom cranial and maxillo-facial implants for patients.  Kelyniam works directly with surgeons, health systems and payors to improve clinical and cost-of-care outcomes. Kelyniam's web site address is www.Kelyniam.com.

As a cautionary note to investors, certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its service and product sales plans; changes in the status of ability to market products; and the risks described from time to time in the Company's SEC reports. 

 

View original content:https://www.prnewswire.com/news-releases/kelyniam-global-releases-2nd-quarter-2021-financials-maintains-profitability---covid-challenges-continue-301360283.html

SOURCE Kelyniam Global, Inc.

FAQ

What were Kelyniam Global's financial results for the second quarter of 2021?

Kelyniam reported a revenue decrease to $1,224,059, operating income of $47,167, and net income of $5,544 for the first half of 2021.

How did the Covid-19 pandemic impact Kelyniam Global's performance?

Kelyniam faced surgery delays due to the pandemic, which affected revenue generation and overall financial performance.

What significant financial event occurred for Kelyniam Global in July 2021?

Kelyniam was notified that $144,000 of its Paycheck Protection Plan loan was forgiven, impacting future financial statements.

What are the potential concerns regarding Kelyniam Global's FDA audit?

Kelyniam is addressing FDA audit findings but has faced supply chain delays that hindered the validation of necessary equipment and processes.

What is the stock symbol for Kelyniam Global?

Kelyniam Global's stock symbol is KLYG.