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BIONIK Laboratories Announces Second Quarter Fiscal 2020 Financial Results

November 15, 2019 GMT

TORONTO & BOSTON--(BUSINESS WIRE)--Nov 15, 2019--

BIONIK Laboratories Corp. (OTCQB: BNKL) (“BIONIK” or the “Company”), a robotics company focused on providing rehabilitation and assistive technology solutions to individuals with neurological and mobility challenges from hospital to home, today announced financial results for the second quarter of fiscal year 2020, ended September 30, 2019.

Financial information for the second quarter of fiscal 2020:

Corporate highlights for the second fiscal quarter and recent weeks include:

Management Commentary

BIONIK continues to expect to achieve the following milestones during the remainder of fiscal year 2020:

Financial Results

Sales for the quarter ended September 30, 2019 were $281,691, compared with $547,085 for the quarter ended September 30, 2018. The decrease reflects the sale of two InMotion™ robots during the second quarter of fiscal 2020, including one ARM/HAND robotic device, compared with seven InMotion™ ARM robotic devices in the prior-year quarter. Ten robots have been sold year-to-date compared to 12 over the same period in 2018. In addition, deferred revenue, comprised of training to be provided and extended warranties, increased to $590,599 at September 30, 2019 from $467,778 at March 31, 2019. Extended warranties and training are important and growing parts of the Company’s business.

Gross margin for the quarter ended September 30, 2019 was $198,484 or 70.5%, compared to $163,012 or 27.8% for the quarter ended September 30, 2018. The higher gross margin has been achieved due to economies of scale deriving from higher volume outsourced manufacturing of the Company’s robots.

The Company reported a comprehensive loss for the quarter ended September 30, 2019 of $(3,382,684) or loss per share of $(0.87), and a comprehensive loss of $(5,503,328) or loss per share of $(1.42), for the six months ended September 30, 2019.

BIONIK had cash and cash equivalents of $4,674,868 as of September 30, 2019, compared to $446,779 as of March 31, 2019. The Company’s working capital at September 30, 2019 was $5,144,499, compared to a working capital of $479,408 as of March 31, 2019. The working capital increase at September 30, 2019 is due to the Company raising $9 million and converting these loans and interest into common shares at September 30, 2019.

About BIONIK Laboratories Corp.

BIONIK Laboratories is a robotics company focused on providing rehabilitation and mobility solutions to individuals with neurological and mobility challenges from hospital to home. The Company has a portfolio of products focused on upper and lower extremity rehabilitation for stroke and other mobility-impaired patients, including three products on the market and four products in varying stages of development.

For more information, please visit www.BIONIKlabs.com and connect with us on Twitter, LinkedIn, and Facebook.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “would,” “will,” “could,” “scheduled,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to the design, development and commercialization of human exoskeletons and other robotic rehabilitation products, (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, pipeline of potential sales, capital structure or other financial items, (iii) the Company’s future financial performance, (iv) the market and projected market for our existing and planned products and (v) the assumptions underlying or relating to any statement described in points (i), (ii), (iii) or (iv) above. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances, and may not be realized because they are based upon the Company’s current projections, plans, objectives, beliefs, expectations, estimates and assumptions, and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the Company’s inability to obtain additional financing, the inability to meet listing standards to uplist to a national stock exchange, the significant length of time and resources associated with the development of our products and related insufficient cash flows and resulting illiquidity, the Company’s inability to expand the Company’s business, significant government regulation of medical devices and the healthcare industry, lack of product diversification, volatility in the price of the Company’s raw materials, the extended lead-time needed to close on sales of products, and the Company’s failure to implement the Company’s business plans or strategies. These and other factors are identified and described in more detail in the Company’s filings with the SEC. The Company does not undertake to update these forward-looking statements.

BIONIK Laboratories Corp.

Condensed Consolidated Interim Balance Sheets

(Amounts expressed in US Dollars)

As at

As at

September 30,

March 31,

2019

2019

(Audited)

$

 

$

 

Assets

Current

Cash and cash equivalents

 

4,674,868

 

 

446,779

 

Accounts receivable, net of allowance for doubtful accounts of $Nil (March 31, 2018 - $19,694)

 

481,345

 

 

1,523,193

 

Prepaid expenses and other receivables

 

2,192,177

 

 

1,355,032

 

Inventories

 

1,037,058

 

 

405,682

 

Due from related parties

 

18,932

 

 

18,585

 

Total Current Assets

 

8,404,380

 

 

3,749,271

 

Equipment

 

232,640

 

 

192,528

 

Technology and other assets

 

4,289,094

 

 

4,427,722

 

Goodwill

 

22,308,275

 

 

2,308,275

 

Total Assets

 

35,234,389

 

 

30,677,796

 

 

 

Liabilities and Shareholders' Equity

Current

Accounts Payable

 

1,434,167

 

 

1,148,852

 

Accrued liabilities

 

1,164,998

 

 

1,653,233

 

Convertible Loans

 

70,117

 

 

-

 

Deferred revenue - Contract Liabilities

 

590,599

 

 

467,778

 

 

Total Current Liabilities

 

3,259,881

 

 

3,269,863

 

Shareholders' Equity

Preferred Stock, par value $0.001; Authorized 10,000,000 Special Voting Preferred Stock, par value

$0.001; Authorized; Issued and outstanding - 1 (March 31, 2019 – 1)

 

-

 

 

-

 

Common Shares, par value $0.001; Authorized - 500,000,000 (March 31, 2019 – 500,000,000); Issued
and outstanding 4,970,595 and 156,239 Exchangeable Shares (March 31, 2018 – 3,661,838 and
196,799 Exchangeable Shares)

 

5,126

 

 

3,858

 

Additional paid in capital

 

83,787,934

 

 

73,719,299

 

Deficit

 

(51,860,701

)

 

(46,357,373

)

Accumulated other comprehensive income

 

42,149

 

 

42,149

 

Total Shareholders' Equity

 

31,974,508

 

 

27,407,933

 

 

Total Liabilities and Shareholders' Equity

 

35,234,389

 

 

30,677,796

 

 

 

BIONIK Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive (Loss) For the six month periods ended September
30, 2019 and 2018

(Amounts expressed in U.S. Dollars)

Three months

Six months

Three months

Six months

ended

ended

ended

ended

September 30,
2019

September 30,
2019

September 30,
2018

September 30,
2018

$

 

$

 

$

 

$

 

Sales

 

281,691

 

 

1,072,070

 

 

547,085

 

 

1,048,418

 

Cost of Sales

 

83,207

 

 

419,292

 

 

384,073

 

 

637,236

 

Gross Margin

 

198,484

 

 

652,778

 

 

163,012

 

 

411,182

 

 

 

 

 

 

 

 

Operating expenses

Sales and marketing

 

584,775

 

 

1,168,507

 

 

427,325

 

 

969,984

 

Research and development

 

886,060

 

 

1,702,583

 

 

679,049

 

 

1,355,792

 

General and administrative

 

1,199,938

 

 

2,041,631

 

 

931,477

 

 

1,910,956

 

Share-based compensation expense

 

638,219

 

 

925,976

 

 

439,328

 

 

1,034,740

 

Amortization

 

69,314

 

 

138,628

 

 

69,315

 

 

140,368

 

Depreciation

27,059.

 

51,029

 

 

16,626

 

 

34,221

 

Total operating expenses

 

3,405,365

 

 

6,028,354

 

 

2,563,120

 

 

5,446,061

 

 

Other (income) expenses

Accretion expense

 

-

 

 

-

 

 

1,970,167

 

 

2,104,418

 

Fair Value Adjustment

 

-

 

 

-

 

 

(382,010

)

 

(337,923

)

Gain/Loss on mark to market reevaluation

 

-

 

 

-

 

 

-

 

 

(2,048,697

)

Other expense

 

170,739

 

 

185,035

 

 

22,712

 

 

60,132

 

Foreign exchange

 

5,064

 

 

(57,283

)

 

(27,872

)

 

(69,006

)

Total other expenses (income)

 

175,803

 

 

127,752

 

 

1,582,997

 

 

(291,076

)

Net loss and comprehensive loss for the period

 

(3,382,684

)

 

(5,503,328

)

 

(3,983,105

)

 

(4,743,803

)

 

Loss per share - basic and diluted

 

(0.87

)

 

(1.42

)

 

(1.62

)

 

(2.02

)

 

Weighted average number of shares outstanding –
basic and diluted

 

3,872,428

 

 

3,865,573

 

 

2,459,169

 

 

2,351,587

 

 

BIONIK Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows

for the six months periods ended September 30, 2019 and 2018

(Amounts expressed in U.S. Dollars)

 

Three months
ended

Three months
ended

September 30,
2019

September 30,
2018

 

$

 

$

 

Operating activities

 

 

Net loss for the period

 

(5,503,328

)

 

(4,743,803

)

Adjustment for items not affecting cash

 

 

Depreciation

 

51,029

 

 

34,221

 

Amortization

 

138,628

 

 

140,368

 

Interest expense

 

167,877

 

 

57,716

 

Share based compensation expense

 

925,976

 

 

1,034,740

 

Accretion expense

 

-

 

 

2,104,418

 

Fair Value Adjustment

 

-

 

 

(337,923

)

Gain/Loss on mark to market reevaluation

 

-

 

 

(2,048,697

)

Allowance for doubtful accounts

 

-

 

 

(1,995

)

 

 

(4,219,818

)

 

(3,760,955

)

Changes in non-cash working capital items

 

 

Accounts receivable

 

1,041,848

 

 

(303,033

)

Prepaid expenses and other receivables

 

(837,145

)

 

(417,524

)

Due from related parties

 

(347

)

 

(16

)

Inventories

 

(631,376

)

 

44,817

 

Accounts payable

 

285,315

 

 

181,765

 

Accrued liabilities

 

(512,068

)

 

(567,320

)

Customer advances

 

-

 

 

(800

)

Deferred revenue

 

122,821

 

 

11,494

 

Net cash (used in) operating activities

 

(4,750,770

)

 

(4,811,572

)

Investing activities

Acquisition of equipment

 

(91,141

)

 

(13,640

)

Net cash (used in) investing activities

 

(91,141

)

 

(13,640

)

Financing activities

 

 

Proceeds from convertible loans

 

9,070,000

 

 

4,676,633

 

Repayment of Demand notes principal

 

-

 

 

(50,000

)

Repayment of Demand notes interest

 

-

 

 

(2,975

)

Proceeds from short term loan

 

500,000

 

 

-

 

Repayment of short term loan

 

(500,000

)

 

-

 

Net cash provided by financing activities

 

9,070,000

 

 

4,623,658

 

Net increase (decrease) in cash and cash equivalents for the period

 

4,228,089

 

 

(201,554

)

Cash and cash equivalents, beginning of period

 

446,779

 

 

507,311

 

Cash and cash equivalents, end of period

 

4,674,868

 

 

305,757

 

 

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CONTACT: Media:

Matt Bretzius

FischTank Marketing and PR

matt@fischtankpr.com

KEYWORD: UNITED STATES NORTH AMERICA CANADA MASSACHUSETTS

INDUSTRY KEYWORD: SOFTWARE BIOTECHNOLOGY MEDICAL SUPPLIES GENERAL HEALTH HEALTH MEDICAL DEVICES DATA MANAGEMENT TECHNOLOGY

SOURCE: BIONIK Laboratories Corp.

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