BIONIK Laboratories’ Fiscal Year 2020 Q1 Financial Results Feature 57% Increase in Sales

TORONTO & BOSTON–(BUSINESS WIRE)–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, yesterday announced financial results for its first quarter of fiscal year 2020, ended June 30, 2019.

Financial highlights for the first quarter of fiscal year 2020 ended June 30, 2019 and recent weeks include:

  • Sales increased to $790,379 for Q1 2020 compared to $501,333 for Q1 2019.
  • Margins increased to 57.5% in Q1 2020 from 49.5% in Q1 2019.

Corporate highlights for the first quarter of fiscal year 2020 ended June 30, 2019 and recent weeks include:

  • Completed the sale of three InMotion™ Arm therapy robots including the recently released InMotion™ Arm/Hand system to Bionik (China) Medical Technology Co. Ltd. as part of the progressive implementation of our joint venture which we entered into in 2017 and sold five InMotion™ robots to U.S. customers

Management Commentary

Commenting on the quarter, Dr. Eric Dusseux, M.D., BIONIK’s Chief Executive Officer, said, “”I am very pleased with the excellent progress we made in the U.S. with our next-generation system offering enhanced functionality to support clinical rehabilitation of stroke survivors and those with mobility impairments due to neurological conditions. During last year’s second fiscal quarter we shipped three InMotion™ Arm therapy robots to our 2017 joint venture, BIONIK (China) Medical Technology Co., Ltd., and we matched it this quarter by also shipping it three InMotion™ Arm/Hand therapy robots. The robots will be used for testing to support State Drug Administration approval in China. We are very excited by this progress and hope that we will be able to address rehabilitation for the 2.4 million new stroke patients each year in China. Beyond the clinical InMotion™ line of products, through our development program, we also look forward to penetrating the at-home markets in the U.S. and abroad in the future.”

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

  • Continue to expand sales channels in North America and abroad.
  • Further develop InMotion™ robotic products to serve clinical rehabilitation providers and to provide home-based solutions for extended rehabilitation therapy and mobility enhancement.
  • Work with our commercial outsourced manufacturing partner to enhance effectiveness in order to support the expected increase in product demand and introduction of new products.
  • Increase sales of service contracts and warranties.

Financial Results

Sales for quarter ended June 30, 2019 were $790,379, compared with $501,333 for the quarter ended June 30, 2018. The increase reflects the sale of eight InMotion™ last generation commercial robots during the quarter. In addition, deferred revenue, comprised of training to be provided and extended warranties, increased to $525,794 at June 30, 2019 from $467,778 at March 31, 2019, a 12.4% increase, and from $129,784 at June 30, 2018, a 305.1% increase. The Company believes that extended warranties and training are important and growing parts of its business.

Gross margin for the quarter ended June 30, 2019 was $454,294 or 57.5%, compared to $248,170 or 49.5% for the quarter ended June 30, 2018. The higher gross margin has been achieved due to higher average selling prices for the period and the economies of scale deriving from higher volume manufacturing of our robots.

The Company reported a comprehensive loss for the quarter ended June 30, 2019 of $(2,120,644), or a loss per share of $(0.55), compared with a comprehensive loss of $(760,698), or a loss per share of $(0.44), for the quarter ended June 30, 2018. The higher loss is principally due to a gain on mark to market re-evaluation recorded in the quarter ended June 30, 2018 which decreased the loss in 2018 by $2,048,697.

BIONIK had cash and cash equivalents of $530,031 as of June 30, 2019, compared with $446,779 as of March 31, 2019. The Company’s working capital deficit at June 30, 2019 was $802,997 compared to a working capital surplus of $479,408 as of March 31, 2019. The working capital deficit at June 30, 2019 is due to convertible loans received by the Company during the quarter being recorded as current liabilities rather than in equity when the loans are converted.

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 three 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, 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

June 30,

 

March 31,

2019

 

2019

 

 

(audited)

$

 

$

Assets

 

 

 

Current

 

Cash and cash equivalents

530,031

 

446,779

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

1,027,012

 

1,523,193

Prepaid expenses and other receivables

1,194,727

 

1,355,032

Inventories

582,058

 

405,682

Due from related parties

19,068

 

18,585

Total Current Assets

3,352,896

 

3,749,271

Equipment

211,360

 

192,528

Technology and other assets

4,358,408

 

4,427,722

Goodwill

22,308,275

 

22,308,275

Total Assets

30,230,939

 

30,677,796

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current

 

Accounts Payable

1,055,017

 

1,148,852

Accrued liabilities

1,620,632

 

1,653,233

Convertible Loans

954,450

 

Deferred revenue

525,794

 

467,778

Total Current Liabilities

4,155,893

 

3,269,863

Long term

 

Term loan

500,000

 

Total Liabilities

4,655,893

 

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 3,702,398 and 156,239 Exchangeable Shares

(March 31, 2019 – 3,661,838 and 196,799 Exchangeable Shares)

3,858

 

3,858

Additional paid in capital

74,007,056

 

73,719,299

Deficit

(48,478,017)

 

(46,357,373)

Accumulated other comprehensive income

42,149

 

42,149

Total Shareholders’ Equity

25,575,046

 

27,407,933

Total Liabilities and Shareholders’ Equity

30,230,939

 

30,677,796

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

For the three month periods ended June 30, 2019 and 2018 (unaudited)

(Amounts expressed in U.S. Dollars)

Three months

 

Three months

ended

 

ended

June 30, 2019

 

June 30, 2018

$

 

$

Sales

790,379

 

501,333

Cost of Sales

336,085

253,163

Gross Margin

454,294

 

248,170

 

Operating expenses

 

 

 

Sales and marketing

583,732

542,659

Research and development

816,523

 

676,743

General and administrative

841,693

979,479

Share-based compensation expense

287,757

 

595,412

Amortization

69,314

71,053

Depreciation

23,970

 

17,595

Total operating expenses

2,622,989

2,882,941

 

 

 

 

Other (income) expenses

Accretion expense

 

134,251

Fair Value Adjustment

 

44,087

Gain/Loss on mark to market re-evaluation

(2,048,697)

Other expense

14,296

 

37,420

Foreign exchange

(62,347)

 

(41,134)

Total other expenses

(48,051)

(1,874,073)

Net loss and comprehensive loss for the period

(2,120,644)

 

(760,698)

 

Loss per share – basic and diluted

(0.55)

 

(0.44)

 

Weighted average number of shares outstanding – basic and diluted

3,858,637

 

1,716,728

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows

For the three months periods ended June 30, 2019 and 2018 (unaudited)

(Amounts expressed in U.S. Dollars)

 

Three months

ended

 

Three months

ended

June 30, 2019

 

June 30, 2018

 

$

 

$

Operating activities

 

 

 

Net loss for the period

(2,120,644)

(760,698)

Adjustment for items not affecting cash

 

 

 

Depreciation

23,970

17,595

Amortization

69,314

 

71,053

Interest expense

13,283

36,702

Share based compensation expense

287,757

 

595,412

Accretion expense

 

134,251

Fair Value Adjustment

44,087

Gain/Loss on mark to market re-evaluation

 

(2,048,697)

Allowance for doubtful accounts

(19,694)

 

(1,726,320)

 

(1,929,989)

Changes in non-cash working capital items

 

 

Accounts receivable

496,181

 

(137,756)

Prepaid expenses and other receivables

160,305

(51,783)

Due from related parties

(483)

 

350

Inventories

(176,376)

81,648

Accounts payable

(93,835)

 

11,468

Accrued liabilities

(41,434)

(402,141)

Deferred revenue

58,016

7,117

Net cash (used in) operating activities

(1,323,946)

 

(2,421,086)

Investing activities

Acquisition of equipment

(42,802)

 

(7,844)

Net cash (used in) investing activities

(42,802)

(7,844)

Financing activities

 

 

 

Proceeds from convertible loans

950,000

 

2,934,298

Repayment of Demand notes principal

(50,000)

Repayment of Demand notes interest

 

(2,975)

Proceeds from term loan

500,000

Net cash provided by financing activities

1,450,000

 

2,881,323

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

83,252

452,393

Cash and cash equivalents, beginning of period

446,779

 

507,311

Cash and cash equivalents, end of period

530,031

959,704

 

Contacts

Matt Bretzius 

FischTank Marketing and PR 

[email protected]

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