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BIONIK Laboratories Announces Fiscal 2021 Q2 Financial Results

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BIONIK Laboratories Corp. (OTCQB: BNKL), 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 its second quarter of fiscal year 2021, ending September 30, 2020.

Financial highlights for the second quarter of fiscal 2021 and recent weeks include:

● Reported sales have increased by 3.8%, compared to the prior-year quarter.

● Gross margins for the quarter were $222,334 or 76% on the sale of InMotion robots, Connect and Pulse, compared to $198,484 or 70% in the prior-year quarter.

● An existing robotic device customer purchased and subscribed to InMotion Connect™ and deployed the service in 22 of its hospitals across 13 states.

● During the COVID-19 pandemic, the Company continued to ship InMotion robots to customers in the U.S.

Corporate highlights for the second quarter of fiscal 2021 and recent weeks include:

● Following its launch on June 25, 2020, the Company deployed InMotion Connect™, a cloud-based data analytics solution, which combines real-time robot data with deep expertise of BIONIK’s clinical specialists to partner with each clinic, promoting robot utilization, supporting clinician engagement, and enhancing patient care by providing contextual and relevant data to reach hospital clinicians and management teams when it matters the most. The Company continues to customize the solution by developing new functionalities including smart actions to improve the decision process.

● In October 2020, the Company placed an InMotion Connect™ solution at another strategic account, for evaluation and possible sales across that account’s hospital network.

Management Commentary

Commenting on the quarter, Dr. Eric Dusseux, BIONIK’s Chief Executive Officer, said, "Following the launch of InMotion Connect™, we are seeing good traction in targeting the critical needs around improving technology adoption and utilization at each rehabilitation clinic we serve. Through this new platform, we can ensure that the state-of-the-art rehabilitation methods are effectively in use across the hospital networks. We sold and deployed, during the second quarter of fiscal year 2021, InMotion Connect™ solutions within 22 hospitals across 13 states in the U.S. and look forward to our customers’ continued and long-term use of the many solutions InMotion Connect™ offers. We have already seen the impact at many of our client sites, showing the benefit and ROI to our customers, the clinicians, the hospital management and the headquarter teams. Feedback received to-date suggests that these teams are seeing improved performance and most importantly, are now more confident in the process to increase their internal objectives and are moving to share transparently the metrics for these newly increased targets within their organization. Our R&D team is focused on continuing its work to improve the InMotion Connect™ solution, expanding the functionalities and including smart actions to better support the decision making and management process at our client’s sites. With the COVID-19 pandemic, we are continuing to operate under a modified plan to reduce costs and otherwise address the effects on our business caused by COVID-19."

BIONIK continues to expect to achieve the following milestones during fiscal year 2021:

● Continue to expand sales channels in North America and abroad.

● Further develop InMotion Connect™ solutions to serve clinical rehabilitation providers.

● 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 data solutions, service contracts and warranties.

Financial Results:

Sales for quarter ended September 30, 2020 were $292,381, compared with $281,691 for the quarter ended September 30, 2019. The increase reflects the sale of one InMotion robot sold during the COVID-19 pandemic quarter ended September 30, 2020 compared to two InMotion robots in the prior-year quarter, and 22 InMotion Connect™ solutions, including hardware and subscriptions, following the InMotion Connect™ launch at the end of June 2020. In addition, deferred revenue, comprised of training to be provided and extended warranties, decreased to $526,250 at September 30, 2020 from $616,063 at March 31, 2020. The Company believes that extended warranties and training are important to growing parts of its business.

Gross margin for the quarter ended September 30, 2020 was $222,334, or 76%, on the sale of InMotion robots, Connect and Pulse, compared to $198,484, or 70%, for the quarter ended September 30, 2019.

The Company reported a comprehensive loss for the quarter ended September 30, 2020 of $(1,627,622), or a loss per share of $(0.32), compared with a comprehensive loss of $(3,382,684), or a loss per share of $(0.87), for the quarter ended September 30, 2019. The decrease in the loss is due to a reduction of employees by 30% between March 31, 2020 and September 30, 2020 primarily due to completion of engineering projects connected with the development of InMotion Connect™. BIONIK had cash and cash equivalents of $1,350,627 as of September 30, 2020, compared to $2,269,747 as of March 31, 2020. The Company’s working capital deficit at September 30, 2020 was $2,306,282 compared to a working capital surplus of $626,923 as of March 31, 2020. The working capital deficit at September 30, 2019 is due to convertible loans received by the Company during the six months 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 two 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," "possible," "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 robotic rehabilitation products and other Company 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 impact on the Company’s business as a result of the Covid-19 pandemic, 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 (unaudited)

(Amounts expressed in US Dollars)

As at

As at

September 30,
2020

March 31,
2020

$

$
(Audited)

Assets

Current

Cash and cash equivalents

1,350,627

2,269,747

Accounts receivable

657,615

846,964

Prepaid expenses and other receivables

1,671,298

1,632,555

Inventories

890,321

1,059,462

Due from related parties

19,151

17,840

Total Current Assets

4,589,012

5,826,568

Equipment

119,913

154,144

Technology and other assets

1,402,916

1,449,924

Goodwill

11,085,984

11,085,984

Total Assets

17,197,825

18,516,620

Liabilities and Shareholders' Equity

Current

Accounts Payable

529,618

857,093

Accrued liabilities

1,616,625

1,647,656

PPP Loan

459,912

-

Convertible Loans

3,762,889

2,078,833

Deferred revenue - Contract Liabilities

526,250

616,063

Total Current Liabilities

6,895,294

5,199,645

Shareholders' Equity

Preferred Stock, par value $0.001; Authorized 10,000,000 (March 31, 2020 – 10,000,000) Special Voting Preferred Stock, par value $0.001; Authorized; Issued and outstanding - 1 (March 31, 2020 – 1)

-

-

Common Shares, par value $0.001; Authorized - 500,000,000; (March 31, 2020 – 500,000,000) Issued and outstanding 5,009,151 and 117,683 Exchangeable Shares (March 31, 2020 – 5,009,151 and -117,683)

5,126

5,126

Additional paid in capital

85,263,824

84,643,570

Deficit

(75,008,568

)

(71,373,870

)

Accumulated other comprehensive income

42,149

42,149

Total Shareholders' Equity

10,302,531

13,316,975

Total Liabilities and Shareholders' Equity

17,197,825

18,516,620

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

For the three and six month periods ended September 30, 2020 and 2019 (unaudited)

(Amounts expressed in U.S. Dollars)

Three
months
ended

Six months
ended

September
30, 2020

Three
months
ended

Six months
ended

September
30, 2019

September
30, 2020

September
30, 2019



$

$

$

$

Sales

292,381

550,289

281,691

1,072,070

Cost of Sales

70,047

132,602

83,207

419,292

Gross Margin

222,334

417,687

198,484

652,778

Operating expenses

Sales and marketing

244,262

467,447

584,775

1,168,507

Research and development

410,507

763,770

886,060

1,702,583

General and administrative

858,410

1,986,920

1,199,938

2,041,631

Share-based compensation expense

212,939

620,254

638,219

925,976

Amortization

23,504

47,008

69,314

138,628

Depreciation

16,119

34,231

27,059

51,029

Total operating expenses

1,765,741

3,919,630

3,405,365

6,028,354

Other (income) expenses

Other expense

111,408

186,383

170,739

185,035

Other income

(46,178

)

(83,790

)

-

-

Foreign exchange

18,985

30,162

5,064

(57,283

)

Total other expenses (income)

84,215

132,755

175,803

127,752

Net (loss) and comprehensive (loss) for the period

(1,627,622

)

(3,634,698

)

(3,382,684

)

(5,503,328

)

Loss per share – basic and diluted

(0.32

)

(0.71

)

(0.87

)

(1.42

)

Weighted average number of shares outstanding – basic and diluted

5,126,834

5,126,834

3,872,428

3,865,573

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows

For the six month periods ended September 30, 2020 and 2019 (unaudited)

(Amounts expressed in U.S. Dollars)

Six months ended

Six months ended

September 30, 2020
$

September 30, 2019
$

Operating activities

Net loss for the period

(3,634,698

)

(5,503,328

)

Adjustment for items not affecting cash

Depreciation

34,231

51,029

Amortization

47,008

138,628

Interest expense

181,481

167,877

Share based compensation expense

620,254

925,976

(2,751,724

)

(4,219,818

)

Changes in non-cash working capital items

Accounts receivable

189,349

1,041,848

Prepaid expenses and other receivables

(38,743

)

(837,145

)

Due from related parties

(1,311

)

(347

)

Inventories

169,141

(631,376

)

Accounts payable

(327,475

)

285,315

Accrued liabilities

(31,031

)

(512,068

)

Deferred revenue

(89,813

)

122,821

Net cash (used in) operating activities

(2,881,607

)

(4,750,770

)

Investing activities

Acquisition of equipment

-

(91.141

)

Net cash (used in) investing activities

-

(91,141

)

Financing activities

Proceeds from convertible loans

1,502,575

9,070,000

Proceeds from PPP Loan

459,912

-

Repayment of term loan

-

(500,000

)

Proceeds from term loan

-

500,000

Net cash provided by financing activities

1,962,487

9,070,000

Net increase in cash and cash equivalents for the period

(919,120

)

4,228,089

Cash and cash equivalents, beginning of the period

2,269,747

446,779

Cash and cash equivalents, end of the period

1,350,627

4,674,868

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005302/en/

Contacts

Media contact:
Matthew Bretzius
FischTank PR
matt@fischtankpr.com