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PRNewswire
Articles 

Bionik Laboratories Reports Third Quarter Fiscal Year 2018 Financial Results

February 13, 2018 | About:

PR Newswire

TORONTO and BOSTON, Feb. 13, 2018 /PRNewswire/ -- 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 its third quarter fiscal year 2018 financial results for the three and nine months ended December 31, 2017.

Bionik Laboratories Corp. logo (PRNewsFoto/Bionik Laboratories Corp.)

Corporate Highlights

  • Named André Auberton-Hervé, PhD, Chairman of the Board of Directors
  • Dedicated significant commercial and technical resources to the launch of the new generation of InMotion Arm product, including development of significant pipeline of potential customers
  • Signed agreement with Cogmedix to outsource manufacturing, to increase Company's ability to scale faster and meet larger demand following the enhanced version of InMotion launch.
  • Continued development of an InMotion Home product, based on the same clinical concepts and rehabilitation protocols supported by significant clinical data.
  • Entered into a series of agreements to issue convertible notes for a total of $1,901,260 since the end of September 2017 from current and new investors of the Company based in Europe, who have provided total convertible loan funding including interest, fair value of warrants and accretion expense of $5,347,359.
  • New pipe funding of $1,200,000 was closed before December 31, 2017 and $606,400 of additional funding was closed subsequent to December 31, 2017 to date.
  • Entered into a short term loan for $500,000 due March 31, 2018 from one of its directors.
  • Continued development of a lower limb assistive exoskeleton for individual consumers with impaired mobility through previously announced partnership with Wistron Corporation.
  • Progressing through various application processes, as it continues execution of the Chinese joint venture signed earlier this year.

"We are confident that the recent launch of our next generation InMotion product will strengthen the commercial pipeline we have built over the last year. Having already placed the first units at major customer hospitals validates the industrial and commercial strategy implemented last year," said Dr. Eric Dusseux, Chief Executive Officer and Director of Bionik Laboratories Corp. "The new agreement with manufacturing partner Cogmedix will increase our production capacity. At the same time, we continue to develop momentum with the key partnerships and joint ventures formed over the summer and have made significant progress as we focus on high growth opportunities within the consumer market."

Summary of Financial Results for the Quarter ended December 31, 2017

The Company reported sales of $260,960 for the quarter ended December 31, 2017, as compared to sales of $372,426 for the quarter ended December 31, 2016 and nine month ended sales were $570,327 in 2017 and $553,900 in 2016.

Cost of goods sold was $88,357 and margin was 66% for the quarter ended December 31, 2017 compared to $334,786 and a margin of 10% for the quarter ended December 31, 2016 due to inventory write-offs in 2016.

For the quarter ended December 31, 2017, the Company reported a comprehensive loss of $(2,580,759) resulting in a loss per share of $(0.03), compared to a comprehensive loss of $(1,581,759) for the quarter ended December 31, 2016, resulting in loss per share of $(0.02).

The Company's cash and cash equivalents at December 31, 2017 was $998,661 compared to $136,080 at September 30, 2017 as a result of the issuance of additional convertible promissory notes. Working capital deficit was ($8,535,488) at December 31, 2017 compared to ($6,492,048) at September 30, 2017.

Bionik Laboratories Corp.

Condensed Consolidated Interim Balance Sheets

(Amounts expressed in US Dollars)



As at
December 31,
2017
(Unaudited)
$

As at
March 31,
2017
(As adjusted)
$

Assets



Current



Cash and cash equivalents

998,661

543,650

Accounts receivable, net of allowance for doubtful accounts of $16,349 (March 31, 2017 - $10,000)

306,572

383,903

Prepaid expenses and other receivables

145,044

228,047

Inventories

302,414

228,249

Due from related parties

19,374

18,731

Total Current Assets

1,772,065

1,402,580

Equipment

174,997

227,421

Technology and other assets

4,783,704

5,030,624

Goodwill

22,308,275

22,308,275

Total Assets

29,039,041

28,968,900

Liabilities and Shareholders' Deficiency



Current



Accounts Payable

794,875

784,771

Accrued liabilities

1,868,225

1,228,657

Customer advances

800

121,562

Demand Notes Payable

50,000

330,600

Promissory Notes payable

-

236,548

Convertible Loans Payable

7,079,852

2,017,488

Short term loan

400,000

-

Deferred revenue

113,801

98,624

Total Current Liabilities

10,307,553

4,818,250

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, 2017 – 1)

-

-

Common Shares, par value $0.001; Authorized - 250,000,000 (March 31, 2017 – 150,000,000);

Issued and outstanding 53,885,279 and 45,909,336 Exchangeable Shares (March 31, 2017 –

48,885,107 and 47,909,336 Exchangeable Shares)

101,794

96,794

Additional paid in capital

48,081,670

45,088,171

Shares to be issued

60,000

-

Deficit

(29,554,125)

(21,076,464)

Accumulated other comprehensive income

42,149

42,149

Total Shareholders' Equity

18,731,488

24,150,650

Total Liabilities and Shareholders' Equity

29,039,041

28,968,900

Bionik Laboratories Corp.
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss for the three and nine month periods ended December 31, 2017 and 2016 (unaudited)
(Amounts expressed in U.S. Dollars)







Three months
ended Dec.

Nine months
ended Dec.

Three months
ended Dec.

Nine months
ended Dec.

31, 2017

31, 2017

31, 2016

31, 2016

$
(Unaudited)

$
(Unaudited)

$
(As adjusted)

$
(As adjusted)

Sales

260,960

570,327

372,426

553,900

Cost of Sales

88,357

177,482

334,786

405,680

Gross Margin

172,603

392,845

37,640

148,220






Operating expenses





Sales and marketing

432,260

1,313,077

377,046

646,509

Research and development

546,350

1,947,659

571,671

1,803,234

General and administrative

783,784

2,916,917

409,669

2,291,136

Share compensation expense

271,001

1,284,257

227,540

651,630

Convertible debt accretion

216,302

290,375

-

-

Amortization

76,985

246,920

-

-

Depreciation

21,234

69,606

24,028

57,781

Total operating expenses

2,347,916

8,068,811

1,609,954

5,450,290






Other expenses (income)





Foreign Exchange

(11,485)

102,671

-

-

Interest expense

416,990

657,350

13,808

23,839

Other income

(59)

649

(4,363)

(410,877)

Total other expenses (income)

405,446

760,670

9,445

(387,038)






Net loss and comprehensive loss for the period

(2,580,759)

(8,436,636)

(1,581,759)

(4,915,032)






Loss per share – basic

(0.03)

$ (0.08)

(0.02)

(0.05)

Loss per share – diluted

(0.03)

$ (0.08)

$ (0.02)

$ (0.05)






Weighted average number of shares outstanding – basic

101,794,615

99,335,514

96,362,541

90,286,864

Weighted average number of shares outstanding – diluted

101,794,615

99,335,514

96,362,541

90,286,864

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows for the nine months periods


ended December 31, 2017 and 2016 (unaudited)

(Amounts expressed in U.S. Dollars)


Nine months

Nine months


ended

ended


December 31,

December 31,


2017

2016


$

$


(Unaudited)

(As adjusted)

Operating activities



Net loss for the period

(8,436,636)

(4,915,032)

Adjustment for items not affecting cash



Depreciation

69,606

57,781

Amortization

246,920

-

Interest expense

640,168

23,839

Share based compensation expense

1,284,257

592,130

Convertible debt accretion

290,375

-

Shares issued for services

60,000

59,500

Allowance for doubtful accounts

(16,349)

-


(5,861,659)

(4,181,782)

Changes in non-cash working capital items



Accounts receivable

93,680

(247,359)

Prepaid expenses and other receivables

83,003

95,562

Due from related parties

(643)

532

Inventories

(74,165)

(120,894)

Accounts payable

10,104

(720,573)

Accrued liabilities

639,568

(492,047)

Customer advances

(120,762)

28,000

Deferred revenue

15,177

97,615

Net cash used in operating activities

(5,215,697)

(5,540,946)

Investing activities



Acquisition of equipment

(17,182)

(9,827)

Net cash used in investing activities

(17,182)

(9,827)

Financing activities



Proceeds from convertible loans

4,699,975

483,333

Proceeds on exercise of warrants

1,125,038

-

Repayment of Promissory note principal

(200,000)

-

Repayment of Promissory note interest

(49,505)

-

Repayment of Demand notes principal

(208,359)

-

Repayment of Demand notes interest

(79,259)

-

Proceeds from short term loan

400,000

-

Cash acquired on acquisition

-

266,635

Net cash provided by financing activities

5,687,890

749,968

Net decrease in cash and cash equivalents for the period

455,011

(4,800,805)

Cash and cash equivalents, beginning of period

543,650

5,381,757

Cash and cash equivalents, end of period

998,661

580,952




Supplemental Information:



Assets acquired and liabilities assumed as at April 21, 2016:



Current assets, including cash of $266,635

478,843


Equipment

59,749


Intangible assets

5,580,704


Goodwill

22,308,275


Accounts payable

(241,299)


Accrued liabilities

(361,029)


Customer deposits

(86,487)


Demand notes payable

(324,894)


Promissory Notes payable

(217,808)


Bionik advance

(1,436,164)


Non-cash consideration

25,759,890


The above financial information has been derived from the Company's unaudited consolidated condensed financial statements as of December 31, 2017 and 2016, and should be read in conjunction with the consolidated financial statements, including the notes thereto, found in the Company's Quarterly Report on Form 10-Q filed with the SEC on February 13, 2018 and Annual Report on Form 10-K for the year ended March 31, 2017 filed with the SEC on June 29, 2017.

The Company will require additional financing this year to fund its operations and it is currently working on securing this funding through corporate collaborations, public or private equity offerings and/or debt financings, and is subject to a going concern qualification.

About Bionik Laboratories Corp.

Bionik Laboratories (OTCQB:BNKL) 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 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.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/bionik-laboratories-reports-third-quarter-fiscal-year-2018-financial-results-300598255.html

SOURCE Bionik Laboratories Corp.


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