BIONIK Laboratories Announces Fiscal 2020 Financial Results

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BIONIK Laboratories Corp. (OTCQB:BNKL) (“BIONIK”), 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 fiscal year ended March 31, 2020.

Financial highlights for the fiscal year 2020 and recent weeks include:

  • Reported sales of $2,153,354 for the fiscal year ended March 31, 2020.
  • Increased sales of service contracts and warranties, which are building a deferred revenue base for consistent future service revenues, representing $616,063 for the fiscal year ended March 31, 2020, a $148,285 increase from fiscal year 2019.
  • Increased margin of 58.5% for the fiscal year ended March 31, 2020 compared to 49.8% for fiscal year 2019, primarily due to efficiencies in outsourced manufacturing.
  • Launched new offering of up to $7 million in convertible loans to be converted no later than March 31, 2021.
  • Raised $70,000 in convertible indebtedness in the new offering during fiscal year 2020 and approximately $1,502,569 has been committed or received subsequent to fiscal year-end.
  • Received a loan of $2,000,000 from a major shareholder with a maturity date of March 2022 or at the option of the loan holder can be converted in common stock of the Company.
  • Received a loan of $459,912 pursuant to the Paycheck Protection Program under the U.S. CARES Act. The Company intends to apply for forgiveness for all or a portion of the loans in accordance with applicable law.

Corporate highlights for the fiscal year ended March 31, 2020 and recent weeks include:

  • On June 25, 2020, launched InMotion Connect„¢, a cloud-based data analytics solution, which combines real-time robot data with deep expertise of BIONIKs 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.
  • Received regulatory approval in January 2020 from the South Korea Food and Drug Ministry for the Company’s InMotion ARM; days later the Company’s exclusive distributor in South Korea reported its first sale of the InMotion ARM to SeoSung Rehabilitation Hospital.

Management Commentary

Commenting on the 2020 fiscal year, Dr. Eric Dusseux, BIONIKs Chief Executive Officer, said, Over the past two years, BIONIK has reimagined its portfolio of products, software, and data-management solutions. In the last year, the launch of an improved Graphic User interface for our InMotion products, and now the launch of InMotion ConnectTM in June 2020 improved greatly the interest in BIONIKs suite of products but delayed some strategic account opportunities, given their decision cycles. Although BIONIK put in place a Business Continuity Plan to assure a minimal impact to our customers and our business partners, the COVID-19 pandemic impacted negatively the sales during our last quarter. BIONIK shipped several units during this quarter and donated one InMotion robotic system to Einstein Healthcare Networks MossRehab for use in its new pioneering COVID-19 rehab unit. Additionally, we successfully installed for one of our U.S. clients our recently launched cloud-based data solution platform InMotion ConnectTM, the single platform that can be accessed anywhere, anytime, and helps increase technology adoption due to convenience and ease-of-use for the clinician, hospital management and headquarter teams. This is a new step for BIONIK in providing powerful data solutions to improve neurological rehabilitation.

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

  • Continue to expand sales channels in North America and abroad, integrating in our strategy the recent termination of the Companys 3-year old cooperative joint venture and distribution and licencing arrangement in China.
  • 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 the fiscal year ended March 31, 2020 were $2,153,354, compared with $3,246,038 for the fiscal year ended March 31, 2019. The decrease reflects the sale of 17 InMotion robots for the fiscal year ended March 31, 2020 compared to 33 InMotion robots during the fiscal year ended March 31, 2019. In addition, deferred revenue, comprised of training to be provided and extended warranties, increased to $616,063 at March 31, 2020 from $467,778 at March 31, 2019. Extended warranties and training are important and growing parts of the Companys business.

Gross margin for the fiscal year ended March 31, 2020 was $1,259,980 or 58.5%, compared to $1,615,872 or 49.8%, for the fiscal year ended in March 31, 2019. The high gross margin percentages reported for the fiscal year are due to efficiencies in the Companys outsourced manufacturing of its InMotion robots.

The Company reported a comprehensive loss for the fiscal year ended March 31, 2020 of $(25,016,497), or a loss per share of $(5.61), compared with a comprehensive loss of $(10,556,601), or a loss per share of $(4.47), for the fiscal year ended March 31, 2019. The higher loss is principally due to impairment losses from a write-off of goodwill of $11,222,291 and technology and other assets of $2,700,540.

BIONIK had cash and cash equivalents of $2,269,747 as of March 31, 2020, compared with $446,779 as of March 31, 2019. The Companys working capital surplus was $626,923 as of March 31, 2020, compared a surplus of $479,408 as of March 31, 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 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 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 Companys 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.

Consolidated Balance Sheets

(Amounts expressed in US Dollars)

 

 

 

As at

 

 

As at

 

 

 

March 31,2020 $

 

 

March 31, 2019 $

 

Assets

 

 

 

 

 

 

Current

 

 

 

 

 

 

Cash and cash equivalents

 

 

2,269,747

 

 

 

446,779

 

Accounts receivable, net of allowance for doubtful accounts of $167,500 (March 31, 2019 – $Nil)

 

 

846,964

 

 

 

1,523,193

 

Prepaid expenses and other receivables

 

 

1,632,555

 

 

 

1,355,032

 

Inventories

 

 

1,059,462

 

 

 

405,682

 

Due from related parties

 

 

17,840

 

 

 

18,585

 

Total Current Assets

 

 

5,826,568

 

 

 

3,749,271

 

Equipment

 

 

154,144

 

 

 

192,528

 

Technology and other assets

 

 

1,449,924

 

 

 

4,427,722

 

Goodwill

 

 

11,085,984

 

 

 

22,308,275

 

Total Assets

 

 

18,516,620

 

 

 

30,677,796

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Accounts Payable

 

 

857,093

 

 

 

1,148,852

 

Accrued liabilities

 

 

1,647,656

 

 

 

1,653,233

 

Demand Loans

 

 

2,078,833

 

 

 

 

Deferred revenue – Contract Liabilities

 

 

616,063

 

 

 

467,778

 

Total Current Liabilities

 

 

5,199,645

 

 

 

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; Issued and outstanding 5,009,151 and 117,683 Exchangeable Shares (March 31, 2019 “ 3,661,838 and 196,799 Exchangeable Shares)

 

 

5,126

 

 

 

3,858

 

Additional paid in capital

 

 

84,643,570

 

 

 

73,719,299

 

Deficit

 

 

(71,373,870

)

 

 

(46,357,373

)

Accumulated other comprehensive income

 

 

42,149

 

 

 

42,149

 

Total Shareholders’ Equity

 

 

13,316,975

 

 

 

27,407,933

 

Total Liabilities and Shareholders’ Equity

 

 

18,516,620

 

 

 

30,677,796

 

BIONIK Laboratories Corp.

Consolidated Statements of Operations and Comprehensive Loss

For the years ended March 31, 2020 and 2019

(Amounts expressed in U.S. Dollars)

 

 

March 31, 2020 $

 

 

March 31, 2019 $

 

Sales

 

 

2,153,354

 

 

 

3,246,038

 

Cost of Sales

 

 

893,374

 

 

 

1,630,166

 

Gross Margin

 

 

1,259,980

 

 

 

1,615,872

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

 

2,172,972

 

 

 

2,339,359

 

Research and development

 

 

3,889,461

 

 

 

3,174,892

 

General and administrative

 

 

4,199,400

 

 

 

3,893,393

 

Share-based compensation expense

 

 

1,781,612

 

 

 

1,347,399

 

Amortization

 

 

277,258

 

 

 

278,997

 

Depreciation

 

 

103,388

 

 

 

69,212

 

Total operating expenses

 

 

12,424,091

 

 

 

11,103,252

 

 

 

 

 

 

 

 

 

 

Other (income) expenses

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

11,222,291

 

 

 

 

Technology and other assets impairment

 

 

2,700,540

 

 

 

 

Accretion expense

 

 

 

 

 

3,266,918

 

Fair Value Adjustment

 

 

 

 

 

(337,923

)

Gain/Loss on mark to market re-evaluation

 

 

 

 

 

(2,048,697

)

Other expense

 

 

181,914

 

 

 

262,596

 

Other income

 

 

(100,165

)

 

 

(73,166

)

Foreign exchange

 

 

(152,194

)

 

 

(507

)

Total other (income) expenses

 

 

13,852,386

)

 

 

1,069,221

 

Net loss and comprehensive loss for the year

 

 

(25,016,497

)

 

 

(10,556,601

)

 

 

 

 

 

 

 

 

 

Loss per share – basic and diluted

 

 

(5.61

)

 

 

(4.47

)

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding “ basic and diluted

 

 

4,455,755

 

 

 

2,363,107

 

BIONIK Laboratories Corp.

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended March 31, 2020 and March 31, 2019

(Amounts expressed in U.S. Dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Voting

 

 

Common Shares

 

 

Paid

 

 

 

 

 

 

Comprehensive

 

 

 

 

 

 

Shares

 

 

Total

 

 

Amount

 

 

Shares

 

 

Amount

 

 

in Capital

 

 

Deficit

 

 

Income

 

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Balance, March 31, 2018

 

 

1

 

 

 

 

 

 

1,664,002

 

 

 

1,664

 

 

 

56,195,541

 

 

 

(35,776,340

)

 

 

42,149

 

 

 

20,463,014

 

Conversion of Promissory notes

 

 

 

 

 

 

 

 

263,639

 

 

 

264

 

 

 

2,470,358

 

 

 

 

 

 

 

 

 

2,470,622

 

Conversion of Promissory notes – July 20, 2018

 

 

 

 

 

 

 

 

683,395

 

 

 

683

 

 

 

4,732,170

 

 

 

 

 

 

 

 

 

4,732,853

 

Conversion of Promissory notes – March 28, 2019

 

 

 

 

 

 

 

 

1,247,099

 

 

 

1,247

 

 

 

6,009,370

 

 

 

 

 

 

 

 

 

6,010,617

 

Stock option and warrant reclassification

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,173,534

 

 

 

 

 

 

 

 

 

1,173,534

 

Share compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,347,399

 

 

 

 

 

 

 

 

 

1,347,399

 

Fair value of Anti-dilution feature

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,766,495

 

 

 

 

 

 

 

 

 

1,766,495

 

Loss on warrant down round feature

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,432

 

 

 

(24,432

)

 

 

 

 

 

 

Net loss for the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,556,601

)

 

 

 

 

 

(10,556,601

)

Adjustment due to 1:150 share consolidation round-up

 

 

 

 

 

 

 

 

502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2019

 

 

1

 

 

 

 

 

 

3,858,637

 

 

 

3,858

 

 

 

73,719,299

 

 

 

(46,357,373

)

 

 

42,149

 

 

 

27,407,933

 

Share compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,781,612

 

 

 

 

 

 

 

 

 

 

 

1,781,612

 

Conversion of Promissory Notes

 

 

 

 

 

 

 

 

 

 

1,268,191

 

 

 

1,268

 

 

 

9,142,659

 

 

 

 

 

 

 

 

 

 

 

9.143,927

 

Net Loss for the Year Adjustment due to 1:50 share consolidation round-up

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

(25,016,497

)

 

 

 

 

 

 

(25,016497

)

Balance March 31, 2020

 

 

1

 

 

 

 

 

 

 

5,126,834

 

 

 

5,126

 

 

 

84,643,570

 

 

 

(71,373,870

)

 

 

42,149

 

 

 

13,316,975

 

BIONIK Laboratories Corp.

Consolidated Statements of Cash Flows

For the years ended March 31, 2020 and 2019

(Amounts expressed in U.S. Dollars)

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

 

$

 

 

$

 

Operating activities

 

 

 

 

 

 

 

 

Net loss for the year

 

 

(25,016,497

)

 

 

(10,556,601

)

Adjustment for items not affecting cash

 

 

 

 

 

 

 

 

Depreciation

 

 

103,388

 

 

 

69,212

 

Amortization

 

 

277,258

 

 

 

278,997

 

Write-off of demonstration equipment

 

 

94,641

 

 

 

 

Goodwill impairment

 

 

11,222,291

 

 

 

 

Technology and other assets impairment

 

 

2,700,540

 

 

 

 

Interest expense

 

 

176,593

 

 

 

255,833

 

Share based compensation expense

 

 

1,781,612

 

 

 

1,347,399

 

Accretion expense

 

 

 

 

 

3,266,918

 

Fair Value Adjustment

 

 

 

 

 

(337,923

)

Gain/Loss on mark to market re-evaluation

 

 

 

 

 

(2,048,697

)

Allowance for doubtful accounts

 

 

167,500

 

 

 

(19,694

)

 

 

 

(8,492,674

)

 

 

(7,744,556

)

Changes in non-cash working capital items

 

 

 

 

 

 

 

 

Accounts receivable

 

 

508,729

 

 

 

(1,290,769

)

Prepaid expenses and other receivables

 

 

(277,523

)

 

 

(921,377

)

Due from related parties

 

 

745

 

 

 

312

 

Inventories

 

 

(653,780

)

 

 

(168,239

)

Accounts payable

 

 

(291,759

)

 

 

424,179

 

Accrued liabilities

 

 

(5,577

)

 

 

122,928

 

Deferred revenue

 

 

148,285

 

 

 

345,111

 

Net cash (used in) operating activities

 

 

(9,063,554

)

 

 

(9,232,411

)

Investing activities

 

 

 

 

 

 

 

 

Acquisition of equipment

 

 

(159,645

)

 

 

(101,779

)

Net cash (used in) investing activities

 

 

(159,645

)

 

 

(101,779

)

Financing activities

 

 

 

 

 

 

 

 

Proceeds from convertible loans

 

 

2,070,000

 

 

 

 

Proceeds from convertible loans

 

 

9,000,000

 

 

 

9,326,633

 

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

 

 

(523,833

)

 

 

 

Net cash provided by financing activities

 

 

11,046,167

 

 

 

9,273,658

 

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

 

 

1,822,968

 

 

 

(60,532

)

Cash and cash equivalents, beginning of the year

 

 

446,779

 

 

 

507,311

 

Cash and cash equivalents, end of the year

 

 

2,269,747

 

 

 

446,779

 

 

Matthew Bretzius

FischTank PR

[email protected]