BIONIK Laboratories Third Quarter Fiscal 2019 Financial Results Feature 256% Increase in Sales

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 third quarter of fiscal year 2019, ended December 31,

Corporate highlights for the third fiscal quarter and recent weeks

  • Entered into a multi-year agreement with Kindred Hospital
    Rehabilitation Services for multiple units of the Company’s InMotion
    ARM™ robotic system.
  • Announced the commercial launch of the newest generation InMotion
    ARM/HAND™ robotic system for clinical rehabilitation of stroke
    survivors and those with mobility impairments due to neurological
    conditions to further address hand related mobility issues.
  • Completed the transition to outsourcing of the production of this
    newest generation InMotion ARM/HAND™ robotic system, as well as the
    InMotion ARM™, to our manufacturing partner Cogmedix, in Massachusetts.
  • The RATULS (Robot Assisted Training for the Upper Limb after
    Stroke) team announced that they have now completed study recruitment
    with a total of 770 patients participating in the trial (,
    and results of the study are expected to be available later in 2019.
  • Continued development of an InMotion Home product, which is based on
    the same clinical concepts, clinical data and rehabilitation protocols
    as the professional products.
  • Continued development of a lower-limb assistive exoskeleton for
    individuals with impaired mobility through a previously
    announced manufacturing partnership
    with Wistron Corporation

Financial highlights for the third quarter of fiscal 2019 and recent
weeks include:

  • Reported sales of $930,257, up 256% over $260,960 in the prior-year
  • Sold nine InMotion robots, compared with three in the prior-year
    quarter and seven in the second quarter of fiscal 2019 for a total of
    21 fiscal year-to-date.
  • Increased sales of service contracts and warranties, which are
    building our deferred revenue base for consistent future service
    revenues, represented over 15% in Q3 fiscal year 2019.
  • Invested just over $1.8 million in finished goods and long lead time
    inventory to support expected upcoming requirements from identified
    target customers.
  • Raised $3,150,000 in convertible indebtedness during the quarter,
    which will be converted into shares by March 28, 2019, including
    $300,000 from the company’s Chairman. Another set of convertible
    promissory loans were issued for $1,500,000 in the recent weeks,
    including $750,000 from a Company Director.
  • Effected a 1-for-150 reverse stock split on October 29, 2018 as part
    of planned application to uplist on the Nasdaq exchange.

Management Commentary

Commenting on the quarter, Eric Dusseux, M.D., BIONIK’s Chief Executive
Officer, said, “We continued on an upward sales trajectory during the
fiscal third quarter and are very pleased with the direction BIONIK is
taking. The quarter was highlighted by important achievements that bode
well for continued business success. We sold nine InMotion systems
during the quarter, compared with seven in the second quarter and five
in the first quarter. These results are indicative of our superior
product offering, improved operational effectiveness and demonstrate the
ultimate value we provide to clinical providers and their patients.

The signing of a multi-year, multi-site agreement with Kindred Hospital
Rehabilitation Services was a watershed event for us. Kindred is a very
large healthcare system with more than $3 billion in annual revenues.
Among its nearly 2,000 locations in the U.S., there are 22 inpatient
rehabilitation hospitals (stand alone), 98 inpatient rehabilitation
units (hospital-based) and contract rehabilitation service businesses
that served 1,689 non-affiliated sites of service. We began installing
InMotion robots in December and will continue installations at the
inpatient rehabilitation hospitals and potentially other rehabilitation
facilities over the next four years. We hope that Kindred will be the
first of many such large contracts we secure.

Last month we launched our newest generation InMotion ARM/HAND™ robotic
system at the American Physical Therapy Association Combined Sections
Meeting in Washington, D.C.,” Dr. Dusseux added. “This next-generation
system offers enhanced functionality to support clinical rehabilitation
of stroke survivors and those with mobility impairments due to
neurological conditions by further addressing hand related mobility
issues, and we are very pleased with the reception we received at our

BIONIK continues to expect to achieve the following milestones during
the remainder of fiscal year 2019:

  • 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.
  • Enhance the effectiveness of our commercial outsourced manufacturing
    to support the expected increase in product demand and introduction of
    new products.
  • Increase sales of service contracts and warranties.

Third Quarter Financial Results

Sales for the quarter ended December 31, 2018 were $930,257, compared
with $260,960 for the quarter ended December 31, 2017. The increase
reflects the sale of nine InMotion robots during the third quarter of
fiscal 2019, compared with three robots in the prior-year quarter. In
addition, deferred revenue, comprised of training to be provided and
extended warranties, increased to $285,140 at December 31, 2018 from
$122,667 at March 31, 2018. Extended warranties and training are
important and growing parts of the Company’s business.

Gross margin for the three and nine months ended December 31, 2018 was
$479,953 and $891,135 or 51.6% and 45.0% compared to $172,603 and
$392,845 or 66.1% and 68.9% for the three and nine months ended December
31, 2017. The high gross margin percentages reported for the periods in
the previous fiscal year are due to the cost of the units only including
direct material costs required for those specific shipments. The third
quarter gross margin of 51.6% on sales of nine units is significantly
higher than the 29.7% on sales of seven units in the second quarter of
this fiscal year ended September 30, 2018. The third quarter gross
margin was reduced by 5.1% due to a $47,772 write-off of obsolete
inventory for prior versions of the company’s robots.

The Company reported a comprehensive loss for the quarter ended December
31, 2018 of $(2,384,163), or a loss per share of $(0.91), compared with
a comprehensive loss of $(2,580,759), or a loss per share of $(3.80),
for the quarter ended December 31, 2017. The lower loss is principally
due to other expenses of $270,453 that decreased due to less interest
expense for loans in the current period.

BIONIK had cash and cash equivalents of $375,133 as of December 31,
2018, compared with $507,311 as of March 31, 2018. The Company’s working
capital deficit was $(2,236,228) as of December 31, 2018, compared with
a deficit of $(6,711,941) as of March 31, 2018. The working capital
deficit at March 31, 2018 was related to the reclassification of
unissued shares, options and warrants at fair value due to insufficient
number of authorized shares totalling $5,692,853. The decrease in net
working capital deficit is due to the reversal of this liability
subsequent to March 31, 2018 as well as the increased receivables and
investment in manufacturing inventory at December 31, 2018.

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 and
connect with us on TwitterLinkedIn, 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 the Nasdaq listing standards, 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
December 31, March 31,
2018 2018
(Unaudited) (Audited)
$ $
Cash and cash equivalents 375,133 507,311
Accounts receivable, net of allowance for doubtful accounts of
$25,695 (March 31, 2018 – $19,694)
1,521,109 212,730
Prepaid expenses and other receivables 1,831,956 433,655
Inventories 335,606 237,443
Due from related parties 17,989     18,897
Total Current Assets 4,081,793 1,410,036
Equipment 135,842 159,961
Technology and other assets 4,497,037 4,706,719
Goodwill 22,308,275     22,308,275
Total Assets 31,022,947     28,584,991
Liabilities and Shareholders’ Equity
Accounts payable 1,394,452 724,673
Accrued liabilities 1,099,570 1,529,505
Customer advances 800
Demand loans 51,479
Convertible loans 3,538,859
Deferred revenue 285,140 122,667
Shares to be issued, stock options and warrants     5,692,853
Total Current Liabilities 6,318,021     8,121,977
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, 2018 – 1)
Common Shares, par value $0.001; Authorized – 500,000,000 (March 31,
2018 – 250,000,000); Issued
and outstanding – 2,337,964 and 273,574 Exchangeable Shares (March
31, 2018 – 1,368,856 and
295,146 Exchangeable Shares) 2,611 1,664
Additional paid in capital 67,570,756 56,195,541
Deficit ( 42,910,590 ) ( 35,776,340 )
Accumulated other comprehensive income 42,149     42,149
Total Shareholders’ Equity 24,704,926     20,463,014
Total Liabilities and Shareholders’ Equity 31,022,947     28,584,991

BIONIK Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and
Comprehensive Loss for the three and nine month periods ended
December 31, 2018 and 2017 (unaudited)
(Amounts expressed in U.S. Dollars)
Three months Nine months Three months Nine months
ended December 31, ended December 31, ended December 31, ended December 31,





$ $ $ $
Sales 930,257 1,978,675 260,960 570,327
Cost of Sales 450,304     1,087,540     88,357     177,482
Gross Margin 479,953 891,135 172,603 392,845
Operating expenses
Sales and marketing 515,439 1,485,423 432,260 1,313,077
Research and development 779,283 2,135,075 546,350 1,947,659
General and administrative 1,022,024 2,932,980 783,784 2,916,917
Share-based compensation expense 191,634 1,226,374 271,001 1,284,257
Amortization 69,314 209,682 76,985 246,920
Depreciation 15,969     50,190     21,234     69,606
Total operating expenses 2,593,663 8,039,724 2,131,614 7,778,436
Other (income) expenses
Foreign exchange ( 47,709 ) ( 116,715 ) ( 11,485 ) 102,671
Accretion expense 316,642 2,421,060 216,302 290,375
Fair value adjustment ( 337,923 )
Gain on mark to market revaluation ( 2,048,697 )
Other expense 1,520     61,652     416,931     657,999
Total other expenses (income) 270,453     ( 20,623 )     621,748     1,051,045
Net loss and comprehensive loss for the period ( 2,384,163 )     ( 7,127,966 )     ( 2,580,759 )     ( 8,436,636 )
Loss per share – basic and diluted ( 0.91 )     ( 3.14 )     ( 3.80 )     ( 12.74 )
Weighted average number of shares outstanding – basic 2,611,538     2,267,906     678,631     662,237
Weighted average number of shares outstanding – diluted 2,611,538     2,267,906     678,631     662,237

BIONIK Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows
For the nine month periods ended December 31, 2018 and 2017
(Amounts expressed in U.S. Dollars)
      Nine months ended     Nine months ended
31-Dec-18     31-Dec-17
$ $
Operating activities
Net loss for the period ( 7,127,966 ) ( 8,436,636 )
Adjustment for items not affecting cash
Depreciation 50,190 69,606
Amortization 209,682 246,920
Interest expense 129,933 640,168
Share based compensation expense 1,226,374 1,284,257
Shares issued for services 60,000
Accretion expense 2,421,060 290,375
Fair value adjustment ( 337,923 )
Gain on mark to market revaluation ( 2,048,697 )
Allowance for doubtful accounts 6,001     ( 16,349 )
( 5,471,346 )     ( 5,861,659 )
Changes in non-cash working capital items
Accounts receivable ( 1,314,380 ) 93,680
Prepaid expenses and other receivables ( 1,398,301 ) 83,003
Due from related parties 908 ( 643 )
Inventories ( 98,163 ) ( 74,165 )
Accounts payable 669,779 10,104
Accrued liabilities ( 429,935 ) 639,568
Customer advances ( 800 ) ( 120,762 )
Deferred revenue 162,473     15,177
Net cash (used in) operating activities ( 7,879,765 ) ( 5,215,697 )
Investing activities
Acquisition of equipment ( 26,071 )     ( 17,182 )
Net cash (used in) investing activities ( 26,071 ) ( 17,182 )
Financing activities
Proceeds from convertible loans 7,826,633 4,699,975
Proceeds on exercise of warrants 1,125,038
Repayment of promissory notes principal ( 200,000 )
Repayment of promissory notes interest ( 49,505 )
Repayment of demand notes principal ( 50,000 ) ( 208,359 )
Repayment of demand notes interest ( 2,975 ) ( 79,259 )
Proceeds from short term loan     400,000
Net cash provided by financing activities 7,773,658     5,687,890
Net decrease in cash and cash equivalents for the period ( 132,178 ) 455,011
Cash and cash equivalents, beginning of period 507,311     543,650
Cash and cash equivalents, end of period 375,133     998,661

The Financial Statements have been adjusted to retroactively reflect the
150-to-1 reverse stock split effected on October 29, 2018.

The above financial information has been derived from the Company’s
interim unaudited consolidated financial statements as of December 31,
2018 filed on Form 10-Q with the SEC on February 11, 2019 and the
Company’s audited consolidated financial statements as of and for the
fiscal year ended March 31, 2018 found in the Company’s Annual Report on
Form 10-K filed with the SEC on June 27, 2018.

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


Matt Bretzius
FischTank Marketing and PR

Kim Golodetz
LHA Investor Relations

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