BIONIK Laboratories’ Fiscal 2019 Financial Results Feature 229% Increase in Sales

TORONTO & BOSTON--()--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 the fiscal year ended March 31, 2019.

Financial highlights for the fiscal year 2019 and recent weeks include:

  • Reported sales of $3,246,038, an increase of 229% compared to the reported sales of $987,431 in the prior fiscal year.
  • Increased sales of service contracts and warranties, which are building our deferred revenue base for consistent future service revenues, representing a $345,111 increase from the prior fiscal year.
  • Raised $9,326,633 in convertible indebtedness during the fiscal year, all of which was converted into shares by March 28, 2019.
  • Received $500,000 in loans and another $950,000 in convertible debt in recent weeks.

Corporate highlights for the fiscal year ended March 31, 2019 and recent weeks include:

  • Entered into a multi-year agreement with Kindred Hospital Rehabilitation Services for multiple units of the Company's InMotion™ ARM robotic system.
  • The RATULS (Robot Assisted Training for the Upper Limb after Stroke) team, utilizing the Company’s InMotion™ Robotic Therapy Systems (InMotion™ Arm, Arm/Hand and Wrist), presented the results of its clinical trial in May 2019.
  • Following CE marking of the InMotion™ Arm system, consummated the first sale of the next generation InMotion™ ARM in France.
  • 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.
  • Shipped three InMotion™ ARM therapy robots to BIONIK (China) Medical Technology Co., Ltd. as part of a joint venture entered into in 2017.
  • Continued development of an InMotion™ Home product, which is based on the same clinical concepts, clinical data and rehabilitation protocols as the professional products, and the technical development of a lower-limb assistive exoskeleton for individuals with impaired mobility.

Management Commentary

Commenting on the quarter, Dr. Eric Dusseux, M.D., BIONIK’s Chief Executive Officer, said, “We have more than tripled our revenue during the fiscal year, enabling us to continue working toward our strategic milestones. During our last quarter we posted historical record sales of $1,267,363. Multiple achievements during the year bode well for continued business success. We believe these results are indicative of our superior product offering and 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 the largest Contract Management Organization in the U.S. 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 are close to completing the first phase of InMotion™ robot installations and will continue installations at the inpatient rehabilitation hospitals and potentially other rehabilitation facilities over the next three years. We hope that Kindred will be the first of many such large contracts we secure.

“We also launched our newest generation InMotion™ ARM/HAND robotic system in the fiscal year. 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 have received.”

“The results of the RATULS (Robot Assisted Training for the Upper Limb after Stroke) study confirmed the finding of previous research studies which demonstrated that robot-assisted therapy improved upper limb impairment when compared with conventional care methods only, for stroke victims. Robotic therapy is the only therapy to statistically maintain a significant impairment advantage over conventional therapy alone at six months after treatment. The primary outcome for upper limb success was determined by Action Research Arm Test (ARAT), with four distinct success criteria that varied according to baseline severity, not used previously and developed by the RATULS trial team. With ARAT, the trial was unable to conclude that robot-assisted therapy or enhanced upper limb therapy on top of usual care resulted in improved upper limb functionality after stroke compared with usual care only provided to patients with stroke-related upper limb functional limitation. The attrition rate was also drastically reduced in patient population following either robotic therapy or enhanced upper limb therapy versus usual care only, and most of the withdrawals before 3 months in usual care were due to disappointment with treatment allocation.”

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 the fiscal year ended March 31, 2019 were $3,246,038, compared with $987,431 for the fiscal year ended March 31, 2018. The increase reflects the sale of 33 InMotion™ last generation commercial robots during fiscal year 2019. In addition, deferred revenue, comprised of training to be provided and extended warranties, increased to $467,778 at March 31, 2019 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 year ended March 31, 2019 was $1,615,872 or 49.8% and compared to $584,766 or 59.2% for the year ended in May 2018. The high gross margin percentages reported for the previous fiscal year are due to the cost of the units only including direct material costs required for those specific shipments. The gross margin in fiscal 2019 was reduced by 1.9% due to a $62,589 write-off of obsolete inventory for prior versions of the Company’s robots.

The Company reported a comprehensive loss for the year ended March 31, 2019 of $(10,556,601), or a loss per share of $(4.47), compared with a comprehensive loss of $(14,625,790), or a loss per share of $(21.73), for the year ended March 31, 2018. The lower loss is principally due to other expenses of $1,069,221 that decreased due to less interest expense for loans and a gain related to convertible loan valuation in the current period.

BIONIK had cash and cash equivalents of $446,779 as of March 31, 2019, compared with $507,311 as of March 31, 2018. The Company’s working capital surplus was $479,408 as of March 31, 2019, 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 net working capital surplus is due to the reversal of this liability subsequent to March 31, 2018, the conversion of convertible loans into common shares as well as the increased receivables and investment in manufacturing inventory at 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 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.

Consolidated Balance Sheets (audited)

(Amounts expressed in US Dollars)

As at

As at

 

 

March 31,

March 31,

 

 

2019

2018

 

$

$

Assets

 

 

Current

Cash and cash equivalents

446,779

 

507,311

Accounts receivable, net of allowance for doubtful accounts of $Nil (March 31, 2018 - $19,694)

1,523,193

 

212,730

Prepaid expenses and other receivables

1,355,032

 

433,655

Inventories

405,682

 

237,443

Due from related parties

18,585

 

18,897

Total Current Assets

3,749,271

 

1,410,036

Equipment

192,528

 

159,961

Technology and other assets

4,427,722

 

4,706,719

Goodwill

22,308,275

 

22,308,275

Total Assets

30,677,796

 

28,584,991

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current

 

 

 

Accounts Payable

1,148,852

 

724,673

Accrued liabilities

1,653,233

 

1,530,305

Demand Loans

-

 

51,479

Deferred revenue – Contract Liabilities

467,778

 

122,667

Shares to be issued, stock options and warrants

-

 

5,692,853

Total Current Liabilities

3,269,863

 

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 3,661,838 and 196,799 Exchangeable Shares (March 31, 2018 – 1,368,856 and 295,146
Exchangeable Shares)

3,858

 

1,664

Additional paid in capital

73,719,299

 

56,195,541

 

 

 

Deficit

(46,357,373)

 

(35,776,340)

Accumulated other comprehensive income

42,149

 

42,149

Total Shareholders' Equity

27,407,933

 

20,463,014

Total Liabilities and Shareholders' Equity

30,677,796

 

28,584,991

Bionik Laboratories Corp.

Consolidated Statements of Operations and Comprehensive Income (Loss)
For the years ended March 31, 2019 and 2018 (audited)

(Amounts expressed in U.S. Dollars)

 

 

 

 

 

 

 

 

 

March 31, 2019

March 31, 2018

 

$

 

$

Sales

 

3,246,038

 

987,431

Cost of Sales

 

1,630,166

402,665

Gross Margin

 

1,615,872

 

584,766

 

Operating expenses

 

 

 

 

Sales and marketing

 

2,339,359

1,989,837

Research and development

 

3,174,892

 

2,825,200

General and administrative

 

3,893,393

3,585,484

Share-based compensation expense

 

1,347,399

 

1,540,580

Amortization

 

278,997

323,905

Depreciation

 

69,212

 

89,026

Total operating expenses

 

11,103,252

10,354,032

 

 

 

 

 

Other (income) expenses

 

Accretion expense

 

3,266,918

 

1,937,308

Share premium

 

-

1,249,994

Fair Value Adjustment

 

(337,923)

 

-

Gain/Loss on mark to market re-evaluation

 

(2,048,697)

376,674

Other expense

 

262,596

 

1,297,205

Other income

 

(73,166)

(107,656)

Foreign exchange

 

(507)

 

102,999

Total other expenses

 

1,069,221

4,856,524

Net loss and comprehensive loss for the period

 

(10,556,601)

 

(14,625,790)

 

Loss per share - basic and diluted

 

(4.47)

 

(21.73)

 

Weighted average number of shares outstanding – basic and diluted

 

2,363,107

 

673,203

Bionik Laboratories Corp.

Consolidated Statements of Cash Flows

For the years ended March 31, 2019 and 2018 (audited)

(Amounts expressed in U.S. Dollars)

 

 

 

 

March 31, 2019

March 31, 2018

 

$

 

$

Operating activities

 

 

 

Net loss for the period

(10,556,601)

(14,625,790)

Adjustment for items not affecting cash

 

 

 

Depreciation

69,212

89,026

Amortization

278,997

 

323,905

Interest expense

255,833

1,294,005

Share based compensation expense

1,347,399

 

1,540,580

Shares premium

-

1,249,994

Accretion expense

3,266,918

 

1,937,308

Fair Value Adjustment

(337,923)

-

Gain/Loss on mark to market re-evaluation

(2,048,697)

 

376,674

Allowance for doubtful accounts

(19,694)

(19,694)

 

(7,744,556)

 

(7,833,992)

Changes in non-cash working capital items

 

 

Accounts receivable

(1,290,769)

 

190,867

Prepaid expenses and other receivables

(921,377)

(205,608)

Due from related parties

312

 

(166)

Inventories

(168,239)

(9,194)

Accounts payable

424,179

 

(60,098)

Accrued liabilities

122,928

304,048

Customer advances

-

 

(120,762)

Deferred revenue

345,111

24,043

Net cash (used in) operating activities

(9,232,411)

 

(7,710,862)

Investing activities

Acquisition of equipment

(101,779)

 

(21,567)

Net cash (used in) investing activities

(101,779)

(21,567)

Financing activities

 

 

 

Proceeds on exercise of warrants

-

1,125,038

Proceeds from convertible loans

9,326,633

 

7,111,375

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

Repayment of short-term loan

-

 

(400,000)

Repayment of short-term loan interest

-

(3,200)

Net cash provided by financing activities

9,273,658

 

7,696,090

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

(60,532)

(36,339)

Cash and cash equivalents, beginning of period

507,311

 

543,650

Cash and cash equivalents, end of period

446,779

507,311

 

Contacts

Matt Bretzius
FischTank Marketing and PR
matt@fischtankpr.com

Contacts

Matt Bretzius
FischTank Marketing and PR
matt@fischtankpr.com