Business Wire | Aug 13, 2020 07:30AM EDT

BIONIK Laboratories Announces Fiscal 2021 Q1 Financial Results

Aug. 13, 2020

TORONTO & BOSTON--(BUSINESS WIRE)--Aug. 13, 2020--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 its first quarter of fiscal year 2021, ended June 30, 2020.

Financial highlights for the first quarter of fiscal year 2021 ended June 30, 2020 and recent weeks include

* During the COVID-19 pandemic, BIONIK managed to ship InMotion(tm) robots to customers in the United States. * Gross margin for the quarter ended June 30, 2020 was $195,353, or 75.7%, due to a reversal of an overstated warranty reserve (57.6% without the effects of the warranty adjustment), compared to $454,294 or 57.5% for the quarter ended June 30, 2019. * Raised approximately $1,502,569 during the fiscal quarter ended June 30, 2020 and in early July, 2020.

Corporate highlights for the first quarter of fiscal year 2021 ended June 30, 2020 and recent weeks include

* On June 25, 2020, launched InMotion Connect(tm), 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. * Donated InMotion(r) Robotic System to Einstein Healthcare Network's MossRehab for Use in New COVID-19 Rehab Unit.

Management Commentary

Commenting on the quarter, Dr. Eric Dusseux, BIONIK's Chief Executive Officer, said, " With the COVID-19 pandemic, we are in a time of our lives and one within society that we have never experienced before. It is truly unprecedented, which is why BIONIK is operating under a modified plan to reduce costs and otherwise address the effects on our business caused by COVID-19. We sold InMotion(tm)robots to customers in the U.S. We were extremely proud to donate an InMotion(r) robot to MossRehab, and to help patients inflicted with COVID-19 get the critical therapy they need as they seek a return toward a normal life within their communities, and support their dedicated healthcare team with their tireless efforts to rehabilitate patients. We launched InMotion Connect(tm) targeting the critical need to improve technology adoption at each rehabilitation clinic that can be monitored through the platform to ensure that the state-of-the-art rehabilitation methods are effectively in use across the hospital network. The single platform, already deployed in one Kindred site, that can be accessed anywhere, anytime, helps increasing technology adoption due to convenience and ease-of-use for the clinician, hospital management and headquarter teams."

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 the quarter ended June 30, 2020 were $257,908, compared with $790,379 for the quarter ended June 30, 20119. The decrease reflects the sale of two InMotion(tm)robots sold during the COVID-19 pandemic compared to eight InMotion(tm) robots in the quarter end June 30, 2019. In addition, deferred revenue, comprised of training to be provided and extended warranties, decreased to $582,281 at June 30, 2020 from $616,063 at March 31, 2020. The Company believes that extended warranties and training are important and growing parts of its business.

Gross margin for the quarter ended June 30, 2020 was $195,353, or 75.7%, due to a reversal of an overstated warranty reserve (57.6% without the effects of the warranty adjustment), compared to $454,294 or 57.5% for the quarter ended June 30, 2019.

The Company reported a comprehensive loss for the quarter ended June 30, 2020 of $(2,007,076), or a loss per share of $(0.39), compared with a comprehensive loss of $(2,120,644), or a loss per share of $(0.55), for the quarter ended June 30, 2019.

BIONIK had cash and cash equivalents of $2,403,037 as of June 30, 2020, compared to $2,269,747 as of March 31, 2020. The Company's working capital deficit at June 30, 2020 was $931,222 compared to a working capital surplus of $626,923 as of March 31, 2020. The working capital deficit at June 30, 2019 is due to convertible loans received by the Company during the quarter 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 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 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

June 30, March 31, 2020 2020

$ $

(Audited)

Assets

Current

Cash and cash equivalents 2,403,037 2,269,747

Accounts receivable, net of allowance fordoubtful accounts of $Nil (March 31, 2020 - 975,272 846,964 $167,500)

Prepaid expenses and other receivables ( 1,723,353 1,632,555

Inventories 944,990 1,059,462

Due from related parties 18,657 17,840

Total Current Assets 6,065,309 5,826,568

Equipment 136,032 154,144

Technology and other assets 1,426,420 1,449,924

Goodwill 11,085,984 11,085,984

Total Assets 18,713,745 18,516,620

Liabilities and Shareholders' Equity

Current

Accounts Payable 443,874 857,093

Accrued liabilities 2,057,784 1,647,656

PPP Loan 459,912 -

Convertible Loans 3,452,680 2,078,833

Deferred revenue - Contract Liabilities 582,281 616,063

Total Current Liabilities 6,996,531 5,199,645

Shareholders' Equity

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

Common Shares, par value $0.001; Authorized- 500,000,000; Issued and outstanding5,009,151 and 117,683 Exchangeable Shares 5,126 5,126 (March 31, 2020 5,009,151 and 117,683Exchangeable Shares)

Additional paid in capital 85,050,885 84,643,570

Deficit (73,380,946 ) (71,373,870 )

Accumulated other comprehensive income 42,149 42,149

Total Shareholders' Equity 11,717,214 13,316,975

Total Liabilities and Shareholders' Equity 18,713,745 18,516,620

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

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

(Amounts expressed in U.S. Dollars)

Three months Three months ended ended

June 30, June 30, 2020 2019

$ $

Sales 257,908 790,379

Cost of Sales 62,555 336,085

Gross Margin 195,353 454,294

Operating expenses

Sales and marketing 223,185 583,732

Research and development 353,263 816,523

General and administrative 1,128,510 841,693

Share-based compensation expense 407,315 287,757

Amortization 23,504 69,314

Depreciation 18,112 23,970

Total operating expenses 2,153,889 2,622,989

Other (income) expenses

Other expense 74,975 14,296

Other income (37,612 ) -

Foreign exchange 11,177 (62,347 )

Total other income (expenses) 48,540 (48,051 )

Net loss and comprehensive loss for the period (2,007,076 ) (2,120,644 )

Loss per share - basic and diluted (0.39 ) (0.55 )

Weighted average number of shares outstanding 5,126,834 3,858,637 - basic and diluted

Condensed Consolidated Interim Statements of Cash Flows

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

(Amounts expressed in U.S. Dollars)

Three months Three months ended ended

June 30, June 30, 2020 2019

$ $

Operating activities

Net loss for the period (2,007,076 ) (2,120,644 )

Adjustment for items not affecting cash

Depreciation 18,112 23,970

Amortization 23,504 69,314

Interest expense 74,975 13,283

Share based compensation expense 407,315 287,757

(1,483,170 ) (1,726,320 )

Changes in non-cash working capital items

Accounts receivable (128,308 ) 496,181

Prepaid expenses and other receivables (90,798 ) 160,305

Due from related parties (817 ) (483 )

Inventories 114,472 (176,376 )

Accounts payable (413,219 ) (93,835 )

Accrued liabilities 406,425 (41,434 )

Deferred revenue (33,782 ) 58,016

Net cash (used in) operating activities (1,629,197 ) (1,323,946 )

Investing activities

Acquisition of equipment - (42,802 )

Net cash (used in) investing activities - (42,802 )

Financing activities

Proceeds from convertible loans 1,302,575 950,000

Proceeds from PPP Loan 459,912 -

Proceeds from term loan - 500,000

Net cash provided by financing activities 1,762,487 1,450,000

Net increase in cash and cash equivalents for 133,290 83,252 the period

Cash and cash equivalents, beginning of the 2,269,747 446,779 period

Cash and cash equivalents, end of the period 2,403,037 530,031

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