Business Wire | Jun 24, 2021 07:30AM EDT

BIONIK Laboratories Reports Fiscal 2021 Financial Results

Jun. 24, 2021

TORONTO & BOSTON--(BUSINESS WIRE)--Jun. 24, 2021--BIONIK Laboratories Corp. (OTCQB:BNKL), a robotics company focused on providing rehabilitation and assistive technology solutions to individuals with neurological and mobility challenges from hospital to home, today reported financial results for its fourth quarter and fiscal year 2021, for the periods ended March 31, 2021.

"We are starting to see an uptick in commercial sales as we put fiscal 2021 behind us. The fourth quarter was our strongest quarter for fiscal 2021 as we are starting to see less impact from the COVID-19 pandemic with our clients. This growth is driven by our InMotion(r) robot sales in the U.S. as well as our InMotion Connect(r) digital solutions sales from one of our strategic partners. Also, BIONIK is continuing to pursue its solutions development by building a machine learning prototyping model, a first step to a machine learning platform, which leverages big data collected in real-time in the rehabilitation facilities using our products," said Dr. Eric Dusseux, Chief Executive Officer, BIONIK.

Fourth Quarter and Recent Corporate Highlights:

* Three units were shipped during the quarter. * BIONIK implemented a machine learning prototype predictive model for the classification of the level of responsiveness of the InMotion(r) therapy outcomes. This solution was developed with Bitstrapped, a Toronto-based data engineering firm specializing in machine learning infrastructure through their partnership with Google Cloud Platform. This prototype enables BIONIK to continually train the model on InMotion Connect(r) anonymized data collected in real-time in rehabilitation facilities and track improvements in performance. * On a GAAP basis, our operating expenses decreased $15.9 million or 92%, due to the impairment of our goodwill and other intangible assets that occurred in the fourth quarter of fiscal 2020. * On a non-GAAP basis, excluding the impairment and amortization of intangibles, fourth quarter operating expenses decreased by $1.9 million, or 60%, from the prior year period as we continue to drive our costs down from navigating the effects of the global pandemic. * The Small Business Administration ("SBA") has allowed for forgiveness of the Company's PPP Loan and interest for $0.5 million in May 2021.

Fourth Quarter Financial Results:

Fourth quarter total revenues decreased 50% to $0.5 million, compared with $0.9 million for the quarter ended March 31, 2020, driven by a reduction in the units sold in the fourth quarter ended March 31, 2021 as compared to the quarter ended March 31, 2020.

Fourth quarter gross profit decreased to $0.3 million, compared to $0.6 million for the quarter ended March 31, 2020. The decrease is due to the reduced number of units sold from the quarter ended March 31, 2021 as compared to the quarter ended March 31, 2020. The overall gross margin was up from 64.2% for the quarter ended March 31, 2020 to 72.5% for the quarter ended March 31, 2021.

Total operating expenses were $1.3 million in the fourth quarter of fiscal 2021 compared to $17.2 million in the prior year fourth quarter, a decrease of $15.9 million, or 92%. This decrease was primarily driven by the impairment charge to our intangible assets associated with a decrease in the fair value that occurred in the quarter ended March 31, 2020. On a non-GAAP basis, excluding the impairment and amortization of our intangibles, our operating expenses decreased $1.9 million, or 60%, primarily due to a reduction in personnel costs associated with reduced headcount due to the global pandemic as well as lower share-based compensation expense.

BIONIK recorded a net loss of $1.0 million, or ($0.20) per diluted share, compared to a net loss of $16.5 million, or ($3.23) per diluted share, in the same period for fiscal 2020. On a non-GAAP basis, excluding non-cash unrealized foreign exchange measurement gains and losses and impairment and amortization of intangibles, fourth quarter net loss was $1.0 million, or a loss of ($0.19) per diluted share, compared with a loss of $2.6 million, or a loss of ($0.51) per diluted share, in the same period for fiscal 2020.

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 two 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," "possible," "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 continued going concern qualification, 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 Balance Sheets

(Amounts expressed in U.S. Dollars)

March 31, March 31, 2021 2020

(Audited) (Audited)

Assets

Current assets:

Cash and cash equivalents $ 608,348 $ 2,269,747

Accounts receivable 451,905 846,964

Prepaid expenses and other current assets 1,680,557 1,632,555

Inventories 692,163 1,059,462

Due from related parties -- 17,840

Total current assets 3,432,973 5,826,568

Equipment, net 93,577 154,144

Intangible assets, net 976,551 1,449,924

Goodwill 4,282,984 11,085,984

Total assets $ 8,786,085 $ 18,516,620



Liabilities and stockholders' equity

Current liabilities:

Accounts Payable $ 454,809 $ 857,093

Accrued liabilities 760,026 1,647,656

PPP Loan 459,912 -

Demand Loans, current portion 2,152,334 2,078,833

Current portion of deferred revenue 268,083 200,437

Total Current Liabilities 4,095,164 4,784,019

Demand loans, net of current portion 1,105,974 -

Deferred revenue, net of current portion 303,917 415,626

Total liabilities 5,505,055 5,199,645

Total stockholders' equity 3,281,030 13,316,975

Total liabilities and stockholders' equity $ 8,786,085 $ 18,516,620

BIONIK Laboratories Corp.

Condensed Consolidated Statements of Operations

(audited)

(Amounts expressed in U.S. Dollars)

Three months ended March 31,

Twelve months ended March 31,

2021

2020

2021

2020

Revenues, net

$

462,732

$

923,280

$

1,193,430

$

2,153,354

Cost of revenues

127,449

330,487

269,632

893,374

Gross Profit

335,283

592,793

923,798

1,259,980

Operating expenses

Sales and marketing

225,031

523,632

1,017,653

2,172,972

Research and development

278,397

1,165,461

1,491,747

3,889,461

General and administrative

698,440

1,139,741

3,750,457

4,580,046

Impairment of goodwill & intangible assets

--

13,922,831

7,182,053

13,922,831

Share-based comp expense

100,165

408,417

819,213

1,781,612

Total operating expenses

1,302,033

17,160,082

14,261,123

26,346,922

Loss from operations

(966,750

)

(16,567,289

)

(13,337,325

)

(25,086,942

)

Interest expense, net

139,713

9,429

405,279

181,914

Other (income), net

(71,586

)

(33,499

)

(122,147

)

(252,359

)

Total other expense (income)

68,127

(24,070

)

283,132

(70,445

)

Net loss

$

(1,034,877

)

$

(16,543,219

)

$

(13,620,457

)

$

(25,016,497

)

Loss per share - basic and diluted

$

(0.20

)

$

(3.23

)

$

(2.66

)

$

(5.61

)

Weighted average number of shares outstanding - basic and diluted

5,133,269

5,126,834

5,128,421

4,455,755

To supplement our consolidated financial statements presented in accordance with GAAP, BIONIK uses non-GAAP loss from operations, non-GAAP net loss and non-GAAP diluted net loss per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measures included in this press release exclude costs associated with the amortization and impairment of intangible assets acquired, as well as unrealized foreign exchange gains or losses for the three months and year ended March 31, 2021 and 2020. This exclusion may be different from, and therefore not comparable to, similar measures used by other companies.

BIONIK's management believes that the non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding amortization, impairment and foreign exchange costs that may not be indicative of our core business operating results. BIONIK believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing BIONIK's performance and when planning, forecasting and analyzing future periods. BIONIK also believes that the non-GAAP measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in our financial and operational decision making. The non-GAAP Financial measures also facilitate management's internal comparisons to BIONIK's historical performance and our competitors' operating results.

BIONIK Laboratories Corp.

Condensed Consolidated Statements of Operations

(audited)

(Amounts expressed in U.S. Dollars)

Three months ended March 31, Twelve months ended March 31,

2021 2020 2021 2020

Revenues, net $ 462,732 $ 923,280 $ 1,193,430 $ 2,153,354

Cost of 127,449 330,487 269,632 893,374 revenues

Gross Profit 335,283 592,793 923,798 1,259,980

Operating expenses

Sales and 225,031 523,632 1,017,653 2,172,972 marketing

Research and 278,397 1,165,461 1,491,747 3,889,461 development

General and 698,440 1,139,741 3,750,457 4,580,046 administrative

Impairment ofgoodwill & -- 13,922,831 7,182,053 13,922,831 intangibleassets

Share-based 100,165 408,417 819,213 1,781,612 comp expense

Totaloperating 1,302,033 17,160,082 14,261,123 26,346,922 expenses



Loss from (966,750 ) (16,567,289 ) (13,337,325 ) (25,086,942 )operations

Interest 139,713 9,429 405,279 181,914 expense, net

Other (71,586 ) (33,499 ) (122,147 ) (252,359 )(income), net

Total otherexpense 68,127 (24,070 ) 283,132 (70,445 )(income)

Net loss $ (1,034,877 ) $ (16,543,219 ) $ (13,620,457 ) $ (25,016,497 )

Loss per share- basic and $ (0.20 ) $ (3.23 ) $ (2.66 ) $ (5.61 )diluted

Weightedaverage numberof shares 5,133,269 5,126,834 5,128,421 4,455,755 outstanding -basic anddiluted

To supplement our consolidated financial statements presented in accordance with GAAP, BIONIK uses non-GAAP loss from operations, non-GAAP net loss and non-GAAP diluted net loss per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measures included in this press release exclude costs associated with the amortization and impairment of intangible assets acquired, as well as unrealized foreign exchange gains or losses for the three months and year ended March 31, 2021 and 2020. This exclusion may be different from, and therefore not comparable to, similar measures used by other companies.

BIONIK's management believes that the non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding amortization, impairment and foreign exchange costs that may not be indicative of our core business operating results. BIONIK believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing BIONIK's performance and when planning, forecasting and analyzing future periods. BIONIK also believes that the non-GAAP measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in our financial and operational decision making. The non-GAAP Financial measures also facilitate management's internal comparisons to BIONIK's historical performance and our competitors' operating results.

Reconciliation of GAAP Income Statement Measures to Non-GAAP Income StatementMeasures (Unaudited)

Three Months Ended Year Ended March 31, March 31,

2021 2020 2021 2020

Loss from $ (966,750 ) $ (16,567,289 ) $ (13,337,325 ) $ (25,086,942 )operations



Non-GAAPadjustments to loss fromoperations:

Costsassociatedwithimpairment -- 13,922,831 7,182,053 13,922,831 of goodwill&intangibles

Costsassociatedwith 23,580 69,315 94,321 277,258 amortizationofintangibles

TotalNon-GAAPadjustments 23,580 13,992,146 7,276,374 14,200,089 to loss fromoperations

Non-GAAPloss from $ (943,170 ) $ (2,575,143 ) $ (6,061,351 ) $ (10,886,853 )operations

Three Months Ended March 31,

Year Ended March 31,

2021

2020

2021

2020

Net loss

$

(1,034,877

)

$

(16,543,219

)

$

(13,620,457

)

$

(25,016,497

)

Non-GAAP adjustments to net loss:

Costs associated with impairment of goodwill & intangibles

--

13,922,831

7,182,053

13,922,831

Costs associated with amortization of intangibles

23,580

69,315

94,321

277,258

Unrealized foreign exchange loss (gain)

33,988

(41,350

)

77,231

(152,194

)

Total Non-GAAP adjustments to net loss

57,568

13,950,796

7,353,605

14,047,895

Non-GAAP net loss

$

(977,309

)

$

(2,592,423

)

$

(6,266,852

)

$

(10,968,602

)

Three Months Ended Year Ended March 31, March 31,

2021 2020 2021 2020

Net loss $ (1,034,877 ) $ (16,543,219 ) $ (13,620,457 ) $ (25,016,497 )



Non-GAAPadjustments to net loss:

Costsassociatedwithimpairment -- 13,922,831 7,182,053 13,922,831 of goodwill&intangibles

Costsassociatedwith 23,580 69,315 94,321 277,258 amortizationofintangibles

Unrealizedforeign 33,988 (41,350 ) 77,231 (152,194 )exchangeloss (gain)

TotalNon-GAAP 57,568 13,950,796 7,353,605 14,047,895 adjustmentsto net loss

Non-GAAP net $ (977,309 ) $ (2,592,423 ) $ (6,266,852 ) $ (10,968,602 )loss

Three Months Ended March 31,

Twelve Months Ended March 31,

2021

2020

2021

2020

Diluted net loss per share

$

(0.20

)

$

(3.23

)

$

(2.66

)

$

(5.61

)

Costs associated with impairment of goodwill & intangibles

--

2.72

1.40

3.12

Costs associated with amortization of intangibles

0.00

0.01

0.02

0.06

Unrealized foreign exchange loss (gain)

0.01

(0.01

)

0.02

(0.03

)

Total Non-GAAP adjustments to net loss

0.01

2.72

1.44

3.15

Non-GAAP diluted net loss per share

$

(0.19

)

$

(0.51

)

$

(1.22

)

$

(2.46

)

Weighted average shares used to compute GAAP diluted net loss per share

5,133,269

5,126,834

5,128,421

4,455,755

Weighted average shares used to compute Non-GAAP diluted net loss per share

5,133,269

5,126,834

5,128,421

4,455,755

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CONTACT: Media: Ashley Willis FischTank PR ashley@fischtankpr.com