Exhibit 99.1

 

 

BIONIK Laboratories Announces Fiscal 2021 Q2 Financial Results

 

TORONTO & BOSTON – November 12, 2020 – 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 announced financial results for its second quarter of fiscal year 2021, ending September 30, 2020.

 

Financial highlights for the second quarter of fiscal 2021 and recent weeks include:

 

Reported sales have increased by 3.8%, compared to the prior-year quarter.

Gross margins for the quarter were $222,334 or 76% on the sale of InMotion robots, Connect and Pulse, compared to $198,484 or 70% in the prior-year quarter.

An existing robotic device customer purchased and subscribed to InMotion Connect™ and deployed the service in 22 of its hospitals across 13 states.

During the COVID-19 pandemic, the Company continued to ship InMotion robots to customers in the U.S.

 

Corporate highlights for the second quarter of fiscal 2021 and recent weeks include:

 

Following its launch on June 25, 2020, the Company deployed InMotion Connect™, 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. The Company continues to customize the solution by developing new functionalities including smart actions to improve the decision process.

In October 2020, the Company placed an InMotion Connect™ solution at another strategic account, for evaluation and possible sales across that account’s hospital network.

 

Management Commentary

 

Commenting on the quarter, Dr. Eric Dusseux, BIONIK’s Chief Executive Officer, said, "Following the launch of InMotion Connect™, we are seeing good traction in targeting the critical needs around improving technology adoption and utilization at each rehabilitation clinic we serve. Through this new platform, we can ensure that the state-of-the-art rehabilitation methods are effectively in use across the hospital networks. We sold and deployed, during the second quarter of fiscal year 2021, InMotion Connect™ solutions within 22 hospitals across 13 states in the U.S. and look forward to our customers’ continued and long-term use of the many solutions InMotion Connect™ offers. We have already seen the impact at many of our client sites, showing the benefit and ROI to our customers, the clinicians, the hospital management and the headquarter teams. Feedback received to-date suggests that these teams are seeing improved performance and most importantly, are now more confident in the process to increase their internal objectives and are moving to share transparently the metrics for these newly increased targets within their organization. Our R&D team is focused on continuing its work to improve the InMotion Connect™ solution, expanding the functionalities and including smart actions to better support the decision making and management process at our client’s sites. With the COVID-19 pandemic, we are continuing to operate under a modified plan to reduce costs and otherwise address the effects on our business caused by COVID-19."

 

 

 

 

 

 

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 quarter ended September 30, 2020 were $292,381, compared with $281,691 for the quarter ended September 30, 2019. The increase reflects the sale of one InMotion robot sold during the COVID-19 pandemic quarter ended September 30, 2020 compared to two InMotion robots in the prior-year quarter, and 22 InMotion Connect™ solutions, including hardware and subscriptions, following the InMotion Connect™ launch at the end of June 2020. In addition, deferred revenue, comprised of training to be provided and extended warranties, decreased to $526,250 at September 30, 2020 from $616,063 at March 31, 2020. The Company believes that extended warranties and training are important to growing parts of its business.

 

Gross margin for the quarter ended September 30, 2020 was $222,334, or 76%, on the sale of InMotion robots, Connect and Pulse, compared to $198,484, or 70%, for the quarter ended September 30, 2019.

 

The Company reported a comprehensive loss for the quarter ended September 30, 2020 of $(1,627,622), or a loss per share of $(0.32), compared with a comprehensive loss of $(3,382,684), or a loss per share of $(0.87), for the quarter ended September 30, 2019. The decrease in the loss is due to a reduction of employees by 30% between March 31, 2020 and September 30, 2020 primarily due to completion of engineering projects connected with the development of InMotion Connect™. BIONIK had cash and cash equivalents of $1,350,627 as of September 30, 2020, compared to $2,269,747 as of March 31, 2020. The Company’s working capital deficit at September 30, 2020 was $2,306,282 compared to a working capital surplus of $626,923 as of March 31, 2020. The working capital deficit at September 30, 2019 is due to convertible loans received by the Company during the six months 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 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 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.

 

Media contact:

 

Matthew Bretzius
FischTank PR
matt@fischtankpr.com

 

 

 

 

 

 

Bionik Laboratories Corp.

Condensed Consolidated Interim Balance Sheets (unaudited)

(Amounts expressed in US Dollars)

 

   As at   As at 
   September 30,
2020
   March 31,
2020
 
   $   $
(Audited)
 
Assets          
Current          
Cash and cash equivalents   1,350,627    2,269,747 
Accounts receivable   657,615    846,964 
Prepaid expenses and other receivables   1,671,298    1,632,555 
Inventories   890,321    1,059,462 
Due from related parties   19,151    17,840 
Total Current Assets   4,589,012    5,826,568 
Equipment   119,913    154,144 
Technology and other assets   1,402,916    1,449,924 
Goodwill   11,085,984    11,085,984 
Total Assets   17,197,825    18,516,620 
           
Liabilities and Shareholders' Equity          
Current          
Accounts Payable   529,618    857,093 
Accrued liabilities   1,616,625    1,647,656 
PPP Loan   459,912    - 
Convertible Loans   3,762,889    2,078,833 
Deferred revenue - Contract Liabilities   526,250    616,063 
Total Current Liabilities   6,895,294    5,199,645 
Shareholders' Equity          
Preferred Stock, par value $0.001; Authorized 10,000,000 (March 31, 2020 – 10,000,000) Special Voting Preferred Stock, par value $0.001; Authorized; Issued and outstanding - 1 (March 31, 2020 – 1)   -    - 
Common Shares, par value $0.001; Authorized - 500,000,000; (March 31, 2020 – 500,000,000) Issued and outstanding 5,009,151 and 117,683 Exchangeable Shares (March 31, 2020 – 5,009,151 and -117,683)          
    5,126    5,126 
Additional paid in capital   85,263,824    84,643,570 
Deficit   (75,008,568)   (71,373,870)
Accumulated other comprehensive income   42,149    42,149 
Total Shareholders' Equity   10,302,531    13,316,975 
Total Liabilities and Shareholders' Equity   17,197,825    18,516,620 

 

 

 

 

 

 

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss 

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

(Amounts expressed in U.S. Dollars)

 

   Three months
ended
   Six months
ended
   Three months
ended
   Six months
ended
 
   September 30,
2020
   September 30,
2020
   September 30,
2019
   September 30,
2019
 
   $   $   $   $ 
Sales   292,381    550,289    281,691    1,072,070 
Cost of Sales   70,047    132,602    83,207    419,292 
Gross Margin   222,334    417,687    198,484    652,778 
                     
Operating expenses                    
Sales and marketing   244,262    467,447    584,775    1,168,507 
Research and development   410,507    763,770    886,060    1,702,583 
General and administrative   858,410    1,986,920    1,199,938    2,041,631 
Share-based compensation expense   212,939    620,254    638,219    925,976 
Amortization   23,504    47,008    69,314    138,628 
Depreciation   16,119    34,231    27,059    51,029 
Total operating expenses   1,765,741    3,919,630    3,405,365    6,028,354 
                     
Other (income) expenses                    
Other expense   111,408    186,383    170,739    185,035 
Other income   (46,178)   (83,790)   -    - 
Foreign exchange   18,985    30,162    5,064    (57,283)
Total other expenses (income)   84,215    132,755    175,803    127,752 
Net (loss) and comprehensive (loss) for the period   (1,627,622)   (3,634,698)   (3,382,684)   (5,503,328)
                     
Loss per share – basic and diluted   (0.32)   (0.71)   (0.87)   (1.42)
Weighted average number of shares outstanding – basic and diluted   5,126,834    5,126,834    3,872,428    3,865,573 

 

 

 

 

 

 

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Cash Flows
For the six month periods ended September 30, 2020 and 2019 (unaudited)

(Amounts expressed in U.S. Dollars)

 

     Six months ended     Six months ended 
   September 30, 2020   September 30, 2019 
   $   $ 
Operating activities          
Net loss for the period   (3,634,698)   (5,503,328)
Adjustment for items not affecting cash          
Depreciation   34,231    51,029 
Amortization   47,008    138,628 
Interest expense   181,481    167,877 
Share based compensation expense   620,254    925,976 
    (2,751,724)   (4,219,818)
Changes in non-cash working capital items          
Accounts receivable   189,349    1,041,848 
Prepaid expenses and other receivables   (38,743)   (837,145)
Due from related parties   (1,311)   (347)
Inventories   169,141    (631,376)
Accounts payable   (327,475)   285,315 
Accrued liabilities   (31,031)   (512,068)
Deferred revenue   (89,813)   122,821 
Net cash (used in) operating activities   (2,881,607)   (4,750,770)
Investing activities          
Acquisition of equipment   -    (91.141)
Net cash (used in) investing activities   -    (91,141)
Financing activities          
Proceeds from convertible loans   1,502,575    9,070,000 
Proceeds from PPP Loan   459,912    - 
Repayment of term loan   -    (500,000)
Proceeds from term loan   -    500,000 
Net cash provided by financing activities   1,962,487    9,070,000 
Net increase in cash and cash equivalents for the period   (919,120)   4,228,089 
Cash and cash equivalents, beginning of the period   2,269,747    446,779 
Cash and cash equivalents, end of the period   1,350,627    4,674,868