Exhibit 99.1

 

 

 

Bionik Laboratories Reports Third Quarter Fiscal Year 2018 Financial Results

 

TORONTO and BOSTON, February 13, 2018 – 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, today announced its third quarter fiscal year 2018 financial results for the three and nine months ended December 31, 2017.

 

Corporate Highlights

 

·Named André Auberton-Hervé, PhD, Chairman of the Board of Directors
·Dedicated significant commercial and technical resources to the launch of the new generation of InMotion Arm product, including development of significant pipeline of potential customers
·Signed agreement with Cogmedix to outsource manufacturing, to increase Company’s ability to scale faster and meet larger demand following the enhanced version of InMotion launch.
·Continued development of an InMotion Home product, based on the same clinical concepts and rehabilitation protocols supported by significant clinical data.
·Entered into a series of agreements to issue convertible notes for a total of $1,901,260 since the end of September 2017 from current and new investors of the Company based in Europe, who have provided total convertible loan funding including interest, fair value of warrants and accretion expense of $5,347,359.
·New pipe funding of $1,200,000 was closed before December 31, 2017 and $606,400 of additional funding was closed subsequent to December 31, 2017 to date.
·Entered into a short term loan for $500,000 due March 31, 2018 from one of its directors.
·Continued development of a lower limb assistive exoskeleton for individual consumers with impaired mobility through previously announced partnership with Wistron Corporation.
·Progressing through various application processes, as it continues execution of the Chinese joint venture signed earlier this year.

 

“We are confident that the recent launch of our next generation InMotion product will strengthen the commercial pipeline we have built over the last year. Having already placed the first units at major customer hospitals validates the industrial and commercial strategy implemented last year,” said Dr. Eric Dusseux, Chief Executive Officer and Director of Bionik Laboratories Corp. “The new agreement with manufacturing partner Cogmedix will increase our production capacity. At the same time, we continue to develop momentum with the key partnerships and joint ventures formed over the summer and have made significant progress as we focus on high growth opportunities within the consumer market.”

 

 

 

 

 

Summary of Financial Results for the Quarter ended December 31, 2017

 

The Company reported sales of $260,960 for the quarter ended December 31, 2017, as compared to sales of $372,426 for the quarter ended December 31, 2016 and nine month ended sales were $570,327 in 2017 and $553,900 in 2016.

 

Cost of goods sold was $88,357 and margin was 66% for the quarter ended December 31, 2017 compared to $334,786 and a margin of 10% for the quarter ended December 31, 2016 due to inventory write-offs in 2016.

 

For the quarter ended December 31, 2017, the Company reported a comprehensive loss of $(2,580,759) resulting in a loss per share of $(0.03), compared to a comprehensive loss of $(1,581,759) for the quarter ended December 31, 2016, resulting in loss per share of $(0.02).

 

The Company’s cash and cash equivalents at December 31, 2017 was $998,661 compared to $136,080 at September 30, 2017 as a result of the issuance of additional convertible promissory notes. Working capital deficit was ($8,535,488) at December 31, 2017 compared to ($6,492,048) at September 30, 2017.  

 

 

 

 

Bionik Laboratories Corp.

Condensed Consolidated Interim Balance Sheets

(Amounts expressed in US Dollars)  

 

   As at
December 31, 2017
(Unaudited)
$
   As at
March 31, 2017
(As adjusted)
$
 
Assets          
Current          
Cash and cash equivalents   998,661    543,650 
Accounts receivable, net of allowance for doubtful accounts of $16,349 (March 31, 2017 – $10,000)   306,572    383,903 
Prepaid expenses and other receivables   145,044    228,047 
Inventories   302,414    228,249 
Due from related parties   19,374    18,731 
Total Current Assets   1,772,065    1,402,580 
Equipment   174,997    227,421 
Technology and other assets   4,783,704    5,030,624 
Goodwill   22,308,275    22,308,275 
Total Assets   29,039,041    28,968,900 
Liabilities and Shareholders’ Deficiency          
Current          
Accounts Payable   794,875    784,771 
Accrued liabilities   1,868,225    1,228,657 
Customer advances   800    121,562 
Demand Notes Payable   50,000    330,600 
Promissory Notes payable   -    236,548 
Convertible Loans Payable   7,079,852    2,017,488 
Short term loan   400,000    - 
Deferred revenue   113,801    98,624 
Total Current Liabilities   10,307,553    4,818,250 
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, 2017 – 1)   -    - 
Common Shares, par value $0.001; Authorized – 250,000,000 (March 31, 2017 – 150,000,000); Issued and outstanding 53,885,279 and 45,909,336 Exchangeable Shares (March 31, 2017 – 48,885,107 and 47,909,336 Exchangeable Shares)   101,794    96,794 
Additional paid in capital   48,081,670    45,088,171 
Shares to be issued   60,000    - 
Deficit   (29,554,125)   (21,076,464)
Accumulated other comprehensive income   42,149    42,149 
Total Shareholders’ Equity   18,731,488    24,150,650 
Total Liabilities and Shareholders’ Equity   29,039,041    28,968,900 

 

 

 

 

Bionik Laboratories Corp.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss for the three and nine month periods ended December 31, 2017 and 2016 (unaudited)

(Amounts expressed in U.S. Dollars)

 

   Three months ended Dec. 31, 2017   Nine months ended Dec. 31, 2017   Three months ended Dec. 31, 2016   Nine months ended Dec. 31, 2016 
   $   $   $   $ 
   (Unaudited)   (Unaudited)   (As adjusted)   (As adjusted) 
                 
Sales   260,960    570,327    372,426    553,900 
Cost of Sales   88,357    177,482    334,786    405,680 
Gross Margin   172,603    392,845    37,640    148,220 
                     
Operating expenses                    
Sales and marketing   432,260    1,313,077    377,046    646,509 
Research and development   546,350    1,947,659    571,671    1,803,234 
General and administrative   783,784    2,916,917    409,669    2,291,136 
Share compensation expense   271,001    1,284,257    227,540    651,630 
Convertible debt accretion   216,302    290,375    -    - 
Amortization   76,985    246,920    -    - 
Depreciation   21,234    69,606    24,028    57,781 
Total operating expenses   2,347,916    8,068,811    1,609,954    5,450,290 
                     
Other expenses (income)                    
Foreign Exchange   (11,485)   102,671    -    - 
Interest expense   416,990    657,350    13,808    23,839 
Other income   (59)   649    (4,363)   (410,877)
Total other expenses (income)   405,446    760,670    9,445    (387,038)
                     
Net loss and comprehensive loss for the period   (2,580,759)   (8,436,636)   (1,581,759)   (4,915,032)
                     
Loss per share – basic   (0.03)  $(0.08)   (0.02)   (0.05)
Loss per share – diluted   (0.03)  $(0.08)  $(0.02)  $(0.05)
                     
Weighted average number of shares outstanding – basic   101,794,615    99,335,514    96,362,541    90,286,864 
Weighted average number of shares outstanding – diluted   101,794,615    99,335,514    96,362,541    90,286,864 

 

 

 

Bionik Laboratories Corp.  

Condensed Consolidated Interim Statements of Cash Flows for the nine months periods ended December 31, 2017 and 2016 (unaudited)

(Amounts expressed in U.S. Dollars)

 

   Nine months   Nine months 
   ended   ended 
   December 31,   December 31, 
   2017   2016 
   $   $ 
   (Unaudited)   (As adjusted) 
         
Operating activities          
Net loss for the period   (8,436,636)   (4,915,032)
Adjustment for items not affecting cash          
Depreciation   69,606    57,781 
Amortization   246,920    - 
Interest expense   640,168    23,839 
Share based compensation expense   1,284,257    592,130 
Convertible debt accretion   290,375    - 
Shares issued for services   60,000    59,500 
Allowance for doubtful accounts   (16,349)   - 
    (5,861,659)   (4,181,782)
Changes in non-cash working capital items          
Accounts receivable   93,680    (247,359)
Prepaid expenses and other receivables   83,003    95,562 
Due from related parties   (643)   532 
Inventories   (74,165)   (120,894)
Accounts payable   10,104    (720,573)
Accrued liabilities   639,568    (492,047)
Customer advances   (120,762)   28,000 
Deferred revenue   15,177    97,615 
Net cash used in operating activities   (5,215,697)   (5,540,946)
Investing activities          
Acquisition of equipment   (17,182)   (9,827)
Net cash used in investing activities   (17,182)   (9,827)

 

Financing activities

          
Proceeds from convertible loans   4,699,975    483,333 
Proceeds on exercise of warrants   1,125,038    - 
Repayment of Promissory note principal   (200,000)   - 
Repayment of Promissory note interest   (49,505)   - 
Repayment of Demand notes principal   (208,359)   - 
Repayment of Demand notes interest   (79,259)   - 
Proceeds from short term loan   400,000    - 
Cash acquired on acquisition   -    266,635 
Net cash provided by financing activities   5,687,890    749,968 
Net decrease in cash and cash equivalents for the period   455,011    (4,800,805)
Cash and cash equivalents, beginning of period   543,650    5,381,757 
Cash and cash equivalents, end of period   998,661    580,952 
           
Supplemental Information:          
Assets acquired and liabilities assumed as at April 21, 2016:          
Current assets, including cash of $266,635   478,843      
Equipment   59,749      
Intangible assets   5,580,704      
Goodwill   22,308,275      
Accounts payable   (241,299)     
Accrued liabilities   (361,029)     
Customer deposits   (86,487)     
Demand notes payable   (324,894)     
Promissory Notes payable   (217,808)     
Bionik advance   (1,436,164)     
Non-cash consideration   25,759,890      

 

 

 

 

The above financial information has been derived from the Company’s unaudited consolidated condensed financial statements as of December 31, 2017 and 2016, and should be read in conjunction with the consolidated financial statements, including the notes thereto, found in the Company’s Quarterly Report on Form 10-Q filed with the SEC on February 13, 2018 and Annual Report on Form 10-K for the year ended March 31, 2017 filed with the SEC on June 29, 2017.

 

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

 

About Bionik Laboratories Corp.

 

Bionik Laboratories (OTCQB:BNKL) 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 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 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.

 

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