BIONIK Laboratories Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION (Tables)

ACQUISITION (Tables)

6 Months Ended

Sep. 30, 2017

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following sets forth the purchase price allocation based on management’s best estimates of fair value, including a summary of major classes of consideration transferred and the recognized amounts of assets acquired and liabilities assumed at the acquisition date.

	As at
	April 21, 2016
	$
Fair value of 23,650,000 shares of common stock (a)		23,177,000
Fair value of vested stock options (b)		2,582,890
Allocation of purchase price:		25,759,890
Cash and cash equivalents		266,635
Accounts receivable		6,490
Inventories		188,879
Prepaid expenses and other current assets		16,839
Equipment		59,749
Liabilities assumed:
Accounts payable		(241,299)
Accrued liabilities		(361,029)
Customer deposits		(86,487)
Demand notes payable		(324,894)
Promissory notes payable		(217,808)
Bionik advance (c)		(1,436,164)
Net assets acquired		(2,129,089)
Patents and exclusive License Agreement		1,306,031
Trademark		2,505,907
Customer relationships		1,431,680
Non compete agreement		61,366
Assembled Workforce		275,720
Goodwill		22,308,275
		25,759,890

(a)

The fair value of common stock was based on $0.98, which was the closing market price of the Company’s common stock on April 21, 2016.

(b)

The fair value of the vested stock options was determined using the Black Scholes option pricing model with the following key assumptions: a risk free rate of 1.59%, dividend and forfeiture rates of 0% and expected volatility of 114% which is consistent with the Company’s assumptions (Note 11).

(c)

Included in the net assets acquired was a loan issued to IMT in the amount of $300,000 under normal commercial terms. The loan carried an interest rate of 6% and were secured by all the assets of IMT subject to a $200,000 subordination to a third party financial services company, which was released in April 2016.

Business Acquisition, Pro Forma Information [Table Text Block]

The schedule below reflects the intangible assets acquired in the IMT acquisition and the assets amortization period and expense for the three and six months period ended September 30, 2017 and the year ended March 31, 2017:

Intangible assets acquired	Amortization				Expense March		Value at March		3 Months Expense		6 Months Expense		Value at
	period (years)		Value acquired		31, 2017		31, 2017		September		September		September
									30, 2017		30, 2017		30, 2017
			$		$		$		$		$		$
Patents and exclusive License Agreement		9.74		1,306,031		126,375		1,179,656		33,522		67,081		1,112,575
Trademark		Indefinite		2,505,907		-		2,505,907		-		-		2,505,907
Customer relationships		10		1,431,680		134,931		1,296,749		35,792		71,622		1,225,127
Non compete agreement		2		61,366		28,918		32,448		7,671		15,367		17,081
Assembled Workforce		1		275,720		259,856		15,864		-		15,864		-
				5,580,704		550,080		5,030,624		76,985		169,934		4,860,690