Annual report pursuant to Section 13 and 15(d)

Business Combination

Business Combination
12 Months Ended
Mar. 31, 2023
Business Combination  
Business Combination

3. Business Combination

On September 7, 2022, the Company completed the acquisition of the assets of Dearman & Dearman PT LLC (“Dearman LLC”), a physical therapy practice, for a cash purchase price of $215,000. The Company is rebranding the physical therapy clinic (“Tower Aquatic”) as a specialized neuro-recovery center to showcase Bionik’s technology and solutions by providing treatment to patients with stroke, brain and spinal cord injuries, among its current service offerings.

The acquisition qualified for purchase accounting treatment under Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, whereby the purchase price was provisionally allocated to the assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date of September 7, 2022:


Tower Aquatic



Total consideration paid



Estimated fair value of assets acquired:



Property and Equipment



ROU Asset



Lease Liability



Tradename and Trademarks, net








The Company incurred $52,000 of acquisition-related costs to complete the transaction including legal, valuation and closing fees. These expenses are included in the Consolidated Statements of Operations for the year ended March 31, 2023 as general and administrative operating expenses. The Relief from Royalty Method was relied upon to value the Trade Names and Trademarks. Under this method the Company calculated the present value of cash flows through fiscal 2037 utilizing a royalty rate of 3%. Because of the licensing appeal of this asset, the benefit of ownership as the “relief” from the royalty expense was estimated, that would be incurred in the absence of ownership. Unaudited pro forma consolidated financial information for the acquisition have not been included as this acquisition is not significant.