Bionik Laboratories Reports Third Quarter Fiscal Year 2018 Financial Results

TORONTO and BOSTON, Feb. 13, 2018 /PRNewswire/ -- Bionik, 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 As at December 31, March 31, 2017 2017 (Unaudited) (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 Nine months Three months Nine months ended Dec. ended Dec. ended Dec. ended Dec. 31, 2017 31, 2017 31, 2016 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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SOURCE Bionik Laboratories Corp.