Bionik Laboratories Reports Second Quarter Fiscal Year 2018 Financial Results
TORONTO and BOSTON, Nov. 14, 2017 /PRNewswire/ -- 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 second quarter fiscal year 2018 financial results for the three months ended September 30, 2017.
Corporate Highlights
- Named Dr. Eric Dusseux to the position of CEO of Bionik Laboratories Corp.
- Dedicated significant commercial and technical resources to the launch of the new V2 InMotion Arm product, including development of significant pipeline of potential customers.
- Commenced process to outsource manufacturing, to increase its ability to scale quicker and meet larger demand in advance of the V2 InMotion launch.
- Launched a rental program for rehabilitative product line, providing an alternative to traditional CAPEX financing and reducing the length of sales cycles.
- 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 $2.2M since the end of August this year from current and new investors of the Company based in Europe, who have provided total convertible loan funding in the amount of $4.2M.
- Continued development of a lower limb assistive exoskeleton for individual consumers with impaired mobility through previously announced partnership with Wistron Corporation.
- Launched the process to build a scientific advisory board to be comprised of scientific and clinical leaders within the robotic medical device community.
- The Company is progressing through various application processes, as it continues execution of the Chinese joint venture signed earlier this year.
As we prepare for the commercial launch of our V2 InMotion Arm System, we also look forward to penetrating the at-home markets in the future with a line of consumer-friendly products," said Dr. Eric Dusseux, Chief Executive Officer and Director of Bionik Laboratories Corp. "We are confident that the pipeline we have built over the last nine months will begin to generate revenue through the sale of our V2 rehabilitative products this quarter. 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 September 30, 2017
The Company reported sales of $221,847 for the quarter ended September 30, 2017, as compared to sales of $18,283 for the quarter ended September 30, 2016.
For the quarter ended September 30, 2017, the Company reported a comprehensive loss of $3,615,361, resulting in a loss per share of $0.04, compared to a comprehensive loss of $1,400,560 for the quarter ended September 30, 2016, resulting in loss per share of $0.02.
The Company's cash and cash equivalents at September 30, 2017 was $136,080 compared to $846,431 at June 30, 2017. Working capital was ($6,492,048) at September 30, 2017 compared to ($4,937,770) at June 30, 2017.
Since June 30, 2017, the Company has received convertible loans of $2,200,000 from its European investor group, and in the six months ended September 30, 2017, $1,125,038 in gross proceeds from its tender offer to amend and exercise certain outstanding warrants.
| Bionik Laboratories Corp. Condensed Consolidated Interim Balance Sheets (Amounts expressed in US Dollars) |
||
| As at |
As at |
|
| Assets |
||
| Current |
||
| Cash and cash equivalents |
136,080 |
543,650 |
| Accounts receivable, net of allowance for doubtful accounts of $16,349 (March 31, 2017 - $10,000) |
37,196 |
383,903 |
| Prepaid expenses and other receivables |
169,287 |
228,047 |
| Inventories |
231,442 |
228,249 |
| Due from related parties |
19,429 |
18,731 |
| Total Current Assets |
593,434 |
1,402,580 |
| Equipment |
196,231 |
227,421 |
| Technology and other assets |
4,860,690 |
5,030,624 |
| Goodwill |
22,308,275 |
22,308,275 |
| Total Assets |
27,958,630 |
28,968,900 |
| Liabilities and Shareholders' Deficiency |
||
| Current |
||
| Accounts Payable |
957,360 |
784,726 |
| Accrued liabilities |
1,873,613 |
1,228,657 |
| Customer advances |
109,100 |
121,562 |
| Demand Notes Payable |
335,309 |
330,600 |
| Promissory Notes Payable |
192,154 |
236,548 |
| Convertible Loans Payable |
3,530,095 |
2,017,488 |
| Deferred revenue |
87,851 |
98,624 |
| Total Current Liabilities |
7,085,482 |
4,818,205 |
| 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 47,909,336 Exchangeable Shares (March 31, 2017 – 48,885,107 and 47,909,336 Exchangeable Shares) (Notes 10 and 15) |
101,794 |
96,794 |
| Additional paid in capital |
47,642,526 |
45,088,171 |
| Shares to be issued |
60,000 |
- |
| Deficit |
(26,973,321) |
(21,076,419) |
| Accumulated other comprehensive income |
42,149 |
42,149 |
| Total Shareholders' Equity |
20,873,148 |
24,150,695 |
| Total Liabilities and Shareholders' Equity |
27,958,630 |
28,968,900 |
| Bionik Laboratories Corp. Condensed Consolidated Interim Statements of Operations and Comprehensive Loss for the three and six month periods ended September 30, 2017 and 2016 (unaudited) (Amounts expressed in U.S. Dollars) |
||||
| Three months |
Six months |
Three months |
Six months |
|
| 2017 |
2017 |
2016 |
2016 |
|
| $ |
$ |
$ |
$ |
|
| Sales |
221,847 |
309,367 |
18,283 |
182,474 |
| Cost of Sales |
59,825 |
89,125 |
12,019 |
70,894 |
| Gross Margin |
162,022 |
220,242 |
6,264 |
111,580 |
| Operating expenses |
||||
| Sales and marketing |
435,294 |
880,817 |
187,265 |
269,463 |
| Research and development |
715,400 |
1,401,309 |
813,773 |
1,231,563 |
| General and administrative |
1,505,528 |
2,133,134 |
577,853 |
1,881,467 |
| Share compensation expense |
762,208 |
1,013,256 |
204,842 |
424,090 |
| Convertible debt accretion |
74,073 |
74,073 |
- |
- |
| Amortization |
76,985 |
169,934 |
- |
- |
| Depreciation |
23,820 |
48,372 |
23,590 |
33,753 |
| Total operating expenses |
3,593,308 |
5,720,895 |
1,807,323 |
3,840,336 |
| Other expenses (income) |
||||
| Foreign Exchange |
15,595 |
114,156 |
- |
- |
| Interest expense (income) |
167,594 |
240,360 |
(5,203) |
10,031 |
| Other income |
886 |
708 |
(395,296) |
(406,514) |
| Total other expenses (income) |
184,075 |
355,224 |
(400,499) |
(396,483) |
| Net loss and comprehensive loss for the period |
(3,615,361) |
(5,855,877) |
(1,400,560) |
(3,332,273) |
| Loss per share – basic |
(0.04) |
(0.06) |
(0.02) |
(0.04) |
| Loss per share – diluted |
(0.04) |
(0.06) |
(0.02) |
(0.04) |
| Weighted average number of shares outstanding – basic |
101,794,615 |
99,335,514 |
85,924,462 |
87,232,426 |
| Weighted average number of shares outstanding – diluted |
101,794,615 |
99,335,514 |
85,924,462 |
87,232,426 |
The above financial information has been derived from the Company's unaudited consolidated condensed financial statements as of September 30, 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 November 13, 2017 and Annual Report on Form 10-K 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
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.
SOURCE Bionik Laboratories Corp.
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