Bionik Laboratories Reports Third Quarter Fiscal Year 2018 Financial Results

TORONTO and BOSTON, Feb. 13, 2018 /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 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.

View original content with multimedia:http://www.prnewswire.com/news-releases/bionik-laboratories-reports-third-quarter-fiscal-year-2018-financial-results-300598255.html

SOURCE Bionik Laboratories Corp.