TechDogs-"Bionik Laboratories Reports Third Quarter Fiscal Year 2023 Financial Results"

Emerging Technology

Bionik Laboratories Reports Third Quarter Fiscal Year 2023 Financial Results

By Business Wire

Business Wire
Overall Rating

Nine Month Shipments and Revenue Exceeds 12-month Results of Prior Fiscal Year

BOSTON--(BUSINESS WIRE)--Bionik Laboratories Corp. (OTCPINK: BNKL), a robotics company providing neurological functional recovery solutions to stroke survivors and others with functional and mobility challenges, offering its technology to therapists directly and offering services to patients in its clinical centers, today reported financial results for the third quarter and nine months of fiscal year 2023, ended December 31, 2022.

Third Quarter FY 2023 Highlights

  • Bionik is continuing to roll out its new corporate strategy to operate a network of specialized Centers of Excellence for neuro-recovery care that showcase Bionik technology and solutions. The acquisition of the first center in Clermont, FL. closed in mid-September and in its first full quarter under Bionik’s management, is contributing to revenue as expected.
  • Revenue was $0.6 million for the third quarter of fiscal 2023 compared to $0.2 million for the third quarter of fiscal 2022, an increase of 214%, primarily due to five units sold in the current period compared to one unit sold in the prior fiscal year period.
  • Bionik’s sales pipeline remains healthy and continues to increase.
  • On a GAAP basis, the net loss was $1.1 million, or $(0.16) per diluted share, for the third quarter of fiscal 2023, compared to a net loss of $7.0 million, or $(1.18) per diluted share, in the corresponding period for fiscal 2022, including a pre-tax charge of $5.2 million for the impairment of goodwill and intangible assets. On a Non-GAAP basis, the net loss was $1.0 million, or $(0.15) per diluted share, for the third quarter of fiscal 2023, compared to a net loss of $1.6 million, or ($0.26) per diluted share, in the corresponding period for fiscal 2022.
  • During the quarter, Bionik secured $0.8 million in new capital from an existing investor.

Richard Russo Jr., President and Chief Executive Officer of Bionik, commented, “Bionik is having a strong year. In the third fiscal quarter, we reported a 214% increase in revenue driven by the shipment of five units. In fact, the nine month total already exceed the prior years’ results with shipments of 10 units and $1.3 million in revenue in the current period. Our sales pipeline remains healthy and continues to grow. This reflects the increased sampling and testing by large hospital and rehab organizations of our InMotion systems, which we believe are the gold standard for robotic upper extremity rehabilitation.”

“Our first neuro recovery clinic is performing to expectations in its first full quarter under Bionik’s management, after one-time start-up and acquisition costs that continue to decline. We are in active discussions with other centers that we believe will have an accretive impact on our revenue when completed. We are also exploring other strategic avenues as we work to deliver sustainable growth and successful outcomes for neurologically challenged patients.”

Third Quarter FY 2023 Financial Results

Total revenue for the third fiscal quarter was $0.6 million, an increase of 214%, compared with $0.2 million revenue in the third quarter of fiscal 2022. In the fiscal 2023 period, five units were shipped as compared to one unit in the fiscal 2022 period. Subscription revenue increased by 26% due to more subscriptions in the fiscal 2023 period as compared to the fiscal 2022 period.

Gross profit for the third fiscal quarter was $0.3 million, an increase of 104%, compared to $0.1 million in the third quarter of fiscal 2022. The gross margin was 47% compared to 73% in the prior year period. The gross margin was impacted by a less favorable sales mix and the startup and one-time costs from the acquisition of the Company’s first neuro recovery clinic.

Total operating expenses for the third fiscal quarter of fiscal 2023 were $1.3 million, a decrease of 24%, compared to $1.7 million in the third fiscal quarter of fiscal 2022, excluding the pre-tax charge of $5.2 million for the impairment of goodwill and intangible assets in the prior fiscal year period. Interest expense decreased by 88% to $30,000 due to less debt outstanding in the 2022 period.

The net loss for the third fiscal quarter of fiscal 2023 was $1.1 million, or ($0.16) per diluted share, compared to a net loss of $7.0 million, or $(1.18) per diluted share, in the third quarter of fiscal 2022, including the pre-tax charge of $5.2 million for the impairment of goodwill and intangible assets. Weighted average basic and diluted shares outstanding were 6,879,554 and 5,903,360 for the third quarter of fiscal year 2023 and 2022, respectively.

On a non-GAAP basis, excluding share-based compensation expense, costs associated with impairment of intangibles and amortization of intangibles, acquisition related costs, the extinguishment of debt, and foreign exchange changes, the net loss for the third quarter of fiscal 2023 was $1.0 million, or $(0.15) per diluted share, compared with a net loss of $1.6 million, or $(0.26) per diluted share, in the corresponding period for fiscal 2022.

Nine Months FY 2023 Financial Results

Total revenues for the nine months ended December 31, 2022 increased by 20%, to $1.3 million, as compared to revenues of $1.1 million for the nine months ended December 31, 2021. The increase was primarily due to the shipment of ten units in the current period compared to eight units in the comparable period of 2021. Gross Profit decreased by 10% to $0.7 million compared to $0.8 million in the prior year, and gross margin was 56% compared with 76%. The gross margin was impacted by a less favorable sales mix and the startup and one-time costs from the acquisition of the Company’s first neuro recovery clinic. Total operating expenses increased by 2% to $4.3 million compared to $4.2 million in the comparable period, after excluding $5.2 million for the impairment of goodwill and intangible assets recorded in fiscal year 2022.

The net loss for the nine months ended December 31, 2022 was $3.6 million, or $(0.52) per diluted share, compared to a net loss of $8.7 million, or $(1.50) per diluted share, in the corresponding period for fiscal 2022, including the pre-tax charge of $5.2 million for the impairment of goodwill and intangible assets. On a non-GAAP basis, excluding share-based compensation expense, costs associated with impairment of intangibles and amortization of intangibles, acquisition related costs, the extinguishment of debt, and foreign exchange changes, the net loss for the nine months ended December 31, 2022 was $3.4 million, or ($0.49) per diluted share, compared with a net loss of $3.6 million, or ($0.61) per diluted share, in the corresponding period for fiscal 2022.

About BIONIK Laboratories Corp.

BIONIK Laboratories is a robotics company providing neurological functional recovery solutions to stroke survivors and others with functional and mobility challenges. The Company offers its technology to therapists directly and offers services to patients in its clinical centers. 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 three 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," “possible,” "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 robotic rehabilitation products and the roll-out of its recently-announced Neuro-Recovery Centers of Excellence strategy, (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, including as a result of the acquisition and rebranding of the Company’s Neuro-Recovery Centers of Excellence, and the future financial performance of any such Centers of Excellence the Company may acquire or launch (iv) the market and projected market for our existing and planned products and services 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 or increase revenue, the inability to meet listing standards to uplist to a national stock exchange, the significant length of time and resources associated with the development and sales of our products and related insufficient cash flows and resulting illiquidity, the continued impact on the Company’s business as a result of the Covid-19 pandemic, the Company’s inability to expand the Company’s business, including its recently launched Neuro-Recovery Centers of Excellence strategy, 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.

BIONIK Laboratories Corp.

Condensed Consolidated Balance Sheets

(Amounts expressed in US Dollars)

December 31,

2022

March 31,

2022

(Unaudited)

(Audited)

Assets

Current assets:

Cash and cash equivalents

$

685,202

$

1,991,377

Accounts receivable

337,368

274,844

Prepaid expenses and other current assets

909,331

1,127,362

Inventories

1,143,580

1,191,020

Total current assets

3,075,481

4,584,603

Equipment, net

206,249

91,234

Other assets

8,695

-

Operating lease right-of-use assets, non-current

260,178

-

Tradenames and Trademarks

35,000

-

Goodwill

99,552

-

Total assets

$

3,685,155

$

4,675,837

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$

380,614

$

305,095

Accrued liabilities

1,293,055

873,030

Operating leases, current

21,280

-

Current portion of deferred revenue

396,719

313,854

Total current liabilities

2,091,668

1,491,979

Operating leases, non-current

240,397

Convertible notes

1,601,319

-

Deferred revenue, net of current portion

273,677

256,646

Total liabilities

4,207,061

1,748,625

Total stockholders’ equity

(521,906

)

2,927,212

Total liabilities and stockholders’ equity

$

3,685,155

$

4,675,837

BIONIK Laboratories Corp.

Condensed Consolidated Statements of Operations

(unaudited)

(Amounts expressed in U.S. Dollars)

Three months ended December 31,

Nine months ended December 31,

2022

2021

2022

2021

Revenues, net

$

575,054

$

183,262

$

1,304,088

$

1,082,450

Cost of revenues

304,503

50,394

568,331

261,823

Gross Profit

270,551

132,868

735,757

820,627

Operating expenses

Sales and marketing

446,427

567,300

1,504,887

1,335,730

Research and development

93,617

368,095

697,600

634,147

General and administrative

773,911

725,300

2,061,186

2,222,044

Impairment of goodwill & intangible assets

-

5,200,608

-

5,200,608

Total operating expenses

1,313,955

6,861,303

4,263,673

9,392,529

Loss from operations

(1,043,404

)

(6,728,435

)

(3,527,916

)

(8,571,902

)

Interest expense, net

30,435

249,096

52,675

576,576

Other expense (income), net

2,372

6,314

9,141

(445,732

)

Total other expense (income)

32,807

255,410

61,816

130,844

Net loss

$

(1,076,211

)

$

(6,983,845

)

$

(3,589,732

)

$

(8,702,746

)

Loss per share - basic and diluted

$

(0.16

)

$

(1.18

)

$

(0.52

)

$

(1.50

)

Weighted average number of shares outstanding – basic and diluted

6,879,554

5,903,360

6,879,554

5,820,654

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with GAAP, BIONIK uses non-GAAP loss from operations, non-GAAP net loss and non-GAAP diluted net loss per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measures included in this press release exclude costs associated with the amortization of intangible assets acquired, share-based compensation expense, acquisition costs, extinguishment of existing debt, as well as unrealized foreign exchange gains or losses for the three and nine months ended December 31, 2022, and 2021. This exclusion may be different from, and therefore not comparable to, similar measures used by other companies.

BIONIK’s management believes that the non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding amortization, impairment and foreign exchange costs that may not be indicative of our core business operating results. BIONIK believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing BIONIK’s performance and when planning, forecasting and analyzing future periods. BIONIK also believes that the non-GAAP measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in our financial and operational decision making. The non-GAAP Financial measures also facilitate management’s internal comparisons to BIONIK’s historical performance and our competitors’ operating results.

Reconciliation of GAAP Income Statement Measures to Non-GAAP Income Statement Measures (Unaudited)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2022

  

2021

  

2022

  

2021

Loss from operations

$

         (1,043,404

)

  

$

(6,728,435

)

$

(3,527,916

)

$

(8,571,902

)

Non-GAAP adjustments to loss from operations:

  

  

Share-based compensation expense

31,222

  

  

203,586

  

138,587

319,005

Costs associated with impairment of intangibles

-

5,200,608

-

5,200,608

Costs associated with amortization of intangibles

1,000

19,647

1,000

58,927

Extinguishment of Debt

-

-

-

(459,912

)

Acquisition related costs

23,769

-

52,001

-

Total Non-GAAP adjustments to loss from operations

55,991

  

  

5,423,841

  

  

191,588

5,111,628

Non-GAAP loss from operations

$

        (987,413

)

  

$

(1,304,594

)

$

(3,336,328

)

$

(3,453,274

)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2022

2021

2022

2021

Net loss

$

(1,076,211

)

$

(6,983,845

)

$

(3,589,732

)

$

(8,702,746

)

Non-GAAP adjustments to net loss:

Share based compensation expense

31,222

203,586

138,587

319,005

Costs associated with impairment of intangibles

-

5,200,608

-

5,200,608

Costs associated with amortization of intangibles

1,000

19,647

1,000

58,927

Acquisition related costs

23,769

-

52,001

-

Extinguishment of debt

-

-

-

(459,912

)

Foreign exchange loss (gain)

(2,372

)

8,697

(1,865

)

16,563

Total Non-GAAP adjustments to net loss

53,619

5,432,538

189,723

5,135,191

Non-GAAP net loss

$

(1,022,592

)

$

(1,551,307

)

$

(3,400,009

)

$

(3,567,555

)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2022

2021

2022

2021

Diluted net loss per share

$

(0.16

)

$

(1.18

)

$

(0.52

)

$

(1.50

)

Share-based compensation expense

0.01

0.03

0.02

0.06

Costs associated with impairment of intangibles

0.00

0.88

0.00

0.90

Costs associated with amortization of intangibles

0.00

0.01

0.00

0.01

Acquisition related costs

0.00

0.00

0.01

0.00

Extinguishment of debt

0.00

0.00

0.00

(0.08

)

Foreign exchange loss

0.00

0.00

0.00

0.00

Total Non-GAAP adjustments to net loss

0.01

0.92

0.03

0.89

Non-GAAP diluted net loss per share

$

(0.15

)

$

(0.26

)

$

(0.49

)

$

(0.61

)

Weighted average shares used to compute GAAP diluted net loss per share

6,879,554

5,903,360

6,879,554

5,820,654

Weighted average shares used to compute Non-GAAP diluted net loss per share

6,879,554

5,903,360

6,879,554

5,820,654

Contacts

Media Contact:
Ashley Willis
FischTank PR
ashley@fischtankpr.com

Investor Relations Contact:
Stephanie Prince
PCG Advisory
sprince@pcgadvisory.com
646.863.6341

First published on Wed, Feb 8, 2023

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