BIONIK Laboratories Reports Fiscal 2021 Q3 Financial Results
BIONIK Laboratories Corp. (OTCQB:BNKL) reported a 14% revenue increase to $180,000 in Q3 FY2021, driven by InMotion Connect® digital solutions and a key shipment to South Korea. Gross profit rose significantly to $171,000 from $14,000 year-on-year. However, total operating expenses surged by 188% to $9.0 million, mainly due to a goodwill impairment. The net loss widened to $9.0 million, or ($1.75) per share, compared to a loss of $3.0 million in Q3 FY2020. Excluding certain charges, the net loss was $1.7 million, or ($0.34) per share, reflecting a reduction in operational costs.
- Revenue increased 14% to $180,000 driven by InMotion Connect® and product shipment to South Korea.
- Gross profit rose to $171,000 from $14,000 year-on-year.
- Non-GAAP operating expenses decreased by 40%, showing cost management success.
- Operating expenses increased by 188% to $9.0 million due to goodwill impairment.
- Net loss increased to $9.0 million from $3.0 million year-on-year.
BIONIK Laboratories Corp. (OTCQB:BNKL), a robotics company focused on providing rehabilitation and assistive technology solutions to individuals with neurological and mobility challenges from hospital to home, today reported financial results for its third quarter of fiscal year 2021, ended December 31, 2020.
“We believe we have made tremendous progress in the most recent quarter in the further digitalization of our company, highlighted by a
Third Quarter and Recent Corporate Highlights:
- Shipped an InMotion ARM® unit to our distribution partner in South Korea for installation in a prestigious local hospital.
-
On a GAAP basis, our operating expenses increased
$5.9 million or188% , associated with the impairment of our goodwill and other intangible assets. -
On a non-GAAP basis, excluding the impairment and amortization of intangibles, third quarter operating expenses decreased by
$1.2 million , or40% , from the prior year period as we continue to drive our costs down in navigating the effects of the global pandemic. - BIONIK’s R&D team continued to see success as it sees increases in the rehabilitation healthcare data it’s collecting, allowing the company to continue developing and customizing its InMotion Connect® digital solutions, and enabling us to explore new artificial intelligence solutions.
- Appointed Rich Russo Jr. as BIONIK’s new Chief Financial Officer.
Third Quarter Financial Results:
Third quarter total revenues increased
Third quarter gross profit increased to
Total operating expenses were
BIONIK recorded a net loss of
About BIONIK Laboratories Corp.
BIONIK Laboratories 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 two 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 other Company 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 inability to meet listing standards to uplist to a national stock exchange, the significant length of time and resources associated with the development of our products and related insufficient cash flows and resulting illiquidity, the impact on the Company’s business as a result of the Covid-19 pandemic, 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.
BIONIK Laboratories Corp. |
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Condensed Consolidated Balance Sheets |
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(unaudited) |
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(Amounts expressed in U.S. Dollars) |
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|
December 31,
|
|
March 31,
|
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|
|
(Audited) |
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Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
895,697 |
|
$ |
2,269,747 |
Accounts receivable |
|
174,305 |
|
|
846,964 |
Prepaid expenses and other current assets |
|
1,658,477 |
|
|
1,632,555 |
Inventories |
|
839,552 |
|
|
1,059,462 |
Due from related parties |
|
20,154 |
|
|
17,840 |
Total current assets |
|
3,588,185 |
|
|
5,826,568 |
Equipment, net |
|
105,220 |
|
|
154,144 |
Intangible assets, net |
|
1,000,131 |
|
|
1,449,924 |
Goodwill |
|
4,282,984 |
|
|
11,085,984 |
Total assets |
$ |
8,976,520 |
|
$ |
18,516,620 |
|
|
|
|
||
Liabilities and stockholders' equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts Payable |
$ |
544,204 |
|
$ |
857,093 |
Accrued liabilities |
|
2,067,795 |
|
|
1,647,656 |
PPP Loan |
|
459,912 |
|
|
- |
Convertible Loans |
|
3,841,384 |
|
|
2,078,833 |
Current portion of deferred revenue |
|
301,302 |
|
|
200,437 |
Total Current Liabilities |
|
7,214,597 |
|
|
4,784,019 |
Deferred revenue, net of current portion |
|
311,479 |
|
|
415,626 |
Total liabilities |
|
7,526,076 |
|
|
5,199,645 |
Total stockholders’ equity |
|
1,450,444 |
|
|
13,316,975 |
Total liabilities and stockholders’ equity |
$ |
8,976,520 |
|
$ |
18,516,620 |
BIONIK Laboratories Corp. |
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Condensed Consolidated Statements of Operations |
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(unaudited) |
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(Amounts expressed in U.S. Dollars) |
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Three months ended December 31, |
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Nine months ended December 31, |
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|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Revenues, net |
$ |
180,409 |
|
|
$ |
158,005 |
|
|
$ |
730,698 |
|
|
$ |
1,230,074 |
|
Cost of revenues |
|
9,581 |
|
|
143,595 |
|
|
142,183 |
|
|
562,887 |
|
|||
Gross Profit |
|
170,828 |
|
|
|
14,410 |
|
|
|
588,515 |
|
|
|
667,187 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
325,175 |
|
|
480,834 |
|
|
792,622 |
|
|
1,649,340 |
|
|||
Research and development |
|
449,580 |
|
|
|
1,021,418 |
|
|
|
1,213,350 |
|
|
|
2,724,000 |
|
General and administrative |
|
983,858 |
|
|
1,184,381 |
|
|
3,052,017 |
|
|
3,415,671 |
|
|||
Impairment of intangible assets |
|
7,182,053 |
|
|
|
-- |
|
|
|
7,182,053 |
|
|
|
-- |
|
Share-based compensation expense |
|
98,794 |
|
|
|
447,219 |
|
|
|
719,048 |
|
|
|
1,373,195 |
|
Total operating expenses |
|
9,039,460 |
|
|
3,133,852 |
|
|
12,959,090 |
|
|
9,162,206 |
|
|||
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
(8,868,632 |
) |
|
(3,119,442 |
) |
|
(12,370,575 |
) |
|
(8,495,019 |
) |
|||
Interest expense, net |
|
79,183 |
|
|
|
11,798 |
|
|
|
265,566 |
|
|
|
197,119 |
|
Other expense (income), net |
|
3,066 |
|
|
(161,291 |
) |
|
(50,562 |
) |
|
(218,860 |
) |
|||
Total other expense (income) |
|
82,249 |
|
|
|
(149,493 |
) |
|
|
215,004 |
|
|
|
(21,741 |
) |
Net loss |
$ |
(8,950,881 |
) |
$ |
(2,969,949 |
) |
$ |
(12,585,579 |
) |
$ |
(8,473,278 |
) |
|||
Loss per share - basic and diluted |
$ |
(1.75 |
) |
|
$ |
(0.58 |
) |
|
$ |
(2.45 |
) |
|
$ |
(1.99 |
) |
Weighted average number of shares outstanding – basic and diluted |
|
5,126,834 |
|
|
5,126,834 |
|
|
5,126,834 |
|
|
4,264,723 |
|
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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 and impairment of intangible assets acquired, as well as unrealized foreign exchange gains or losses for the three and nine months ended December 31, 2020 and 2019. 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
|
|
Nine Months Ended
|
||||||||||||||
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Loss from operations |
$ |
(8,868,632 |
) |
$ |
(3,119,442 |
) |
$ |
(12,370,575 |
) |
$ |
(8,495,019 |
) |
||||
Non-GAAP adjustments to loss from operations: |
||||||||||||||||
Costs associated with impairment of intangibles |
|
7,182,053 |
|
|
-- |
|
|
7,182,053 |
|
|
-- |
|
||||
Costs associated with amortization of intangibles |
|
23,732 |
|
|
69,314 |
|
|
70,741 |
|
|
207,943 |
|
||||
Total Non-GAAP adjustments to loss from operations |
|
7,205,785 |
|
|
69,314 |
|
|
7,252,794 |
|
|
207,943 |
|
||||
Non-GAAP loss from operations |
$ |
(1,662,847 |
) |
$ |
(3,050,128 |
) |
$ |
(5,117,781 |
) |
$ |
(8,287,076 |
) |
||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net loss |
$ |
(8,950,881 |
) |
$ |
(2,969,949 |
) |
$ |
(12,585,579 |
) |
$ |
(8,473,278 |
) |
||||
Non-GAAP adjustments to net loss: |
||||||||||||||||
Costs associated with impairment of intangibles |
|
7,182,053 |
|
|
-- |
|
|
7,182,053 |
|
|
-- |
|
||||
Costs associated with amortization of intangibles |
|
23,732 |
|
69,314 |
|
|
70,741 |
|
207,943 |
|
||||||
Unrealized foreign exchange loss (gain) |
|
12,181 |
|
|
(53,561 |
) |
|
43,243 |
|
|
(110,844 |
) |
||||
Total Non-GAAP adjustments to net loss |
|
7,217,966 |
|
|
15,753 |
|
|
7,296,037 |
|
|
97,099 |
|
||||
Non-GAAP net loss |
$ |
(1,732,915 |
) |
$ |
(2,954,196 |
) |
$ |
(5,289,542 |
) |
$ |
(8,376,179 |
) |
||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Diluted net loss per share |
$ |
(1.75 |
) |
$ |
(0.58 |
) |
$ |
(2.45 |
) |
$ |
(1.99 |
) |
||||
Costs associated with impairment of intangibles |
|
1.40 |
|
|
-- |
|
|
1.40 |
|
|
-- |
|
||||
Costs associated with amortization of intangibles |
|
0.01 |
|
0.01 |
|
|
0.01 |
|
0.05 |
|
||||||
Unrealized foreign exchange loss (gain) |
|
0.00 |
|
|
(0.01 |
) |
|
0.01 |
|
|
(0.02 |
) |
||||
Total Non-GAAP adjustments to net loss |
|
1.41 |
|
|
0.00 |
|
|
1.42 |
|
|
0.03 |
|
||||
Non-GAAP diluted net loss per share |
$ |
(0.34 |
) |
$ |
(0.58 |
) |
$ |
(1.03 |
) |
$ |
(1.96 |
) |
||||
Weighted average shares used to compute GAAP diluted net loss per share |
|
5,126,834 |
|
|
5,126,834 |
|
|
5,126,834 |
|
|
4,264,723 |
|
||||
Weighted average shares used to compute Non-GAAP diluted net loss per share |
|
5,126,834 |
|
|
5,126,834 |
|
|
5,126,834 |
|
|
4,264,723 |
|
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FAQ
What were BIONIK's Q3 2021 revenue results?
How did BIONIK's gross profit perform in Q3 2021?
What is the net loss reported by BIONIK for Q3 2021?
What factors contributed to BIONIK's increase in operating expenses in Q3 2021?
What is BIONIK's outlook based on its Q3 2021 results?
