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.
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.
Contact:
Ashley Willis
Email: ashley@fischtankpr.com
BIONIK LABORATORIES CORP. 