TORONTO & BOSTON--(BUSINESS WIRE)--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 14% growth in our revenue from the prior year period. This growth is driven by our InMotion Connect® digital solutions sales from one of our strategic partners, and a key shipment to our distribution partner in South Korea, as we continue to penetrate the Asian markets,” said Dr. Eric Dusseux, Chief Executive Officer, BIONIK. “Our R&D team continues to see positive results with the data we are collecting in the cloud from our technology, allowing us to develop further InMotion Connect® digital solutions and explore new AI solutions.”

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 or 188%, 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, or 40%, 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 14% to $180,000, compared with $158,000 for the quarter ended December 31, 2019, driven by subscription revenues from our InMotion Connect® product and our product shipment to South Korea.

Third quarter gross profit increased to $171,000, compared to $14,000 for the quarter ended December 31, 2019. The increase is due to reducing the company’s warranty reserve with respect to lower overall unit sales in the current period compared to providing two robots at no charge to a customer in the prior year period.

Total operating expenses were $9.0 million in the third quarter of fiscal 2021 compared to $3.1 million in the prior year quarter, an increase of $5.9 million, or 188%. This increase was primarily driven by the impairment charge to our intangible assets associated with a decrease in the fair value. On a non-GAAP basis, excluding the impairment and amortization of our intangibles, our operating expenses decreased $1.2 million, or 40%, primarily due to a reduction in personnel costs associated with reduced headcount due to the global pandemic as well as lower share-based compensation expense.

BIONIK recorded a net loss of $9.0 million, or ($1.75) per diluted share, compared to a net loss of $3.0 million, or ($0.58) per diluted share, in the same period for fiscal 2020. On a non-GAAP basis, excluding non-cash unrealized foreign exchange measurement gains and losses and impairment and amortization of intangibles, third quarter net loss was $1.7 million, or a loss of ($0.34) per diluted share, compared with a loss of $3.0 million, or a loss of ($0.58) per diluted share.

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.