# EDGAR Filing Document

**Accession Number:** 0001508381
**File Stem:** 0001104659-23-014551
**Filing Date:** 2023-2
**Character Count:** 26503
**Document Hash:** 4e0163bd5a59fd00c9b30d02308f444e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-014551.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001104659-23-014551

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bionik Laboratories Corp.
- **CENTRAL INDEX KEY:** 0001508381
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **IRS NUMBER:** 271340346
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54717
- **FILM NUMBER:** 23599351

**BUSINESS ADDRESS:**
- **STREET 1:** 80 COOLIDGE HILL ROAD
- **CITY:** WATERTOWN
- **STATE:** MA
- **ZIP:** 02472
- **BUSINESS PHONE:** 1-617-926-4800

**MAIL ADDRESS:**
- **STREET 1:** 80 COOLIDGE HILL ROAD
- **CITY:** WATERTOWN
- **STATE:** MA
- **ZIP:** 02472

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Drywave Technologies, Inc.
- **DATE OF NAME CHANGE:** 20130814

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Strategic Dental Management Corp.
- **DATE OF NAME CHANGE:** 20101220

?xml version="1.0" encoding="utf-8"?

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| |
|:---|
| **UNITED STATES** |
| **SECURITIES AND EXCHANGE COMMISSION** |
| **WASHINGTON, DC 20549** |
| **FORM 8-K** |

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| |
|:---|
| **CURRENT REPORT PURSUANT** |
| **TO SECTION 13 OR 15(D) OF THE** |
| **SECURITIES EXCHANGE ACT OF 1934** |
| Date of report (Date of earliest event reported): **February 8, 2023** |

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BIONIK LABORATORIES CORP.

(Exact Name of Registrant as Specified in Its Charter)

<u>Delaware</u> <u>000-54717</u> <u>27-1340346</u> <br> (State or Other Jurisdiction of Incorporation or Organization) (Commission File Number) (IRS Employer Identification No.)

<u> 80 Coolidge Hill Road Watertown, MA</u> <u> 02472</u> <br> (Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, Including Area Code: (617) 926-4800

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

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| &nbsp;&nbsp;&nbsp;◻ | &nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| &nbsp;&nbsp;&nbsp;◻ | &nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| &nbsp;&nbsp;&nbsp;◻ | &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| &nbsp;&nbsp;&nbsp;◻ | &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

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|:---|
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
| Emerging growth company ◻ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ |

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Securities registered pursuant to Section 12(b) of the Act:

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|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Not applicable | Not applicable | Not applicable |

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|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

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On February 8, 2023, Bionik Laboratories Corp. issued a press release announcing its financial results and corporate highlights for the fiscal quarter ended December 31, 2022.

A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.1).

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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| | |
|:---|:---|
| **<u>Exhibit</u>** | **<u>Description</u>** |
| [99.1](tm235066d1_ex99-1.htm) | [Press Release](tm235066d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: February 8, 2023

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| | |
|:---|:---|
| **BIONIK LABORATORIES CORP.** | **BIONIK LABORATORIES CORP.** |
| By: | /s/ Dan Gonsalves |
| Name: | Dan Gonsalves |
| Title: | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Bionik Laboratories Reports Third Quarter Fiscal Year 2023 Financial Results**

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

BOSTON – February 8, 2023 -- 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 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 <u>www.BIONIKlabs.com</u> and connect with us on <u>Twitter</u>, <u>LinkedIn</u>, and <u>Facebook</u>.

**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.

**Media Contact:**

Ashley Willis

FischTank PR

ashley@fischtankpr.com

**Investor Relations Contact:**

Stephanie Prince

PCG Advisory

<u>sprince@pcgadvisory.com</u>

646.863.6341 *-Tables Follow-*

**BIONIK Laboratories Corp.**

**Condensed Consolidated Balance Sheets**

(Amounts expressed in US Dollars)

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| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2022** | **March 31,**<br> **2022** |
|  | (Unaudited) | (Audited) |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $685202 | $1991377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 337368 | 274844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 909331 | 1127362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 1143580 | 1191020 |
| **Total current assets** | 3075481 | 4584603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment, net | 206249 | 91234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 8695 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, non-current | 260178 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tradenames and Trademarks | 35000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 99552 | - |
| **Total assets** | $3685155 | $4675837 |
| **Liabilities and stockholders' equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $380614 | $305095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1293055 | 873030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases, current | 21280 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of deferred revenue | 396719 | 313854 |
| **Total current liabilities** | 2091668 | 1491979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases, non-current | 240397 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes | 1601319 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, net of current portion | 273677 | 256646 |
| **Total liabilities** | 4207061 | 1748625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | (521906) | 2927212 |
| **Total liabilities and stockholders' equity** | $3685155 | $4675837 |

---

**BIONIK Laboratories Corp.**

**Condensed Consolidated Statements of Operations**

**(unaudited)**

(Amounts expressed in U.S. Dollars)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues, net | $575054 | $183262 | $1304088 | $1082450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | 304503 | 50394 | 568331 | 261823 |
| **Gross Profit** | 270551 | 132868 | 735757 | 820627 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 446427 | 567300 | 1504887 | 1335730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 93617 | 368095 | 697600 | 634147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 773911 | 725300 | 2061186 | 2222044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill & intangible assets | - | 5200608 | - | 5200608 |
| **Total operating expenses** | 1313955 | 6861303 | 4263673 | 9392529 |
| **Loss from operations** | (1043404) | (6728435) | (3527916) | (8571902) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 30435 | 249096 | 52675 | 576576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | 2372 | 6314 | 9141 | (445732) |
| **Total other expense (income)** | 32807 | 255410 | 61816 | 130844 |
| **Net loss** | $(1076211) | $(6983845) | $(3589732) | $(8702746) |
| Loss per share - basic and diluted | $(0.16) | $(1.18) | $(0.52) | $(1.50) |
| Weighted average number of shares outstanding – basic and diluted | 6879554 | 5903360 | 6879554 | 5820654 |

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**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)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> December 31,** | **Three Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Loss from operations** | $(1043404) | $(6728435) | $(3527916) | $(8571902) |
| Non-GAAP adjustments to loss from operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 31222 | 203586 | 138587 | 319005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with impairment of intangibles |  | 5200608 |  | 5200608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with amortization of intangibles | 1000 | 19647 | 1000 | 58927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extinguishment of Debt |  |  |  | (459912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 23769 | - | 52001 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non-GAAP adjustments to loss from operations | 55991 | 5423841 | 191588 | 5111628 |
| **Non-GAAP loss from operations** | $(987413) | $(1304594) | $(3336328) | $(3453274) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> December 31,** | **Three Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net loss** | $(1076211) | $(6983845) | $(3589732) | $(8702746) |
| Non-GAAP adjustments to net loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share based compensation expense | 31222 | 203586 | 138587 | 319005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with impairment of intangibles |  | 5200608 |  | 5200608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with amortization of intangibles | 1000 | 19647 | 1000 | 58927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 23769 |  | 52001 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extinguishment of debt |  |  |  | (459912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain) | (2372) | 8697 | (1865) | 16563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non-GAAP adjustments to net loss | 53619 | 5432538 | 189723 | 5135191 |
| **Non-GAAP net loss** | $(1022592) | $(1551307) | $(3400009) | $(3567555) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> December 31,** | **Three Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** | **Nine Months Ended<br> December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Diluted net loss per share** | $(0.16) | $(1.18) | $(0.52) | $(1.50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 0.01 | 0.03 | 0.02 | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with impairment of intangibles | 0.00 | 0.88 | 0.00 | 0.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs associated with amortization of intangibles | 0.00 | 0.01 | 0.00 | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 0.00 | 0.00 | 0.01 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extinguishment of debt | 0.00 | 0.00 | 0.00 | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 | 6879554 | 5903360 | 6879554 | 5820654 |
| Weighted average shares used to compute Non-GAAP diluted net loss per share | 6879554 | 5903360 | 6879554 | 5820654 |

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