Ekso Bionics Holdings, Inc. (OTCQB:EKSO), a robotic exoskeleton
company, today reported financial results for the quarter ended
March 31, 2014, as well as recent highlights.
"Ekso made substantial progress during the first quarter of 2014
as we continue to pioneer the field of robotic exoskeletons to
augment human strength, endurance and mobility," stated Nathan
Harding chief executive officer and co-founder, Ekso Bionics. "In
January we simultaneously became a public company and closed a
financing, strengthening our balance sheet and giving us the
opportunity to expand our commercial capability and executive team.
We are now focused on driving adoption of our Ekso GT systems in
rehabilitation centers in the US and abroad as well as generating
additional projects within Ekso Labs."
FIRST QUARTER AND RECENT HIGHLIGHTS
- Completed an alternative public offering and private placement
raising a net of $19 million in proceeds in January and February
2014
- Expanded our capability and team, including two key hires,
Thomas Looby, Chief Marketing Officer and Glenn Davis, VP of Sales
for the Americas
- Announced Ekso Labs as the first company to receive an award
from Special Operations Command (SOCOM) to develop technologies for
their Tactical Assault Light Operator Suit (TALOS), often referred
to as the "Iron man" suit
- Increased revenues by 52% to $1.1 million in Q1 2014 as
compared to $696,000 in Q1 2013
- Have placed over 60 Ekso units since February 2012 in 15
countries and reached 7.8 million steps taken by users
FIRST QUARTER 2014 FINANCIAL RESULTS
Revenue and Cost of Revenue
Total revenue was $1.1 million for the period ended March 31,
2014 compared to $0.7 million during the same period of 2013.
Medical device revenue was $0.5 million for the period ended March
31, 2014 compared to $0.3 million during the same period of 2013.
The increase of $0.2 million in medical device revenue was due to
an increase in recognized revenue as the number of medical device
sales being amortized to revenue nearly doubled compared to the
same period in the prior year. Engineering services revenue was
$0.5 million for the period ended March 31, 2014 compared to $0.4
million during the same period of 2013. The increase of
approximately $0.2 million in engineering services revenue was
primarily due to an increase of $0.5 million in revenue related to
a federal agency contract partially offset by $0.3 million in
decreased revenue resulting from the completion of projects with
other government agencies.
During the first quarter of 2014 and 2013, cost of revenue was
$0.6 million. Medical device cost of revenue increased to $0.3
million from $0.2 million due to an increase in recognized cost of
revenue related to the increase in medical device sales being
amortized to revenue as noted above. Engineering services cost of
revenue remained relatively flat at approximately $0.3 million for
both periods due to lower costs related to the completion of
projects with other government agencies noted above, partially
offset by an increase in costs related to the current federal
agency contract.
Expenses
Operating expenses for the quarter were $4.4 million compared to
$3.3 million during the same period of 2013, an increase of 34%.
This increase was largely driven by approximately $1.1 million of
non-recurring expenses, primarily associated with the merger and
private placement financing.
Non-operating expenses increased by $77.2 million in the first
quarter of 2014 as compared to the same period of 2013, primarily
due to a $77.4 million non-cash charge related to the issuance of
warrants in the private placement financing. The warrants issued in
the first quarter of 2014 are classified as liabilities and are
adjusted to fair value on a quarterly basis with the change in fair
value being included in net loss. The amount included in net loss
is a non-cash item as the Company is not required to expend any
cash to settle the warrant liability. The warrant liability is
primarily affected by changes in the Company's stock price during
each financial reporting period, which causes the warrant liability
to fluctuate as the market price of the Company's stock
fluctuates.
Net Losses and Loss per Share
Net losses for the three months ended March 31, 2014 were $81.8
million, or ($1.22) per share, including the $77.4 million warrant
liability and $0.4 million in stock-based compensation, compared to
net losses of $3.8 million, or ($0.18) per share, including $0.1
million in stock-based compensation, for the same period of
2013.
Cash and Cash Equivalents
The Company ended the first quarter with cash and cash
equivalents of $14.6 million. The cash used in operating activities
was $5.6 million for the three months ended March 31, 2014 compared
to $2.4 million for the same period in 2013. Net cash provided by
financing activities was $19.5 million for the three months ended
March 31, 2014 compared to $1.1 million for the same period in
2013. The Company believes that its cash resources as of March 31,
2014 are sufficient to implement its current business plan, support
operations, fund research and development and meet current
obligations through the middle of 2015.
CONFERENCE CALL AND WEBCAST DETAILS
Ekso Bionics will hold a conference call and audio webcast to
discuss financial results for its first quarter 2014 and provide a
general business update on Thursday, May 8, 2014 at 4:30pm ET.
Date: May 8, 2014 Time: 4:30pm ET Listen via Internet:
http://eksobionics.equisolvewebcast.com/q1-2014 Toll-free (US and
Canada): 877-407-3036 International: 201-378-4919
A webcast replay will be available on the Ekso Bionics website
for 30 days.
ABOUT EKSO BIONICS
Since 2005, Ekso Bionics has been pioneering the field of
robotic exoskeletons, or wearable robots, to augment human
strength, endurance and mobility. The company's first commercially
available product, called the Ekso device, has helped thousands of
people with paralysis take millions of steps not otherwise
possible. By designing and creating some of the most
forward-thinking and innovative solutions for people looking to
augment human capabilities, Ekso Bionics is helping people rethink
current physical limitations and achieve the remarkable.
Ekso Bionics is headquartered in Richmond, CA and is listed on
the OTC QB under the symbol EKSO. To learn more about Ekso Bionics
please visit us at www.eksobionics.com
Facebook: www.facebook.com/eksobionics Twitter: @eksobionics
YouTube: http://www.youtube.com/user/EksoBionics/
FORWARD-LOOKING STATEMENTS
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking
statements. 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 human
exoskeletons, (ii) a projection of financial results, financial
condition, capital expenditures, capital structure or other
financial items, (iii) the Company's future financial performance
and (iv) the assumptions underlying or relating to any statement
described in points (i), (ii) or (iii) 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 over. 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 adequate financing,
the significant length of time and resources associated with the
development of our products and related insufficient cash flows and
resulting illiquidity, the Company's inability to expand the
Company's business, significant government regulation of medical
devices and the healthcare industry, lack of product
diversification, the scope, validity and enforceability of our and
third party intellectual property rights, existing or increased
competition, results of arbitration and litigation, stock
volatility and illiquidity, 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, including, the Company's Current Report on
Form 8-K/A filed on March 31, 2014. The Company does not undertake
to update these forward-looking statements.
-Financial Information
Follows-
Ekso Bionics Holdings,
Inc. |
Condensed Consolidated
Balance Sheets |
(unaudited) |
|
As
of |
|
March 31, |
December 31, |
|
2014 |
2013 |
Assets |
|
|
Current assets: |
|
|
|
|
|
Cash |
$ 14,576,378 |
$ 805,306 |
Accounts receivable |
1,775,048 |
549,469 |
Inventories, net |
1,123,021 |
725,096 |
Note receivable from
stockholder |
— |
103,735 |
|
|
|
Prepaid expenses and other
current assets |
406,993 |
250,998 |
Deferred cost of revenue,
current |
974,405 |
768,599 |
Total current assets |
18,855,845 |
3,203,203 |
Property and equipment, net |
1,763,550 |
1,575,286 |
Deferred cost of revenue, non-current |
1,127,269 |
803,298 |
Other assets |
54,390 |
1,002,150 |
Total assets |
$ 21,801,054 |
$ 6,583,937 |
|
|
|
Liabilities, Convertible Preferred
Stock and Stockholders' Deficit |
|
|
Current liabilities: |
|
|
Notes payable, current |
$ 39,345 |
$ 1,638,505 |
Convertible debt |
— |
5,062,417 |
Accounts payable |
1,044,296 |
1,498,680 |
Accrued liabilities |
1,565,798 |
1,430,799 |
Customer advances and deferred
revenues, current |
2,960,026 |
2,419,226 |
Liability due to early stock
option exercise |
3,970 |
5,293 |
Total current liabilities |
5,613,435 |
12,054,920 |
Customer advances and deferred revenues,
non-current |
2,447,380 |
2,209,111 |
Notes payable, non-current |
111,318 |
866,950 |
Warrant liability |
88,050,250 |
377,747 |
Deferred rent |
114,657 |
123,709 |
Total liabilities |
96,337,040 |
15,632,437 |
Commitments and contingencies (Note 12) |
|
|
Convertible preferred stock issuable in
series, $0.001 par value; 10,000,000 and 22,000,000 shares
authorized at March 31, 2014 (unaudited) and December 31, 2013
respectively; none and 25,923,873and shares issued and
outstanding at March 31, 2014 (unaudited) and December 31, 2013
respectively; liquidation preference of $2.85 -- $4.11 per share at
December 31, 2013 |
— |
27,324,208 |
Stockholders' deficit: |
|
|
Common stock, $0.001 par value; 500,000,000
and 40,000,000 shares authorized at March 31, 2014 (unaudited) and
December 31, 2013, respectively; 78,480,019 and 21,114,783, shares
issued and outstanding at March 31, 2014 (unaudited) and December
31, 2013, respectively |
78,480 |
21,114 |
Additional paid-in capital |
45,182,512 |
1,637,797 |
Accumulated deficit |
(119,796,978) |
(38,031,619) |
Total stockholders' equity (deficit) |
(74,535,986) |
(36,372,708) |
Total liabilities, convertible preferred
stock and stockholders' deficit |
$ 21,801,054 |
$ 6,583,937 |
|
Ekso Bionics Holdings,
Inc. |
Condensed Consolidated
Statement of Operations |
(Unaudited) |
|
|
|
|
For the three
months ended March 31, |
|
2014 |
2013 |
|
|
|
Revenue: |
|
|
Medical devices |
$ 526,753 |
$ 332,919 |
Engineering services |
534,958 |
363,330 |
Total revenue |
1,061,711 |
696,249 |
|
|
|
Cost of revenue: |
|
|
Cost of medical devices |
330,125 |
232,563 |
Cost of engineering
services |
252,103 |
347,214 |
Total cost of revenue |
582,228 |
579,777 |
|
|
|
Gross profit |
479,483 |
116,472 |
|
|
|
Operating expenses: |
|
|
Sales and marketing |
1,531,382 |
1,216,043 |
Research and development |
768,542 |
921,706 |
General and administrative |
2,071,443 |
1,133,454 |
Total operating expenses |
4,371,367 |
3,271,203 |
|
|
|
Loss from operations |
(3,891,884) |
(3,154,731) |
|
|
|
Other income (expense): |
|
|
Interest expense |
(426,603) |
(639,113) |
Loss on warrant liability |
77,436,700 |
— |
Interest income |
1,400 |
1,264 |
Other expense, net |
(11,572) |
(4,174) |
Total other expense, net |
(77,873,475) |
(642,023) |
|
|
|
Net loss |
$ (81,765,359) |
$ (3,796,754) |
|
|
|
Basic net loss per share |
$ (1.22) |
$ (0.18) |
Weighted-average number of shares used in
computing basic net loss per share amounts |
67,072,057 |
20,636,529 |
|
|
|
|
Ekso Bionics Holdings,
Inc. |
Condensed Consolidated
Statements of Cash Flows |
(Unaudited) |
|
|
|
|
For the three
months ended March 31, |
|
2014 |
2013 |
|
|
|
Operating activities: |
|
|
Net loss |
$ (81,765,359) |
$ (3,796,754) |
Adjustments to reconcile net loss to net cash
used in operating activities: |
|
|
Depreciation and
amortization |
156, 890 |
111,719 |
Amortization of deferred
rent |
(9,052) |
(9,052) |
Amortization of debt
discounts |
197,613 |
137,449 |
Adjustment to record
convertible notes at fair value |
— |
360,324 |
Stock-based compensation
expense |
366,640 |
86,155 |
Loss on fair value of common
stock warrants |
77,436,700 |
— |
Other |
— |
(8,298) |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(1,225,579) |
(111,842) |
Inventories |
(494,689) |
4,950 |
Prepaid expense and other
assets |
(155,893) |
(39,471) |
Deferred costs of revenue |
(529,777) |
(304,826) |
Accounts payable |
(454,384) |
234,510 |
Accrued liabilities |
134,999 |
30,517 |
Customer advances and deferred
revenues |
779,069 |
942,113 |
Net cash used in operating
activities |
(5,562,822) |
(2,362,506) |
|
|
|
Investing activities: |
|
|
Note receivable from stockholder |
103,735 |
— |
Acquisition of property and equipment |
(248,390) |
(37,412) |
Net cash used in investing
activities |
(144,655) |
(37,412) |
|
|
|
Financing activities: |
|
|
Principal payments on notes payable |
(2,532,244) |
(436,148) |
Proceeds from Convertible Bridge Notes |
— |
1,500,000 |
Proceeds from issuance of common stock, net
of repurchases and issuance costs |
22,010,793 |
52,740 |
Net cash provided by financing
activities |
19,478,549 |
1,116,592 |
|
|
|
Net increase (decrease) in cash |
13,771,072 |
(1,283,326) |
Cash at beginning of the period |
805,306 |
1,738,662 |
|
|
|
Cash at end of the period |
$ 14,576,378 |
$ 455,336 |
Supplemental disclosure of cash flow
activities: |
|
|
Cash paid for interest |
$ 130,271 |
$ (135,558) |
Cash paid for taxes |
$ 1,810 |
$ (800) |
CONTACT: Media Contact:
Heidi Darling, Marketing Manager
Phone: 415.302.4777
hdarling@eksobionics.com
Investor Contact:
Lauren Glaser, Vice President
Phone: 646.378.2972
lglaser@troutgroup.com
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