Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a robotic exoskeleton
company, today reported financial results for the three months
ended September 30, 2016.
Recent Highlights and
Accomplishments
- Initiated patient enrollment in the first company-sponsored
clinical trial – the WISE study for spinal cord injury
patients
- Was the subject of a large number of publications and poster
presentations at four major industry conferences in September and
October, including fourteen papers and posters about the Ekso GT at
the international ISCoS conference in Vienna, Austria
- Announced the appointment of Matthias Stief as Managing
Director of Ekso Bionics Europe GmbH
- Reported $1.5 million in device and related revenue with the
shipment of 11 Ekso GT’s and including $406,000 in sales to
industrial markets. This compares to device and related
revenue of $1.1 million for the quarter ended September 30,
2015.
- Completed a financing of common stock with net proceeds of
$14.7 million and simultaneously uplisted to the Nasdaq Capital
Market
“I am so proud of the significant progress we
have made in the past few months at Ekso Bionics. Our
clinical strategy is well underway, our sales team has gained
momentum and traction as we market our product for the largest
patient population, and everyone at Ekso Bionics is working hard to
ensure that patients and customers are able to benefit from our
life-changing technology,” said Thomas Looby, President and CEO of
Ekso Bionics. “We also continue to make strides in R&D as
we move forward on products for both the industrial and home
markets. We believe we are positioned for success as we work
to establish Ekso Bionics as the premier exoskeleton company in the
world.”
Third Quarter 2016 Financial
Results
Device and related revenue was $1.5 million for
the quarter ended September 30, 2016. This amount includes
$0.9 million for medical device sales during the period, $0.2
million of medical device service revenue, and $0.4 million for
industrial sales. Device and related revenue was $1.1 million for
the quarter ended September 30, 2015. This amount includes
$0.9 million of previously deferred medical device revenue that was
recognized during the period and $0.2 million of medical device
service revenue.
Engineering service revenue was $0.1 million for
the quarter ended September 30, 2016 compared to $1.8 million for
the same period in the prior year. This result reflects the
strategic decision earlier in the year to shift our engineering
resources away from billable engineering services and to the
Company’s internal development efforts both for our next generation
home/wellness device and for able-bodied industrial
offerings.
Gross profit for the quarter ended September 30,
2016 of $0.4 million was primarily derived from device and related
revenue. This amount includes a gross profit of $0.3 million
from medical device sales and service and gross profit of $0.1
million from industrial sales.
Sales and marketing expenses increased $0.4
million, or 15%, for the three months ended September 30, 2016
compared to the same period of 2015 primarily due to a $0.3 million
increase in costs associated with our sales and marketing efforts
related to our industrial products.
Research and development expenses increased $0.5
million, or 29%, for the three months ended September 30, 2016
compared to the same period of 2015 due to the shift of our
resources away from billable engineering services to internal
development efforts of our next generation of products.
General and administrative expenses increased
$0.8 million, or 49%, for the three months ended September 30, 2016
compared to the same period of 2015, primarily due to an increase
of $0.3 million of employee compensation expenses, $0.2 million
related to a decrease in absorption of operating direct and
indirect costs into inventory, $0.2 million increase in
depreciation and amortization primarily related to acquiring assets
from Equipois in December 2015, and $0.1 million related to the
NASDAQ uplisting.
For the nine months ended September 30,
2016:
Device and related revenue was $11.0 million for
the nine month period ended September 30, 2016. Contributing
to this revenue was $6.5 million of previously deferred revenue
that was recognized as a result of a change of an accounting
estimate related to revenue recognition. Revenue also
includes $3.2 million of revenue derived from medical device sales
during the period, $0.6 million of medical device service revenues,
and $0.7 million of industrial sales revenue. Device and related
revenue was $3.1 million for the nine month period ended September
30, 2015. This amount includes $2.6 million of previously
deferred medical device revenue that was recognized during the
period and $0.5 million of medical device service revenue.
In conjunction with the aforementioned shift in focus of
engineering efforts, engineering services revenue was $0.6 for the
nine months ended September 30, 2016, a $3.0 million decrease when
compared to the same period in the prior year.
Gross profit for the nine months ended September
30, 2016 was $2.1 million, of which $1.9 million was attributable
to device and related revenue. Medical device sales gross
profit primarily includes $2.4 million from our change in
accounting estimate for shipments made prior to January 1, 2016 and
$1.3 million for medical device sales made in 2016, offset
primarily by $0.9 million of maintenance and $0.2 million of
warranty expenses, both of which relate to devices sold prior to
2016.
Sales and marketing expenses increased $1.4
million, or 21%, for the nine months ended September 30, 2016
compared to the same period in 2015. The increase is primarily due
to an increase of $0.8 million in compensation expense. The
use of marketing consultants also contributed to an increase of
$0.4 million.
Research and development expenses increased $2.1
million, or 48%, for the nine months ended September 30, 2016
compared to the same period in 2015. The increase was
primarily driven by $1.3 million related to the aforementioned
shift of resources to internal development efforts, $0.8 million
related to developing our industrial business, and $0.2 million of
non-cash stock-based compensation expenses.
General and administrative expenses increased
$3.2 million, or 62%, for the nine months ended September 30, 2016
compared to the same period in 2015. The increase was primarily
driven by an increase of $2.1 million in employee compensation
expense, which included a non-cash stock-based compensation expense
increase of $1.0 million and one-time severance expense of $0.3
million. Stock-based compensation expense included a one-time $0.8
million non-cash charge related to the modification of stock
options previously granted to our former Chief Executive Officer.
Depreciation and amortization expenses in general and
administrative expenses increased $0.5 million, primarily related
to acquiring assets from Equipois in December 2015. A
decrease in absorption of direct and indirect operating costs
contributed $0.3 million to the increase.
The increase in operating expenses in sales and
marketing, research and development, and general and administrative
was primarily the result of the Company’s effort to build its team
and capabilities and expand commercialization efforts for its
medical and industrial device businesses. Specifically, in
conjunction with the Company’s receipt of clearance from the FDA,
we began to grow our sales and marketing team and we also initiated
our first company-sponsored clinical trial in order to gather
clinical data to support marketing and build the economic case for
reimbursement of the Ekso GT. In addition, the Company made a
strategic decision earlier in the year to shift almost all of our
engineering talent away from engineering services and to Ekso
internal development efforts both for our next generation
home/wellness device and for able-bodied industrial offerings,
which also contributed to the increase in operating expenses.
Cash on hand at September 30, 2016 was $12.8
million, compared to $19.6 million at December 31, 2015. For
the nine months ended September 30, 2016, the Company used $20.6
million of cash in operations, compared to $13.1 million for the
nine months ended September 30, 2015. The increase in cash
used was driven by general increases in operating expenses such as
selling, marketing and research and development, as the Company
continues to build its team and capabilities and commercialize its
medical and industrial device businesses. The increase
also includes a one-time increase in inventory, as well as some
investment in certain inventory which is expected to reverse over
the next few quarters.
Conference Call
Management will host an investment community
conference call today beginning at 1:30 p.m. Pacific Time / 4:30
p.m. Eastern Time. Investors interested in listening to the
conference call may do so by dialing (877) 407-3036 for domestic
callers or (201) 378-4919 for international callers (Conference ID:
13581989), or from the webcast on the "Investor Relations" section
of the Company’s website at: www.eksobionics.com.
A replay of the call will be available beginning
November 9, 2016 at 4:30 p.m. PT / 7:30 p.m. ET through midnight ET
on November 23, 2016. To access the replay, dial (877)
660-6853 or (201) 612-7415 and reference Conference ID:
13581989. The webcast will also be available on the Company’s
website for one month following the completion of the call.
About Ekso Bionics®
Ekso Bionics is a leading developer of
exoskeleton solutions that amplify human potential by supporting or
enhancing strength, endurance and mobility across medical,
industrial and defense applications. Founded in 2005, the company
continues to build upon its unparalleled expertise to design some
of the most cutting-edge, innovative wearable robots available on
the market. Ekso Bionics is the only exoskeleton company to offer
technologies that range from helping those with paralysis to stand
up and walk, to enhancing human capabilities on job sites across
the globe, to providing research for the advancement of R&D
projects intended to benefit U.S. defense capabilities. The company
is headquartered in the Bay Area and is listed on the Nasdaq
Capital Market under the symbol EKSO. For more information, visit:
www.eksobionics.com.
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 to fund the Company's operations and necessary
to develop or enhance our technology, the significant length of
time and resources associated with the development of the Company's
products, the Company's failure to achieve broad market acceptance
of the Company's products, the failure of our sales and marketing
organization or partners to market our products effectively,
adverse results in future clinical studies of the Company's medical
device products, the failure to obtain or maintain patent
protection for the Company's technology, failure to obtain or
maintain regulatory approval to market the Company's medical
devices, lack of product diversification, existing or increased
competition, 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. To learn more about Ekso Bionics please visit us
at www.eksobionics.com. The Company does not undertake to
update these forward-looking statements.
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Device
and related |
$ |
|
1,495 |
|
$ |
|
1,095 |
|
$ |
|
11,003 |
|
$ |
|
3,128 |
|
Engineering services |
|
|
101 |
|
|
|
1,820 |
|
|
|
631 |
|
|
|
3,590 |
|
Total revenue |
|
|
1,596 |
|
|
|
2,915 |
|
|
|
11,634 |
|
|
|
6,718 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Device
and related |
|
|
1,123 |
|
|
|
1,095 |
|
|
|
9,078 |
|
|
|
2,863 |
|
Engineering services |
|
|
70 |
|
|
|
1,352 |
|
|
|
452 |
|
|
|
2,482 |
|
Total cost of
revenue |
|
|
1,193 |
|
|
|
2,447 |
|
|
|
9,530 |
|
|
|
5,345 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
403 |
|
|
|
468 |
|
|
|
2,104 |
|
|
|
1,373 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
2,735 |
|
|
|
2,380 |
|
|
|
8,151 |
|
|
|
6,754 |
|
Research
and development |
|
|
2,216 |
|
|
|
1,713 |
|
|
|
6,586 |
|
|
|
4,438 |
|
General
and administrative |
|
|
2,318 |
|
|
|
1,556 |
|
|
|
8,271 |
|
|
|
5,090 |
|
Total operating
expenses |
|
|
7,269 |
|
|
|
5,649 |
|
|
|
23,008 |
|
|
|
16,282 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(6,866 |
) |
|
|
(5,181 |
) |
|
|
(20,904 |
) |
|
|
(14,909 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
Gain
(loss) on warrant liability |
|
|
(1,620 |
) |
|
|
- |
|
|
|
3,030 |
|
|
|
- |
|
Interest
and other, net |
|
|
8 |
|
|
|
(4 |
) |
|
|
(20 |
) |
|
|
(36 |
) |
Total other income
(expense), net |
|
|
(1,612 |
) |
|
|
(4 |
) |
|
|
3,010 |
|
|
|
(36 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(8,478 |
) |
|
|
(5,185 |
) |
|
|
(17,894 |
) |
|
|
(14,945 |
) |
|
|
|
|
|
|
|
|
|
Less: Preferred deemed
dividend |
|
|
(3,016 |
) |
|
|
- |
|
|
|
(10,345 |
) |
|
|
- |
|
Net loss applicable to
common shareholders |
|
|
(11,494 |
) |
|
|
(5,185 |
) |
|
|
(28,239 |
) |
|
|
(14,945 |
) |
|
|
|
|
|
|
|
|
|
Basic net loss per
share applicable |
|
|
|
|
|
|
|
|
to common
shareholders |
$ |
|
(0.60 |
) |
$ |
|
(0.35 |
) |
$ |
|
(1.67 |
) |
$ |
|
(1.03 |
) |
Weighted average number
of shares of common |
|
|
|
|
|
|
|
|
stock
outstanding, basic |
|
|
19,005 |
|
|
|
14,606 |
|
|
|
16,888 |
|
|
|
14,578 |
|
Diluted net loss per
share applicable |
|
|
|
|
|
|
|
|
to common
shareholders |
$ |
|
(0.60 |
) |
$ |
|
(0.35 |
) |
$ |
|
(1.78 |
) |
$ |
|
(1.03 |
) |
Weighted average number
of shares of common |
|
|
|
|
|
|
|
|
stock
outstanding, diluted |
|
|
19,005 |
|
|
|
14,606 |
|
|
|
17,595 |
|
|
|
14,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Balance
Sheets |
(In thousands, except par value) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
Assets |
|
(unaudited) |
|
|
Current
assets: |
|
|
|
|
|
Cash |
$ |
|
12,800 |
|
$ |
|
19,552 |
|
|
Accounts
receivable, net |
|
|
2,200 |
|
|
|
2,069 |
|
|
Inventories, net |
|
|
1,915 |
|
|
|
1,056 |
|
|
Note
receivable, current |
|
|
34 |
|
|
|
- |
|
|
Prepaid
expenses and other current assets |
|
|
533 |
|
|
|
436 |
|
|
Deferred
cost of revenue, current |
|
|
92 |
|
|
|
2,088 |
|
Total
current assets |
|
|
17,574 |
|
|
|
25,201 |
|
Property
and equipment, net |
|
|
2,561 |
|
|
|
2,625 |
|
Note
receivable |
|
|
41 |
|
|
|
- |
|
Deferred
cost of revenue |
|
|
- |
|
|
|
2,502 |
|
Intangible
assets, net |
|
|
1,162 |
|
|
|
1,584 |
|
Goodwill |
|
|
189 |
|
|
|
189 |
|
Other
assets |
|
|
94 |
|
|
|
97 |
|
Total
assets |
$ |
|
21,621 |
|
$ |
|
32,198 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
|
1,359 |
|
$ |
|
2,694 |
|
|
Accrued
liabilities |
|
|
2,982 |
|
|
|
1,885 |
|
|
Deferred
revenues, current |
|
|
1,089 |
|
|
|
3,960 |
|
|
Capital
lease obligation, current |
|
|
67 |
|
|
|
80 |
|
Total
current liabilities |
|
|
5,506 |
|
|
|
8,619 |
|
Deferred
revenues |
|
|
822 |
|
|
|
4,613 |
|
Warrant
liability |
|
|
6,165 |
|
|
|
9,195 |
|
Contingent
consideration liability |
|
|
768 |
|
|
|
768 |
|
Other
non-current liabilities |
|
|
132 |
|
|
|
195 |
|
Total
liabilities |
|
|
13,393 |
|
|
|
23,390 |
|
Stockholders' equity: |
|
|
|
|
Convertible
preferred stock |
|
|
- |
|
|
|
- |
|
Common
stock |
|
|
21 |
|
|
|
15 |
|
Additional
paid-in capital |
|
|
117,498 |
|
|
|
100,184 |
|
Accumulated
other comprehensive income (loss) |
|
|
(7 |
) |
|
|
(1 |
) |
Accumulated
deficit |
|
|
(109,284 |
) |
|
|
(91,390 |
) |
Total
stockholders' equity |
|
|
8,228 |
|
|
|
8,808 |
|
Total
liabilities and stockholders' equity |
$ |
|
21,621 |
|
$ |
|
32,198 |
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Debbie Kaster
415-937-5403
investors@eksobionics.com
Media Contacts:
Carrie Yamond / Rajni Dhanjani
212-867-1788
cyamond@lazarpartners.com
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