Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a robotic exoskeleton
company, today reported financial results for the three and twelve
months ended December 31, 2016.
Recent Highlights and
Accomplishments
- Achieved a record quarter, recognizing revenue from 16 medical
and 58 industrial units in the fourth quarter of 2016.
- Reported revenues of $2.6 million for the fourth quarter of
2016, compared to $1.9 million for the same period in the prior
year. Reported total revenue of $14.2 million for 2016, compared to
$8.7 million for 2015.
- Secured three IRB-approved centers for the company-sponsored
WISE study.
- Was the subject of a Medical Innovation Briefing released by
the National Institute for Health and Care Excellence in the United
Kingdom.
- Was the subject of 13 publications in the second half of 2016,
bringing total studies completed or underway to 46, with over 1,000
patients now studied in the Ekso GT.
- Promoted our products at medical conferences around the world,
participating in over 30 events in North America and EMEA in
2016.
- Closed on a term loan for up to $10 million of venture debt,
which provides capital to help support continued growth as a
company.
“I am incredibly proud of what we have
accomplished at Ekso Bionics in the past year,” said Thomas Looby,
president and chief executive officer at Ekso Bionics. “With the
broadest label in the US for exoskeletons, a sales and marketing
team that is highly motivated and already making major inroads, a
clinical study to provide evidence, and a technology that is
changing lives, we have certainly had a productive 2016 and I am
energized to lead this company into 2017 and beyond.”
Fourth Quarter 2016 Financial
Results
Device and related revenue was $2.3 million for
the quarter ended December 31, 2016. This amount includes $1.5
million for medical device sales during the period, $0.2 million of
medical device service revenue, and $0.6 million for industrial
sales. Device and related revenue was $1.1 million for the quarter
ended December 31, 2015. This amount includes $0.9 million derived
from current and prior year sales that was amortized on a
straight-line basis during the period and $0.2 million of medical
device service revenue.
Engineering service revenue was $0.3 million for
the quarter ended December 31, 2016 compared to $0.8 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 December 31,
2016 of $0.8 million was primarily derived from device and related
revenue. This amount includes a gross profit of $0.5 million from
medical device sales and service and gross profit of $0.2 million
from industrial sales. This compares to a gross loss of $0.2
million for the fourth quarter of 2015.
Sales and marketing expenses increased $0.3
million, or 14%, for the quarter ended December 31, 2016 compared
to the same period of 2015, primarily due to increased costs
associated with our sales and marketing efforts related to our
industrial products.
Research and development expenses increased $0.3
million, or 12%, for the quarter ended December 31, 2016 compared
to the same period of 2015 due to the shift of our resources away
from billable engineering services, which were recognized as a cost
of engineering services revenue, to internal development efforts
for our next generation home mobility and industrial products.
General and administrative expenses increased
$0.7 million, or 35%, for the quarter ended December 31, 2016
compared to the same period of 2015, primarily due to an increase
of $0.3 million in employee compensation expenses, an increase of
$0.3 million related to a decrease in absorption of operating
direct and indirect costs into inventory, and a $0.1 million
increase in depreciation and amortization primarily related to
acquiring assets from Equipois in December 2015.
Full Year 2016 Financial
Results
Device and related revenue was $13.3 million for
the year ended December 31, 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 $4.7 million of revenue derived
from medical device sales during the period, $0.9 million of
medical device service revenues, and $1.2 million of industrial
sales revenue. Device and related revenue was $4.3 million for the
year ended December 31, 2015. This amount includes $3.6 million
derived from current and prior year sales that was amortized on a
straight-line basis during the period and $0.7 million of medical
device service revenue.
In conjunction with the aforementioned shift in
focus of engineering efforts, engineering services revenue was $0.9
million for the year ended December 31, 2016 compared to $4.4
million for the same period in the prior year.
Gross profit for the year ended December 31,
2016 was $2.9 million, of which $2.6 million was attributable to
device and related revenue. Medical device gross profit was $2.3
million, industrial gross profit was $0.3 million and engineering
services gross profit was $0.3 million. The medical gross profit
includes $1.2 million related to the change in accounting estimate.
Gross profit for the year ended December 31, 2015 was $1.2 million.
This amount includes $0.3 million related to medical device sales
and $0.9 million for engineering services.
Sales and marketing expenses increased $1.7
million, or 19%, during the year ended December 31, 2016 compared
to the year ended December 31, 2015. The increase includes $1.0
million related to our industrial business. The increase also
includes $0.7 million related to our medical device business, which
was primarily driven by the use of consultants for clinical
studies, reimbursement and marketing.
Research and development expenses increased $2.4
million, or 37%, during the year ended December 31, 2016 compared
to the year ended December 31, 2015. The increase includes $1.2
million related to our industrial business, which was primarily
driven by a reallocation and increase in headcount. This increase
also includes $1.2 million related to the aforementioned shift of
resources from engineering services to internal development efforts
for our next generation home mobility and industrial products.
General and administrative expenses increased
$3.9 million, or 55%, during the year ended December 31, 2016
compared to the year ended December 31, 2015. The increase was
primarily driven by an increase of $2.4 million in employee
compensation expense, which included a non-cash stock-based
compensation expense increase of $1.1 million, a one-time severance
expense of $0.3 million and an increase in regulatory compliance
personnel 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 $0.6 million,
primarily related to acquiring assets from Equipois in December
2015. A decrease in absorption of direct and indirect operating
costs in inventory in 2016 as compared to 2015 also contributed
$0.6 million to the increase in general and administrative
expenses.
Net loss applicable to common shareholders in
the fourth quarter was $5.6 million, or a basic net loss of $0.29
per common share. For the full year ended December 31, 2016, our
net loss was $33.8 million, or a basic net loss of $1.87 per common
share. Net loss applicable to common shareholders for the year
ended December 31, 2016 included a non-cash preferred deemed
dividend of $10.3 million, partially offset by a non-cash gain of
$4.3 million on the revaluation of a warrant liability. Both
non-cash items were associated with the equity financing in
December
2015.
Cash on hand at December 31, 2016 was $16.8
million, compared to $19.6 million at December 31, 2015. For the
year ended December 31, 2016, the Company used $25.0 million of
cash in operations, compared to $18.3 million for the year ended
December 31, 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 products. 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.
ANNUAL MEETING OF
STOCKHOLDERS
The Company announced that the 2017 annual
meeting of stockholders will be held at the Company's headquarters
in Richmond, California on June 20, 2017.
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 "Investors" section of the
Company’s website at: www.eksobionics.com.
A replay of the call will be available beginning
today at 4:30 p.m. PT / 7:30 p.m. ET through midnight ET on March
15, 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) estimates or
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, changes resulting from the Company’s
finalization of its financial statements for and as of the period
and year ended December 31, 2016, information or new changes in
facts or circumstances that may occur prior to the filing of the
Company’s Annual Report on Form 10-K that are required to be
included therein, 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 Balance
Sheets |
(In thousands) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash |
$ |
16,846 |
|
$ |
19,552 |
|
|
Accounts receivable,
net |
|
1,780 |
|
|
2,069 |
|
|
Inventories, net |
|
1,556 |
|
|
1,056 |
|
|
Prepaid expenses and
other current assets |
|
502 |
|
|
436 |
|
|
Deferred cost of
revenue, current |
|
- |
|
|
2,088 |
|
Total
current assets |
|
20,684 |
|
|
25,201 |
|
Property
and equipment, net |
|
2,435 |
|
|
2,625 |
|
Deferred
cost of revenue |
|
- |
|
|
2,502 |
|
Intangible
assets, net |
|
1,026 |
|
|
1,584 |
|
Goodwill |
|
189 |
|
|
189 |
|
Other
assets |
|
91 |
|
|
97 |
|
Total
assets |
$ |
24,425 |
|
$ |
32,198 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,879 |
|
$ |
2,694 |
|
|
Accrued
liabilities |
|
3,556 |
|
|
1,885 |
|
|
Deferred revenues,
current |
|
825 |
|
|
3,960 |
|
|
Capital lease
obligation, current |
|
54 |
|
|
80 |
|
Total
current liabilities |
|
6,314 |
|
|
8,619 |
|
Deferred
revenues |
|
805 |
|
|
4,613 |
|
Note
payable, net |
|
6,789 |
|
|
- |
|
Warrant
liability |
|
3,546 |
|
|
9,195 |
|
Contingent
consideration liability |
|
217 |
|
|
768 |
|
Contingent
success fee liability |
|
116 |
|
|
- |
|
Other
non-current liabilities |
|
107 |
|
|
195 |
|
Total
liabilities |
|
17,894 |
|
|
23,390 |
|
Stockholders' equity: |
|
|
|
|
Convertible
preferred stock |
|
- |
|
|
- |
|
Common
stock |
|
22 |
|
|
15 |
|
Additional
paid-in capital |
|
121,291 |
|
|
100,185 |
|
Accumulated
other comprehensive income (loss) |
|
79 |
|
|
(1 |
) |
Accumulated
deficit |
|
(114,861 |
) |
|
(91,391 |
) |
Total
stockholders' equity |
|
6,531 |
|
|
8,808 |
|
Total
liabilities and stockholders' equity |
$ |
24,425 |
|
$ |
32,198 |
|
Media Contact:
Carrie Yamond/Rajni Dhanjani
212-867-1788
cyamond@lazarpartners.com
Investor Contact:
Debbie Kaster
415-937-5403
investors@eksobionics.com
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