Ekso Bionics Announces Cost Reductions to Lower Operating Expenses
May 23 2017 - 8:00AM
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a robotic exoskeleton
company, today announced plans to streamline its operations and
reduce its workforce by approximately 25% to lower operating
expenses and reduce cash burn. The program intensifies Ekso’s
focus on driving commercialization of its proprietary Ekso GT for
rehabilitation and its exoskeleton offerings for industrial
applications.
Ekso Bionics will focus on advancing placements
of its Ekso GT so that patients with stroke and spinal cord
injuries can achieve better clinical outcomes and improved quality
of life. In industrial markets, the Company will work with
partners to increase awareness and utilization of Ekso Bionics’
exoskeleton solutions for industrial workers. The Company’s
R&D efforts will continue to move forward with programs to
advance Ekso’s proprietary solutions.
"We acknowledge the hard work of those affected
by this decision, all of whom have been instrumental in bringing
our life-changing technologies to market," said Thomas Looby,
President and Chief Executive Officer of Ekso Bionics. “We
remain on track with our strategic priority of establishing our
unique products as industry standard. We believe that the measures
announced today will enhance shareholder value as we more
efficiently deploy cash and solidify our leadership in the emerging
exoskeleton industry."
The Company estimates these cutbacks will result
in a 25% reduction in monthly operating expense. One-time
cash severance and related expenses are estimated at $1.0
million.
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 StatementsAny
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 timing and amount of expenditures
related to the workforce reduction and anticipated costs savings,
(ii) the plans and objectives of management for future operations,
including plans or objectives relating to the design, development
and commercialization of human exoskeletons, (iii) estimates or
projection of financial results, financial condition, capital
expenditures, capital structure or other financial items, (iv) the
Company's future financial performance 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 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 timing of planned expense
reductions, 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.
Media Contact:
Carrie Yamond
917-371-2320
cyamond@lazarpartners.com
Investor Contact:
Debbie Kaster
415-937-5403
investors@eksobionics.com
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