Ekso Bionics Holdings, Inc. (Nasdaq: EKSO) (the “Company”), an
industry leader in exoskeleton technology for medical and
industrial use, today reported financial results for the three
months ended March 31, 2019.
Recent Highlights and
Accomplishments
- 44% increase in first quarter 2019
revenues to $3.6 million, compared to $2.5 million in the same
period of 2018.
- Gross margin expanded to
approximately 44% in the first quarter of 2019, up from 30% in the
same period of 2018.
- Total operating expenses decreased
31% to $6.5 million in the first quarter of 2019, compared to $9.4
million in the same period of 2018.
- Booked 23 EksoGT units in the first
quarter of 2019, nine of which were rental units and four of which
were previously rented units that were converted to capital
purchases.
- Cash utilization decreased to $5.2
million in the first quarter of 2019, down from $6.7 million in the
fourth quarter of 2018.
“We kicked off 2019 with another quarter of
record revenues,” said Jack Peurach, President and Chief Executive
Officer of Ekso Bionics. “We are very pleased with the continued
momentum generated by our commercial strategy, which reflects a
growing level of adoption and awareness for our innovative
EksoHealth and EksoWorks exoskeletons. As we continue strengthening
our sales performance, we are also pleased that our strategic focus
on reducing our cost structure resulted in significantly improved
year-over-year operating margins. Looking ahead, we are building a
deeper global customer pipeline through our expanded sales
organization while also delivering the highest levels of customer
support and maximizing value to patients, industrial workers and
shareholders.”
First Quarter 2019 Financial
Results
Revenue was $3.6 million for the quarter ended
March 31, 2019, compared to $2.5 million for the quarter ended
March 31, 2018. Revenue in the first quarter of 2019 included
approximately $2.8 million in medical device revenue, compared to
$2.1 million in the same period in 2018, and $0.8 million in
industrial sales, compared to $0.4 million in the same period in
2018. The Company booked 23 EksoGT units in the first quarter of
2019, including nine rental units. Additionally, four previously
rented units were purchased by the Company’s customers. This brings
total placements to more than 375 units, of which 36 are part of
the Company’s U.S. rental program.
Gross profit for the quarter ended March 31,
2019 was $1.6 million, compared to $0.8 million in the quarter
ended March 31, 2018, representing a gross margin of approximately
44%, compared to a gross margin for the same period in 2018 of 30%.
The overall increase in gross margin is primarily attributable to
higher average selling prices, improved reliability and lower
production costs of the Company’s medical devices.
Sales and marketing expenses for the quarter
ended March 31, 2019 were $2.8 million, compared to $3.9 million
for the quarter ended March 31, 2018, a decrease of $1.0 million or
approximately 27%. The decrease was primarily due to a decrease in
the Company’s general marketing and trade show expenses.
Research and development expenses for the
quarter ended March 31, 2019 were $1.4 million, compared to $1.8
million for the quarter ended March 31, 2018, a decrease of $0.4
million or approximately 23%. The decrease was primarily due to a
shift in expenses to sales and direct marketing activities and
organizational charges that were incurred at the end of the first
quarter of 2018.
General and administrative expenses for the
quarter ended March 31, 2019 were $2.3 million, compared to $3.7
million for the quarter ended March 31, 2018, a decrease of $1.4
million or approximately 38%. The decrease was primarily due to the
lower external consulting costs and a leaner, more efficient
organization.
Net loss applicable to common stockholders for
the quarter ended March 31, 2019 was $6.6 million, or $0.10 per
basic and diluted share, compared to $7.9 million, or $0.13 per
basic and diluted share, for the quarter ended March 31, 2018.
Cash on hand at March 31, 2019 was $9.2 million,
compared to $7.7 million at December 31, 2018. For the quarter
ended March 31, 2019, the Company used $5.2 million of cash in
operations, compared to $6.7 million for the quarter ended March
31, 2018.
Conference Call
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. A live webcast
of the event will be available in the “Investors” section of the
Company’s website at www.eksobionics.com, or by clicking here.
A replay of the call will be available for two
weeks by dialing (877) 660-6853 for domestic callers or (201)
612-7415 for international callers, using Conference ID: 13689742.
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 and
industrial 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. 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, objectives
and expectation of management for future operations, including the
Company’s priorities for 2019, sales performance, plans to build on
the company’s sales pipeline and the Company’s efforts to create
value for customers, patients and shareholders, (ii) the benefits
of, enthusiasm for, adoption of and market awareness of the
Company’s products, (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 three
months ended March 31, 2019, information or new changes in facts or
circumstances that may occur prior to the filing of the Company’s
Quarterly Report on Form 10-Q for such period 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 the Company’s sales and
marketing organization or partners to market the Company’s 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, regulatory intervention resulting in the
inability of the Company to execute its strategic plans 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 Securities and
Exchange Commission. To learn more about Ekso Bionics please visit
the Company’s website at www.eksobionics.com or refer to the
Company’s Twitter page at @EksoBionics. The Company does not
undertake to update these forward-looking statements.
Investor Contact: David Carey212-867-1768
dcarey@lazarpartners.com
Media Contact:Glenn
Silver646-871-8485gsilver@lazarpartners.com
|
Ekso Bionics Holdings, Inc. |
|
|
Condensed Consolidated Balance
Sheets |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,2019 |
|
December
31,2018 |
|
|
|
|
|
|
|
|
Assets |
|
(unaudited) |
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash |
$ |
9,236 |
|
$ |
7,655 |
|
|
|
|
Accounts receivable,
net |
|
3,793 |
|
|
3,660 |
|
|
|
|
Inventories, net |
|
3,300 |
|
|
3,371 |
|
|
|
|
Prepaid expenses and
other current assets |
|
506 |
|
|
281 |
|
|
|
Total
current assets |
|
16,835 |
|
|
14,967 |
|
|
|
Property
and equipment, net |
|
2,331 |
|
|
2,365 |
|
|
|
Right of
use asset |
|
1,365 |
|
|
- |
|
|
|
Goodwill |
|
189 |
|
|
189 |
|
|
|
Other
assets |
|
140 |
|
|
134 |
|
|
|
Total
assets |
$ |
20,860 |
|
$ |
17,655 |
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
2,474 |
|
|
3,156 |
|
|
|
|
Accrued
liabilities |
|
3,286 |
|
|
3,541 |
|
|
|
|
Deferred revenues,
current |
|
1,211 |
|
|
1,102 |
|
|
|
|
Note payable,
current |
|
2,333 |
|
|
2,333 |
|
|
|
|
Lease liabilities,
current |
|
406 |
|
|
- |
|
|
|
Total
current liabilities |
|
9,710 |
|
|
10,132 |
|
|
|
Deferred
revenues |
|
1,499 |
|
|
1,495 |
|
|
|
Note
payable, net |
|
2,093 |
|
|
2,648 |
|
|
|
Lease
liabilities |
|
1,006 |
|
|
- |
|
|
|
Warrant
liability |
|
1,964 |
|
|
585 |
|
|
|
Contingent
liabilities |
|
35 |
|
|
34 |
|
|
|
Other
non-current liabilities |
|
19 |
|
|
33 |
|
|
|
Total
liabilities |
|
16,326 |
|
|
14,927 |
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common
stock |
|
68 |
|
|
63 |
|
|
|
Additional
paid-in capital |
|
182,107 |
|
|
173,903 |
|
|
|
Accumulated
other comprehensive (loss) income |
|
56 |
|
|
(92 |
) |
|
|
Accumulated
deficit |
|
(177,697 |
) |
|
(171,146 |
) |
|
|
Total
stockholders' equity |
|
4,534 |
|
|
2,728 |
|
|
|
Total
liabilities and stockholders' equity |
$ |
20,860 |
|
$ |
17,655 |
|
|
|
|
|
|
|
|
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
Revenue |
$ |
3,616 |
|
$ |
2,518 |
|
|
Cost of revenue |
|
2,017 |
|
|
1,751 |
|
|
Gross profit |
|
1,599 |
|
|
767 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Sales and
marketing |
|
2,809 |
|
|
3,853 |
|
|
Research
and development |
|
1,384 |
|
|
1,808 |
|
|
General
and administrative |
|
2,317 |
|
|
3,738 |
|
|
Change in fair
value, contingent consideration |
|
1 |
|
|
(19 |
) |
|
Total operating
expenses |
|
6,511 |
|
|
9,380 |
|
|
|
|
|
|
|
|
Loss from
operations |
|
(4,912 |
) |
|
(8,613 |
) |
|
|
|
|
|
|
|
Other income (expense),
net: |
|
|
|
|
|
Interest
expense |
|
(121 |
) |
|
(163 |
) |
|
(Loss)
gain on warrant liability |
|
(1,122 |
) |
|
732 |
|
|
Loss on modification of warrants |
|
(257 |
) |
|
- |
|
|
Other
(expense) income, net |
|
(139 |
) |
|
143 |
|
|
Total
other (expense) income, net |
|
(1,639 |
) |
|
712 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(6,551 |
) |
$ |
(7,901 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
$ |
(0.10 |
) |
$ |
(0.13 |
) |
|
|
|
|
|
|
|
Weighted average number
of shares of common |
|
|
|
|
|
stock, basic and
diluted |
|
65,067 |
|
|
60,146 |
|
|
|
|
|
|
|
|
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