Ekso Bionics Provides COVID-19 Business Update and Reports Preliminary First Quarter 2020 Financial Results
April 09 2020 - 4:01PM
Ekso Bionics Holdings, Inc. (Nasdaq: EKSO), an industry leader in
exoskeleton technology for medical and industrial use, today
announced preliminary financial results for the first quarter ended
March 31, 2020 and provided an update on the impact of the COVID-19
pandemic on its business activities. In addition, the Company
confirmed that as of April 7, 2020, it has regained compliance with
the minimum bid price requirement required by the listing rules of
the Nasdaq Capital Market.
The COVID-19 pandemic impacted Ekso Bionics'
business in the first quarter as its customers shifted their
priorities to prepare for and manage their business during the
pandemic. This has caused many of its customers to delay orders,
which are typically booked in the last few weeks of a quarter. It
is important to note that a majority of the Company’s customers
have indicated that their originally planned orders are delayed and
not canceled, pending the return to a more normal environment.
Total revenue for the first quarter of 2020 is
estimated to be in the range of $1.4 - $1.5 million. Cash at March
31, 2020 is estimated at $8.5 million, compared to $10.9 million at
December 31, 2019.
Ekso Bionics is taking several steps to adjust
its business to the current circumstances. To reduce expenses
and adjust operations to match customer needs, the Company has
furloughed a portion of its workforce. The Company is also in the
process of applying for the loans under the recently enacted
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
administered by the U.S. Small Business Administration, as well as
a similar program in Germany.
Ekso Bionics has also adapted its support,
training, and service models to ensure all of its customers can
continue their Ekso programs without interruption and without Ekso
Bionics personnel being present at customers’ facilities. These
revised work models also allow the Company to engage with
prospective customers to ensure that it can support new business as
customers’ businesses return to normal.
"The COVID-19 pandemic has impacted our
customers’ businesses, and subsequently, our business as customers
delay longer-term technology decisions. As a result, we have
shifted our business operations to reduce expenses and align our
strategy with current market conditions," said Jack Peurach,
President and Chief Executive Officer of Ekso Bionics. "As a
company committed to meeting the needs of our customers, we are
evolving our business so we can continue to support our customers
while they focus their energy on protecting their patients and
staff from COVID-19. We also took the difficult decision to
furlough a portion of our dedicated and valued employees in order
to weather this extraordinary global health crisis, bring expenses
more in-line with business operations over the short-term, and
allow us to resume normal activities when our customers are
ready.”
The anticipated results discussed in this press
release are based on management's preliminary, unaudited analysis
of financial results for the period ended March 31, 2020. As of the
date of this press release, the Company has not completed its
financial statement reporting process for the period ended March
31, 2020, and the Company's independent registered accounting firm
has not audited the preliminary financial data discussed in this
press release. During the Company's quarter-end closing procedures
and review process, the Company may identify items that would
require it to make adjustments, which may be material to the
information presented above. As a result, the estimates above
constitute forward-looking information and are subject to risks and
uncertainties, including possible adjustments to preliminary
operating results. The Company expects to report complete first
quarter 2020 financial results after the markets close on Thursday,
April 30, 2020.
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 or follow @EksoBionics on Twitter.
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 the Company's preliminary financial results,
future customer orders and the impacts of the Company's strategies
to address changing conditions in light of COVID-19. 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 plans,
objectives, beliefs, expectations, 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 quarter ended March 31, 2020, 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 the quarter ended March
31, 2020 that are required to be included in such annual report,
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, the Company's failure to implement the
Company's business plans or strategies, the COVID-19 pandemic and
global economic conditions. 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 the Company's website
at www.eksobionics.com or refer to our Twitter page at
@EksoBionics. The Company does not undertake to update these
forward-looking statements.
Media Contact:Carrie Yamond
Mas917-371-2320cmas@eksobionics.com
Investor Contact:David
Carey212-867-1768investors@eksobionics.com
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