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, 2020.
Ekso Bionics Business Update
- Reported revenue of $1.5 million in
the first quarter of 2020, as customers delayed orders due to the
COVID-19 global pandemic.
- Cash utilization decreased to $1.7
million in the first quarter of 2020, down from $5.2 million in the
first quarter of 2019.
- Signed new pilot programs with two
network operators in March.
“The COVID-19 pandemic has affected inpatient
rehabilitation facilities as they temporarily shifted priorities
and responses to pandemic-related medical equipment. We are,
however, encouraged that the majority of our customers have
indicated that they still plan to place orders for our exoskeleton
products in the future, which gives us optimism for our longer-term
prospects. To align our expenses with the current business
environment, we took measures to adjust our cost structure, which
included furloughing a portion of our workforce. Despite these
unprecedented challenges, we continue to regularly engage with our
current and prospective customers through video conferencing,
virtual training events and online education demos to offer our
support and showcase the value of our Ekso devices. Although market
uncertainties related to the pandemic make it difficult for us to
project the full impact on our business and customers, we believe
that we are well-positioned to serve our customers when business
conditions begin to normalize,” said Jack Peurach, President and
Chief Executive Officer of Ekso Bionics.
First Quarter 2020 Financial
Results
Revenue for the quarter ended March 31, 2020 was
$1.5 million, compared to $3.6 million for the same period in 2019.
Revenue in the first quarter of 2020 included approximately $1.2
million in EksoHealth revenue, compared to $2.8 million in the same
period in 2019, and approximately $0.3 million in EksoWorks sales,
compared to $0.8 million in the same period in 2019. The decline in
revenue was due to a decrease in volume of medical device sales
driven by the impact of COVID-19, as customers shifted their
priorities to prepare for and manage their business during the
pandemic. The pandemic has also caused many of Ekso’s customers to
delay orders, which are typically booked in the last few weeks of a
quarter.
Gross profit for the quarter ended March 31, 2020
was $0.6 million, compared to $1.6 million in the same period in
2019, representing a gross margin of approximately 43% in the first
quarter of 2020, compared to a gross margin for the same period in
2019 of 44%. The decrease in gross profit is primarily attributed
to lower volume of medical device sales.
Sales and marketing expenses for the quarter ended
March 31, 2020 were $2.5 million, a decrease of $0.3 million, or
approximately 10%, compared to the same period in 2019. The
decrease was primarily due to lower general marketing and trade
show expenses and the absence of clinical trials expense due to the
completion of our main clinical trial in 2019.
Research and development expenses for the quarter
ended March 31, 2020 were $0.7 million, compared to $1.4 million
for the same period in 2019, a decrease of $0.7 million, or
approximately 49%. The decrease was primarily due to lower patent
and licensing costs.
General and administrative expenses for the quarter
ended March 31, 2020 were $2.2 million, compared to $2.3 million
for the same period in 2019, a decrease of $0.1 million, or
approximately 6%.
Gain on warrant liabilities for the quarter ended
March 31, 2020 was $2.5 million due to the revaluation of warrants
issued in 2015 and 2019, compared to a $1.1 million loss associated
with the revaluation of warrants issued in 2015 for the same period
in 2019.
Net loss applicable to common stockholders for the
quarter ended March 31, 2020 was $2.5 million, or $0.44 per basic
and diluted share, compared to net loss of $6.6 million, or $1.51
per basic and diluted share, for the same period in 2019.
Cash on hand at March 31, 2020 was $8.5 million,
compared to $10.9 million at December 31, 2019. For the quarter
ended March 31, 2020, the Company used $1.7 million of cash in
operations, compared to $5.2 million for the same period in
2019.
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: 13700679.
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 or follow @EksoBionics on Twitter.
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, plans or strategy relating to the marketing and
adoption and acceptance of the Company’s products and potential for
adoption of the Company’s products by the market, and plans or
strategy related managing the impact of the COVID-19 epidemic, (ii)
estimates or projection of financial results, financial condition,
capital expenditures, capital structure or other financial items,
(iii) the Company's future financial performance, (iv) estimates or
projections of sales and prospective customers, and (v) the
assumptions underlying or relating to any statement described in
points (i) through (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, changes resulting from the
Company’s finalization of its financial statements for and as of
the three months 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 three months ended
March 31, 2020 that are required to be included in such report, the
Company's inability to obtain adequate financing to fund the
Company's operations and necessary to develop or enhance the
Company’s 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 efforts or of partners to market the Company’s products
effectively, adverse results in future clinical studies of the
Company's medical device products, the failure of the Company to
obtain or maintain patent protection for the Company's technology,
the failure of the Company to obtain or maintain regulatory
approval to market the Company's medical devices, lack of product
diversification, existing or increased competition, disruptions in
the Company’s supply chain due to the outbreak of the COVID-19
virus, adverse regulatory decisions related to the China JV 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 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
Carey212-867-1768investors@eksobionics.com
Media Contact:Carrie Yamond
Mas917-371-2320cmas@eksobionics.com
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
Revenue |
$ |
1,468 |
|
$ |
3,616 |
|
Cost of revenue |
|
831 |
|
|
2,017 |
|
Gross profit |
|
637 |
|
|
1,599 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Sales and marketing |
|
2,520 |
|
|
2,809 |
|
Research and development |
|
711 |
|
|
1,384 |
|
General and administrative |
|
2,187 |
|
|
2,318 |
|
Total operating expenses |
|
5,418 |
|
|
6,511 |
|
|
|
|
|
|
Loss from operations |
|
(4,781 |
) |
|
(4,912 |
) |
|
|
|
|
|
Other income (expense), net: |
|
|
|
|
Interest expense |
|
(52 |
) |
|
(121 |
) |
Gain (loss) on warrant liability |
|
2,519 |
|
|
(1,122 |
) |
Loss on modification of warrants |
|
- |
|
|
(257 |
) |
Other expense, net |
|
(220 |
) |
|
(139 |
) |
Total other income (expense), net |
|
2,247 |
|
|
(1,639 |
) |
|
|
|
|
|
Net loss |
$ |
(2,534 |
) |
$ |
(6,551 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.44 |
) |
$ |
(1.51 |
) |
|
|
|
|
|
Weighted average number of shares of common |
|
|
|
stock, basic and diluted |
|
5,803 |
|
|
4,338 |
|
|
|
|
|
|
Ekso Bionics
Holdings, Inc. |
Condensed
Consolidated Balance Sheets |
(In
thousands, except par value) |
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
|
|
2020 |
|
2019 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
|
Cash |
$ |
8,516 |
|
$ |
10,872 |
|
|
Accounts
receivable, net |
|
2,658 |
|
|
5,208 |
|
|
Inventories,
net |
|
2,483 |
|
|
2,489 |
|
|
Prepaid
expenses and other current assets |
|
405 |
|
|
238 |
|
Total current assets |
|
14,062 |
|
|
18,807 |
|
Property and equipment, net |
|
1,530 |
|
|
1,657 |
|
Right-of-use asset |
|
981 |
|
|
1,084 |
|
Goodwill |
|
189 |
|
|
189 |
|
Other assets |
|
182 |
|
|
178 |
|
Total assets |
$ |
16,944 |
|
$ |
21,915 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts
payable |
|
1,999 |
|
|
1,903 |
|
|
Accrued
liabilities |
|
1,716 |
|
|
1,683 |
|
|
Deferred
revenues, current |
|
1,231 |
|
|
1,492 |
|
|
Note
payable, current |
|
2,170 |
|
|
2,333 |
|
|
Lease
liabilities, current |
|
434 |
|
|
421 |
|
Total current liabilities |
|
7,550 |
|
|
7,832 |
|
Deferred revenue |
|
1,738 |
|
|
1,789 |
|
Lease liabilities |
|
595 |
|
|
711 |
|
Warrant liabilities |
|
1,788 |
|
|
4,307 |
|
Other non-current liabilities |
|
45 |
|
|
479 |
|
Total liabilities |
|
11,716 |
|
|
15,118 |
|
Stockholders' equity: |
|
|
|
|
|
Common
stock |
|
6 |
|
|
6 |
|
|
Additional
paid-in capital |
|
190,811 |
|
|
190,019 |
|
|
Accumulated
other comprehensive income |
|
223 |
|
|
50 |
|
|
Accumulated
deficit |
|
(185,812 |
) |
|
(183,278 |
) |
Total stockholders' equity |
|
5,228 |
|
|
6,797 |
|
Total liabilities and stockholders' equity |
$ |
16,944 |
|
$ |
21,915 |
|
|
|
|
|
|
|
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