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 and
twelve months ended December 31, 2019.
Recent Highlights and
Accomplishments
- Highest quarterly revenue recorded
of $3.7 million in the fourth quarter 2019, an increase of 13%
compared to $3.3 million for the same period of 2018.
- Record quarterly EksoHealth
revenues of $3.3 million in the fourth quarter 2019, an increase of
28% compared to $2.6 million for the same period of 2018.
- Quarterly gross margins of
approximately 50% in the fourth quarter of 2019, an increase of 500
basis points compared to 45% in the same period of 2018.
- Total operating expenses decreased
by 29% to $4.7 million in the fourth quarter of 2019, compared to
$6.6 million in the same period of 2018.
- Cash used in operating activities
decreased to $1.5 million in the fourth quarter of 2019, compared
to $5.1 million for the same period in 2018.
- Booked a total of 26 EksoNR units
in the fourth quarter of 2019, four of which were rental units and
three of which were previously rented units that were converted to
sales.
“By generating record revenues in the fourth
quarter of 2019, we are pleased with the traction of our commercial
strategy and the value that we believe our customers see in
adopting our solutions,” said Jack Peurach, President and Chief
Executive Officer of Ekso Bionics. “Our actions to expand customer
awareness of the clinical and economic benefits of our innovative
products are having a positive impact as we are building sales
momentum in the U.S. inpatient rehabilitation and direct European
markets. Our focus on partnering with integrated delivery networks
and network operators, a key component of our growth strategy, is
resulting in greater opportunities for multi-unit sales and
facilitating a shorter sales cycle. With regards to our operations,
we maintained fiscal discipline as evidenced by reducing our use of
cash to its lowest levels in our history. Looking ahead, we believe
that we are well-positioned to deliver continued top-line growth
through increased sales to our existing customers and expanding our
customer pipeline in both the medical and industrial segments.”
Fourth Quarter 2019 Financial
Results
Revenue was $3.7 million for the quarter ended
December 31, 2019, compared to $3.3 million for the same period in
2018. Revenue in the fourth quarter of 2019 included approximately
$3.3 million in EksoHealth revenue, an increase of 28% compared to
$2.6 million in the same period in 2018, and approximately $0.4
million in EksoWorks sales, compared to $0.7 million in the same
period in 2018. The Company booked a total of 26 EksoNR units in
the fourth quarter of 2019, including 4 rental units.
Gross profit for the quarter ended December 31,
2019 increased by about 24% to $1.9 million, compared to $1.5
million in the same period in 2018, representing a record gross
margin of approximately 50% in the fourth quarter of 2019, compared
to a gross margin for the same period in 2018 of 45%. The overall
increase in gross margin is primarily due to higher average selling
prices and lower production costs of the Company’s EksoNR
devices.
Sales and marketing expenses for the quarter
ended December 31, 2019 were $2.7 million, a decrease of $0.2
million, or approximately 7%, compared to the same period in 2018.
The decrease was primarily due to lower general marketing and trade
show expenses, a decrease in clinical trial activities and the
absence of amortization expense related to intangible assets.
Research and development expenses for the
quarter ended December 31, 2019 were $0.6 million, compared to $1.4
million for the same period in 2018, a decrease of $0.8 million, or
approximately 59%. The decrease was primarily due to lower patent
and licensing costs.
General and administrative expenses for the
quarter ended December 31, 2019 were $1.4 million, compared to $2.3
million for the same period in 2018, a decrease of $0.9 million, or
approximately 40%. The decrease was primarily due to lower external
consulting and legal expenses and lower compensation costs from
reduced headcount.
Gain on warrant liabilities for the quarter
ended December 31, 2019 was $0.3 million due to the revaluation of
warrants issued in 2015 and 2019, compared to a $1.2 million gain
associated with the revaluation of warrants issued in 2015 for the
same period in 2018.
Net loss applicable to common stockholders for
the quarter ended December 31, 2019 was $2.7 million, or $0.04 per
basic and diluted share, compared to net loss of $4.1 million, or
$0.07 per basic and diluted share, for the same period in 2018.
Full Year 2019 Financial
Results
Revenue for the full year ended December 31,
2019 increased by 23% to $13.9 million, which includes
approximately $11.9 million in EksoHealth revenue and $2.0 million
in EksoWorks revenue, compared to $11.3 million in revenue for the
same period in 2018. The increase in revenue for the 2019 period is
primarily due to a higher volume of EksoGT and EksoNR sales.
Gross profit for the full year ended December
31, 2019 increased by 57% to approximately $6.8 million,
representing a gross margin of approximately 49%. This compares to
gross profit of $4.3 million for the same period in 2018,
representing a gross margin of 38%. The increase was primarily due
to higher average selling prices and lower production costs of
EksoGT and EksoNR devices.
Sales and marketing expenses were $11.4 million
for the full year ended December 31, 2019, compared to $13.8
million for the same period in 2018, a decrease of $2.4 million.
The decrease was primarily due to the absence of one-time severance
and related costs, the absence of amortization expense related to
intangible assets, lower general marketing and trade show expenses
and a decrease in clinical trial activities.
Research and development expenses were $4.6
million for the full year ended December 31, 2019, compared to $5.8
million in the same period in 2018, a decrease of $1.2 million
primarily due to lower employment costs.
General and administrative expenses were $7.4
million for the full year ended December 31, 2019, compared to
$11.7 million in the same period in 2018, a decrease of $4.3
million. The decrease was primarily due to an absence of a one-time
severance and related costs associated with certain former
executive officers in the comparable period of 2018, lower external
consulting costs and lower legal expenses.
Gain on warrant liabilities for the full year
ended December 31, 2019 was $6.4 million due to the revaluation of
warrants issued in 2015 and 2019, compared to $1.1 million
associated with the revaluation of warrants issued in 2015 for the
same period in 2018.
Net loss applicable to common stockholders for
the full year ended December 31, 2019 was $12.1 million, or $0.17
per basic and diluted share, compared to $27.0 million, or $0.44
per basic and diluted share, for the same period in 2018.
Cash on hand at December 31, 2019 was $10.9
million, compared to $7.7 million at December 31, 2018. For the
full year ended December 31, 2019, the Company used $15.8 million
of cash in operations, compared to $22.2 million for the same
period in 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: 13698960.
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, (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 period
and year ended December 31, 2019, 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 for the year ended December
31, 2019 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 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 our 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) |
| |
| |
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, (Unaudited) |
|
Year ended December 31, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,719 |
|
$ |
3,296 |
|
$ |
13,917 |
|
$ |
11,332 |
|
| Cost of
revenue |
|
1,865 |
|
|
1,804 |
|
|
7,153 |
|
|
7,023 |
|
| Gross
profit |
|
1,854 |
|
|
1,492 |
|
|
6,764 |
|
|
4,309 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
2,731 |
|
|
2,935 |
|
|
11,398 |
|
|
13,827 |
|
|
Research and development |
|
564 |
|
|
1,368 |
|
|
4,596 |
|
|
5,847 |
|
|
General and administrative |
|
1,398 |
|
|
2,327 |
|
|
7,409 |
|
|
11,665 |
|
| |
|
|
|
|
|
|
|
|
| Total
operating expenses |
|
4,693 |
|
|
6,630 |
|
|
23,403 |
|
|
31,339 |
|
| |
|
|
|
|
|
|
|
|
| Loss from
operations |
|
(2,839 |
) |
|
(5,138 |
) |
|
(16,639 |
) |
|
(27,030 |
) |
| |
|
|
|
|
|
|
|
|
| Other income
(expense), net: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
(68 |
) |
|
(131 |
) |
|
(384 |
) |
|
(600 |
) |
|
Gain on warrant liability |
|
330 |
|
|
1,225 |
|
|
6,376 |
|
|
1,063 |
|
|
Loss on modification of warrants |
|
- |
|
|
- |
|
|
(257 |
) |
|
- |
|
|
Finance cost attributed to issuance of warrants |
(389 |
) |
|
- |
|
|
(1,096 |
) |
|
- |
|
|
Other income (expense), net |
|
243 |
|
|
(86 |
) |
|
(132 |
) |
|
(425 |
) |
| Total other
income, net |
|
116 |
|
|
1,008 |
|
|
4,507 |
|
|
38 |
|
| |
|
|
|
|
|
|
|
|
| Net
loss |
$ |
(2,723 |
) |
$ |
(4,130 |
) |
$ |
(12,132 |
) |
$ |
(26,992 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Basic and
diluted net loss per share |
$ |
(0.04 |
) |
$ |
(0.07 |
) |
$ |
(0.17 |
) |
$ |
(0.44 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted
average number of shares of common |
|
|
|
|
|
|
|
|
|
stock, basic and diluted |
|
76,804 |
|
|
62,735 |
|
|
71,911 |
|
|
61,229 |
|
| |
|
|
|
|
|
|
|
|
| Ekso Bionics
Holdings, Inc. |
| Condensed
Consolidated Balance Sheets |
| (In
thousands) |
|
|
|
|
|
|
|
| |
|
|
December
31, |
|
December
31, |
| |
|
|
2019 |
|
2018 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
| |
Cash |
$ |
10,872 |
|
$ |
7,655 |
|
| |
Accounts receivable, net |
|
5,208 |
|
|
3,660 |
|
| |
Inventories, net |
|
2,489 |
|
|
3,371 |
|
| |
Prepaid expenses and other current assets |
|
238 |
|
|
281 |
|
|
Total current assets |
|
18,807 |
|
|
14,967 |
|
|
Property and equipment, net |
|
1,657 |
|
|
2,365 |
|
|
Right-of-use asset |
|
1,084 |
|
|
0 |
|
|
Goodwill |
|
189 |
|
|
189 |
|
|
Other assets |
|
178 |
|
|
134 |
|
|
Total assets |
$ |
21,915 |
|
$ |
17,655 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
| |
Accounts payable |
|
1,903 |
|
|
3,156 |
|
| |
Accrued liabilities |
|
1,683 |
|
|
3,489 |
|
| |
Deferred revenues, current |
|
1,492 |
|
|
1,102 |
|
| |
Note payable, current |
|
2,333 |
|
|
2,333 |
|
| |
Lease liabilities, current |
|
421 |
|
|
0 |
|
|
Total current liabilities |
|
7,832 |
|
|
10,080 |
|
|
Deferred revenue |
|
1,789 |
|
|
1,495 |
|
|
Note payable, net |
|
407 |
|
|
2,648 |
|
|
Lease liabilities |
|
711 |
|
|
0 |
|
|
Warrant liabilities |
|
4,307 |
|
|
585 |
|
|
Other non-current liabilities |
|
72 |
|
|
119 |
|
|
Total liabilities |
|
15,118 |
|
|
14,927 |
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
87 |
|
|
63 |
|
|
Additional paid-in capital |
|
189,938 |
|
|
173,903 |
|
|
Accumulated other comprehensive gain (loss) |
|
50 |
|
|
(92 |
) |
|
Accumulated deficit |
|
(183,278 |
) |
|
(171,146 |
) |
|
Total stockholders' equity |
|
6,797 |
|
|
2,728 |
|
|
Total liabilities and stockholders' equity |
$ |
21,915 |
|
$ |
17,655 |
|
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