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 June 30, 2020.
Recent Highlights and
Accomplishments
- Reported revenue of $2.3 million in
the second quarter of 2020
- Record quarterly gross margins of
approximately 56% in the second quarter of 2020, compared to 48% in
the same period of 2019
- Raised total gross proceeds of
$11.1 million in the June financing and subsequent exercises of
warrants
- Received FDA clearance to market
the Company’s EksoNR™ robotic exoskeleton for use with acquired
brain injury patients, in addition to previously cleared spinal
cord and stroke applications, expanding the number of patients that
can use the device
- Named “Best Healthcare Robotics
Company” in 2020 MedTech Breakthrough Awards Program
“We are pleased with our team’s strong execution
in navigating through an extraordinarily difficult environment,”
said Jack Peurach, President and Chief Executive Officer of Ekso
Bionics. “Through our virtual selling approach, we maintained a
strong order pipeline by staying connected with our customer
rehabilitation centers and network operators in delivering online
service support and training. Operationally, at the start of the
COVID-19 pandemic we took immediate actions to adjust our cost
structure, enabling us to adapt to the new environment under these
challenging market conditions. While the pandemic may impact the
near-term outlook for the customers that we serve, we remain
flexible both strategically and operationally to create long-term
value for patients, customers, and our shareholders.”
Second Quarter 2020 Financial
Results
Revenue for the quarter ended June 30, 2020 was
$2.3 million, compared to $1.5 million in the first quarter of 2020
and $3.3 million for the same period in 2019. Revenue in the second
quarter of 2020 included approximately $2.1 million in EksoHealth
revenue, compared to $2.8 million in the same period in 2019, and
approximately $0.2 million in EksoWorks sales, compared to $0.4
million in the same period in 2019. The decline in revenue as
compared to the same period in 2019 was due to a decrease in volume
of medical device sales driven by the impact of COVID-19, as
customers delayed orders to prepare for and manage their business
during the pandemic.
Gross profit for the quarter ended June 30, 2020
was $1.3 million, compared to $1.6 million in the same period in
2019, representing a gross margin of approximately 56% in the
second quarter of 2020, compared to a gross margin for the same
period in 2019 of 48%. The decrease in gross profit is primarily
attributed to lower volume of medical device sales.
Sales and marketing expenses for the quarter
ended June 30, 2020 were $1.7 million, a decrease of $1.3 million,
or approximately 44%, compared to the same period in 2019. The
decrease was primarily due to lower employee expenses and lower
general marketing and trade show expenses.
Research and development expenses for the
quarter ended June 30, 2020 were $0.5 million, compared to $1.5
million for the same period in 2019, a decrease of $1.0 million, or
approximately 70%. The decrease was primarily due to lower employee
expenses and lower patent and licensing costs.
General and administrative expenses for the
quarter ended June 30, 2020 were $1.9 million, compared to $2.1
million for the same period in 2019, a decrease of $0.2 million, or
approximately 8%.
Loss on warrant liabilities for the quarter
ended June 30, 2020 was $8.6 million due to the revaluation of
warrants issued in 2015, 2019 and 2020, compared to a $2.7 million
gain associated with the revaluation of warrants issued in 2015 and
May 2019 for the same period in 2019.
Net loss applicable to common stockholders for
the quarter ended June 30, 2020 was $11.8 million, or $1.88 per
basic and diluted share, compared to net loss of $3.1 million, or
$0.65 per basic and diluted share, for the same period in 2019.
Six months ended June 30,
2020
Revenue for the six months ended June 30, 2020
was $3.7 million, which includes approximately $3.3 million in
EksoHealth revenue, and $0.4 million in EksoWorks sales, compared
to $6.9 million for the same period in 2019. The decrease in
revenue for the six-month 2020 period was primarily due to the same
reasons for the second quarter of 2020.
Gross profit for the six months ended June 30,
2020 was approximately $1.9 million, representing a gross margin of
approximately 51%, compared to gross profit of $3.2 million for the
same period in 2019, representing a gross margin of 46%. The
increase in gross margins was primarily due to higher average
selling prices and lower production costs of EksoNR devices.
Sales and marketing expenses for the six months
ended June 30, 2020 were $4.2 million, compared to $5.8 million for
the same period in 2019, a decrease of $1.6 million. The decrease
was primarily due to lower employee expenses, lower general
marketing and trade show expenses and a decrease in clinical trial
activities due the completion of the Company’s main clinical trial
in the first quarter of 2019.
Research and development expenses for the six
months ended June 30, 2020 were $1.2 million, compared to $2.9
million in the same period in 2019, a decrease of $1.7 million. The
decrease was primarily due to the same reasons for the second
quarter of 2020.
General and administrative expenses for the six months ended
June 30, 2020 were $4.1 million, compared to $4.4 million in
the same period in 2019, a decrease of $0.3 million. The decrease
was primarily due to a decrease in consulting expense and employee
expenses.
Loss on warrant liabilities for the first six
months ended June 30, 2020 was $6.1 million due to the revaluation
of warrants issued in 2015, 2019 and 2020, compared to a $1.6
million gain associated with the revaluation of warrants issued in
2015 and May 2019 for the same period in 2019.
Net loss applicable to common shareholders for
the six months ended June 30, 2020 was $14.3 million, or $2.37 per
basic and diluted share, compared to $9.6 million, or $2.12 per
basic and diluted share, for the same period in 2019.
Cash on hand at June 30, 2020 was $13.3 million,
compared to $10.9 million at December 31, 2019. In June 2020, the
Company raised gross proceeds of $7.89 million in a registered
direct offering priced at-the-market under Nasdaq rules and $0.8
million from the exercise of the warrants that were issued in the
Company’s May 2019 underwritten public offering. In July 2020, the
Company raised additional gross proceeds of $2.4 million from the
exercise of the warrants that were issued in the June 2020
registered direct offering.
China Joint Venture Update
On July 13, 2020, Ekso and partners in its China
joint venture entered into a National Security Agreement (“NSA”),
which, among other things, requires the termination of the
Company’s agreements and role with the joint venture. Ekso intends
to work cooperatively with the joint venture partners and Committee
on Foreign Investment in the United States to implement the terms
of the NSA.
Conference Call
Management will host a conference call today
beginning at 1:30 p.m. PT / 4:30 p.m. ET to discuss the Company’s
financial results and recent business developments.
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: 13706452. 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 industry-leading 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 San Francisco 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 June 30, 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 June 30,
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, 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 June 30, |
|
Six months ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue |
|
2,264 |
|
|
3,262 |
|
|
3,731 |
|
|
6,878 |
|
Cost of
revenue |
|
1,005 |
|
|
1,702 |
|
|
1,835 |
|
|
3,719 |
|
Gross
profit |
|
1,259 |
|
|
1,560 |
|
|
1,896 |
|
|
3,159 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,712 |
|
|
3,039 |
|
|
4,232 |
|
|
5,848 |
|
Research and development |
|
452 |
|
|
1,499 |
|
|
1,163 |
|
|
2,883 |
|
General and administrative |
|
1,943 |
|
|
2,120 |
|
|
4,130 |
|
|
4,438 |
|
Restructuring |
|
244 |
|
|
- |
|
|
244 |
|
|
- |
|
Total
operating expenses |
|
4,351 |
|
|
6,658 |
|
|
9,769 |
|
|
13,169 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(3,092 |
) |
|
(5,098 |
) |
|
(7,873 |
) |
|
(10,010 |
) |
|
|
|
|
|
|
|
|
|
Other
(expense) income, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(38 |
) |
|
(107 |
) |
|
(90 |
) |
|
(228 |
) |
(Loss) gain on revaluation of warrant liabilities |
(8,574 |
) |
|
2,737 |
|
|
(6,055 |
) |
|
1,615 |
|
Loss on modification of warrants |
|
- |
|
|
- |
|
|
- |
|
|
(257 |
) |
Warrant issuance expense |
|
(329 |
) |
|
(706 |
) |
|
(329 |
) |
|
(706 |
) |
Other income (expense), net |
|
266 |
|
|
108 |
|
|
46 |
|
|
(31 |
) |
Total other
(expense) income, net |
|
(8,675 |
) |
|
2,032 |
|
|
(6,428 |
) |
|
393 |
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(11,767 |
) |
$ |
(3,066 |
) |
$ |
(14,301 |
) |
$ |
(9,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share |
$ |
(1.88 |
) |
$ |
(0.65 |
) |
$ |
(2.37 |
) |
$ |
(2.12 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of common |
|
|
|
|
|
|
|
|
stock, basic and diluted |
|
6,261 |
|
|
4,713 |
|
|
6,032 |
|
|
4,526 |
|
|
|
|
|
|
|
|
|
|
Ekso Bionics
Holdings, Inc. |
Condensed
Consolidated Balance Sheets |
(In
thousands, except par value) |
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
2020 |
|
2019 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
|
Cash |
$ |
13,260 |
|
$ |
10,872 |
|
|
Accounts receivable, net |
|
3,741 |
|
|
5,208 |
|
|
Inventories, net |
|
2,384 |
|
|
2,489 |
|
|
Prepaid expenses and other current assets |
|
525 |
|
|
238 |
|
Total current assets |
|
19,910 |
|
|
18,807 |
|
Property and equipment, net |
|
1,248 |
|
|
1,657 |
|
Right-of-use asset |
|
885 |
|
|
1,084 |
|
Goodwill |
|
189 |
|
|
189 |
|
Other assets |
|
117 |
|
|
178 |
|
Total assets |
$ |
22,349 |
|
$ |
21,915 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
1,902 |
|
|
1,903 |
|
|
Accrued liabilities |
|
1,180 |
|
|
1,683 |
|
|
Deferred revenues, current |
|
1,345 |
|
|
1,492 |
|
|
Notes payable, net, current |
|
2,433 |
|
|
2,333 |
|
|
Lease liabilities, current |
|
269 |
|
|
421 |
|
Total current liabilities |
|
7,129 |
|
|
7,832 |
|
Deferred revenues |
|
1,706 |
|
|
1,789 |
|
Notes payable, net |
|
644 |
|
|
407 |
|
Lease liabilities |
|
508 |
|
|
711 |
|
Warrant liabilities |
|
12,361 |
|
|
4,307 |
|
Other non-current liabilities |
|
29 |
|
|
72 |
|
Total liabilities |
|
22,377 |
|
|
15,118 |
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
8 |
|
|
6 |
|
|
Additional paid-in capital |
|
197,513 |
|
|
190,019 |
|
|
Accumulated other comprehensive income |
|
30 |
|
|
50 |
|
|
Accumulated deficit |
|
(197,579 |
) |
|
(183,278 |
) |
Total stockholders' (deficit) equity |
|
(28 |
) |
|
6,797 |
|
Total liabilities and stockholders' (deficit) equity |
$ |
22,349 |
|
$ |
21,915 |
|
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