- Company to Host Conference Call and Webcast
Today at 4:30 p.m. ET / 1:30 p.m. PT -
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), an industry leader in
exoskeleton technology for medical and industrial use, today
reported financial results for the third quarter and nine months
ended September 30, 2017.
Recent Highlights and
Accomplishments
- Third quarter medical device related revenue increased 21%
compared to third quarter 2016
- Raised $34 million in a fully-financed rights offering, backed
by a $20 million investment from lead investor Puissance
Capital
- Shipped 11 medical and 34 industrial units in the third quarter
of 2017
- Strengthened board of directors with appointment of Ted Wang,
PhD
- Appointed experienced medical technology executive Christian
Babini as Vice President of Sales, Americas
- Announced collaboration with Genesis Rehab Services to study
opportunities for incorporating EksoGT™ in skilled nursing
facilities
- Showcased the latest features of the EksoGT™ wearable
exoskeleton at the 2017 American Academy of Physical Medicine and
Rehabilitation (AAPM&R)
“We achieved several important objectives in the
third quarter that enhance our ability to build and sustain value
over the long term,” said Thomas Looby, President and Chief
Executive Officer of Ekso Bionics. “The successful completion of a
$34 million rights offering strengthens our balance sheet and
provides financial flexibility to enhance our go to market strategy
and execute our other business objectives. Christian Babini, our
recently appointed VP of Sales, brings significant expertise in
successfully leading commercial organizations with disruptive
technologies, which will be an important asset as we refine and
execute our sales plan. In addition, our new board member, Ted
Wang, brings knowledge across key operational and financial
functions, including broad experience in China, an untapped market
with significant potential for Ekso Bionics. This provides us the
ability to move our business forward and uniquely positions Ekso
Bionics, enabling us to focus on market development, sales
execution, and bringing our life-transforming products to patients
and workers who would greatly benefit from our technology.”
Third Quarter 2017 Financial
Results
Revenue was $1.6 million for the quarter ended
September 30, 2017, which includes approximately $1.3 million in
medical device revenue, and $0.3 million in industrial sales.
Revenue was $1.6 million for the quarter ended September 30, 2016,
which included approximately $1.1 million in medical revenue, and
$0.4 million in industrial sales.
Gross profit for the quarter ended September 30,
2017 was $0.5 million, compared to $0.4 million for the quarter
ended September 30, 2016. The increase in gross profit compared to
the same period in 2016 is primarily due to higher sales of medical
devices and a reduction in service costs.
Sales and marketing expenses for the quarter
ended September 30, 2017 were $3.2 million, compared to $2.7
million for the quarter ended September 30, 2016, an increase of
$0.5 million. This increase was due to an increase in marketing
related to the commercialization of the Company’s medical devices
for rehabilitation and its exoskeleton offerings for industrial
applications, and an increase in clinical research activity.
Research and development expenses for the
quarter ended September 30, 2017 were $2.0 million, compared to
$2.2 million for the quarter ended September 30, 2016, a decrease
of $0.2 million. This decrease was due to lower headcount as a
result of the reduction in workforce in May 2017.
General and administrative expenses for the
quarter ended September 30, 2017 were $2.4 million, compared to
$2.3 million for the quarter ended September 30, 2016, an increase
of $0.1 million. This increase was primarily due to an increase in
business development related activities in Asia.
Net loss applicable to common stockholders for
the three months ended September 30, 2017 was $6.3 million, or
$0.18 per basic and diluted share, compared to $11.5 million, or
$0.60 per basic and diluted share for the three months ended
September 30, 2016.
Nine months ended Sept 30,
2017
Revenue for the nine months ended September 30,
2017 was $4.9 million, compared to $11.6 million for the same
period in the prior year. The decrease in revenue for the 2017
period is primarily due to the revenue recognition during the nine
months ended September 30, 2016 of $6.5 million of previously
deferred revenue resulting from a change of an accounting
estimate.
The company did not have substantial engineering
services revenue for the nine months ended September 30,
2017. Engineering services revenue was $0.6 million for the
nine months ended September 30, 2016.
Gross profit for the nine months ended September
30, 2017 was approximately $1.3 million, compared to $2.1 million
during the same period of 2016. The decrease was primarily due to
$2.4 million of gross profit from our change in accounting estimate
related to revenue recognition during the nine months ended
September 30, 2016 partially offset by increased medical device
sales.
Sales and marketing expenses were $9.6 million
for the nine months ended September 30, 2017, compared to $8.2
million for the same period in the prior year, an increase of $1.4
million. The increase was primarily due to an increase in
marketing related to the commercialization of the Company’s medical
devices for rehabilitation and its exoskeleton offerings for
industrial applications, an increase in clinical research activity,
and an increase in sales and marketing personnel.
Research and development expenses were $7.5
million for the nine months ended September 30, 2017, compared to
$6.6 million in the same period in 2016, an increase of $0.9
million. This increase was primarily due to labor redirected to
product innovation activities from billable engineering service
projects which was recorded in cost of revenue, and increases in
outside services and material purchases.
General and administrative expenses were $7.4
million for the nine months ended September 30, 2017, compared to
$8.3 million in the same period in 2016, a decrease of $0.9
million. The decrease was primarily due to the absence of a $0.8
million non-cash stock compensation charge in the nine months ended
September 30, 2016 related to the modification of stock options
that had been granted to the then Chief Executive Officer, as well
as a $0.3 million severance charge in 2016 period related to the
departure of the then Chief Executive Officer. These decreases were
partially offset by increased costs associated with business
development activities in Asia.
Net loss applicable to common stockholders for
the nine months ended September 30, 2017 was $20.1 million, or
$0.73 per basic and diluted share, compared to $28.2 million, or
$1.67 per basic share and $1.78 per diluted share for the nine
months ended September 30, 2016.
Cash on hand at September 30, 2017 was $33.4
million, compared to $16.8 million at December 31, 2016. For
the nine months ended September 30, 2017, the Company used $25.6
million of cash in operations, compared to $20.6 million for the
nine months ended September 30, 2016. The increase in cash on hand
is a result of the fully financed rights offering completed in the
third quarter of 2017.
Conference Call Management will
host an investment community conference call today beginning at
1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. 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 (Conference ID: 13581989), or from the
webcast on 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 and using Conference ID:
13581989. 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,
industrial and defense 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, to providing research for the advancement of R&D
projects intended to benefit U.S. defense capabilities. 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 and
objectives of management for future operations, including plans or
objectives relating to the design, development and
commercialization of human exoskeletons, (ii) estimates or
projection of financial results, financial condition, capital
expenditures, capital structure or other financial items, (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, 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 our sales and marketing
organization or partners to market our 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, 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 us at
www.eksobionics.com. The Company does not undertake to update these
forward-looking statements.
Media Contact:Carrie
Yamond917-371-2320cyamond@lazarpartners.com
Investor Contact: Matthew Ventimiglia 212-599-1265
investors@eksobionics.com
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations and Comprehensive Loss |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Device
and related |
|
$ |
1,587 |
|
|
|
$ |
1,495 |
|
|
|
$ |
4,862 |
|
|
|
$ |
11,003 |
|
|
Engineering services |
|
|
10 |
|
|
|
|
101 |
|
|
|
|
38 |
|
|
|
|
631 |
|
|
Total revenue |
|
|
1,597 |
|
|
|
|
1,596 |
|
|
|
|
4,900 |
|
|
|
|
11,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Device
and related |
|
|
1,045 |
|
|
|
|
1,123 |
|
|
|
|
3,593 |
|
|
|
|
9,078 |
|
|
Engineering services |
|
|
8 |
|
|
|
|
70 |
|
|
|
|
15 |
|
|
|
|
452 |
|
|
Total cost of
revenue |
|
|
1,053 |
|
|
|
|
1,193 |
|
|
|
|
3,608 |
|
|
|
|
9,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
544 |
|
|
|
|
403 |
|
|
|
|
1,292 |
|
|
|
|
2,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
3,226 |
|
|
|
|
2,735 |
|
|
|
|
9,563 |
|
|
|
|
8,151 |
|
|
Research
and development |
|
|
1,986 |
|
|
|
|
2,216 |
|
|
|
|
7,491 |
|
|
|
|
6,586 |
|
|
General
and administrative |
|
|
2,414 |
|
|
|
|
2,318 |
|
|
|
|
7,430 |
|
|
|
|
8,271 |
|
|
Restructuring |
|
|
- |
|
|
|
|
- |
|
|
|
|
665 |
|
|
|
|
- |
|
|
Change in
fair value, contingent liabilities |
|
|
(16 |
) |
|
|
|
- |
|
|
|
|
(191 |
) |
|
|
|
- |
|
|
Total operating
expenses |
|
|
7,610 |
|
|
|
|
7,269 |
|
|
|
|
24,958 |
|
|
|
|
23,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(7,066 |
) |
|
|
|
(6,866 |
) |
|
|
|
(23,666 |
) |
|
|
|
(20,904 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on revaluation of warrant liabilities |
|
1,814 |
|
|
|
|
(1,620 |
) |
|
|
|
4,851 |
|
|
|
|
3,030 |
|
|
Loss on
repurchase of warrants |
|
|
(1,067 |
) |
|
|
|
- |
|
|
|
|
(1,067 |
) |
|
|
|
- |
|
|
Interest
income (expense) and other, net |
|
|
(16 |
) |
|
|
|
8 |
|
|
|
|
(262 |
) |
|
|
|
(20 |
) |
|
Total other income
(expense), net |
|
|
731 |
|
|
|
|
(1,612 |
) |
|
|
|
3,522 |
|
|
|
|
3,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(6,335 |
) |
|
|
|
(8,478 |
) |
|
|
|
(20,144 |
) |
|
|
|
(17,894 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Preferred deemed
dividend |
|
|
- |
|
|
|
|
(3,016 |
) |
|
|
|
- |
|
|
|
|
(10,345 |
) |
|
Net loss applicable to
common stockholders |
|
|
(6,335 |
) |
|
|
|
(11,494 |
) |
|
|
|
(20,144 |
) |
|
|
|
(28,239 |
) |
|
Foreign currency
translation adjustments |
|
|
(122 |
) |
|
|
|
(17 |
) |
|
|
|
(356 |
) |
|
|
|
(6 |
) |
|
Comprehensive loss |
|
$ |
(6,457 |
) |
|
|
$ |
(11,511 |
) |
|
|
$ |
(20,500 |
) |
|
|
$ |
(28,245 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share applicable to common stockholders, basic |
|
$ |
(0.18 |
) |
|
|
$ |
(0.60 |
) |
|
|
$ |
(0.73 |
) |
|
|
$ |
(1.67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding, basic |
|
|
34,720 |
|
|
|
|
19,005 |
|
|
|
|
27,425 |
|
|
|
|
16,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share applicable to common stockholders, diluted |
|
$ |
(0.18 |
) |
|
|
$ |
(0.60 |
) |
|
|
$ |
(0.73 |
) |
|
|
$ |
(1.78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding, diluted |
|
|
34,720 |
|
|
|
|
19,005 |
|
|
|
|
27,425 |
|
|
|
|
17,595 |
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Balance
Sheets |
(In thousands, except par
value)(Unaudited) |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
(unaudited) |
|
|
(Note 2) |
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
33,439 |
|
|
$ |
16,846 |
|
Accounts
receivable, net |
|
|
2,168 |
|
|
|
1,780 |
|
Inventories, net |
|
|
2,378 |
|
|
|
1,556 |
|
Prepaid
expenses and other current assets |
|
|
2,097 |
|
|
|
502 |
|
Deferred
cost of revenue, current |
|
|
86 |
|
|
|
- |
|
Total current
assets |
|
|
40,168 |
|
|
|
20,684 |
|
Property and equipment,
net |
|
|
2,301 |
|
|
|
2,435 |
|
Intangible assets,
net |
|
|
626 |
|
|
|
1,026 |
|
Goodwill |
|
|
189 |
|
|
|
189 |
|
Other assets |
|
|
121 |
|
|
|
91 |
|
Total assets |
|
$ |
43,405 |
|
|
$ |
24,425 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
990 |
|
|
$ |
1,879 |
|
Accrued
liabilities |
|
|
2,746 |
|
|
|
3,556 |
|
Deferred
revenues, current |
|
|
1,242 |
|
|
|
825 |
|
Note
payable, current |
|
|
1,556 |
|
|
|
- |
|
Other
liabilities, current |
|
|
58 |
|
|
|
54 |
|
Total current
liabilities |
|
|
6,592 |
|
|
|
6,314 |
|
Deferred revenue |
|
|
685 |
|
|
|
805 |
|
Note payable |
|
|
5,368 |
|
|
|
6,789 |
|
Warrant
liabilities |
|
|
767 |
|
|
|
3,546 |
|
Contingent
consideration liability |
|
|
248 |
|
|
|
217 |
|
Contingent success fee
liability |
|
|
13 |
|
|
|
116 |
|
Other non-current
liabilities |
|
|
65 |
|
|
|
107 |
|
Total liabilities |
|
|
13,738 |
|
|
|
17,894 |
|
Commitments and
contingencies (Note 15) |
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
Convertible preferred stock, $0.001 par value; 10,000 shares
authorized; none issued and outstanding at September 30, 2017, and
December 31, 2016, respectively |
|
|
- |
|
|
|
- |
|
Common
stock, $0.001 par value; 71,429 shares authorized; 59,904 and
21,894 shares issued and outstanding as of September 30, 2017, and
December 31, 2016, respectively |
|
|
60 |
|
|
|
22 |
|
Additional paid-in
capital |
|
|
165,060 |
|
|
|
121,291 |
|
Accumulated other
comprehensive (loss) income |
|
|
(277 |
) |
|
|
79 |
|
Accumulated
deficit |
|
|
(135,176 |
) |
|
|
(114,861 |
) |
Total stockholders'
equity |
|
|
29,667 |
|
|
|
6,531 |
|
Total liabilities and
stockholders' equity |
|
$ |
43,405 |
|
|
$ |
24,425 |
|
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