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, 2020.
Recent Highlights and
Accomplishments
- Reported revenue of
$2.3 million in the fourth quarter of 2020, compared to $3.7
million in the same period of 2019
- Achieved gross
margins of approximately 60% in the fourth quarter of 2020,
compared to 50% in the same period of 2019
- Cash at December
31, 2020 was $12.9 million, compared to $10.9 million at December
31, 2019
- Received $40
million in gross proceeds from February 2021 public offering
- Lowered cash used
in operations by 45% to $8.8 million in 2020, compared to $15.8
million in 2019
“Through increased customer engagement levels
and promising traction gained by our new subscription selling
model, our fourth quarter 2020 revenues reflect continued execution
of our commercial strategy in a challenging selling environment,”
said Jack Peurach, President and Chief Executive Officer of Ekso
Bionics. “Led by our virtual training solutions and educational
webinars, our ability to adapt to a digital platform allowed us to
maintain consistent customer access and showcase positive patient
outcomes from our EksoNR devices. On the industrial front, we are
encouraged by the growing customer excitement for EVOTM as well as
promising order trends across multiple key industry verticals. With
the strong backing from our shareholders following our recently
closed $40 million public offering, we are excited to have the
financial flexibility that will support our growth strategy in 2021
and beyond.”
Fourth Quarter 2020 Financial
Results
Revenue was $2.3 million for the quarter ended
December 31, 2020, compared to $3.7 million for the same period in
2019. Revenue in the fourth quarter of 2020 included approximately
$2.1 million in EksoHealth revenue and approximately $0.2 million
in EksoWorks revenue. The Company booked a total of 14 EksoNR units
in the fourth quarter of 2020, including 4 subscription units.
Gross profit for the quarter ended December 31,
2020 was $1.4 million, compared to $1.9 million in the same period
in 2019, representing a gross margin of approximately 60% in the
fourth quarter of 2020, compared to a gross margin for the same
period in 2019 of 50%. The overall increase in gross margin is
primarily due to higher average selling prices and lower production
costs of the Company’s EksoNR devices, and the introduction of
EVO.
Sales and marketing expenses for the quarter
ended December 31, 2020 were $1.8 million, a decrease of $1.0
million, or approximately 35%, compared to the same period in 2019.
The decrease was primarily due to lower employee and selling
expenses and lower general marketing and trade show expenses.
Research and development expenses for the
quarter ended December 31, 2020 were $0.7 million, compared to $0.6
million for the same period in 2019, an increase of $0.1 million.
The increase was primarily due to higher product development
activity expenses.
General and administrative expenses for the
quarter ended December 31, 2020 were $1.9 million, compared to $1.4
million for the same period in 2019, an increase of $0.5 million,
or approximately 34%. The increase was primarily due to higher
non-salary compensation expenses.
Loss on warrant liabilities for the quarter
ended December 31, 2020 was $1.5 million due to the revaluation of
warrants issued in 2019 and 2020, compared to a $0.3 million gain
associated with the revaluation of warrants issued in 2015 and 2019
for the same period in 2019.
Net loss applicable to common stock-holders for
the quarter ended December 31, 2020 was $4.0 million, or $0.48 per
basic and diluted share, compared to net loss of $2.7 million, or
$0.53 per basic and diluted share, for the same period in 2019.
Full Year 2020 Financial
Results
Revenue for the full year ended December 31,
2020 was $8.9 million, which includes approximately $8.1 million in
EksoHealth revenue and $0.8 million in EksoWorks revenue, compared
to $13.9 million in revenue for the same period in 2019. The
decrease in revenue for the full year 2020 period was due to a
decrease in volume of medical device sales driven by the impact of
COVID-19, as customers shifted priorities to prepare for and manage
their business during the pandemic.
Gross profit for the full year ended December
31, 2020 was approximately $5.1 million, representing a gross
margin of approximately 57%, compared to gross profit of $6.8
million for the same period in 2019, representing a gross margin of
49%. The increase in gross margin was primarily due to higher
average selling prices and lower production costs of the Company's
EksoNR devices, and the introduction of EVO.
Sales and marketing expenses for the full year
ended December 31, 2020 were $7.8 million, compared to $11.4
million for the same period in 2019, a decrease of $3.6 million.
The decrease was primarily due to lower employee and selling
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 full
year ended December 31, 2020 were $2.5 million, compared to $4.6
million in the same period in 2019, a decrease of $2.1 million. The
decrease was primarily due to lower employee expenses and lower
patent and licensing costs.
General and administrative expenses for the full
year ended December 31, 2020 were $7.7 million, compared to $7.4
million in the same period in 2019, an increase of $0.3 million
primarily due to an increase in legal expense.
Loss on warrant liabilities for the full year
ended December 31, 2020 was $3.1 million due to the revaluation of
warrants issued in 2015, 2019 and 2020, compared to a $6.4 million
gain associated with the revaluation of warrants issued in 2015 and
2019 for the same period in 2019.
Net loss applicable to common shareholders for
the full year ended December 31, 2020 was $15.8 million, or $2.21
per basic and diluted share, compared to $12.1 million, or $2.53
per basic and diluted share, for the same period in 2019.
Cash on hand at December 31, 2020 was $12.9
million, compared to $10.9 million at December 31, 2019. For the
full year ended December 31, 2020, the Company used $8.8 million of
cash in operations, compared to $15.8 million for the same period
in 2019.
Capitalization Update
On February 11, 2021, the Company completed a
public offering selling 3,902,440 shares at a price of $10.25 per
share that generated gross proceeds of $40 million. Ekso intends to
use the net proceeds from the offering for working capital and
other general corporate purposes, which may include repayment of
debt, acquisitions and other business opportunities.
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: 13715338. 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) customer engagement,
(ii) market acceptance of the Company’s products, (iii) adequacy of
the Company’s financial resources to implement its strategic plan,
and (iv) the assumptions underlying or relating to any statement
described in points (i) through (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, changes resulting from the Company’s finalization of
its financial statements and as of the period and year ended
December 31, 2020, 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, 2020
that are required to be included in such report, the ongoing
COVID-19 pandemic and its impact on the Company’s financial
condition and business, the highly competitive markets in which the
Company’s products are sold, the Company's significant losses to
date and anticipated future losses, the new and unproven nature of
the market for the Company’s products, the long and variable sales
cycles for the Company’s products, the factors outside the
Company’s control that affect the international sales of its
products, the costs related to and impacts of potential failure of
the Company to obtain or maintain protection for the Company's
intellectual property rights, the failure of the Company to obtain
or maintain regulatory approval to market the Company's medical
devices, and risks related to product liability, recall and
warranty claims.
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.
Contact: David
Carey212-867-1768investors@eksobionics.com
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share amounts) |
|
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue |
|
2,254 |
|
|
3,719 |
|
|
8,882 |
|
|
13,917 |
|
Cost of revenue |
|
893 |
|
|
1,865 |
|
|
3,812 |
|
|
7,153 |
|
Gross profit |
|
1,361 |
|
|
1,854 |
|
|
5,070 |
|
|
6,764 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,780 |
|
|
2,730 |
|
|
7,752 |
|
|
11,398 |
|
Research and development |
|
712 |
|
|
565 |
|
|
2,474 |
|
|
4,596 |
|
General and administrative |
|
1,866 |
|
|
1,397 |
|
|
7,702 |
|
|
7,409 |
|
Impairment of goodwill |
|
- |
|
|
- |
|
|
189 |
|
|
- |
|
Restructuring |
|
- |
|
|
- |
|
|
244 |
|
|
- |
|
Total operating expenses |
|
4,358 |
|
|
4,692 |
|
|
18,361 |
|
|
23,403 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(2,997 |
) |
|
(2,838 |
) |
|
(13,291 |
) |
|
(16,639 |
) |
|
|
|
|
|
|
|
|
|
Other (expense) income, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(26 |
) |
|
(68 |
) |
|
(139 |
) |
|
(384 |
) |
(Loss) gain on warrant liabilities |
|
(1,477 |
) |
|
329 |
|
|
(3,056 |
) |
|
6,376 |
|
Loss on modification of warrants |
|
- |
|
|
- |
|
|
- |
|
|
(257 |
) |
Finance cost associated with warrant issuance |
|
- |
|
|
(389 |
) |
|
(329 |
) |
|
(1,096 |
) |
Other income (expense), net |
|
524 |
|
|
244 |
|
|
990 |
|
|
(132 |
) |
Total other
(expense) income, net |
|
(979 |
) |
|
116 |
|
|
(2,534 |
) |
|
4,507 |
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(3,976 |
) |
$ |
(2,722 |
) |
$ |
(15,825 |
) |
$ |
(12,132 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share |
$ |
(0.48 |
) |
$ |
(0.53 |
) |
$ |
(2.21 |
) |
$ |
(2.53 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of common |
|
|
|
|
|
|
|
|
stock outstanding, basic and diluted |
|
8,328 |
|
|
5,120 |
|
|
7,164 |
|
|
4,794 |
|
|
|
|
|
|
|
|
|
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Balance Sheets |
(In thousands, except par value) |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
12,862 |
|
$ |
10,872 |
|
Accounts receivable, net |
|
3,389 |
|
|
5,208 |
|
Inventories |
|
1,978 |
|
|
2,489 |
|
Prepaid expenses and other current assets |
|
191 |
|
|
238 |
|
Total current assets |
|
18,420 |
|
|
18,807 |
|
Property and equipment, net |
|
1,172 |
|
|
1,657 |
|
Right-of-use assets |
|
685 |
|
|
1,084 |
|
Goodwill |
|
- |
|
|
189 |
|
Other assets |
|
320 |
|
|
178 |
|
Total assets |
$ |
20,597 |
|
$ |
21,915 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
1,501 |
|
|
1,903 |
|
Accrued liabilities |
|
1,429 |
|
|
1,683 |
|
Deferred revenues, current |
|
1,496 |
|
|
1,492 |
|
Note payable, current |
|
- |
|
|
2,333 |
|
Lease liabilities, current |
|
548 |
|
|
421 |
|
Total current liabilities |
|
4,974 |
|
|
7,832 |
|
Deferred revenues |
|
1,806 |
|
|
1,789 |
|
Notes payable, net |
|
3,075 |
|
|
407 |
|
Lease liabilities |
|
233 |
|
|
711 |
|
Warrant liabilities |
|
6,037 |
|
|
4,307 |
|
Other non-current liabilities |
|
38 |
|
|
72 |
|
Total liabilities |
|
16,163 |
|
|
15,118 |
|
Stockholders' equity: |
|
|
|
|
Common stock |
|
8 |
|
|
6 |
|
Additional paid-in capital |
|
204,376 |
|
|
190,019 |
|
Accumulated other comprehensive (loss) income |
|
(847 |
) |
|
50 |
|
Accumulated deficit |
|
(199,103 |
) |
|
(183,278 |
) |
Total stockholders' equity |
|
4,434 |
|
|
6,797 |
|
Total liabilities and stockholders' equity |
$ |
20,597 |
|
$ |
21,915 |
|
|
|
|
|
|
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