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 September 30, 2020.
Recent Highlights and
Accomplishments
- Reported revenue of
$2.9 million in the third quarter of 2020
- Record quarterly
gross margins of approximately 63% in the third quarter of 2020,
compared to 53% in the same period of 2019
- Launched EVO™, an
endurance-boosting assistive upper body exoskeleton designed for
industrial use
- Cash on hand at
September 30, 2020 was $14.5 million, including net proceeds of
$2.5 million from the exercise of warrants in the third quarter of
2020
- Reduced use of cash
from operations to lowest levels in Company history
“The strength of our commercial strategy enabled
us to achieve solid sequential revenue growth in the third quarter
despite COVID-related challenges,” said Jack Peurach, President and
Chief Executive Officer of Ekso Bionics. “By leveraging virtual
engagement strategies and offering flexible acquisition options, we
continue to gain traction with customers for our innovative EksoNR
exoskeleton. The recent launch of EVO, our next generation upper
body exoskeleton for industrial use, has already received an
encouraging response in the form of several new customer orders and
pilots. Going forward, we remain focused on continued commercial
sales execution through active customer engagement while optimizing
our cost structure to deliver value to Ekso Bionics
shareholders.”
Third Quarter
2020 Financial Results
Revenue for the quarter ended September 30, 2020
was $2.9 million, compared to $2.3 million in the second quarter of
2020 and $3.3 million for the same period in 2019. Revenue in the
third quarter of 2020 included approximately $2.7 million in
EksoHealth revenue, compared to $3.0 million in the same period in
2019, and approximately $0.2 million in EksoWorks sales, compared
to $0.3 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 shifted priorities to manage their business during the
pandemic.
Gross profit for the quarter ended September 30,
2020 was $1.8 million, unchanged from the same period in 2019,
representing a gross margin of approximately 63% in the third
quarter of 2020, compared to a gross margin for the same period in
2019 of 53%. The increase in gross margins was primarily due to
higher average selling prices for EksoNR, an increased proportion
of medical device sales in overall revenue composition, lower unit
production costs, the introduction of EVO and higher service
margins.
Sales and marketing expenses for the quarter
ended September 30, 2020 were $1.7 million, a decrease of $1.1
million, or approximately 38%, 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 September 30, 2020 were $0.6 million, compared to
$1.1 million for the same period in 2019, a decrease of $0.6
million, or approximately 48%. The decrease was primarily due to
lower employee expenses and lower patent and licensing costs.
General and administrative expenses for the
quarter ended September 30, 2020 were $1.7 million, compared to
$1.6 million for the same period in 2019, an increase of $0.1
million, or approximately 8%. The increase was primarily due to
higher legal expenses associated with the termination of the
Company’s China joint venture.
Gain on warrant liabilities for the quarter
ended September 30, 2020 was $4.5 million due to the revaluation of
warrants issued in 2015, 2019 and 2020, compared to a $4.4 million
gain associated with the revaluation of warrants issued in 2015 and
May 2019 for the same period in 2019.
Net income applicable to common stockholders for
the quarter ended September 30, 2020 was $2.5 million, or $0.30 per
basic share and a loss of $0.01 per diluted share, compared to net
income of $0.2 million, or $0.04 per basic and diluted share, for
the same period in 2019.
Nine
Months
Ended September
30, 2020
Revenue for the nine months ended September 30,
2020 was $6.6 million, which includes approximately $6.0 million in
EksoHealth revenue and $0.6 million in EksoWorks sales, compared to
$10.2 million for the same period in 2019. The decrease in revenue
for the nine-month 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 nine months ended September
30, 2020 was approximately $3.7 million, representing a gross
margin of approximately 56%, compared to gross profit of $4.9
million for the same period in 2019, representing a gross margin of
48%. The increase in gross margin was primarily due to the same
reasons for the third quarter of 2020.
Sales and marketing expenses for the nine months
ended September 30, 2020 were $6.0 million, compared to $8.7
million for the same period in 2019, a decrease of $2.7 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 nine
months ended September 30, 2020 were $1.8 million, compared to $4.0
million in the same period in 2019, a decrease of $2.3 million. The
decrease was primarily due to the same reasons for the third
quarter of 2020.
General and administrative expenses for the nine months ended
September 30, 2020 were $5.8 million, compared to $6.0 million
in the same period in 2019, a decrease of $0.2 million. The
decrease was primarily due to a decrease in employee expenses.
Loss on warrant liabilities for the first nine
months ended June 30, 2020 was $1.6 million due to the revaluation
of warrants issued in 2015, 2019 and 2020, compared to a $6.0
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 nine months ended September 30, 2020 was $11.8 million, or
$1.75 per basic share and $1.78 per diluted share, compared to $9.4
million, or $2.01 per basic and diluted share, for the same period
in 2019.
Cash on hand at September 30, 2020 was $14.5
million, compared to $10.9 million at December 31, 2019. The
Company raised net proceeds of $10.4 million from the issuance of
common stock and the exercise of the warrants.
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: 13711349. 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 September 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
September 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
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue |
|
2,897 |
|
|
3,319 |
|
|
6,628 |
|
|
10,197 |
|
Cost of revenue |
|
1,084 |
|
|
1,569 |
|
|
2,919 |
|
|
5,288 |
|
Gross profit |
|
1,813 |
|
|
1,750 |
|
|
3,709 |
|
|
4,909 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,740 |
|
|
2,818 |
|
|
5,972 |
|
|
8,666 |
|
Research and development |
|
599 |
|
|
1,149 |
|
|
1,762 |
|
|
4,032 |
|
General and administrative |
|
1,706 |
|
|
1,573 |
|
|
5,836 |
|
|
6,011 |
|
Impairment of goodwill |
|
189 |
|
|
- |
|
|
189 |
|
|
- |
|
Restructuring |
|
- |
|
|
- |
|
|
244 |
|
|
- |
|
Total operating expenses |
|
4,234 |
|
|
5,540 |
|
|
14,003 |
|
|
18,709 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(2,421 |
) |
|
(3,790 |
) |
|
(10,294 |
) |
|
(13,800 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(23 |
) |
|
(88 |
) |
|
(113 |
) |
|
(316 |
) |
Gain (loss) on revaluation of warrant liabilities |
4,476 |
|
|
4,430 |
|
|
(1,579 |
) |
|
6,045 |
|
Loss on modification of warrant |
|
- |
|
|
- |
|
|
- |
|
|
(257 |
) |
Warrant issuance expense |
|
- |
|
|
- |
|
|
(329 |
) |
|
(706 |
) |
Other income (expense), net |
|
420 |
|
|
(346 |
) |
|
466 |
|
|
(377 |
) |
Total other income (expense), net |
|
4,873 |
|
|
3,996 |
|
|
(1,555 |
) |
|
4,389 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
2,452 |
|
$ |
206 |
|
$ |
(11,849 |
) |
$ |
(9,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share |
$ |
0.30 |
|
$ |
0.04 |
|
$ |
(1.75 |
) |
$ |
(2.01 |
) |
|
|
|
|
|
|
|
|
|
Diluted net (loss) income per share |
$ |
(0.01 |
) |
$ |
0.04 |
|
$ |
(1.78 |
) |
$ |
(2.01 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares of common |
|
|
|
|
|
|
|
stock outstanding, basic |
|
8,236 |
|
|
4,996 |
|
|
6,772 |
|
|
4,684 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares of common |
|
|
|
|
|
|
|
stock outstanding, diluted |
|
8,379 |
|
|
4,997 |
|
|
6,829 |
|
|
4,684 |
|
|
|
|
|
|
|
|
|
|
Ekso Bionics Holdings, Inc. |
Condensed Consolidated Balance Sheets |
(In thousands, except par value) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2020 |
|
2019 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
|
Cash |
$ |
14,549 |
|
$ |
10,872 |
|
|
Accounts receivable, net |
|
4,450 |
|
|
5,208 |
|
|
Inventories, net |
|
2,180 |
|
|
2,489 |
|
|
Prepaid expenses and other current assets |
|
370 |
|
|
238 |
|
Total current assets |
|
21,549 |
|
|
18,807 |
|
Property and equipment, net |
|
1,033 |
|
|
1,657 |
|
Right-of-use assets |
|
786 |
|
|
1,084 |
|
Goodwill |
|
- |
|
|
189 |
|
Other assets |
|
118 |
|
|
178 |
|
Total assets |
$ |
23,486 |
|
$ |
21,915 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
1,813 |
|
|
1,903 |
|
|
Accrued liabilities |
|
1,566 |
|
|
1,683 |
|
|
Deferred revenues, current |
|
1,448 |
|
|
1,492 |
|
|
Notes payable, net, current |
|
- |
|
|
2,333 |
|
|
Lease liabilities, current |
|
406 |
|
|
421 |
|
Total current liabilities |
|
5,233 |
|
|
7,832 |
|
Deferred revenues |
|
1,810 |
|
|
1,789 |
|
Notes payable, net |
|
3,079 |
|
|
407 |
|
Lease liabilities |
|
373 |
|
|
711 |
|
Warrant liabilities |
|
4,560 |
|
|
4,307 |
|
Other non-current liabilities |
|
30 |
|
|
72 |
|
Total liabilities |
|
15,085 |
|
|
15,118 |
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
8 |
|
|
6 |
|
|
Additional paid-in capital |
|
203,905 |
|
|
190,019 |
|
|
Accumulated other comprehensive (loss) income |
|
(385 |
) |
|
50 |
|
|
Accumulated deficit |
|
(195,127 |
) |
|
(183,278 |
) |
Total stockholders' equity |
|
8,401 |
|
|
6,797 |
|
Total liabilities and stockholders' equity |
$ |
23,486 |
|
$ |
21,915 |
|
|
|
|
|
|
|
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