Ekso Bionics Holdings Inc. recently reported its financial results for the 3 months ended June 30, 2016.
According to a company press release, in the second quarter, Ekso Bionics became the first exoskeleton company to become a vendor to Healthsouth after the Ekso GT received initial FDA clearance for the Ekso GT for patients with hemiplegia due to stroke and patients with spinal cord injuries at levels L5 through C7. In addition, Ekso Bionics initiated the first company-sponsored clinical trial to evaluate improvement in independent gait speeds of spinal cord injury patients undergoing rehabilitation using the Ekso GT.
The company reported total second-quarter revenues of $1.6 million compared to $2.1 million in the second quarter of 2015. Medical device revenue was $1.5 million, an increase from $1 million in the second quarter of the prior year. In addition, the company submitted an application to uplist from the OTC market to be traded on the NASDAQ Capital Market.
“I am encouraged by the progress we have made thus far in 2016 at Ekso Bionics,” Thomas Looby, president and chief executive officer of Ekso Bionics, said in the release. “Our exoskeleton is approved to address more than 20-times the patient population of any other exoskeleton technology on the market, and we are fully committed to making sure that the entire potential market is educated on and has access to our life-changing technology.”
He added, “We also continue to make progress in industrial markets, where we have ongoing pilot testing programs on our devices with several large corporations. We believe that our current focus on optimizing our sales strategy with our solid clinical and industrial use studies, [research and development] R&D and partnership programs will position Ekso Bionics for success in becoming the premier exoskeleton company in the world.”
The company reported gross profit for the quarter was $0.2 million, primarily derived from the sale of medical devices. Total gross profit included a $0.5 million gross profit from medical sales and rentals, and a loss of $0.3 million on device service and pilot programs.
Operating expenses were $7.6 million for the quarter compared to $6.1 million for the same period in the prior year. The increase was attributed to a $0.6 million increase in employee compensation expenses, $0.4 million in labor expenses diverted to product innovation from cost of engineering service revenue and $0.1 million of amortization expenses from acquiring assets from Equipois in December 2015.
Net loss applicable to common shareholders was $10 million, or $0.61 per basic and diluted share, and included a non-cash preferred share deemed dividend of $4.2 million, offset by a non-cash gain of $1.7 million on the revaluation of a warrant liability. Both non-cash items were associated with Ekso Bionics’ equity financing in December 2015, according to the release.
The release also noted the company received additional FDA clearance in July to expand the label for its Ekso GT exoskeleton in order to reach more patients with stroke in the rehabilitation setting.