[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Ekso Bionics' unaudited condensed consolidated financial statements for Q1 2022 and 2021, including balance sheets, income statements, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of the company's financial position as of March 31, 2022, and December 31, 2021, showing a decrease in total assets and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Cash | $36,176 | $40,406 | | Total Current Assets | $43,123 | $47,795 | | Total Assets | $44,242 | $49,166 | | Total Current Liabilities | $5,970 | $6,855 | | Total Liabilities | $10,756 | $11,947 | | Total Stockholders' Equity | $33,486 | $37,219 | | Accumulated Deficit | $(213,487) | $(208,867) | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statements of operations show a significant increase in net loss for the three months ended March 31, 2022, compared to the prior year, primarily due to higher cost of revenue and increased operating expenses Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change (YoY) | % Change (YoY) | | :-------------------- | :-------------------------------- | :-------------------------------- | :----------- | :------------- | | Revenue | $2,567 | $1,910 | $657 | 34% | | Cost of Revenue | $1,358 | $675 | $683 | 101% | | Gross Profit | $1,209 | $1,235 | $(26) | (2)% | | Gross Profit % | 47% | 65% | - | -18 ppts | | Total Operating Expenses | $5,446 | $4,374 | $1,072 | 25% | | Loss from Operations | $(4,237) | $(3,139) | $(1,098) | 35% | | Net Loss | $(4,620) | $(3,670) | $(950) | 26% | | Net Loss Per Share (Basic & Diluted) | $(0.36) | $(0.34) | $(0.02) | 6% | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) The statements of stockholders' equity detail changes in equity components for the three months ended March 31, 2022, and 2021, showing a decrease in total equity primarily due to the net loss Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | Balance at Dec 31, 2021 | Net Loss | Stock-based Compensation Expense | Foreign Currency Translation Adjustments | Balance at March 31, 2022 | | :-------------------- | :---------------------- | :------- | :------------------------------- | :--------------------------------------- | :------------------------ | | Additional Paid-in Capital | $246,090 | — | $499 | — | $246,765 | | Accumulated Other Comprehensive (Loss) Income | $(17) | — | — | $212 | $195 | | Accumulated Deficit | $(208,867) | $(4,620) | — | — | $(213,487) | | Total Stockholders' Equity | $37,219 | $(4,620) | $499 | $212 | $33,486 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements indicate a significant net decrease in cash for the three months ended March 31, 2022, primarily driven by increased cash used in operating activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Used in Operating Activities | $(4,206) | $(2,000) | | Net Cash Provided by Financing Activities | — | $38,712 | | Net (Decrease) Increase in Cash | $(4,230) | $36,677 | | Cash at End of Period | $36,176 | $49,539 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements, covering the company's business, accounting policies, and segment information [1. Organization](index=9&type=section&id=1.%20Organization) Ekso Bionics Holdings, Inc. designs, develops, and markets exoskeleton products for medical and industrial applications, including rehabilitation for neurological conditions and assistance for industrial workers - Ekso Bionics designs, develops, and markets exoskeleton products to augment human strength, endurance, and mobility for both able-bodied users and persons with physical disabilities. Products serve medical markets (rehabilitation for neurological conditions like ABI and SCI) and industrial markets (assisting workers with repetitive tasks)[21](index=21&type=chunk) - As of March 31, 2022, the Company had an accumulated deficit of **$213,487 thousand** and used **$4,206 thousand** cash in operations during the three months ended March 31, 2022[22](index=22&type=chunk) - Unrestricted cash as of March 31, 2022, was approximately **$34,176 thousand**, which the company believes is sufficient to fund operations beyond one year[23](index=23&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies and Estimates](index=9&type=section&id=2.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Estimates) This section outlines the basis for preparing the unaudited condensed consolidated financial statements in accordance with SEC rules and U.S. GAAP, highlighting key accounting policies and estimates - Financial statements are unaudited, prepared in accordance with SEC rules and U.S. GAAP, and should be read in conjunction with the 2021 Form 10-K[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Management makes estimates for revenue recognition, deferred revenue, warrant and stock option valuation, warranty costs, leases, useful lives of assets, inventory valuation, deferred tax assets, and contingencies[28](index=28&type=chunk) - Assets and liabilities of foreign subsidiaries are translated at balance sheet rates, while revenue and expenses are translated at average rates, with adjustments recorded in accumulated other comprehensive income[29](index=29&type=chunk) - Inventories are recorded at the lower of cost or net realizable value using the standard cost method (approximating FIFO). Periodic evaluations for excess/obsolete inventory lead to impairment charges if necessary[30](index=30&type=chunk) - Operating leases are recorded on the balance sheet as right-of-use assets and lease liabilities based on the present value of payments, using the incremental borrowing rate. Short-term leases (12 months or less) are not recorded on the balance sheet[31](index=31&type=chunk)[32](index=32&type=chunk) - Revenue is recognized upon transfer of control of products or services to customers, with transaction prices allocated to distinct performance obligations based on standalone selling prices[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company is evaluating the impact of ASU No. 2016-13 (Credit Losses), effective Q1 2023, and does not expect a material impact from ASU No. 2020-06 (Convertible Instruments), effective Q1 2024[42](index=42&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [3. Accumulated Other Comprehensive Income (Loss)](index=12&type=section&id=3.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) This note details the components of accumulated other comprehensive income (loss), primarily consisting of net unrealized gains or losses on foreign currency translation adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $(17) | $(847) | | Net unrealized gain on foreign currency translation | $212 | $465 | | Balance at end of period | $195 | $(382) | [4. Fair Value Measurement](index=12&type=section&id=4.%20Fair%20Value%20Measurement) This section defines fair value measurement and its three-level hierarchy, primarily disclosing the fair value of warrant liabilities classified as Level 3 - Fair value is categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[48](index=48&type=chunk) - Warrant liabilities are classified as Level 3 financial liabilities, valued at **$1,650 thousand** as of March 31, 2022, up from **$1,550 thousand** at December 31, 2021, due to a **$100 thousand** loss on revaluation[51](index=51&type=chunk) [5. Inventories](index=13&type=section&id=5.%20Inventories) This note provides a breakdown of inventory components, showing an increase in total inventories from December 31, 2021, to March 31, 2022, with notable growth in work in progress and finished goods Inventories (in thousands) | Inventory Component (in thousands) | March 31, 2022 | December 31, 2021 | | :------------------------------- | :------------- | :---------------- | | Raw materials | $2,218 | $2,061 | | Work in progress | $308 | $145 | | Finished goods | $246 | $36 | | **Total Inventories** | **$2,772** | **$2,242** | [6. Revenue](index=13&type=section&id=6.%20Revenue) This note details the company's revenue recognition policies and disaggregates revenue by segment and major source, highlighting the shift to a subscription sales model - Medical device revenue (EksoHealth) is primarily generated through the sale and subscription of EksoNR and EksoUE, associated software, accessories, and Ekso Care support/maintenance contracts. The company shifted from a rental to a subscription sales model in 2021 for long-term revenue[53](index=53&type=chunk)[54](index=54&type=chunk) - Industrial device revenue (EksoWorks) is generated through the sale of upper body exoskeletons (EksoVest and EVO) and tool holders (EksoZeroG), with revenue recognized at the point of control transfer (shipment)[57](index=57&type=chunk) - Total deferred revenues were **$2,197 thousand** as of March 31, 2022, with approximately **$902 thousand** expected to be recognized during the remainder of 2022[60](index=60&type=chunk) - The company has a non-cancellable backlog of **$1,524 thousand** related to subscription units, typically with 12-month terms[61](index=61&type=chunk) Revenue by Source (in thousands) - Three Months Ended March 31, 2022 | Revenue Source (in thousands) | EksoHealth | EksoWorks | Total | | :---------------------------- | :--------- | :-------- | :---- | | Device revenue | $963 | $309 | $1,272 | | Service and support | $467 | — | $467 | | Subscriptions | $216 | $69 | $285 | | Parts and other | $156 | $308 | $464 | | Collaborative arrangements | $79 | — | $79 | | **Total Revenue** | **$1,881** | **$686** | **$2,567** | Revenue by Source (in thousands) - Three Months Ended March 31, 2021 | Revenue Source (in thousands) | EksoHealth | EksoWorks | Total | | :---------------------------- | :--------- | :-------- | :---- | | Device revenue | $1,019 | $98 | $1,117 | | Service and support | $488 | — | $488 | | Rentals and subscriptions | $152 | $70 | $222 | | Parts and other | $54 | $15 | $69 | | Collaborative arrangements | $14 | — | $14 | | **Total Revenue** | **$1,727** | **$183** | **$1,910** | [7. Accrued Liabilities](index=15&type=section&id=7.%20Accrued%20Liabilities) This note provides a breakdown of accrued liabilities, primarily including salaries, benefits, and device warranty costs, and reconciles changes in warranty liability Accrued Liabilities (in thousands) | Component (in thousands) | March 31, 2022 | December 31, 2021 | | :----------------------- | :------------- | :---------------- | | Salaries, benefits and related expenses | $1,520 | $2,015 | | Device warranty | $226 | $195 | | Other | $73 | $89 | | **Total** | **$1,819** | **$2,299** | Device Warranty Liability Reconciliation (in thousands) | Activity (in thousands) | Three Months Ended March 31, 2022 | | :---------------------- | :-------------------------------- | | Balance at beginning of period | $270 | | Additions for estimated future costs | $76 | | Incurred costs | $(60) | | **Balance at end of period** | **$286** | [8. Notes Payable, net](index=16&type=section&id=8.%20Notes%20Payable%2C%20net) This note details the company's PWB Term Loan, including its terms, liquidity covenant, and scheduled principal payments, also mentioning the prior year's PPP loan forgiveness - The company has a **$2,000 thousand** secured term loan with Pacific Western Bank (PWB Term Loan), bearing interest at the greater of **0.50%** above prime or **4.50%**, maturing on August 13, 2023[72](index=72&type=chunk)[73](index=73&type=chunk) - A liquidity covenant requires maintaining unrestricted cash and cash equivalents equal to the outstanding principal balance (**$2,000 thousand** as of March 31, 2022). The company was compliant[74](index=74&type=chunk) Scheduled Principal Payments for PWB Term Loan (in thousands) | Period (in thousands) | Amount | | :-------------------- | :----- | | Remainder of 2022 | — | | 2023 | $2,000 | | **Total Principal Payments** | **$2,000** | | Less debt discount and issuance cost | $6 | | **Note Payable, net** | **$1,994** | - The **$1,086 thousand** Paycheck Protection Program (PPP) loan and accrued interest were fully forgiven by the SBA on June 28, 2021, resulting in a gain on forgiveness[79](index=79&type=chunk)[80](index=80&type=chunk) [9. Lease Obligations](index=17&type=section&id=9.%20Lease%20Obligations) This note outlines the company's operating lease agreements for its headquarters and European office, including a new Hamburg office lease, and presents future lease payments - The company maintains a five-year operating lease for its Richmond, CA headquarters (expires May 2022) and a five-year operating lease for its Hamburg, Germany office (expires July 2022). A new Hamburg office lease was executed in February 2022, commencing May 1, 2022, and expiring June 30, 2025[81](index=81&type=chunk)[82](index=82&type=chunk) Operating Lease Payments (in thousands) | Period (in thousands) | Operating Leases | | :-------------------- | :--------------- | | Remainder of 2022 | $98 | | 2023 | — | | **Total Lease Payments** | **$98** | | Less: imputed interest | $(1) | | **Present Value of Lease Liabilities** | **$97** | - Weighted-average remaining lease term is **0.2 years** and the weighted-average discount rate is **10.5%**[85](index=85&type=chunk) - Lease expense was **$142 thousand** for the three months ended March 31, 2022, compared to **$132 thousand** for the same period in 2021[85](index=85&type=chunk) [10. Capitalization and Equity Structure](index=18&type=section&id=10.%20Capitalization%20and%20Equity%20Structure) This note details the company's capital structure, including authorized and outstanding common stock and various warrant issuances with their key terms and liability classification - Authorized capital stock consists of **141,429 thousand** shares of common stock and **10,000 thousand** shares of preferred stock[86](index=86&type=chunk) - **12,844 thousand** shares of common stock were issued and outstanding as of March 31, 2022, compared to **12,693 thousand** at December 31, 2021[86](index=86&type=chunk) - In February 2021, the company sold **3,902 thousand** shares of common stock for gross proceeds of **$40,000 thousand** (net proceeds of **$36,504 thousand**) and issued 2021 Warrants to purchase **273 thousand** shares at **$12.81** per share[87](index=87&type=chunk) - The company has an At The Market Offering (ATM) Agreement with **$6,668 thousand** available for future offerings as of March 31, 2022; no shares were sold under this agreement in Q1 2022[88](index=88&type=chunk) Outstanding Warrants (in thousands) | Source | Exercise Price | Term (Years) | Shares Outstanding (in thousands) | | :----- | :------------- | :----------- | :-------------------------------- | | 2021 Warrants | $12.81 | 5 | 273 | | June 2020 Investor Warrants | $5.18 | 5.5 | 127 | | June 2020 Placement Agent Warrants | $5.64 | 5 | 39 | | December 2019 Warrants | $8.10 | 5 | 556 | | December 2019 Placement Agent Warrants | $8.44 | 5 | 52 | | May 2019 Warrants | $3.52 | 5 | 193 | | **Total** | | | **1,240** | - All listed warrants (2021, June 2020 Investor, June 2020 Placement Agent, December 2019, May 2019) are classified as liabilities and marked to market at each reporting date due to put-option provisions[94](index=94&type=chunk)[100](index=100&type=chunk)[103](index=103&type=chunk)[108](index=108&type=chunk)[116](index=116&type=chunk) [11. Stock-based Compensation](index=23&type=section&id=11.%20Stock-based%20Compensation) This note outlines the company's stock-based compensation plans, including stock options, RSUs, and PSUs, detailing outstanding options, RSU/PSU activity, and expense allocation - As of March 31, 2022, **576 thousand** shares were available for future grants under the 2014 Plan[121](index=121&type=chunk) - **449 thousand** stock options were outstanding as of March 31, 2022, with a weighted-average exercise price of **$31.96** and a remaining contractual life of **5.12 years**[122](index=122&type=chunk) - Total unrecognized compensation cost related to unvested stock options was **$526 thousand**, expected to be recognized over a weighted average period of **1.08 years**[122](index=122&type=chunk) Restricted Stock Unit (RSU) and Performance Stock Unit (PSU) Activity (in thousands) | Activity (in thousands) | Number of Shares | Weighted-Average Grant Fair Value | | :---------------------- | :--------------- | :-------------------------------- | | Unvested as of December 31, 2021 | 655 | $5.63 | | Granted | 195 | $2.59 | | Vested | (127) | $5.59 | | Forfeited | (142) | $5.39 | | **Unvested at March 31, 2022** | **581** | **$4.69** | - Total unrecognized compensation expense related to unvested RSUs and PSUs was **$1,990 thousand**, expected to be recognized over a weighted average period of **1.72 years**[128](index=128&type=chunk) Stock-based Compensation Expense by Category (in thousands) | Expense Category (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------ | :-------------------------------- | :-------------------------------- | | Sales and marketing | $69 | $99 | | Research and development | $79 | $52 | | General and administrative | $351 | $205 | | **Total** | **$499** | **$356** | [12. Income Taxes](index=24&type=section&id=12.%20Income%20Taxes) This note states no material changes to unrecognized tax benefits occurred during the quarter, and all years remain open to tax examination due to historical losses - There were no material changes to unrecognized tax benefits in the three months ended March 31, 2022[132](index=132&type=chunk) - All years remain open to tax examination due to the company's history of tax losses[132](index=132&type=chunk) [13. Commitments and Contingencies](index=24&type=section&id=13.%20Commitments%20and%20Contingencies) This note details material contracts, including license agreements and a collaboration, significant purchase obligations, supply chain disruptions, and legal contingencies - The company has two license agreements with the Regents of the University of California, requiring **1%** of net sales of licensed medical devices and **21%** of sub-license consideration[134](index=134&type=chunk) - A research and development collaboration agreement was entered in December 2021, granting access to a worldwide, royalty-free, exclusive license for jointly-developed technology[136](index=136&type=chunk) - Purchase obligations totaled **$3,460 thousand** as of March 31, 2022, primarily for inventory and manufacturing services, expected to be paid within two years, a significant increase from **$1,446 thousand** at December 31, 2021[139](index=139&type=chunk) - The company is experiencing shortages and longer lead times for electronic components, semiconductor chips, battery cells, metals, and plastics due to the COVID-19 pandemic and potential trade tensions[140](index=140&type=chunk) - No pending or threatened legal proceedings are expected to have a material adverse effect on the company's financial statements[142](index=142&type=chunk) [14. Net (Loss) Income Per Share](index=25&type=section&id=14.%20Net%20%28Loss%29%20Income%20Per%20Share) This note presents the computation of basic and diluted net loss per share, along with the weighted-average number of shares outstanding and anti-dilutive common stock equivalents Net Loss Per Share Calculation (in thousands, except per share amounts) | Metric (in thousands, except per share amounts) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss applicable to common stockholders | $(4,620) | $(3,670) | | Weighted-average number of shares outstanding, basic and diluted | 12,728 | 10,752 | | **Net loss per share, basic and diluted** | **$(0.36)** | **$(0.34)** | Anti-Dilutive Common Stock Equivalents (in thousands) | Type (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------ | :-------------------------------- | :-------------------------------- | | Options to purchase common stock | 449 | 522 | | Restricted stock units | 581 | 325 | | Warrants for common stock | 1,240 | 1,240 | | **Total common stock equivalents** | **2,270** | **2,087** | [15. Segment Disclosures](index=26&type=section&id=15.%20Segment%20Disclosures) This note provides financial information for the EksoHealth and EksoWorks segments, detailing revenue, cost of revenue, and gross profit, along with geographic revenue - The company has two reportable segments: EksoHealth (medical exoskeletons) and EksoWorks (industrial exoskeletons), managed separately due to distinct markets. Performance is evaluated based on segment gross profit margin[146](index=146&type=chunk)[147](index=147&type=chunk) Segment Performance (in thousands) - Three Months Ended March 31, 2022 | Metric (in thousands) | EksoHealth | EksoWorks | Total | | :-------------------- | :--------- | :-------- | :---- | | Revenue | $1,881 | $686 | $2,567 | | Cost of revenue | $1,015 | $343 | $1,358 | | Gross profit | $866 | $343 | $1,209 | Segment Performance (in thousands) - Three Months Ended March 31, 2021 | Metric (in thousands) | EksoHealth | EksoWorks | Total | | :-------------------- | :--------- | :-------- | :---- | | Revenue | $1,727 | $183 | $1,910 | | Cost of revenue | $542 | $133 | $675 | | Gross profit | $1,185 | $50 | $1,235 | Geographic Revenue (in thousands) - 2022 | Region (in thousands) | 2022 Revenue | | :-------------------- | :----------- | | Americas | $1,398 | | EMEA | $564 | | APAC | $605 | | **Total** | **$2,567** | Geographic Revenue (in thousands) - 2021 | Region (in thousands) | 2021 Revenue | | :-------------------- | :----------- | | Americas | $1,018 | | EMEA | $623 | | APAC | $269 | | **Total** | **$1,910** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, discussing operational highlights, economic trends, and liquidity [Overview](index=28&type=section&id=Overview) This overview describes Ekso Bionics' core business of designing and marketing exoskeleton products for medical and industrial applications, including EksoHealth and EksoWorks segments - Ekso Bionics designs, develops, and markets exoskeleton products that augment human strength, endurance, and mobility across medical and industrial markets[155](index=155&type=chunk) - EksoHealth products include EksoNR (robotic exoskeleton for lower extremity impairment rehabilitation) and EksoUE (wearable upper body exoskeleton for upper extremity impairments)[158](index=158&type=chunk)[159](index=159&type=chunk) - EksoWorks products include EksoVest and EVO (wearable exoskeletons supporting arm/tool weight for industrial workers) and EksoZeroG (tool holder for aerial lift platforms/scaffolding)[161](index=161&type=chunk)[162](index=162&type=chunk) [First Quarter 2022 Highlights](index=29&type=section&id=First%20Quarter%202022%20Highlights) Key achievements for the first quarter of 2022 included reported revenue of **$2.6 million**, a gross margin of approximately **47%**, booking **23 EksoNR units**, and maintaining a strong cash position of **$36.2 million** - Reported revenue of **$2.6 million** in the first quarter of 2022[164](index=164&type=chunk) - Achieved gross margins of approximately **47%** in the first quarter of 2022[164](index=164&type=chunk) - Booked a total of **23 EksoNR units** in the first quarter of 2022[164](index=164&type=chunk) - Maintained a strong cash position of **$36.2 million** as of March 31, 2022[164](index=164&type=chunk) [Economic and Industry Trends](index=29&type=section&id=Economic%20and%20Industry%20Trends) Market demand for exoskeleton products is influenced by awareness, safety practices, economic growth, and supply chain issues, with recovery observed post-COVID-19 and monitoring of geopolitical instability - Market demand for exoskeleton products is influenced by awareness of robotic exoskeleton rehabilitation, industry safety practices, economic growth, and general business activity[164](index=164&type=chunk) - Growing supply chain issues and an increasingly inflationary environment could lead to increased price-based competition, particularly for major capital expenditure items like EksoNR[164](index=164&type=chunk) - The COVID-19 pandemic initially decreased demand for exoskeleton products, but recovery is observed with gradual reopening and increased in-person engagements[165](index=165&type=chunk) - Management is actively monitoring global geopolitical instability, including the military conflict between Russia and Ukraine, and its effects on financial position and operations[167](index=167&type=chunk) [Management Changes](index=29&type=section&id=Management%20Changes) The company experienced significant management changes in early 2022, including the resignation of the former President and CEO and the appointment of new leadership - Jack Peurach resigned as President, Chief Executive Officer, and Board member effective January 21, 2022[168](index=168&type=chunk) - Steven Sherman, former Chairman, was appointed Chief Executive Officer effective January 22, 2022, and continues to serve as Chairman[168](index=168&type=chunk) - Scott Davis was appointed President and Chief Operating Officer effective January 22, 2022[168](index=168&type=chunk) - William Shaw resigned as Chief Commercial Officer effective March 11, 2022[170](index=170&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section emphasizes that financial statement preparation requires significant estimates and judgments, particularly for revenue recognition, financial instrument valuation, and contingencies - The preparation of condensed consolidated financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts[171](index=171&type=chunk) - Critical accounting policies involve highly uncertain assumptions where different estimates could materially impact the financial statements[172](index=172&type=chunk) - Refer to Note 2 for a summary of significant accounting policies and estimates[172](index=172&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for the three months ended March 31, 2022, compared to the same period in 2021, focusing on revenue, gross profit, and operating expenses Results of Operations (in thousands, except percentages) | Metric (in thousands, except percentages) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | % Change | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Revenue | $2,567 | $1,910 | $657 | 34% | | Cost of Revenue | $1,358 | $675 | $683 | 101% | | Gross Profit | $1,209 | $1,235 | $(26) | (2)% | | Gross Profit % | 47% | 65% | | | | Sales and marketing | $1,629 | $1,793 | $(164) | (9)% | | Research and development | $999 | $603 | $396 | 66% | | General and administrative | $2,818 | $1,978 | $840 | 42% | | Total Operating Expenses | $5,446 | $4,374 | $1,072 | 25% | | Loss from Operations | $(4,237) | $(3,139) | $(1,098) | 35% | | Net Loss | $(4,620) | $(3,670) | $(950) | 26% | - Revenue increased by **$0.7 million (34%)** due to higher EVO vest sales in the EksoWorks business unit and recognition of prepaid royalties from an expired license and distribution agreement[173](index=173&type=chunk) - Gross profit decreased by **2%**, with gross margin falling from **65% to 47%**, primarily due to increased EksoHealth service costs, changes in product mix, and higher inventory costs from supply shortages, partially offset by royalty revenue recognition[175](index=175&type=chunk) - Operating expenses increased by **25%** overall. Sales and marketing decreased by **9%**, R&D increased by **66%** (due to product development and headcount), and G&A increased by **42%** (due to compensation for new COO, stock-based compensation for new CEO, and severance for former CEO)[177](index=177&type=chunk)[178](index=178&type=chunk) - Loss on revaluation of warrant liabilities was **$0.1 million** in Q1 2022 (compared to a de minimis gain in Q1 2021), driven by changes in stock price and risk-free rate. Other expense, net decreased to **$0.3 million** from **$0.5 million** due to unrealized losses on foreign currency revaluations[179](index=179&type=chunk)[180](index=180&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=31&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) This section discusses the company's financial condition, highlighting a decrease in working capital due to cash used in operations, confirming sufficient unrestricted cash for over a year - Working capital decreased to **$37.2 million** at March 31, 2022, from **$40.9 million** at December 31, 2021, primarily due to lower cash from operations[182](index=182&type=chunk) - Total cash was **$36.2 million** as of March 31, 2022, with **$35.5 million** held domestically and **$0.7 million** by foreign subsidiaries[182](index=182&type=chunk) - **$2.0 million** of cash is restricted due to a liquidity covenant on the Pacific Western Bank term loan[183](index=183&type=chunk) - Effective unrestricted cash was **$34.2 million** as of March 31, 2022, which management believes is sufficient to fund operations beyond one year[183](index=183&type=chunk) [Cash](index=31&type=section&id=Cash) This section summarizes the sources and uses of cash, showing a net decrease in cash for the three months ended March 31, 2022, primarily due to operating activities Cash Flow Summary (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(4,206) | $(2,000) | | Net cash provided by financing activities | — | $38,712 | | Effect of exchange rate changes on cash | $(24) | $(35) | | **Net (decrease) increase in cash** | **$(4,230)** | **$36,677** | | Cash at the beginning of the period | $40,406 | $12,862 | | **Cash at the end of the period** | **$36,176** | **$49,539** | [Net Cash Used in Operating Activities](index=32&type=section&id=Net%20Cash%20Used%20in%20Operating%20Activities) Net cash used in operating activities increased significantly for the three months ended March 31, 2022, primarily due to higher payments for business development, increased employee compensation, and increased inventory purchases - Net cash used in operations increased by **$2.2 million (110%)** for the three months ended March 31, 2022, compared to the same period of 2021[187](index=187&type=chunk) - This increase was primarily due to higher payments for business development costs incurred in late 2021, increased employee compensation related to higher headcount, and increased inventory purchases[187](index=187&type=chunk) [Net Cash Provided by Financing Activities](index=32&type=section&id=Net%20Cash%20Provided%20by%20Financing%20Activities) In the three months ended March 31, 2021, the company generated **$38.7 million** from financing activities, primarily through common stock and warrant sales, with no comparable activities in 2022 - Net cash provided by financing activities was **$38.7 million** for the three months ended March 31, 2021[188](index=188&type=chunk) - This was primarily from the sale of common stock and warrants (**$36.5 million** net proceeds), proceeds from the 'at the market offering' program (**$0.7 million**), and proceeds from warrant exercises (**$1.4 million**)[188](index=188&type=chunk) - There was no comparable amount for the three months ended March 31, 2022[188](index=188&type=chunk) [Contractual Obligations and Commitments](index=32&type=section&id=Contractual%20Obligations%20and%20Commitments) This section summarizes the company's outstanding contractual obligations as of March 31, 2022, including notes payable, facility operating leases, and purchase obligations Contractual Obligations and Commitments (in thousands) | Obligation (in thousands) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | | :------------------------ | :---- | :--------------- | :-------- | :-------- | :------------ | | Note payable, principal and interest | $2,128 | $90 | $2,038 | — | — | | Facility operating leases | $325 | $162 | $144 | $19 | — | | Purchase obligations | $3,460 | $3,393 | $67 | — | — | | **Total** | **$5,913** | **$3,645** | **$2,249** | **$19** | **—** | - Refer to Note 13. Commitments and Contingencies for additional information regarding license agreements and purchase obligations[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, including inflation and foreign exchange rate fluctuations due to international operations, but management does not believe inflation has had a material effect - The company is exposed to market risks, including inflation risks and exchange rate risk due to conducting business in foreign countries (Germany and Singapore)[190](index=190&type=chunk)[192](index=192&type=chunk) - Management does not believe inflation has had a material effect on the business, but an inability to fully offset higher costs through price increases could harm financial results[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2022[193](index=193&type=chunk)[194](index=194&type=chunk) - There were no material changes in internal control over financial reporting during the most recent fiscal quarter[196](index=196&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part contains other information, including legal proceedings, risk factors, exhibits, and signatures [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any pending or threatened legal proceedings that would have a material impact on its properties, results of operations, or financial condition - The company is not the subject of any pending legal proceedings, and no such proceeding is presently threatened, that would have a material impact on its properties, results of operations, or financial condition[198](index=198&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021, were identified - No material changes to the risk factors previously disclosed in Part I - Item 1A - "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2021, were identified[199](index=199&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including executive agreements, certifications, and financial statements formatted in XBRL - The exhibits include executive agreements (Separation and Release, Employment, Offer Letter, Transition Services), and certifications of the Chief Executive Officer and Chief Financial Officer[203](index=203&type=chunk) - The financial statements from the Quarterly Report are formatted in Extensible Business Reporting Language ("XBRL")[202](index=202&type=chunk) [Signatures](index=35&type=section&id=Signatures) The report is signed by Steven Sherman, Chief Executive Officer and Chairman, and John F. Glenn, Chief Financial Officer, on behalf of Ekso Bionics Holdings, Inc. on April 28, 2022 - The report was signed by Steven Sherman, Chief Executive Officer and Chairman, and John F. Glenn, Chief Financial Officer, on behalf of Ekso Bionics Holdings, Inc. on April 28, 2022[208](index=208&type=chunk)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q4 2021 Results Earnings Conference Call February 25, 2022 4:30 PM ET Company Participants Matt Steinberg - Investor Relations, Lazar Partners Steven Sherman - Chairman and Chief Executive Officer Scott Davis - President and Chief Operating Officer Bill Shaw - Chief Commercial Officer Jack Glenn - Chief Financial Officer Conference Call Participants Swayampakula Ramakanth - H.C. Wainwright & Co. Operator Greetings. Welcome to the Ekso Bionics Fourth Quarter 2021 Fin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-37854 Ekso Bionics Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 99-0367049 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Emp ...

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q3 2021 Earnings Conference Call November 2, 2021 4:30 PM ET Company Participants Matt Steinberg - Lazar Partners Jack Peurach - President, CEO & Director William Shaw - Chief Commercial Officer John Glenn - CFO & Secretary Conference Call Participants Swayampakula Ramakanth - H.C. Wainwright & Co. Operator Greetings. Welcome to the Ekso Bionics Third Quarter 2021 Financial Results Conference Call. [Operator Instructions]. Please note, this conference is being recor ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q2 2021 Results Conference Call July 29, 2021 4:30 PM ET Company Participants Matt Steinberg - Investor Relations-Lazar Finn Partners Jack Peurach - President and CEO Jack Glenn - Chief Financial Officer Bill Shaw - Chief Commercial Officer Conference Call Participants RK Ramakanth - H.C. Wainwright Operator Greetings. Welcome to the Ekso Bionics Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A questi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q1 2021 Earnings Conference Call April 29, 2021 4:30 PM ET Company Participants Matt Steinberg - Investor Relations-Lazar Finn Partners Jack Peurach - President and CEO Jack Glenn - CFO Bill Shaw - Chief Commercial Officer Conference Call Participants RK - H.C. Wainwright Operator Hello, and welcome to the Ekso Bionics First Quarter 2021 Financial Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer ses ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1 ...

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q4 2020 Earnings Conference Call February 25, 2020 4:30 PM ET Company Participants Matt Steinberg – Investor Relations-Lazar Finn Partners Jack Peurach – President and Chief Executive Officer Bill Shaw – Chief Commercial Officer Jack Glenn – Chief Financial Officer Conference Call Participants Sean Kang – H.C. Wainwright Operator Greetings, and welcome to Ekso Bionics' Fourth Quarter 2020 Financial Results Call. [Operator Instructions] As a reminder, this conference ...