Ekso Bionics(EKSO) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, statements of cash flows, and accompanying notes, providing a detailed view of the company's financial position and performance for the periods ended June 30, 2025 Condensed Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Total Assets | $23,167 | $26,652 | | Total Liabilities | $12,237 | $13,945 | | Total Stockholders' Equity | $10,930 | $12,707 | | Cash and restricted cash | $5,242 | $6,493 | | Accounts receivable, net | $4,533 | $7,238 | | Inventories | $5,439 | $4,571 | Condensed Consolidated Statements of Operations and Comprehensive Loss This section outlines the company's financial performance, including revenue, gross profit, operating loss, and net loss for the reported periods Three Months Ended June 30 (in thousands, except per share amounts) | Metric | 2025 | 2024 | Change ($K) | % Change | | :----------------------------------- | :----- | :----- | :---------- | :------- | | Revenue | $2,057 | $4,950 | $(2,893) | (58)% | | Gross profit | $819 | $2,637 | $(1,818) | (69)% | | Gross profit % | 40% | 53% | - | - | | Loss from operations | $(3,975) | $(2,335) | $(1,640) | 70% | | Net loss | $(2,709) | $(2,416) | $(293) | 12% | | Net loss per share, basic and diluted | $(1.24) | $(1.99) | $0.75 | (38)% | | Unrealized gain (loss) on foreign exchange | $1,339 | $(91) | $1,430 | (1571)% | Six Months Ended June 30 (in thousands, except per share amounts) | Metric | 2025 | 2024 | Change ($K) | % Change | | :----------------------------------- | :----- | :----- | :---------- | :------- | | Revenue | $5,432 | $8,706 | $(3,274) | (38)% | | Gross profit | $2,625 | $4,588 | $(1,963) | (43)% | | Gross profit % | 48% | 53% | - | - | | Loss from operations | $(7,415) | $(5,591) | $(1,824) | 33% | | Net loss | $(5,600) | $(5,845) | $245 | (4)% | | Net loss per share, basic and diluted | $(3.01) | $(4.92) | $1.91 | (39)% | | Unrealized gain (loss) on foreign exchange | $1,965 | $(440) | $2,405 | (547)% | Condensed Consolidated Statements of Stockholders' Equity This section details changes in the company's equity, reflecting net loss, financing activities, and other comprehensive income adjustments Stockholders' Equity Changes (in thousands) | Metric | December 31, 2024 | June 30, 2025 | | :----------------------------------- | :---------------- | :------------ | | Total Stockholders' Equity (beginning) | $12,707 | $12,707 | | Net loss | - | $(5,600) | | Equity financing, net | - | $4,768 | | Foreign currency translation adjustments | - | $(1,640) | | Stock-based compensation expense | - | $457 | | Total Stockholders' Equity (ending) | $12,707 | $10,930 | Condensed Consolidated Statements of Cash Flows This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the reported periods Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash used in operating activities | $(5,409) | $(6,136) | | Net cash used in investing activities | $(50) | $(8) | | Net cash provided by financing activities | $4,145 | $3,392 | | Effect of exchange rate changes on cash | $63 | $(1) | | Net decrease in cash | $(1,251) | $(2,753) | | Cash and restricted cash at end of period | $5,242 | $5,885 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and additional information supporting the condensed consolidated financial statements 1. Organization Ekso Bionics Holdings, Inc. designs, develops, and markets exoskeleton products primarily for healthcare (physical rehabilitation and mobility) and industrial use. The company reported an accumulated deficit of $256.3 million and negative operating cash flows, leading to substantial doubt about its ability to continue as a going concern, with unrestricted cash projected to fund operations into Q4 2025. Management plans to raise additional funds - Ekso Bionics designs, develops, and markets exoskeleton products for healthcare (physical rehabilitation and mobility) and industrial applications[20] - As of June 30, 2025, the company had an accumulated deficit of $256,301 thousand and used $5,409 thousand in cash from operations during the six months ended June 30, 2025[22] - Cash on hand as of June 30, 2025, was $5,242 thousand, with $2,000 thousand restricted, leaving approximately $3,242 thousand unrestricted[23] - Substantial doubt exists about the company's ability to continue as a going concern for the next 12 months, with unrestricted cash estimated to fund operations into the fourth quarter of 2025[24] 2. Basis of Presentation and Summary of Significant Accounting Policies and Estimates This section outlines the company's financial reporting framework, including adherence to U.S. GAAP and SEC regulations, and highlights the significant use of management estimates in preparing financial statements. It details key accounting policies for foreign currency, inventory valuation, lease accounting, and revenue recognition, and notes the evaluation of recent accounting pronouncements - The condensed consolidated financial statements are prepared in accordance with SEC rules and U.S. GAAP, requiring management to make estimates and assumptions affecting reported amounts[27][30] - Revenue is recognized upon transfer of control of products or services, with allocation based on relative standalone selling prices for multiple-element arrangements[36][37] - The company has significant cash balances at foreign financial institutions exceeding insurance limits and concentrations of credit risk with a few major customers[41][44] - The company is evaluating the impact of new accounting pronouncements: ASU 2023-09 (Income Taxes) effective for fiscal years after December 15, 2024, and ASU 2024-03 (Expense Disaggregation) effective for fiscal years after December 15, 2026[47][48] 3. Accumulated Other Comprehensive (Loss) Income The company's accumulated other comprehensive (loss) income primarily reflects foreign currency translation adjustments, shifting from a gain of $957 thousand at December 31, 2024, to a loss of $(683) thousand by June 30, 2025, due to a net unrealized loss of $(1,640) thousand during the six-month period Accumulated Other Comprehensive (Loss) Income (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Balance at beginning of period (Dec 31, 2024) | $957 | $156 | | Net unrealized (loss) gain on foreign currency translation (6 months) | $(1,640) | $383 | | Balance at end of period (June 30, 2025) | $(683) | $539 | 4. Fair Value Measurement The company measures financial assets and liabilities at fair value using a three-level hierarchy. Warrant liabilities, classified as Level 3 due to unobservable inputs, decreased from $1 thousand at December 31, 2024, to zero by June 30, 2025, primarily due to revaluation gains - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[53] Warrant Liabilities Fair Value (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Warrant liabilities | $0 | $1 | | Gain on revaluation of warrants (6 months ended June 30, 2025) | $(1) | - | 5. Inventories Inventories are recorded at the lower of cost or net realizable value using the standard cost method. As of June 30, 2025, total inventories increased to $5,439 thousand from $4,571 thousand at December 31, 2024, driven by increases in raw materials and finished goods Inventories (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Raw materials | $4,033 | $3,551 | | Work in progress | $300 | $177 | | Finished goods | $1,106 | $843 | | Total Inventories | $5,439 | $4,571 | 6. Revenue The company's revenue primarily stems from device sales, subscriptions, and support/maintenance contracts. Total revenue significantly decreased for both the three and six months ended June 30, 2025, compared to 2024, mainly due to lower device sales in the Americas. Deferred revenue and non-cancellable backlog indicate future revenue recognition - Revenue is primarily generated from the sale and subscription of EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with support and maintenance contracts[57] Deferred Revenue (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total deferred revenues | $3,497 | $3,876 | | Less current portion | $(1,808) | $(1,956) | | Deferred revenues, non-current | $1,689 | $1,920 | - The company expects to recognize approximately $1,132 thousand of deferred revenue during the remainder of 2025, $1,206 thousand in 2026, and $1,159 thousand thereafter[61] - Non-cancellable backlog as of June 30, 2025, totaled $3,256 thousand, including customer orders ($3,009 thousand) and subscription units ($247 thousand)[62] Revenue by Major Source (Three Months Ended June 30, in thousands) | Source | 2025 | 2024 | Change ($K) | % Change | | :---------------- | :----- | :----- | :---------- | :------- | | Device revenue | $1,172 | $3,815 | $(2,643) | (69.3)% | | Service and support | $712 | $836 | $(124) | (14.8)% | | Subscriptions | $99 | $146 | $(47) | (32.2)% | | Parts and other | $74 | $153 | $(79) | (51.6)% | | Total Revenue | $2,057 | $4,950 | $(2,893) | (58.4)% | Revenue by Major Source (Six Months Ended June 30, in thousands) | Source | 2025 | 2024 | Change ($K) | % Change | | :---------------- | :----- | :----- | :---------- | :------- | | Device revenue | $3,659 | $6,568 | $(2,909) | (44.3)% | | Service and support | $1,420 | $1,601 | $(181) | (11.3)% | | Subscriptions | $186 | $290 | $(104) | (35.9)% | | Parts and other | $167 | $247 | $(80) | (32.4)% | | Total Revenue | $5,432 | $8,706 | $(3,274) | (37.6)% | Geographic Revenue (Six Months Ended June 30, in thousands) | Region | 2025 | 2024 | Change ($K) | % Change | | :---------------- | :----- | :----- | :---------- | :------- | | Americas | $2,839 | $5,247 | $(2,408) | (45.9)% | | EMEA | $2,062 | $2,347 | $(285) | (12.1)% | | APAC | $531 | $1,112 | $(581) | (52.2)% | | Total Revenue | $5,432 | $8,706 | $(3,274) | (37.6)% | 7. Accrued Liabilities Accrued liabilities decreased to $1,760 thousand at June 30, 2025, from $2,352 thousand at December 31, 2024, primarily due to lower salaries, benefits, and related expenses. The device warranty liability, a component of accrued liabilities, was $628 thousand at June 30, 2025 Accrued Liabilities (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Salaries, benefits and related expenses | $1,120 | $1,684 | | Device warranty | $487 | $474 | | Other | $153 | $194 | | Total Accrued Liabilities | $1,760 | $2,352 | Device Warranty Liability (in thousands) | Metric | June 30, 2025 | | :---------------- | :------------ | | Balance as of beginning of period (Dec 31, 2024) | $655 | | Additions for estimated future expense | $299 | | Incurred costs | $(326) | | Balance as of June 30, 2025 | $628 | | Current portion | $487 | | Long-term portion | $141 | 8. Goodwill and Intangible Assets Goodwill remained stable at $431 thousand with no impairment. Total net intangible assets decreased to $4,235 thousand at June 30, 2025, from $4,580 thousand at December 31, 2024, primarily due to a $180 thousand impairment loss recognized on intellectual property related to the termination of the Vanderbilt Knee License Agreement - Goodwill of $431 thousand, recognized from the HMC Acquisition, remained unchanged with no impairment found for the periods presented[70][71] Net Intangible Assets (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Developed technology | $1,568 | $1,712 | | Trade name | $2,310 | $2,310 | | Intellectual property | $262 | $454 | | Customer relationships | $95 | $104 | | Total intangible assets, net | $4,235 | $4,580 | - An impairment loss of $180 thousand was recognized for intellectual property related to the Knee License Agreement with Vanderbilt University, which was terminated on April 16, 2025[75] Estimated Future Amortization Expenses (in thousands) | Fiscal Year | Amount | | :---------------- | :----- | | 2025 - remainder | $165 | | 2026 | $330 | | 2027 | $330 | | 2028 | $330 | | 2029 | $330 | | 2030 and thereafter | $440 | | Total | $1,925 | 9. Notes Payable, net The company's notes payable consist of the BoC Term Loan ($2,000 thousand principal, due August 2026) and the Parker Hannifin Promissory Note ($5,000 thousand unsecured, subordinated, maturing September 2027). The BoC Term Loan includes a liquidity covenant requiring $2,000 thousand in restricted cash - The BoC Term Loan has a principal amount of $2,000 thousand, due in full in August 2026, and requires the company to maintain $2,000 thousand in restricted cash as a liquidity covenant[78][80][85] - The Parker Hannifin Promissory Note is an unsecured, subordinated $5,000 thousand note, with principal payable in sixteen equal quarterly installments, maturing on September 30, 2027[86] Notes Payable, Net (in thousands) | Note | June 30, 2025 | | :-------------------------- | :------------ | | BoC Term Loan, net | $1,998 | | Parker Hannifin Promissory Note, net | $2,587 | | Total Notes Payable, net | $4,585 | Effective Interest Rates (Six Months Ended June 30) | Note | 2025 | 2024 | | :-------------------------- | :----- | :----- | | BoC Term Loan | 7.68% | 8.74% | | Parker Hannifin Promissory Note | 7.14% | 7.30% | 10. Lease Obligations The company has operating lease agreements for its San Rafael headquarters, Ohio facility, and a new Ratingen, Germany facility, with the Hamburg office lease expiring in June 2025. Lease liabilities are recorded based on the present value of lease payments, totaling $806 thousand as of June 30, 2025 - Operating leases include facilities in San Rafael, California (expires Nov 2026), Brecksville, Ohio (expires July 2027), and Ratingen, Germany (new, commenced May 2025, expires April 2030); the Hamburg, Germany office lease expired in June 2025[91][93][95][97] Operating Lease Liabilities (in thousands) | Metric | June 30, 2025 | | :-------------------------------- | :------------ | | Total lease payments | $877 | | Less: imputed interest | $(71) | | Present value of lease liabilities | $806 | | Weighted-average remaining lease term | 2.10 years | | Weighted-average discount rate | 8.3% | - Lease expense for the six months ended June 30, 2025, was $317 thousand, compared to $271 thousand for the same period in 2024[100] 11. Capitalization and Equity Structure The company executed a 1-for-15 reverse stock split in June 2025 to regain Nasdaq compliance. It engaged in several equity financing activities, including a March 2025 Inducement Warrant transaction ($3.9 million net proceeds), a September 2024 Offering ($5.0 million net proceeds), a January 2024 Offering ($3.9 million net proceeds), and sales under an At The Market (ATM) Agreement ($0.9 million net proceeds in H1 2025). Warrants are classified as either equity or liability based on their terms - A 1-for-15 reverse stock split was effected on June 2, 2025, to raise the per share trading price and regain compliance with Nasdaq's minimum bid price requirement[103][104] - As of June 30, 2025, 2,605 thousand shares of common stock were issued and outstanding, compared to 1,480 thousand shares as of December 31, 2024[105] - The March 2025 Inducement Warrant transaction generated approximately $3,853 thousand in net proceeds from the exercise of existing warrants and issuance of new warrants for 700 shares at $6.36 per share[106] - The September 2024 Offering generated approximately $5,003 thousand in net proceeds, and the January 2024 Offering generated approximately $3,932 thousand in net proceeds[107][109] - Under the ATM Agreement, the company sold 231 thousand shares of common stock for $914 thousand in net proceeds during the six months ended June 30, 2025, with $3,125 thousand remaining available for future offerings[110] Warrants Outstanding (in thousands) | Source | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Inducement Warrant | 700 | — | | Pre-Funded Warrant | — | 171 | | Series A Warrants | 73 | 400 | | Series B Warrants | 73 | 400 | | 2021 Warrants | 18 | 18 | | June 2020 Investor Warrants | 9 | 9 | | June 2020 Placement Agent Warrants | — | 3 | | December 2019 Warrants | — | 37 | | Total Warrants Outstanding | 873 | 1,038 | | Weighted average exercise price | $12.38 | - | - The 2021 Warrants and June 2020 Investor Warrants are classified as liabilities due to put-option provisions and are measured at fair value using Level 3 inputs (Black-Scholes Model)[128][132] 12. Stock-based Compensation The company's 2014 Equity Incentive Plan had 468 thousand shares authorized for issuance as of June 30, 2025, with 128 thousand available for future grants. Stock-based compensation expense for the six months ended June 30, 2025, was $457 thousand, a decrease from $660 thousand in the prior year - The total number of shares authorized for grant under the 2014 Equity Incentive Plan increased by 153 thousand shares to 468 thousand, with 128 thousand available for future grants as of June 30, 2025[140] - As of June 30, 2025, 98 thousand unvested Restricted Stock Units (RSUs) were outstanding, with $637 thousand of unrecognized compensation expense expected to be recognized over a weighted average period of 1.17 years[142] Stock-based Compensation Expense (in thousands) | Expense Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Sales and marketing | $33 | $58 | | Research and development | $24 | $171 | | General and administrative | $400 | $431 | | Total | $457 | $660 | - The 401(k) Plan share matching expense for the six months ended June 30, 2025, was $15 thousand, compared to $113 thousand in 2024[150] 13. Income Taxes There were no material changes to the company's unrecognized tax benefits during the six months ended June 30, 2025, and no significant changes are anticipated through the end of the fiscal year 2025 - No material changes to unrecognized tax benefits occurred during the six months ended June 30, 2025, and no significant changes are expected for the fiscal year ending December 31, 2025[152] 14. Commitments and Contingencies The company has material contracts including license agreements with the University of California and Vanderbilt University (one of which was terminated in April 2025). Purchase obligations totaled $1,357 thousand, and operating lease commitments were $877 thousand as of June 30, 2025. Management believes current legal matters will not materially adversely affect the financial statements - The company holds two license agreements with the Regents of the University of California and one with Vanderbilt University for exclusive patent rights[153][154] - The Vanderbilt Knee License Agreement was terminated on April 16, 2025, eliminating future royalty payments[155] - Purchase obligations, primarily for inventory and manufacturing services, totaled $1,357 thousand as of June 30, 2025, expected to be paid within one year[157] - Operating lease commitments totaled $877 thousand as of June 30, 2025[158] - Management believes the resolution of current legal matters will not have a material adverse effect on the condensed consolidated financial statements[159] 15. Net Loss Per Share The company reported a basic and diluted net loss per common share of $(3.01) for the six months ended June 30, 2025, an improvement from $(4.92) in the prior year, despite an increase in weighted-average common shares outstanding. Anti-dilutive common stock equivalents totaled 982 thousand shares Net Loss Per Common Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net loss applicable to common stockholders | $(5,600) | $(5,845) | | Adjustment for deemed dividend | $(226) | $0 | | Adjusted net loss for basic and diluted calculation | $(5,826) | $(5,845) | | Weighted-average common shares, basic and diluted | 1,938 | 1,188 | | Net loss per common share, basic and diluted | $(3.01) | $(4.92) | - Potential common stock equivalents totaling 982 thousand shares (options, restricted stock units, warrants) were excluded from diluted EPS calculation as they were anti-dilutive[162] 16. Segment Disclosures The company operates as a single operating segment, with its Chief Executive Officer serving as the chief operating decision maker (CODM). The CODM reviews consolidated financial information to allocate resources and assess performance, primarily focusing on the healthcare market for exoskeleton products - The company is managed as a single operating segment, primarily serving the healthcare market with exoskeleton products[163] - The Chief Executive Officer acts as the CODM, reviewing consolidated financial information, annual operating plans, and long-range forecasts to make operating decisions and evaluate financial performance[163][164] 17. Related Party Transactions There were no related party transactions during the six months ended June 30, 2025. A previous settlement agreement from February 2023 with an affiliated entity, totaling $325 thousand, was fully paid in April 2024 - No related party transactions occurred during the six months ended June 30, 2025[166] - A $325 thousand settlement agreement with an affiliated entity, entered into in February 2023, was fully paid in April 2024[167][168] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and results of operations, highlighting business overview, critical accounting estimates, detailed financial performance analysis, and liquidity and capital resources. It emphasizes the company's focus on exoskeleton products, the impact of Medicare reimbursement for Ekso Indego Personal, and ongoing challenges related to profitability and financing Overview Ekso Bionics designs and markets exoskeleton products for healthcare (Enterprise and Personal Health) and industrial markets. The company is strategically focusing on expanding its Personal Health market, particularly with the Ekso Indego Personal device, following Medicare CMS reimbursement approval, despite initial challenges in the reimbursement process. Economic trends, including increased price-based competition and foreign currency fluctuations, continue to impact market demand - The company designs, develops, and markets exoskeleton products for human strength, endurance, and mobility, primarily serving the healthcare market (physical rehabilitation and mobility) and industrial workers[175] - CMS approved a payment level of approximately $91,000 for Medicare reimbursement of the Ekso Indego Personal, effective April 1, 2024, creating potential for increased demand in the Personal Health market[181] - The company is refining its CMS reimbursement process for the Ekso Indego Personal, with initial claims reimbursed in July 2024 and April 2025; partnerships with DMEs and O&P providers are being developed to scale this sales channel[183] - As of June 2025, there is a backlog of approximately 45 individuals who qualify for Ekso Indego Personal reimbursement, with claims expected to be submitted in 2025 and early 2026[183] - Market demand is influenced by awareness of robotic exoskeleton rehabilitation, reimbursement levels, economic growth, and increasing price-based competition, particularly affecting Enterprise Health products with lengthy sales cycles[186] Critical Accounting Estimates Management's discussion highlights several critical accounting estimates requiring significant judgment, including standalone selling prices for revenue allocation, fair value measurement of warrant liabilities, provision for credit losses on accounts receivable, inventory valuation, realizability of deferred tax assets, valuation of assets/liabilities in business combinations, future warranty costs, lease accounting, and useful lives of long-lived assets. Changes in these estimates could materially impact financial results - Key estimates include standalone selling prices for revenue allocation, fair value of warrant liabilities (using Black-Scholes model), provision for credit losses, inventory valuation, and the realizability of deferred tax assets[188][189][190][191][192][193] - Significant estimates are also made for valuing tangible and intangible assets acquired in business combinations, future warranty costs, accounting for leases (using incremental borrowing rates), and assigning useful lives to long-lived assets[194][195][197][198] Results of Operations For the three and six months ended June 30, 2025, the company experienced significant decreases in revenue and gross profit, primarily due to delays in Enterprise Health device sales. Operating expenses saw mixed changes, with R&D and sales & marketing decreasing, while G&A increased. Net loss increased for the three-month period but slightly decreased for the six-month period, heavily influenced by a substantial unrealized foreign exchange gain Revenue and Gross Profit Performance (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (YoY) | | :---------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Revenue | $2,057 | $4,950 | (58)% | $5,432 | $8,706 | (38)% | | Cost of revenue | $1,238 | $2,313 | (46)% | $2,807 | $4,118 | (32)% | | Gross profit | $819 | $2,637 | (69)% | $2,625 | $4,588 | (43)% | | Gross profit % | 40% | 53% | - | 48% | 53% | - | Operating Expenses Performance (in thousands) | Expense Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (YoY) | | :----------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Sales and marketing | $1,690 | $1,846 | (8)% | $3,397 | $3,664 | (7)% | | Research and development | $852 | $1,116 | (24)% | $1,839 | $2,252 | (18)% | | General and administrative | $2,252 | $2,010 | 12% | $4,804 | $4,263 | 13% | | Total operating expenses | $4,794 | $4,972 | (4)% | $10,040 | $10,179 | (1)% | Other Income (Expense), Net (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (YoY) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Interest expense, net | $(65) | $(74) | (12)% | $(136) | $(131) | 4% | | Gain on revaluation of warrant liabilities | $0 | $84 | (100)% | $1 | $426 | (100)% | | Loss on modification of warrant | $0 | $0 | - | $0 | $(109) | (100)% | | Unrealized gain (loss) on foreign exchange | $1,339 | $(91) | (1571)% | $1,965 | $(440) | (547)% | | Other expense, net | $(8) | $0 | * | $(15) | $0 | * | | Total other income (expense), net | $1,266 | $(81) | (1663)% | $1,815 | $(254) | (815)% | - Net loss for the three months ended June 30, 2025, was $(2,709) thousand, an increase of 12% from $(2,416) thousand in 2024; for the six months, net loss was $(5,600) thousand, a decrease of 4% from $(5,845) thousand in 2024[200][211] Liquidity and Capital Resources The company's cash and working capital decreased as of June 30, 2025. Operations continue to use cash, but financing activities provided significant funds through warrant exercises and equity offerings. The company faces substantial doubt about its ability to continue as a going concern, with unrestricted cash estimated to fund operations into Q4 2025, and is actively seeking additional financing to meet future cash requirements - As of June 30, 2025, total cash and restricted cash was $5.2 million, with $2.0 million restricted, leaving approximately $3.2 million unrestricted[222] - Working capital decreased to $9.3 million as of June 30, 2025, from $11.3 million at December 31, 2024[223] - Net cash used in operating activities decreased by $0.7 million (12%) to $(5.4) million for the six months ended June 30, 2025, due to higher accounts receivable collections and cost efficiencies[232] - Net cash provided by financing activities was $4.1 million for the six months ended June 30, 2025, primarily from $3.9 million net proceeds from the March 2025 Inducement Warrant and $0.9 million from ATM common stock sales[225][228][234] - Substantial doubt exists about the company's ability to meet cash requirements for the next 12 months, with unrestricted cash estimated to fund operations into the fourth quarter of 2025; management is actively seeking additional financing through equity offerings, debt, asset sales, or factoring receivables[236][237] Contractual Obligations and Commitments (in thousands) | Obligation | Total | Less than One Year | 1-3 Years | 3-5 Years | | :------------------------ | :---- | :----------------- | :-------- | :-------- | | Term loan | $2,176 | $151 | $2,025 | $0 | | Promissory note | $2,812 | $1,250 | $1,562 | $0 | | Facility operating leases | $877 | $494 | $352 | $31 | | Purchase obligations | $1,357 | $1,357 | $0 | $0 | | Total | $7,222 | $3,252 | $3,939 | $31 | Item 3. Quantitative and Qualitative Disclosures About Market Risk The company reported no material changes in its market risk during the six months ended June 30, 2025, compared to the disclosures in its Annual Report - No material changes in market risk were identified during the six months ended June 30, 2025[239] Item 4. Controls and Procedures Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the most recent fiscal quarter - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[240] - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[242] PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, other information, and exhibits related to the company's operations and financial reporting Item 1. Legal Proceedings The company is involved in various legal proceedings in the ordinary course of business but believes that the resolution of these matters will not have a material adverse effect on its financial condition or results of operations - The company is subject to legal proceedings and claims arising in the ordinary course of business[244] - Management believes that the resolution of such matters will not have a material adverse effect on the company's business, results of operations, or financial condition[244] Item 1A. Risk Factors The company updated its risk factors, highlighting new concerns regarding federal funding disruptions for customers, the critical impact of third-party payor reimbursement policies (including CMS and private insurers) on product sales, potential dilution from future equity issuances, challenges in achieving profitability and securing future financing, difficulties in reducing manufacturing and service costs, and risks associated with supply chain disruptions and international sales - Federal policy changes, including budget cuts to health agencies, could disrupt federal funding for customers, impacting their ability to purchase the company's products[247] - Coverage policies and reimbursement levels from third-party payors (VA, Medicare, Medicaid, commercial) significantly impact product sales, especially for the Ekso Indego Personal device; delays or changes in CMS reimbursement, or lack of coverage from other insurers, could diminish market access and revenue[248][249][250] - Future issuances of equity securities (e.g., through ATM agreements, offerings, warrant exercises) or compensatory awards could dilute existing stockholders and depress the market price of common stock[252] - The company may not achieve profitability and historically relies on external financing; substantial doubt exists about its ability to continue as a going concern, necessitating additional capital raises through various means (equity, debt, asset sales, or factoring receivables)[253][256][257] - Challenges exist in significantly reducing manufacturing costs and achieving planned improvements in product reliability and decreased service costs[254] - Shortages in materials (electronic components, battery cells, metals, plastics) and supply chain disruptions (shipping delays, changes in trade policies, tariffs) could negatively impact operating results and increase costs[258][259][260] - International sales are subject to risks including intellectual property protection, protectionist laws, expenses of foreign operations, language/cultural differences, regulatory changes, tax schemes, currency fluctuations, political/economic instability, and differing payor reimbursement regimes[261][262] Item 5. Other Information No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[264] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including various certifications (e.g., Sarbanes-Oxley Act certifications) and the Inline Extensible Business Reporting Language (iXBRL) financial statements and related taxonomy documents - The exhibits include certifications of the Principal Executive Officer and Principal Financial Officer (31.1, 31.2, 32.1, 32.2) and the Inline XBRL financial statements and taxonomy documents (101, 101.ins, 101.sch, 101.cal, 101.def, 101.lab, 101.pre, 104)[265] Signatures The Quarterly Report on Form 10-Q was duly signed on behalf of Ekso Bionics Holdings, Inc. by its Chief Executive Officer, Scott G. Davis, and Chief Financial Officer, Jerome Wong, on July 28, 2025 - The report was signed by Scott G. Davis, Chief Executive Officer, and Jerome Wong, Chief Financial Officer, on July 28, 2025[269]