Ekso Bionics(US:EKSO)2025-10-28 20:07Market Performance and Sales - For the Personal Health market, the Ekso Indego Personal device received Medicare reimbursement approval at approximately $91,000, effective April 1, 2024, which is expected to increase demand among the estimated 309,000 individuals living with spinal cord injuries (SCI) in the U.S.[190] - The company anticipates that the majority of its revenue in 2025 will continue to come from Enterprise Health sales, while Personal Health product sales are expected to contribute more quarter over quarter as reimbursement processes are optimized[192] - The company has signed agreements with several partners, including National Seating & Mobility and Ottobock Patient Care, to enhance sales and reimbursement processes for the Ekso Indego Personal device, with expectations of increased claims submissions over the next 12 months[192] - The company is focused on expanding insurance coverage beyond Medicare and seeking additional indications of use for its products, which could significantly drive growth in Personal Health product sales[193] - The company’s revenue is highly dependent on market demand for exoskeleton products, influenced by factors such as awareness among rehabilitation clinics and reimbursement levels from Medicare and private insurers[196] Financial Performance - Revenue for the three months ended September 30, 2025, increased by $0.1 million, or 2%, to $4.227 million compared to $4.129 million in 2024, driven by higher sales volume of Enterprise Health devices in the Americas[212] - Gross profit for the same period increased by $0.3 million to $2.549 million, resulting in a gross margin of 60%, up from 53% in 2024, primarily due to lower device costs associated with multiple-device sales[213][214] - Total operating expenses decreased by $0.9 million, or 19%, to $3.951 million for the three months ended September 30, 2025, with significant reductions in sales and marketing (25%) and research and development (29%) expenses[216][217] - For the nine months ended September 30, 2025, revenue decreased by $3.2 million, or 25%, to $9.659 million, primarily due to lower sales volume in the EMEA region[223] - Gross profit for the nine months ended September 30, 2025, decreased by $1.6 million to $5.174 million, while gross margin slightly increased to 54% from 53% in 2024[224][225] Expenses and Losses - Sales and marketing expenses for the nine months ended September 30, 2025, decreased by $0.7 million, or 13%, attributed to lower headcount and payroll expenses[227] - The company reported a net loss of $1.421 million for the three months ended September 30, 2025, an improvement of $0.651 million, or 31%, compared to a net loss of $2.072 million in 2024[211] - Research and development expenses decreased by $0.6 million, or 21%, for the nine months ended September 30, 2025, compared to the same period in 2024[228] - General and administrative expenses increased by $0.3 million, or 5%, for the nine months ended September 30, 2025, compared to the same period in 2024[229] Cash Flow and Working Capital - As of September 30, 2025, working capital was $5.9 million, down from $11.3 million as of December 31, 2024[236] - Net cash used in operating activities decreased by $0.9 million, or 11%, for the nine months ended September 30, 2025, compared to the same period in 2024[242] - Net cash provided by financing activities was $3.7 million for the nine months ended September 30, 2025, primarily from the B. Riley Promissory Note and common stock sales[244] - The company expects operating cash requirements to continue exceeding cash provided by operations in the near term[247] - Management estimates that the company's cash will fund operations into the first quarter of 2026[247] Strategic Initiatives - The company is exploring strategic transactions, which may include acquisitions in different industries, and expects that any such transaction would require stockholder approval and involve the issuance of a substantial amount of company securities[195] - The company is actively developing its channel partner program to enhance reimbursement claims for the Ekso Indego Personal device, with successful claims being processed through appeals[192] Other Financial Metrics - Interest expense, net decreased by 77% for the three months ended September 30, 2025, primarily due to lower interest related to promissory notes[218] - Unrealized gain on foreign exchange for the three months ended September 30, 2025, was de minimis compared to a gain of $0.634 million in 2024[220] - The gain on revaluation of warrant liabilities was negligible for the three months ended September 30, 2025, reflecting the volatility in stock price and other factors[219] - Interest expense decreased by 27% for the nine months ended September 30, 2025, compared to the same period in 2024[230] - Unrealized gain on foreign exchange was $2.0 million for the nine months ended September 30, 2025, compared to $0.2 million for the same period in 2024[233] - Total contractual obligations as of September 30, 2025, amounted to $6.188 million, with $4.682 million due within one year[249]