Ekso Bionics, Richmond, California, reported financial results for the third quarter (3Q) ended September 30, 2014, as follows:
Total 3Q revenue was $1.6 million, compared to $800,000 during 3Q 2013. The 3Q medical device revenue was $800,000, compared to $400,000 during 3Q 2013; the increase resulted from a more than doubling of the number of medical device sales being amortized to revenue compared to the same period in the prior year. Engineering services revenue was $800,000 for 3Q 2014 compared to $400,000 during 3Q 2013; the increase was due primarily to $500,000 of development services earned in the period compared to the prior year, offset by a $100,000 decrease in government agency revenue.
Operating expenses for 3Q 2014 were $4.2 million compared to $2 million during the same period of 2013, a 113 percent increase. This increase was largely driven by a $900,000 increase in labor-related costs as the prior year period reflects a smaller workforce than the current period. In addition, operating expenses increased by about $400,000 due to higher professional services fees primarily related to public company requirements and investor relations expenses.
Non-operating income was $15.8 million for 3Q 2014 compared to a $200,000 loss in the same period in 2013. The increase was attributable to recognizing a $15.8 million noncash gain this period related to the issuance of warrants in a private placement financing in the first quarter of 2014 that are classified as liabilities. The amount recorded is a noncash item as the company is not required to expend any cash to settle the warrant liability. For each reporting period, the company is required to adjust the fair value of the warrants to reflect fluctuations to the price of its common stock, with the resulting change affecting the warrant liability.
Net income for 3Q 2014 was $12 million, or $0.15 per basic share, including the $15.8 million change in the warrant liability, compared to a net loss of $1.9 million, or a loss of $0.09 per basic and diluted share for the same period of 2013. Diluted net loss for 3Q 2014 included net income of $12 million minus the $15.8 million change in the fair value of warrants, for a net loss of $3.7 million, or a loss of $0.04 per diluted share.
The company ended the third quarter with cash and cash equivalents of $7.2 million. The cash used in operating activities was $12.3 million for the nine months ended September 30, 2014, compared to $6.8 million for the same period in 2013. Net cash provided by financing activities was $19.5 million for the nine months ended September 30, 2014, compared to $5.3 million for the same period in 2013.
