Ekso Bionics Holdings, Richmond, California, posted fourth quarter (4Q) and full-year (FY) 2014 results on March 17. Total revenue was $1.5 million for 4Q 2014, compared to $800,000 during the same period of 2013. Medical device revenue was $900,000 for 4Q 2014, compared to $500,000 during 4Q 2013. The $400,000 increase resulted from more than doubling the number of medical device sales recognized as revenue compared to the same period in the prior year. Engineering services revenue was $600,000 for 4Q 2014 compared to $300,000 during the same period of 2013. The $300,000 increase in engineering services revenue was due primarily to a $300,000 license fee earned.
For FY 2014, medical device revenue increased 81 percent as compared to FY 2013, from $1.3 million to $2.9 million, due to an increase in recognized revenue as the number of medical device sales being amortized to revenue more than doubled compared to the prior year. Engineering services revenue increased $700,000 to $2.4 million, or 42 percent, as compared to FY 2013 primarily due to the company’s work on the U.S. Special Operations Command’s Tactical Assault Light Operator Suit (TALOS) project.
Operating expenses for 4Q 2014 were $5.4 million compared to $2.6 million for 4Q 2013, a 106 percent increase. This increase was largely driven by labor-related cost increases, as the prior year period reflects a smaller workforce than the current period and earned bonuses in the current year versus none in the prior year period. The remainder of the year-to-year increase reflects other costs associated with being a public company in 2014 and an across-the-board increase in expenses that reflects the company’s increased operating activities.
Operating expenses for FY 2014 were $18.4 million compared to $10.9 million during FY 2013, a 69 percent increase. Along with labor-related cost increases, increases were incurred in professional services fees primarily related to the company’s January 2014 merger transaction and public company requirements.
Non-operating expenses for FY 2014 was $17 million compared to $1.6 million in FY 2013. The $15.4 million increase is primarily from a $16.7 million increase in noncash charges relating to outstanding warrants. The $16.5 million of current year warrant liability charges are attributable to warrants issued in the private placement offering in January and February 2014. Due to an antidilution provision in the warrants, the company was required to classify the warrants as a liability and to adjust their value to market at each measurement period. Interest expense decreased by $1.3 million this year as compared to last year due to the repayment of outstanding debt in January 2014.
The company reported a net loss for 4Q 2014 of $20.2 million, or ($0.23) per basic and diluted share, including a $15.3 million non-cash warrant liability charge, compared to a net loss of $2.8 million, or ($0.13) per basic and diluted share for 4Q 2013. The net loss for FY 2014 was $33.8 million, or ($0.43) per basic and diluted share, including the $16.5 million non-cash warrant liability charge, compared to a net loss of $11.9 million, or ($0.57) per basic and diluted share for 4Q 2013.
In November 2014, the company completed a warrant solicitation in which holders of warrants to purchase 22.8 million shares of the company’s common stock elected to exercise their $2 warrants at a reduced exercise price of $1 per share, providing the company with $21.4 million in net proceeds. The company ended 4Q 2014 with cash and cash equivalents of $25.2 million.
