Ekso Bionics Holdings, Richmond, California, reported the following financial results for the second quarter (2Q) 2016 that ended June 30:
- Total 2Q revenue was $1.6 million compared to $2.1 million in 2Q 2015.
- Medical device revenue for the quarter was $1.5 million compared to $1 million in the 2Q 2015. The current amount includes $1.1 million for all device sales and $0.4 million of other device-related revenue. The 2015 amount included $0.9 million of previously deferred revenue that was recognized during the period and $0.1 million of other device-related revenue.
- Engineering service revenue was $0.1 million for 2Q 2016 compared to $1.1 million for the same period in the prior year. The company noted that this result reflects a decision earlier in the year to shift much of its engineering staff to internal development efforts.
- Gross profit for 2Q 2016 of $0.2 million was primarily derived from the sale of medical devices. This amount includes a gross profit of $0.5 million based on medical device sales and rentals and a loss of $0.3 million on device service and pilot programs.
- Operating expenses were $7.6 million for 2Q 2016 compared to $6.1 million for 2Q 2015. The increase in operating expenses included a $0.6 million increase in employee compensation expenses, $0.4 million of labor expenses diverted to product innovation from cost of engineering service revenue, and $0.1 million of amortization expenses that resulted from acquiring assets from Equipois, Manchester, New Hampshire, in December 2015.
- Net loss applicable to common shareholders in 2Q 2016 was $10 million, or $0.61 per basic and diluted share. Net loss applicable to common shareholders for the quarter included a noncash preferred share deemed dividend of $4.2 million, offset by a noncash gain of $1.7 million on the revaluation of a warrant liability. Both noncash items were associated with the company’s equity financing in December 2015.
- Cash on hand on June 30 was $4.7 million, compared to $19.6 million on December 31, 2015. The increase in cash used was driven by general increases in operating expenses such as selling, marketing, and research and development. The additional cash expenditure also includes a one-time increase in inventory, as well as some investment in certain inventory which is expected to reverse over the next few quarters.
The company held a conference call on July 28 to discuss the 2Q financial results as well as the results of the six-month period that also ended June 30. A replay of the call is available through midnight ET on August 11 by calling 877.660.6853 or 201.612.7415 and referencing conference ID 13581989. The webcast will also be available on the company’s website for one month following the completion of the call.