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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q 

 

 

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2024

 

or

 

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______ 

 

Commission File Number: 001-37854 

 

 

Ekso Bionics Holdings, Inc.

 

(Exact name of registrant as specified in its charter) 

 

 

Nevada

99-0367049

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

101 Glacier Point, Suite A

San Rafael, CA

94901

(Address of principal executive offices)

(Zip Code)

 

(510) 984-1761

(Registrant’s telephone number, including area code)

 

(Former name, former address, and former fiscal year, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Name of each exchange on which registered:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

EKSO

 

Nasdaq Capital Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer 

☐

 

Accelerated filer 

☐

     

Non-accelerated filer 

☒

 

Smaller reporting company 

☒

     
   

Emerging growth company 

☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

The number of shares of registrant’s common stock outstanding as of October 25, 2024 was 21,998,369.

 
Table of Contents

 

 

Ekso Bionics Holdings, Inc.

 

Quarterly Report on Form 10-Q 

 

Table of Contents

 

   

Page No.
 

PART I. FINANCIAL INFORMATION

  
     

Item 1.

Financial Statements

4
     
 

Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023

4
     
 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months ended September 30, 2024and 2023 (unaudited)

5
     
 

Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months ended September 30, 2024 and 2023(unaudited)

6
     
 

Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2024 and 2023 (unaudited)

8
     
 

Notes to Condensed Consolidated Financial Statements (unaudited)

9
     

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31
     

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

40
     

Item 4.

Controls and Procedures

40
     
 

PART II. OTHER INFORMATION

  
     

Item 1.

Legal Proceedings

41
     

Item 1A.

Risk Factors

41
     
Item 5. Other Information 41
     

Item 6.

Exhibits

42
     
 

Signatures

43

 

 
Table of Contents

 

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

 

Ekso Bionics Holdings, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value)

 

  

September 30, 2024

  

December 31, 2023

 
  

(unaudited)

    

Assets

        

Current assets:

        

Cash and restricted cash

 $8,292  $8,638 

Accounts receivable, net of allowances of $29 and $79, respectively

  6,964   5,645 

Inventories

  5,031   5,050 

Prepaid expenses and other current assets

  779   875 

Total current assets

  21,066   20,208 

Property and equipment, net

  1,628   2,018 

Right-of-use assets

  891   977 

Intangible assets, net

  4,662   4,892 

Goodwill

  431   431 

Other assets

  531   392 

Total assets

 $29,209  $28,918 
         

Liabilities and Stockholders’ Equity

        

Current liabilities:

        

Accounts payable

 $1,808  $1,847 

Accrued liabilities

  1,975   2,664 

Deferred revenues, current

  2,039   1,993 

Notes payable, current

  1,250   1,250 

Lease liabilities, current

  434   363 

Total current liabilities

  7,506   8,117 

Deferred revenues

  1,971   2,169 

Notes payable, net

  4,106   4,832 

Lease liabilities

  556   723 

Warrant liabilities

  35   366 

Other non-current liabilities

  165   105 

Total liabilities

  14,339   16,312 

Commitments and Contingencies (Note 14)

          

Stockholders’ equity:

        

Convertible preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023

  —   — 

Common stock, $0.001 par value; 141,429 shares authorized; 21,998 and 14,848 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

  22   15 

Additional paid-in capital

  261,898   251,580 

Accumulated other comprehensive income

  12   156 

Accumulated deficit

  (247,062)  (239,145)

Total stockholders’ equity

  14,870   12,606 

Total liabilities and stockholders’ equity

 $29,209  $28,918 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

4
Table of Contents

 

 

Ekso Bionics Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share amounts)

(Unaudited)

 

   

Three Months Ended

    

Nine Months Ended

  
   

September 30,

    

September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Revenue

   $ 4,129     $ 4,607     $ 12,835     $ 13,432  

Cost of revenue

     1,920       2,151       6,038       6,722  

Gross profit

     2,209       2,456       6,797       6,710  
                                 

Operating expenses:

                                

Sales and marketing

     1,760       2,052       5,424       6,489  

Research and development

     777       1,159       3,029       3,712  

General and administrative

     2,311       2,176       6,574       8,172  

Total operating expenses

     4,848       5,387       15,027       18,373  
                                 

Loss from operations

     (2,639 )     (2,931 )     (8,230 )     (11,663 )
                                 

Other income (expense), net:

                                

Interest expense, net

     (79 )     (64 )     (210 )     (236 )

Loss on modification of warrant

     —       —       (109 )     —  

Gain on revaluation of warrant liabilities

     14       60       440       186  

Unrealized gain (loss) on foreign exchange

     634       (433 )     194       (223 )

Other (expense) income, net

     (2 )     3       (2 )     (48 )

Total other income (expense), net

     567       (434 )     313       (321 )
                                 

Net loss

   $ (2,072 )   $ (3,365 )   $ (7,917 )   $ (11,984 )

Other comprehensive income (loss)

     (527 )     374       (144 )     170  

Comprehensive loss

   $ (2,599 )   $ (2,991 )   $ (8,061 )   $ (11,814 )
                                 

Net loss per share applicable to common shareholders, basic and diluted

   $ (0.10 )   $ (0.24 )   $ (0.42 )   $ (0.88 )
                                 

Weighted average number of common shares outstanding, basic and diluted

     20,310       14,073       18,657       13,672  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

5
Table of Contents

 

 

Ekso Bionics Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

 

 

                                           

Accumulated

                  
                                           

Other

            

Total

  
   

Convertible Preferred Stock

    

Common Stock

    

Additional

    

Comprehensive

    

Accumulated

    

Stockholders’

  
   

Shares

    

Amount

    

Shares

    

Amount

    

Paid-in Capital

    

(Loss) Income

    

Deficit

    

Equity

  

Balance as of December 31, 2023

     —     $ —       14,848     $ 15     $ 251,580     $ 156     $ (239,145 )   $ 12,606  

Net loss

     —       —       —       —       —       —       (3,429 )     (3,429 )

Issuance of common stock under:

                                                                

Equity financing, net

     —       —       2,997       3       3,967       —       —       3,970  

Matching contribution to 401(k) plan

     —       —       163       —       237       —       —       237  

Equity incentive plan

     —       —       88       —       —       —       —       —  

Stock-based compensation expense

     —       —       —       —       376       —       —       376  

Foreign currency translation adjustments

     —       —       —       —       —       291       —       291  

Balance as of March 31, 2024

     —     $ —       18,096     $ 18     $ 256,160     $ 447     $ (242,574 )   $ 14,051  

Net loss

     —       —       —       —       —       —       (2,416 )     (2,416 )

Issuance of common stock under:

                                                                

Equity financing, net

     —       —       75       —       47       —       —       47  

Equity incentive plan

     —       —       273       1       —       —       —       1  

Stock-based compensation expense

     —       —       —       —       284       —       —       284  

Foreign currency translation adjustments

     —       —       —       —       —       92       —       92  

Balance as of June 30, 2024

     —     $ —       18,444     $ 19     $ 256,491     $ 539     $ (244,990 )   $ 12,059  

Net loss

     —       —       —       —       —       —       (2,072 )     (2,072 )

Issuance of common stock and warrants under:

                                                                

Equity financing, net

     —       —       3,100       3       5,001                   5,004  

Exercise of warrants

     —       —       335       —       —                   —  

Issuance of common stock under:

                                                                

Equity incentive plan

     —       —       119       —       —       —       —       —  

Stock-based compensation expense

     —       —       —       —       406       —       —       406  

Foreign currency translation adjustments

     —       —       —       —       —       (527 )     —       (527 )

Balance as of September 30, 2024

     —     $ —       21,998     $ 22     $ 261,898     $ 12     $ (247,062 )   $ 14,870  

 

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Ekso Bionics Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

 

                                           

Accumulated

                  
                                           

Other

            

Total

  
   

Convertible Preferred Stock

    

Common Stock

    

Additional

    

Comprehensive

    

Accumulated

    

Stockholders’

  
   

Shares

    

Amount

    

Shares

    

Amount

    

Paid-in Capital

    

(Loss) Income

    

Deficit

    

Equity

  

Balance as of December 31, 2022

     —     $ —       13,203     $ 13     $ 248,813     $ 563     $ (223,947 )   $ 25,442  

Net loss

     —       —       —       —       —       —       (4,389 )     (4,389 )

Issuance of common stock under:

                                                                

Equity incentive plan

     —       —       139       —       —       —       —       —  

Stock-based compensation expense

     —       —       —       —       424       —       —       424  

Foreign currency translation adjustments

     —       —       —       —       —       (194 )     —       (194 )

Balance as of March 31, 2023

     —     $ —       13,342     $ 13     $ 249,237     $ 369     $ (228,336 )   $ 21,283  

Net loss

     —       —       —       —       —       —       (4,230 )     (4,230 )

Issuance of common stock under:

                                                                

Matching contribution to 401(k) plan

     —       —       161       —       249       —       —       249  

Equity incentive plan

     —       —       304       1       —       —       —       1  

Stock-based compensation expense

     —       —       —       —       514       —       —       514  

Foreign currency translation adjustments

     —       —       —       —       —       (10 )     —       (10 )

Balance as of June 30, 2023

     —     $ —       13,807     $ 14     $ 250,000     $ 359     $ (232,566 )   $ 17,807  

Net loss

     —       —       —       —       —       —       (3,365 )     (3,365 )

Issuance of common stock under:

                                                                

Equity incentive plan

     —       —       428       —       —       —       —       —  

Stock-based compensation expense

     —       —       —       —       441       —       —       441  

Foreign currency translation adjustments

     —       —       —       —       —       374       —       374  

Balance as of September 30, 2023

     —     $ —       14,235     $ 14     $ 250,441     $ 733     $ (235,931 )   $ 15,257  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

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Ekso Bionics Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

   

Nine Months Ended September 30,

  
   

2024

    

2023

  

Operating activities:

                

Net loss

   $ (7,917 )   $ (11,984 )

Adjustments to reconcile net loss to net cash used in operating activities

                

Depreciation and amortization

     1,210       1,266  

Changes in provision for credit losses on accounts receivable

     73       25  

Gain on revaluation of warrant liabilities

     (440 )     (186 )

Stock-based compensation expense

     1,066       1,379  

Loss on modification of warrant

     109       —  

Common stock contribution to 401(k) plan

     177       304  

Unrealized loss (gain) on foreign currency transactions

     (194 )     223  

Changes in operating assets and liabilities:

                

Accounts receivable

     (1,427 )     (1,348 )

Inventories

     (80 )     (162 )

Prepaid expenses and other assets, current and noncurrent

     63       (370 )

Accounts payable

     (41 )     (647 )

Accrued, lease and other liabilities, current and noncurrent

     (852 )     (522 )

Deferred revenues

     (160 )     1,552  

Net cash used in operating activities

     (8,413 )     (10,470 )

Investing activities:

                

Acquisition of property and equipment

     (16 )     (114 )

Net cash used in investing activities

     (16 )     (114 )

Financing activities:

                

Principal payments under notes payable

     (938 )     —  

Proceeds from issuance of common stock, net

     9,021       —  

Net cash provided by financing activities

     8,083       —  

Effect of exchange rate changes on cash

     —       (4 )

Net decrease in cash

     (346 )     (10,588 )

Cash and restricted cash at beginning of period

     8,638       20,525  

Cash and restricted cash at end of period

   $ 8,292     $ 9,937  
                 

Supplemental disclosure of cash flow activities

                

Cash paid for interest

   $ 142     $ 145  

Cash paid for income taxes

   $ 9     $ 33  

Supplemental disclosure of non-cash activities

                

Transfer of inventory to (from) property and equipment

   $ 105     $ (146 )

Initial recognition of operating lease liability and right of use asset

   $ 180     $ —  

Share issuance RSU

   $ 1     $ —  

Modification of operating lease right-of-use asset and lease liability

   $ —     $ (10 )

Share issuance for common stock contribution to 401(k) plan

   $ 237     $ 249  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 
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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)

 

 

1.         Organization

 

Description of Business

 

Ekso Bionics Holdings, Inc. (the “Company”) designs, develops, and markets wearable powered and non-powered exoskeleton products to augment human strength, endurance and mobility. The Company’s exoskeleton technology is primarily focused on aiding in the recovery and improved quality of life of individuals who have suffered from a variety of neurological conditions and allows for neurorehabilitation ranging from hospital to home, and also has technology that can be utilized by able-bodied users in the workplace. The Company has marketed devices that (i) enable individuals with neurological conditions affecting gait, including acquired brain injury ("ABI") and multiple sclerosis ("MS"), and spinal cord injury ("SCI") to rehabilitate and to stand and walk in neurorehabilitation settings and, for patients with a SCI, for home and community use, (ii) assist individuals with a broad range of upper extremity impairments, and (iii) allow industrial workers to perform difficult repetitive work for extended periods. Founded in 2005, the Company is headquartered in the San Francisco Bay area and listed on the Nasdaq Capital Market under the symbol “EKSO”.

 

Liquidity and Going Concern

 

As of September 30, 2024, the Company had an accumulated deficit of $247,062.  Largely as a result of significant research and development activities related to the development of the Company’s advanced technology and commercialization of such technology into its medical device business, the Company has incurred significant operating losses and negative cash flows from operations since inception. During the nine months ended September 30, 2024, the Company used $8,413 of cash in its operations. Cash on hand as of September 30, 2024 was $8,292.

 

As described in Note 9. Notes Payable, net, borrowings under the Company’s secured term loan agreement with Banc of California have a liquidity covenant requiring minimum cash on hand equivalent to the current outstanding principal balance. As of September 30, 2024, $2,000 of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of September 30, 2024 was approximately $6,292.

 

Our expectation to generate operating losses and negative operating cash flows in the future and the need for additional funding to support our planned operations raise substantial doubt regarding our ability to continue as a going concern for a period of one year after the date that the condensed consolidated financial statements are issued. Management intends to raise funds through one or more financings. However, due to several factors, including those outside management’s control, there can be no assurance that the Company will be able to complete such financings on acceptable terms or in amounts sufficient to continue operating the business under the operating plan. If we are unable to complete sufficient additional financings, management’s plans include delaying or abandoning certain product development projects, cost reduction efforts for our products, and refocused sales efforts to accelerate revenue growth above historical results. We have concluded the likelihood that our plan to successfully reduce expenses to align with our available cash, while reasonably possible, is less than probable. Accordingly, we have concluded that substantial doubt exists about our ability to continue as a going concern for a period of at least 12 months from the date of issuance of these condensed consolidated financial statements. 

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

 

 

 

2.         Basis of Presentation and Summary of Significant Accounting Policies and Estimates

 

Basis of Presentation and Consolidation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 4, 2024.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the audited consolidated financial statements for the fiscal year ended December 31, 2023, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein.

 

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending  December 31, 2024 or any future periods.

 

The condensed consolidated financial statements include the financial statements of Ekso Bionics Holdings, Inc. and its subsidiaries. All significant transactions and balances between Ekso Bionics Holdings, Inc. and its subsidiaries have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. For the Company, these estimates include, but are not limited to, intangible and tangible assets acquired and liabilities assumed in business combinations, revenue recognition, deferred revenue, the valuation of warrants and employee equity awards, future warranty costs, accounting for leases, useful lives assigned to long-lived assets, valuation of inventory, realizability of deferred tax assets, and contingencies. Actual results could differ from those estimates.

 

Foreign Currency

 

The assets and liabilities of foreign subsidiaries and equity investments, where the local currency is the functional currency, are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at average rates during the period, with resulting foreign currency translation adjustments recorded in accumulated other comprehensive income as a component of stockholders’ equity. Gains and losses from the re-measurement of balances denominated in currencies other than the entities' functional currencies, are recorded in other expense, net in the accompanying condensed consolidated statements of operations and comprehensive loss.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

Inventory

 

Inventories are recorded at the lower of cost or net realizable value. Cost is computed using the standard cost method, which approximates actual cost on a first-in, first-out basis. Materials from vendors are received and recorded as raw materials. Once the raw materials are incorporated in the fabrication of the product, the related value of the component is recorded as work in progress ("WIP"). Direct and indirect labor and applicable overhead costs are also allocated and recorded to WIP inventory. Finished goods are comprised of completed products that are ready for customer shipment. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over sales and forecasted demand. Excess and obsolete inventories identified, if any, are recorded as an inventory impairment charge within the condensed consolidated statements of operations and comprehensive loss. The Company's estimate of write-downs for excess and obsolete inventory is based on a detailed analysis which includes on-hand inventory and purchase commitments in excess of forecasted demand. Subsequent disposals of inventories are recorded as a reduction of inventory.

 

Leases

 

The Company records its leases in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, Leases. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received.

 

Lease expense is recognized over the expected lease term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, lease liabilities current and lease liabilities non-current.

 

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term.

 

Revenue Recognition

 

The Company records its revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which when capable of being distinct, are accounted for as separate performance obligations. Revenue recognition is evaluated based on the following five steps: (i) identification of the contract with the customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied.

 

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are determined based on observable prices at which the Company separately sells its products or services. If a standalone selling price is not directly observable, judgment is made to estimate the selling price based on market conditions and entity-specific factors including cost plus analyses, features and functionality of the product and/or services, the geography of the Company’s customers, and type of customer. Any discounts or other reductions to the transaction price are allocated proportionately to all performance obligations within the multiple-element arrangement. The Company periodically validates the stand-alone selling price for performance obligations by evaluating whether changes in the key assumptions used to determine the stand-alone selling prices will have a significant effect on the allocation of transaction price between multiple performance obligations.

 

The Company exercised judgement to determine that a product return reserve was not required as historical returns activity have not been material.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

Concentration of Credit Risk and Other Risks and Uncertainties

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.

 

The Company's cash balances held in domestic banks are deposited into accounts at various institutions with each balance under the $250 Federal Deposit Insurance Corporation ("FDIC") insurance limit. The Company has significant cash balances at foreign financial institutions which regularly exceed the applicable country cash deposit insurance limits of approximately $100 at each of the Company's two foreign banks. Any foreign exchange loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.

 

The Company extends credit to customers in the normal course of business. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the condensed consolidated financial statements. The Company does not require collateral from its customers to secure accounts receivable. Accounts receivable are derived from the sale of products shipped and services performed for customers primarily located in the U.S., Europe, Asia, and Australia. Invoices are aged based on contractual terms with the customer. The Company reviews accounts receivable for collectability and provides an allowance for potential credit losses. The allowance for potential credit losses on trade receivables reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. The Company has not experienced material losses related to accounts receivable as of  September 30, 2024 and December 31, 2023.

 

Many of the sales contracts with customers outside of the U.S. are settled in a foreign currency other than the U.S. dollar. The Company does not enter into any foreign currency hedging agreements and is susceptible to gains and losses from foreign currency fluctuations. To date, the Company has not experienced significant gains or losses upon collecting receivables denominated in a foreign currency.

 

The Company hadtwo customers with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable as of  September 30, 2024 (14% and 13%), as compared with no customers as of  December 31, 2023.

 

During the three months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (26%), as compared with three customers in the three months ended  September 30, 2023 (18%, 11% and 11%).

 

During the nine months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (15%), as compared with two customers in the nine months ended  September 30, 2023 (17% and 10%).

 

Recent Accounting Pronouncements

 

In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), to enhance income tax reporting disclosures and require disclosure of specific categories in the tabular rate reconciliation. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We are currently evaluating the impact on our disclosures.

 

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 looks to provide improvements to the segment disclosure by providing users with more decision-useful information about reportable segments in a public entity. The main provisions require a company to disclose, on an annual and interim basis, significant expenses included within each reported measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements with an effective date for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2023-07 to be material on its consolidated financial statements.

 

Accounting Pronouncements Adopted in 2024

 

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which simplified the accounting for convertible instruments. ASU 2020-06 eliminated certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminated certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance became effective for the Company in the first quarter of 2024 and was applied using a full retrospective approach. The adoption did not have a material impact on the Company's consolidated financial statements.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

3.         Accumulated Other Comprehensive Income (Loss)

 

The Company's accumulated other comprehensive income (loss) consists of the accumulated net unrealized gains or losses on foreign currency translation adjustments. The change in accumulated other comprehensive income (loss) presented on the condensed consolidated balance sheets for the nine months ended September 30, 2024 and 2023, is reflected in the table below net of tax:

 

   

Nine Months Ended September 30,

  
   

2024

    

2023

  

Balance at beginning of period

   $ 156     $ 563  

Net unrealized gain (loss) on foreign currency translation

     (144 )     170  

Balance at end of period

   $ 12     $ 733  

 

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

4.         Fair Value Measurement

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value which are the following:

 

•

Level 1—Quoted prices in active markets for identical assets or liabilities. The Company considers a market to be active when transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

•

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The valuation of Level 3 investments requires the use of significant management judgments or estimation.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The Company’s fair value hierarchies for its financial assets and liabilities, which require fair value measurement on a recurring basis are as follows:

 

   

Total

    

Level 1

    

Level 2

    

Level 3

  

September 30, 2024

                                

Liabilities

                                

Warrant liabilities

   $ 35     $ —     $ —     $ 35  

December 31, 2023

                                

Liabilities

                                

Warrant liabilities

   $ 366     $ —     $ —     $ 366  

 

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2024, which were measured at fair value on a recurring basis:

 

   

Warrant Liabilities

  

Balance as of December 31, 2023

   $ 366  

Loss on modification of warrant

     109  

Gain on revaluation of warrants

     (440 )

Balance as of September 30, 2024

   $ 35  

 

Refer to Note 11. Capitalization and Equity Structure – Warrants for additional information regarding the valuation of warrants.

 
 

5.         Inventories

 

Inventories as of September 30, 2024 and December 31, 2023 consisted of the following:

 

   

September 30, 2024

    

December 31, 2023

  

Raw materials

   $ 3,917     $ 4,298  

Work in progress

     301       290  

Finished goods

     813       462  

Inventories

   $ 5,031     $ 5,050  

 
 

6.         Revenue

 

The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support and maintenance contracts. Revenue from medical device product sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility for sales of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements ranging from 12 to 48 months. Revenue is recognized evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 24 months.

 

The Company’s industrial device segment (EksoWorks) revenue is primarily generated through the sale of the upper body exoskeleton EVO and associated accessories. Revenue from industrial device sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility. 

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

Deferred Revenue

 

Deferred revenue is comprised mainly of unearned revenue related to extended support and maintenance contracts, but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service.

 

Deferred revenue consisted of the following:

 

  

September 30, 2024

  

December 31, 2023

 

Deferred extended maintenance and support

 $3,850   3,993 

Deferred device and advances

  160   169 

Total deferred revenues

  4,010   4,162 

Less current portion

  (2,039)  (1,993)

Deferred revenues, non-current

 $1,971  $2,169 

 

On September 25, 2023, the Company entered into a warranty claim lump-sum agreement with Parker Hannifin Corporation ("Parker"), pursuant to which, among other things, Parker paid the Company $700 for the release of Parker's obligation to reimburse the Company for its costs and expenses associated with servicing certain product warranty obligations.  The Company recorded the lump sum payment as deferred revenue and recognizes revenue as services are performed.

 

Deferred revenue activity consisted of the following for the nine months ended September 30, 2024:

 

Beginning balance

 $4,162 

Deferral of revenue

  2,168 

Recognition of deferred revenue

  (2,320)

Ending balance

 $4,010 

 

The Company expects to recognize approximately $703 of the deferred revenue during the remainder of 2024, $1,559 in 2025, and $1,748 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $3,417, related to its customer orders received but not fulfilled and other ancillary products and services of $2,885, expected to be recognized during 2024 and 2025, and contracts for subscription units of $532, expected to be recognized during 2024, 2025 and 2026.

 

Disaggregation of Revenue

 

The following table disaggregates the Company’s revenue by major source for the three months ended September 30, 2024:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,096  $24  $3,120 

Service and support

  691   —   691 

Subscriptions

  123   —   123 

Parts and other

  177   18   195 
  $4,087  $42  $4,129 

 

The following table disaggregates the Company’s revenue by major source for the three months ended September 30, 2023:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,390  $190  $3,580 

Service and support

  726   —   726 

Subscriptions

  245   —   245 

Parts and other

  27   29   56 
  $4,388  $219  $4,607 

 

The following table disaggregates the Company’s revenue by major source for the nine months ended September 30, 2024:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $9,337  $351  $9,688 

Service and support

  2,292   —   2,292 

Subscriptions

  413   —   413 

Parts and other

  388   54   442 
  $12,430  $405  $12,835 

 

The following table disaggregates the Company’s revenue by major source for the nine months ended September 30, 2023:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $10,041  $308  $10,349 

Service and support

  2,092   —   2,092 

Subscriptions

  781   —   781 

Parts and other

  158   52   210 
  $13,072  $360  $13,432 

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

7.         Accrued Liabilities

 

Accrued liabilities as of September 30, 2024 and December 31, 2023 consisted of the following:

 

   

September 30, 2024

    

December 31, 2023

  

Salaries, benefits and related expenses

   $ 1,414     $ 2,058  

Device warranty

     443       461  

Other

     118       145  

Total

   $ 1,975     $ 2,664  

 

Warranty

 

The current portion of the device warranty liability is classified as a component of Accrued liabilities, while the long-term portion of the device warranty liability is classified as a component of Other non-current liabilities in the condensed consolidated balance sheets. A reconciliation of the changes in the device warranty liability for the three and nine months ended September 30, 2024 is as follows:

 

   

Three Months Ended

    

Nine Months Ended

  
   

September 30, 2024

    

September 30, 2024

  

Balance at beginning of the period

   $ 561     $ 566  

Additions for estimated future expense

     210       526  

Incurred costs

     (163 )     (484 )

Balance at end of the period

   $ 608     $ 608  

 

   

Balance as of September 30, 2024

  

Current portion

   $ 443  

Long-term portion

     165  

Total

   $ 608  

 
 

8.         Goodwill and Intangible Assets

 

On December 5, 2022, the Company acquired the Human Motion Control ("HMC") business unit from Parker (the "HMC Acquisition"). The assets acquired from the business unit included intellectual property rights associated with the Ekso Indego Personal, Ekso Indego Therapy, and future products in the orthotics and prosthetics space.

 

Goodwill

 

The Company accounted for the acquisition as a business combination in accordance with ASC 805, Business Combinations, by applying the acquisition method, and accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the purchase price over the net assets acquired of $431 was recorded as goodwill. The goodwill recognized is attributed primarily to expected synergies of HMC with the Company.

 

The Company determined no impairment existed for goodwill for the three and nine months ended September 30, 2024 and 2023.

 

Intangible Assets

 

The following table summarizes the components of gross intangible assets, accumulated amortization, and net carrying values for definite and indefinite lived intangible asset balances as of September 30, 2024 and December 31, 2023:

 

   

September 30, 2024

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (526 )   $ 1,784  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (32 )     108  

Total intangible assets

   $ 5,220     $ (558 )   $ 4,662  

(1)  Intellectual property not yet placed in service as of September 30, 2024.

 

   

December 31, 2023

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (310 )   $ 2,000  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (18 )     122  

Total intangible assets

   $ 5,220     $ (328 )   $ 4,892  

(1)  Intellectual property not yet placed in service as of December 31, 2023.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

Definite lived intangible assets are amortized over their estimated lives using the straight-line method, which is estimated as eight years for developed technology, 12 years for intellectual property and eight years for customer relationships. The acquired trade name was estimated to have an indefinite life, and consequently, no amortization expense was recorded. The Company determined no impairment existed for intangible assets for the three and nine months ended September 30, 2024 and 2023.

 

The estimated future amortization expenses related to definite lived intangible assets as of September 30, 2024 were as follows:

 

Fiscal Year

  

Amount

  

2024 - remainder

   $ 82  

2025

     345  

2026

     345  

2027

     345  

2028

     345  

2029 and thereafter

     890  

Total

   $ 2,352  

 

Amortization expense related to the acquired definite lived intangible assets was $77 and $82 for the three months ended September 30, 2024 and 2023, respectively, and $230 and $245 for the nine months ended September 30, 2024 and 2023, respectively, and was included as a component of operating expenses and cost of revenue in the condensed consolidated statement of operations and comprehensive loss. 

 
 

9.         Notes Payable, net

 

BoC Term Loan

 

In August 2020, the Company entered into a loan agreement (the "BoC Loan Agreement") with Pacific Western Bank, which merged with the Banc of California (the "Lender") in 2024. The Company received a loan in the principal amount of $2,000 (the "BoC Term Loan") that bore interest on the outstanding daily balance at a rate equal to the greater of: (a) 0.50% above the variable rate of interest announced by the Lender as its “prime rate” then in effect; or (b) 4.50%. The BoC Loan Agreement created a first priority security interest with respect to substantially all assets of the Company, including proceeds of intellectual property, but expressly excluding intellectual property itself.

 

The Company was required to pay accrued interest on the current loan on the 13th day of each month through and including August 13, 2023, at which time the unpaid principal and accrued and unpaid interest was due and payable in full. On August 17, 2023, the Company entered into an amendment to the BoC Loan Agreement, extending the maturity date to August 13, 2026 with interest only payments until such date, having daily borrowings bearing interest at a variable annual rate equal to the greater of the Lender's "prime rate" then in effect and 4.50%, and caused the Company to maintain all of its depository, operating, and investment accounts with the Lender. The Company determined this amendment constituted a loan modification under ASC 470, and used the updated imputed interest rate to recalculate debt discounts, debt issuance costs and final payment to be amortized over the new term.

 

The BoC Loan Agreement contains a liquidity covenant, which requires that the Company maintain cash in accounts of the Lender or subject to control agreements in favor of the Lender in an amount equal to at least the outstanding balance of the BoC Term Loan, which was $2,000 as of September 30, 2024. It also contains a primary depository covenant, which restricts the Company from having more than $1,000 held in subsidiary bank accounts outside of the United States. As of September 30, 2024, the Company was compliant with all covenants.

 

The interest rate of the BoC Term Loan is subject to increase in the event of late payment and after occurrence of and during the continuation of an event of default. The Company may elect to prepay the BoC Term Loan at any time, in whole or in part, without penalty or premium.

 

The debt issuance costs and debt discounts combined with the stated interest resulted in an effective interest rate of 8.67% and 9.00% for the three months ended September 30, 2024 and 2023, respectively, and 8.71% and 8.80% for the nine months ended September 30, 2024 and 2023, respectively. The debt issuance costs and debt discounts are amortized to interest expense using the effective interest method over the life of the loan. Interest expense for the BoC Term Loan totaled $44 and $45 for the three months ended September 30, 2024 and 2023, respectively, and $130 and $132 for the nine months ended September 30, 2024 and 2023, respectively.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The following table presents scheduled principal payments of the Company’s BoC Term Loan as of September 30, 2024:

 

Period

  

Amount

  

2024-2025

   $ —  

2026

     2,000  

Total principal payments

     2,000  

Less debt discount and issuance cost

     (4 )

Notes payable, net

   $ 1,996  
         

Current portion

   $ —  

Long-term portion

     1,996  

Notes payable, net

   $ 1,996  

 

Parker Hannifin Promissory Note

 

In connection with the HMC Acquisition, on December 5, 2022, the Company delivered a $5,000 unsecured, subordinated promissory note (the "Promissory Note") to Parker. The Promissory Note, subordinate to the BoC Term Loan, bears no interest with principal payable in sixteen equal installments due on the last day of each quarter, which commenced on December 31, 2023 and matures on September 30, 2027. 

 

The Promissory Note, upon the occurrence of an event of default, allows for the levying of interest equal to the lesser of (a) 5% per annum and (b) the maximum interest rate permitted under applicable law on the then entire outstanding principal balance, and also for the acceleration of all outstanding liabilities and obligations, making them immediately payable. Under the terms of the Promissory Note, the following occurrences constitute a default, and could, upon written notice or declaration by Parker, allow for the levying of interest and or the acceleration of principal outstanding: (i) failure to pay any amount of the principal when due and payable, (ii) the dissolution of the Company (including the declaration of bankruptcy), and (iii) the acquisition of the Company by another entity or the sale of substantially all of its assets to another entity.

 

The Company recorded the Promissory Note of $4,055 in its condensed consolidated balance sheets under the captions Notes Payable, Current and Notes Payable, Net, estimating an implicit discount rate of 7.5% via reference to the interest charged on the Company's BoC Term Loan and other relevant economic factors present at the execution date of the Promissory Note. The amortization of debt discounts resulted in an effective interest rate of 7.00% and 7.31% for the three months ended September 30, 2024 and 2023, respectively, and 7.52% and 7.31% for the nine months ended September 30, 2024 and 2023, respectively. The debt discount is amortized to interest expense using the effective interest method over the life of the loan. Interest expense on the Promissory Note was $66 and $81 for the three months ended September 30, 2024 and 2023, respectively, and $210 and $239 for the nine months ended September 30, 2024 and 2023, respectively.

 

The following table presents scheduled principal payments of the Company's Promissory Note as of September 30, 2024:

 

Period

  

Amount

  

2024 - remainder

   $ 312  

2025

     1,250  

2026

     1,250  

2027

     938  

Total principal payments

     3,750  

Less debt discount

     (390 )

Notes payable, net

   $ 3,360  
         

Current portion

     1,250  

Long-term portion

     2,110  

Notes payable, net

   $ 3,360  

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

10.         Lease Obligations

 

The Company's operating lease agreement for its headquarters and manufacturing facility in San Rafael, California (the "San Rafael Lease") commenced in  July 2022 and expires in October 2026, and it provides the Company with the option to renew for an additional three-year period at the prevailing market rate at the time of extension. 

 

The San Rafael Lease constitutes an operating lease under ASC 842 and the Company estimates the lease term as July 2022 through October 2026. The option to extend for a three-year period lacks significant economic incentives and disincentives, which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate as of the date of contract execution and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as common area maintenance costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for the San Rafael Lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

The Company's operating lease agreement for its office in Hamburg, Germany (the "Hamburg Lease") commenced in  May 2022 and expires in June 2025, and it provides the Company with an option to renew for one five-year period. 

 

The Hamburg Lease constitutes a lease under ASC 842, and the Company estimates the lease term as May 2022 through June 2025. The option to extend for a five-year period lacks significant economic incentives and disincentives which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as common area maintenance costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for this lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

The Company's operating lease agreement for its shared service and manufacturing facility in Brecksville, Ohio (the "Ohio Lease") commenced in June 2024 and expires in July 2027, and it provides the Company with the option to renew for an additional three-year period at the prevailing market rate at the time of extension. In July 2024, the Company relocated from its Macedonia, Ohio facility to the new Brecksville, Ohio facility. 

 

The Company has determined that the Ohio Lease constitutes an operating lease under ASC 842 and estimates the lease term as July 2024 through July 2027. The option to extend for a three-year period lacks significant economic incentives and disincentives, which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate as of the date of contract execution and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as operating costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for the Ohio Lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The Company’s future lease payments as of September 30, 2024, which are presented as Lease liabilities, current and Lease liabilities on the Company’s condensed consolidated balance sheets are as follows:

 

Periods

 

Operating Leases

 

2024 - remainder

 $127 

2025

  484 

2026

  431 

2027

  41 

Total lease payments

  1,083 

Less: imputed interest

  (93)

Present value of lease liabilities

 $990 
     

Weighted-average remaining lease term (in years)

  2.15 

Weighted-average discount rate

  8.3%

 

Lease expense under the Company’s operating leases was $161 and $146 for the three months ended  September 30, 2024 and 2023, respectively, and $432 and $417 for the nine months ended September 30, 2024 and 2023, respectively.

 

 
 

11.         Capitalization and Equity Structure

 

Summary

 

The Company’s authorized capital stock at  September 30, 2024 and  December 31, 2023 consisted of 141,429 shares of common stock and 10,000 shares of preferred stock. As of September 30, 2024 and December 31, 2023, there were 21,998 and 14,848, respectively, shares of common stock issued and outstanding and no shares of preferred stock issued and outstanding.

 

September 2024 Offering

 

On August 29, 2024, the Company entered into an underwriting agreement with Craig-Hallum Capital Group LLC as underwriter (the "Underwriter") pursuant to which the Company issued and sold, in a firm commitment underwritten public offering (the "September 2024 Offering"), 3,100 shares of common stock, a Pre-Funded Warrant to purchase 2,900 shares of common stock (the "Pre-Funded Warrant"), Series A Warrants to purchase an aggregate of 6,000 shares of common stock (the "Series A Warrants"), and Series B Warrants to purchase an aggregate of 6,000 shares of common stock (the "Series B Warrants"). The September 2024 Offering closed on September 3, 2024. The Company received net proceeds of approximately $5,004 in the September 2024 Offering, after deducting the underwriting discount and commissions and offering expenses paid by the Company. The Company will use the net proceeds from the September 2024 Offering for general corporate purposes, which  may include growth and expansion of the EksoHealth segment as the Company works to increase its revenue following the establishment of Medicare CMS reimbursement of the Ekso Indego Personal device, research and development activities, selling, general and administrative costs, and pursuing strategic initiatives, which initiatives may include potential synergistic and accretive acquisitions, as well as meeting the Company's other working capital needs.

 

January 2024 Offering

 

On  January 10, 2024, the Company entered into a securities purchase agreement with certain institutional investors to sell an aggregate of 2,968 shares of the Company’s common stock in a registered direct offering (the “January 2024 Offering”) at an offering price of $1.55 per share. The net proceeds of the January 2024 Offering were approximately $3,932 after deducting placement agent fees and offering expenses paid by the Company. The Company used the net proceeds from the January 2024 Offering for general corporate purposes, which included research and development activities, selling, general and administrative costs, strategic initiatives and to meet working capital needs.

 

At the Market Offering

 

In October 2020, the Company entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC (the "Agent"), under which the Company may issue and sell shares of its common stock, from time to time, to or through the Agent. The Company may offer and sell shares having an aggregate offering price of up to $5,000 under the registration statement and prospectus supplement filed with the SEC related to such offering. In June 2023, the Company entered into an amendment to the ATM Agreement that removed the requirement that shares of the Company's common stock may not be sold for a price lower than $6.75 per share. During the three months ended September 30, 2024, the Company did not sell any shares under the ATM Agreement. During the nine months ended September 30, 2024, the Company sold 105 shares of common stock under the ATM Agreement at an average price of $1.43 per share, for aggregate proceeds of $85, net of commission and issuance costs. The Company did not sell any shares under the ATM Agreement during the three and nine months ended September 30, 2023. As of September 30, 2024, the Company had $4,134 available for future offerings under the prospectus filed with respect to the ATM Agreement.

 

Warrants

 

Warrants outstanding as of September 30, 2024 and  December 31, 2023 were as follows:  

 

                           

Source

 

Exercise Price

  

Remaining term (Years)

  

December 31, 2023

  

Issued

  

Expired

  

Exercised

  

September 30, 2024

 

September 2024 Pre-Funded Warrant

 $0.001   *   —   2,900   —   (335)  2,565 

September 2024 Series A Warrants

 $1.00   4.9   —   6,000   —   —   6,000 

September 2024 Series B Warrants

 $1.00   0.9   —   6,000   —   —   6,000 

2021 Warrants

 $12.81   1.4   273   —   —   —   273 

June 2020 Investor Warrants

 $5.18   1.2   127   —   —   —   127 

June 2020 Placement Agent Warrants

 $5.64   0.7   39   —   —   —   39 

December 2019 Warrants

 $8.10   0.7   556   —   —   —   556 

December 2019 Placement Agent Warrants

 $8.44   0.2   52   —   —   —   52 

May 2019 Warrants

 $1.55   —   193   —   (193)  —   — 
           1,240   14,900   (193)  (335)  15,612 

(*)  The September 2024 Pre-Funded Warrant exercise term does not expire.

 

 

21
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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

September 2024 Warrants

 

In September 2024, the Company issued the Pre-Funded Warrant to purchase 2,900 shares of common stock, with an exercise price of $0.001 per share, for $2,897 in aggregate cash proceeds, which represents the September 2024 Offering price for the Company's common stock of $1.00, less the per share exercise price. The Pre-Funded Warrant was exercisable immediately and does not expire.

 

In September 2024, the Company issued the Series A Warrants, which are exercisable for an aggregate of up to 6,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Series A Warrants were exercisable immediately and expire on September 4, 2029.

 

In September 2024, the Company issued the Series B Warrants, which are exercisable for an aggregate of up to 6,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Series B Warrants were exercisable immediately and expire on September 3, 2025.

 

The Pre-Funded Warrant, the Series A Warrants, and the Series B Warrants (collectively, the “September 2024 Warrants”) may be exercised, at the holder’s discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the applicable September 2024 Warrant. However, a holder will not be entitled to exercise any portion of the September 2024 Warrants if the holder’s ownership of the Company’s common stock would exceed 4.99% (the “Beneficial Ownership Limitation”). The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

In the event the Company enters into a Fundamental Transaction, as defined in the applicable September 2024 Warrant, the Pre-Funded Warrant shall be automatically cashless exercised, and the holders of the Series A Warrants and Series B Warrants will be entitled to receive, upon exercise of these warrants, the kind of amounts of securities, cash, or other property that the holders would have received had they exercised these warrants immediately prior to such Fundamental Transaction without regard to the Beneficial Ownership Limitation contained in such September 2024 Warrant. In addition, upon a Fundamental Transaction, subject to certain limitations and exceptions, the holder of the Series A Warrant may put the warrant back to the Company for an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of the Series A Warrant, however, if such Fundamental Transaction is not considered within control of the Company, and not approved by the Company's Board of Directors, then the holder of the Series A Warrant would not be able to put the Series A Warrant back to the Company for cash.

 

The September 2024 Warrants are classified as a component of stockholders’ equity within additional paid-in capital and were recorded at the September 2024 Public Offering issuance date. The September 2024 Warrants are equity classified because they (i) are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, (ii) are immediately exercisable, (iii) do not embody an obligation for the Company to repurchase its shares, (iv) permit the holders to receive a fixed number of shares of common stock upon exercise, (v) are indexed to the Company’s common stock, and (vi) meet the equity classification criteria. In addition, such September 2024 Warrants do not provide any guarantee of value or return.

 

2021 Warrants

 

In February 2021, the Company issued warrants (the "2021 Warrants"), exercisable for up to 273 shares of the Company’s common stock at an exercise price of $12.81 per share. The 2021 Warrants were exercisable immediately and expire on February 11, 2026. The 2021 Warrants may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The 2021 Warrants will be automatically exercised on a cashless basis on their expiration date. The 2021 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the 2021 Warrants, the Company or any successor entity will, at the option of a holder of a 2021 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s 2021 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s 2021 Warrant within five trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the 2021 Warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the 2021 Warrants is measured at fair value upon issuance and at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the 2021 Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $12.81  $12.81 

Risk-free interest rate

  3.86%  4.20%

Expected term (years)

  1.36   2.11 

Volatility of stock

  105.8%  76.5%

 

June 2020 Investor Warrants

 

In June 2020, the Company issued warrants (the "June 2020 Investor Warrants"), exercisable for up to 874 shares of the Company’s common stock at an exercise price of $5.18 per share. The June 2020 Investor Warrants were immediately exercisable and expire on December 10, 2025. The June 2020 Investor Warrants  may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The June 2020 Investor Warrants will be automatically exercised on a cashless basis on their expiration date. The June 2020 Investor Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the June 2020 Investor Warrants, the holders of the June 2020 Investor Warrants will be entitled to receive upon exercise of the June 2020 Investor Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the June 2020 Investor Warrants immediately prior to such Fundamental Transaction. Alternatively, the Company or any successor entity will, at the option of a holder of a June 2020 Investor Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s June 2020 Investor Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s June 2020 Investor Warrant. Because of this put-option provision, the June 2020 Investor Warrants are classified as a liability and are marked to market at each reporting date.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The warrant liability related to the June 2020 Investor Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Investor Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.18  $5.18 

Risk-free interest rate

  3.92%  4.26%

Expected term (years)

  1.19   1.94 

Volatility of stock

  109.4%  78.2%

 

June 2020 Placement Agent Warrants

 

In June 2020, the Company issued warrants (the "June 2020 Placement Agent Warrants"), exercisable for up to 122 shares of the Company’s common stock, to the placement agent for such offering. The June 2020 Placement Agent Warrants have substantially the same form as the June 2020 Investor Warrants, including the put option described above, except that they have an exercise price per share equal to $5.64, subject to adjustment in certain circumstances, and expire on June 7, 2025.

 

Because of the put-option provision in the June 2020 Placement Agent Warrants, these warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the June 2020 Placement Agent Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Placement Agent Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.64  $5.64 

Risk-free interest rate

  4.23%  4.54%

Expected term (years)

  0.69   1.44 

Volatility of stock

  93.3%  83.0%

 

December 2019 Warrants

 

In December 2019, pursuant to a securities purchase agreement (the "December 2019 Offering"), the Company issued warrants (the "December 2019 Warrants") to purchase 556 shares of common stock. The December 2019 Warrants are currently exercisable, have an exercise price of $8.10 per share, and expire on June 21, 2025. The December 2019 Warrants  may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The December 2019 Warrants will be automatically exercised on a cashless basis on their expiration date. The December 2019 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the December 2019 Warrants, the Company or any successor entity will, at the option of a holder of a December 2019 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s December 2019 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s December 2019 Warrant within five trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the December 2019 Warrants are classified as a liability and are marked to market at each reporting date.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The warrant liability related to the December 2019 Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.10  $8.10 

Risk-free interest rate

  4.21%  4.53%

Expected term (years)

  0.72   1.47 

Volatility of stock

  98.6%  82.3%

 

December 2019 Placement Agent Warrants

 

In December 2019, in connection with the December 2019 Offering, the Company issued warrants to purchase 52 shares of the Company’s common stock to the placement agent for such offering (the "December 2019 Placement Agent Warrants"). The December 2019 Placement Agent Warrants have substantially the same form as the December 2019 Warrants, except that they have an exercise price per share equal to $8.44, subject to adjustment in certain circumstances, and expire on December 18, 2025.

 

The warrant liability related to the December 2019 Placement Agent Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Placement Agent Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.44  $8.44 

Risk-free interest rate

  4.79%  4.82%

Expected term (years)

  0.22   0.97 

Volatility of stock

  103.0%  85.2%

 

Management has assessed that the likelihood of a Change of Control (as defined in the December 2019 Placement Agent Warrants), occurring during the term of the December 2019 Placement Agent Warrants is low, and that if such an event were to occur, the difference between the cashless exercise value and the warrants fair value is nominal.

 

May 2019 Warrants

 

In May 2019, pursuant to an underwriting agreement (the "May 2019 Offering"), the Company issued the warrants (the "May 2019 Warrants") to purchase 444 shares of common stock. The May 2019 Warrants had a five-year term from the date of issuance and expired in May 2024.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The warrant liability related to the May 2019 Warrants was measured at fair value at each reporting and exercise date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. Because of the price protection feature contained in the May 2019 Warrants, the Company used a combination of the Black-Scholes Model and the Lattice Model to estimate the fair value of the warrants at each reporting period. The following assumptions were used in the Black-Scholes Model in combination with the Lattice Model to measure the fair value of the May 2019 Warrants:

 

  

September 30, 2024

  

December 31, 2023

  

Share price

  N/A  $1.88 

(1)

Conversion price

  N/A  $3.52  

Risk-free interest rate

  N/A   5.3% 

Expected term (years)

  —   0.4  

Volatility of stock

  N/A   77.5% 

(1) As of December 31, 2023, management determined that a financing event was likely in the first quarter of 2024, and reduced the share price used in the model by 25% in order to reflect the total amount that would be realized accordingly.

 
 

12.         Stock-based Compensation

 

Shares available for grant

 

The Company's Amended and Restated 2014 Equity Incentive Plan (the "2014 Plan") expired on  January 31, 2024. Following such expiration and prior to the 2024 Annual Meeting of Stockholders (the "Annual Meeting"), no grants were made under the 2014 Plan. On June 6, 2024, the Company held its Annual Meeting and amended and restated the 2014 Plan (the "Restated 2014 Plan") to extend the term of the 2014 Plan until April 15, 2034, and to increase the total number of shares of common stock authorized for issuance by 1,000 shares relative to the amount available for issuance at the time the 2014 Plan expired. As of September 30, 2024, the total number of shares authorized for grant under the Restated 2014 Plan was 4,724, of which 980 were available for future grants.

 

Stock Options

 

The following table summarizes information about the Company’s stock options outstanding as of September 30, 2024, and activity during the nine months then ended:

 

          

Weighted-

     
          

Average

     
      

Weighted-

  

Remaining

  

Aggregate

 
  

Stock

  

Average

  

Contractual

  

Intrinsic

 
  

Awards

  

Exercise Price

  

Life (Years)

  

Value

 

Balance as of December 31, 2023

  252  $36.17         

Options cancelled

  (67)  45.30         

Balance as of September 30, 2024

  185  $32.90   3.80  $— 

Vested and expected to vest as of September 30, 2024

  185  $32.90   3.79  $— 

Exercisable as of September 30, 2024

  185  $32.91   3.80  $— 

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

There were no stock options awarded during the three and nine months ended September 30, 2024 and 2023, and no unrecognized compensation cost related to unvested stock options as of September 30, 2024.

 

Restricted Stock Units

 

The Company issues time-based restricted stock units (“RSUs”) and performance-based restricted stock units ("PSUs") to employees and non-employees. Each RSU and PSU represents the right to receive one share of the Company’s common stock upon vesting and subsequent settlement. PSUs vest upon achievement of performance targets based on the Company's annual operating plan. The fair values of RSUs and PSUs are determined based on the closing price of the Company’s common stock on the date of grant.

 

Combined RSU and PSU activity for the nine months ended September 30, 2024 is summarized below:

 

      

Weighted-

 
  

Number of

  

Average Grant

 
  

Shares

  

Date Fair Value

 

Unvested as of December 31, 2023

  1,305  $1.67 

Granted

  413   1.12 

Vested

  (635)  1.95 

Forfeited

  (49)  1.76 

Unvested as of September 30, 2024

  1,034  $1.30 

 

As of September 30, 2024, $722 of total unrecognized compensation expense related to unvested RSUs and PSUs was expected to be recognized over a weighted average period of 0.97 years.

 

Compensation Expense

 

Stock-based compensation expense is included in the condensed consolidated statements of operations and comprehensive loss in general and administrative, research and development, or sales and marketing expenses, depending on the nature of the services provided. Stock-based compensation expense related to RSUs and PSUs was recorded as follows:

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Sales and marketing

 $22  $69  $80  $209 

Research and development

  27   107   198   320 

General and administrative

  357   265   788   850 
  $406  $441  $1,066  $1,379 

 

401(k) Plan Share Match

 

During the nine months ended September 30, 2024 and 2023, the Company issued 163 and 161 shares of common stock with a fair value of $237 and $249, respectively, to eligible employees’ deferral accounts for the 401(k) Plan matching contribution representing 50% of each eligible employee’s elected deferral (up to the statutory limit) for the years ended December 31, 2023 and 2022.

 

The expense for the 401(k) Plan share matching was $177 and $304 for the nine months ended September 30, 2024 and 2023, respectively.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

13.         Income Taxes

 

There were no material changes to the unrecognized tax benefits in the nine months ended September 30, 2024, and the Company does not expect significant changes to unrecognized tax benefits through the end of the fiscal year.

 
 

14.         Commitments and Contingencies

 

Material Contracts

 

The Company has two license agreements with the Regents of the University of California to maintain exclusive rights to certain patents. The Company is required to pay 1% of net sales of licensed medical devices sold to entities other than the U.S. government. In addition, the Company is required to pay 21% of consideration collected from any sub-licensee for the grant of the sub-license.

 

The Company has two license agreements with Vanderbilt University to maintain exclusive rights to patents on the Company's behalf.

 

Under the Vanderbilt Exoskeleton License Agreement, the Company is required to pay 6% of net sales of licensed patent products and 3% of net sales of licensed software products. The minimum annual royalty for licensed products is $250. The Vanderbilt Exoskeleton License Agreement will continue until April 29, 2038, unless sooner terminated.

 

Under the Vanderbilt Knee License Agreement, the Company is required to pay 3.75% of net sales for licensed patent products and the minimum annual royalty is $75 due on or before July 31, 2028 and $100 per year thereafter. The Vanderbilt Knee License Agreement will continue until February 15, 2041, unless sooner terminated.

 

Purchase Obligations

 

The Company purchases components from a variety of suppliers and uses contract manufacturers to provide manufacturing services for its products. Purchase obligations are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. 

 

The Company had purchase obligations primarily for purchases of inventory and manufacturing related service contracts totaling $1,511 as of September 30, 2024, which are expected to be paid within one year, and $2,783 as of December 31, 2023. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations.

 

The Company has operating lease commitments totaling $1,083 payable over 34 months related to the San Rafael Lease, the Ohio Lease, and the Hamburg Lease as disclosed in Note 10. Lease Obligations.

 

Loss Contingencies

 

In the normal course of business, the Company is subject to various legal matters. In the opinion of management, the resolution of such matters will not have a material adverse effect on the Company’s condensed consolidated financial statements.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 
 

15.         Net Loss Per Share

 

The following table sets forth the computation of basic and diluted net loss per share:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Numerator:

                

Net loss applicable to common stockholders, basic and diluted

 $(2,072) $(3,365) $(7,917) $(11,984)
                 

Denominator:

                

Weighted-average number of common shares, basic and diluted

  20,310   14,073   18,657   13,672 
                 

Net loss per common share, basic and diluted

 $(0.10) $(0.24) $(0.42) $(0.88)

 

The following table sets forth potential shares of common stock that are not included in the calculation of diluted net loss per common share because to do so would be anti-dilutive as of the end of each period presented:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Options to purchase common stock

  185   254   185   254 

Restricted stock units

  1,034   1,474   1,034   1,474 

Warrants for common stock(1)

  13,047   1,240   13,047   1,240 

Total common stock equivalents

  14,266   2,968   14,266   2,968 

(1) Represents the number of shares of common stock underlying our outstanding warrants as of such dates except for the 2,900 shares of common stock underlying the Pre-Funded Warrant issued during the three and nine months ended September 30, 2024. Refer to Note 11. Capitalization and Equity Structure – Warrants for additional information regarding the warrants.

 
 

16.         Segment Disclosures

 

The Company has two reportable segments: EksoHealth and EksoWorks. The EksoHealth segment designs, manufactures, and markets exoskeletons for applications in the medical markets. The EksoWorks segment designs, manufactures, and markets exoskeleton devices to allow able-bodied users to perform difficult repetitive work for extended periods. The reportable segments are each managed separately because they serve distinct markets.

 

The Company evaluates performance and allocates resources based on segment gross profit. The Company does not consider operating expenses or net assets as segment measures and, accordingly, are not allocated.

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

Segment reporting information is as follows:

 

   

EksoHealth

    

EksoWorks

    

Total

  

Three months ended September 30, 2024

                        

Revenue

   $ 4,087     $ 42     $ 4,129  

Cost of revenue

     1,834       86       1,920  

Gross profit

   $ 2,253     $ (44 )   $ 2,209  
                         

Three months ended September 30, 2023

                        

Revenue

   $ 4,388     $ 219     $ 4,607  

Cost of revenue

     2,006       145       2,151  

Gross profit

   $ 2,382     $ 74     $ 2,456  

 

   

EksoHealth

    

EksoWorks

    

Total

  

Nine months ended September 30, 2024

                        

Revenue

   $ 12,430     $ 405     $ 12,835  

Cost of revenue

     5,685       353       6,038  

Gross profit

   $ 6,745     $ 52     $ 6,797  
                         

Nine months ended September 30, 2023

                        

Revenue

   $ 13,072     $ 360     $ 13,432  

Cost of revenue

     6,378       344       6,722  

Gross profit

   $ 6,694     $ 16     $ 6,710  

 

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Ekso Bionics Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
($ and share amounts in thousands, except per share amounts)
(Unaudited)
 

The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa ("EMEA"), and (3) Asia Pacific ("APAC"). Individual countries with revenue greater than 10% of total revenue for the three and nine months ended September 30, 2024 and 2023 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:

 

   

Three Months Ended September 30,

    

Nine Months Ended September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Americas

                                

United States

   $ 1,877     $ 3,099     $ 6,763     $ 9,741  

Other

     18       138       380       149  

Americas revenue

     1,895       3,237       7,143       9,890  
                                 

EMEA

                                

France

     1,067       176       1,935       177  

Poland

     113       496       209       1,007  

Other

     537       374       1,919       1,480  

EMEA revenue

     1,717       1,046       4,063       2,664  
                                 

APAC

                                

Hong Kong

     214       178       335       475  

Other

     303       146       1,294       403  

APAC revenue

     517       324       1,629       878  
                                 

Total Revenue

   $ 4,129     $ 4,607     $ 12,835     $ 13,432  

 
 

17.          Related Party Transactions

 

On February 4, 2023, the Company entered into a mutual release and settlement agreement with an entity to settle and resolve any and all potential claims brought forth in connection with a consulting agreement executed between the entity and the Company in July 2017. Under the terms of the consulting agreement, the Company was required to make milestone payments for the introduction of potential partners for, and the consummation of, a strategic joint venture. A member of the Company's board of directors is affiliated with one of two entities under common control.

 

The Company's total settlement amount was $325 and to be paid in cash over 14 months, with an initial payment of $145 paid in the first 40 days and $15 per month for the remaining 12 months. The total settlement amount was fully paid in April 2024. The Company had a liability of $0 and $60 related to this settlement on its condensed consolidated balance sheet under the caption Accrued Liabilities as of September 30, 2024 and December 31, 2023, respectively.
 

 

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

In this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (this "Quarterly Report"), the “Company”, “we”, “its” and “our” refers to Ekso Bionics Holdings, Inc. and its wholly-owned subsidiaries. The following discussion of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which is incorporated herein by reference (the “Annual Report”).

 

This Quarterly Report contains forward-looking statements. These forward-looking statements include statements other than statements of historical facts contained or incorporated by reference in this Quarterly Report, including statements regarding (i) the plans and objectives of management for future operations, including those relating to the design, development and commercialization of exoskeleton products for humans, (ii) the manufacturing of our products and strengthening of our supply chain, and potential opportunities for strategic partnerships, (iii) beliefs regarding the regulatory path for our products, including potential approvals required and timing of approvals, (iv) statements regarding the financial and operational impacts on our business following the completion of the integration of our acquisition from Parker Hannifin Corporation of certain assets related to Parker Hannifin Corporation's human motion control business, and software applications, support services and cloud environments related to such business in December 2022 (the "HMC Acquisition"), (v) our future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in our results of operations, (vi) our beliefs regarding the potential for commercial opportunities, including for exoskeleton technology and our exoskeleton products, and for strategic partnerships, (vii) our beliefs regarding potential clinical and other health benefits of our medical devices, (viii) the actions we will take in seeking reimbursement from Centers for Medicare and Medicaid Services ("CMS") and the success of such actions, (ix) the timing and amounts of CMS reimbursement, (x) our ability to grow and expand our EksoHealth segment as we work to grow revenue in light of Medicare reimbursement from CMS of the Ekso Indego Personal, (xi) our ability to obtain insurance coverage beyond CMS, (xii) our ability to obtain additional indications for products that cover the Ekso Indego Personal, (xiii) our ability to obtain CE certificates registered by Ekso Bionics, Inc. for our Ekso Indego Therapy and Ekso Indego Personal devices, (xiv) the impact and effects of the other risk factors on our business, results of operations or prospects, and (xv) the assumptions underlying or relating to any statement described in points (i) through (xiv) above. The words “may,” “might,” “would,” “should,” “could,” “project,” “estimate,” “pro-forma,” “predict,” “potential,” “strategy,” “anticipate,” “attempt,” “develop,” “plan,” “help,” “believe,” “continue,” “intend,” “expect,” “future,” and similar expressions (including the negative of any of the foregoing) are intended to identify forward-looking statements.

 

The following factors, among others, including those described in the section titled “Risk Factors” included in our Annual Report, as updated and supplemented in this Quarterly Report under the heading “Part II – Item 1A. Risk Factors,” could cause our future results to differ materially from those expressed in the forward-looking information:

 

 

•

our ability to obtain adequate financing to fund operations and to develop or enhance our technology;
 

•

our ability to generate sufficient cash flow to service our debt obligations;
 

•

our ability to obtain or maintain regulatory approval to market our medical devices;
 

•

our ability to complete clinical trials on a timely basis and that completed clinical trials will be sufficient to support commercialization of our products;
 

•

the anticipated timing, cost and progress of the development and commercialization of new products or services, and improvements to our existing products, and related impacts on our profitability and cash position;
 

•

our ability to effectively market and sell our products and expand our business, both in unit sales and product diversification;
 

•

our ability to achieve broad customer adoption of our products and services;
 

•

existing or increased competition;
  • our estimates regarding our current or future addressable market;
 

•

our ability to sell additional units, and, once sold, recognize the expected margins and revenue, using the reimbursement code for our Ekso Indego Personal device with CMS;
  • our ability to obtain reimbursement from CMS in a timely manner and at the expected reimbursement levels;
  • our ability to obtain insurance coverage beyond CMS;
  • our ability to obtain additional indications of use for our devices;
  • our ability to obtain CE certificates registered by Ekso Bionics, Inc. for our Ekso Indego Therapy and Ekso Indego Personal devices;
  • rapid changes in technological solutions available to our markets;
 

•

volatility with our business, including long and variable sales cycles, which could have a negative impact on our results of operations for any given quarter;
 

•

changes to our domestic or international sales and operations;
 

•

our ability to obtain or maintain patent protection for our intellectual property;
 

•

the scope, validity and enforceability of our and third-party intellectual property rights;
 

•

significant government regulation of medical devices and the healthcare industry;
 

•

our ability to receive regulatory clearance from certain government authorities, including any conditions, limitations or restrictions placed on such approvals;
 

•

our customers’ ability to get third-party reimbursement for our products and services associated with them and our ability to manage the complex and lengthy reimbursement process;
 

•

the potential for our products to be subject to voluntary or involuntary recall;
 

•

our product liability insurance may not adequately cover potential claims;
 

•

warrant claims and our accelerated maintenance program results in additional operating costs to us;
 

•

our failure to implement our business plan or strategies, including our expectation that CMS reimbursements will be a significant source of revenue;
 

•

our ability to successfully consummate acquisitions on acceptable terms and to integrate any such acquisitions;
 

•

our early termination of leases, difficulty filling vacancies or negotiating improved lease terms;
 

•

our ability to retain or attract key employees;

 

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•

scope, scale and duration of the impact of outbreaks of global health events;
 

•

stock volatility or illiquidity;
 

•

our ability to maintain adequate internal controls over financial reporting;
 

•

the impacts of foreign currency price fluctuations; and
 

•

overall economic and market conditions.

 

Although we believe that the assumptions underlying the forward-looking statements and forward-looking information contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, such statements and information included in this Quarterly Report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements and forward-looking information included herein, the inclusion of such statements and information should not be regarded as a representation by us or any other person that the results or conditions described in such statements and information or that our objectives and plans will be achieved. Such forward-looking statements speak only as of the date of this Quarterly Report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

 

Overview

 

Our Business
 
We design, develop, and market exoskeleton products that augment human strength, endurance, and mobility. Our exoskeleton technology serves multiple end markets and can be utilized both by persons with physical disabilities or impairments and on able-bodies. The majority of our sales are generated in our Enterprise Health business line within our EksoHealth Segment, which includes the sales of products and services related to neurorehabilitation in clinical settings. We also provide products and service from our Personal Health business line to individual users.

 

In addition to our current products and services, we continue to explore business development initiatives to fuel growth and long-term value in our existing segments. 
 
EksoHealth
 
Our Enterprise Health business line focuses on sales of our EksoNR and Ekso Indego Therapy products to customers, including inpatient rehabilitation hospitals and clinics as well as some outpatient rehabilitation clinics. Our marketing to these customers involves the education of clinical and executive stakeholders on the economic and clinical value of our products and services. In tandem, we continue to leverage our EksoNR and Ekso Indego customer base to educate and mentor strategic target centers that specialize in stroke, ABI and SCI rehabilitation in specific geographies. We believe that our Enterprise Health business line will be a source of stable sales growth.

 

Our Personal Health business line is focused on marketing and sales of our Ekso Indego Personal product to individual users. These individual users are currently served by the Veterans Administration, which provides our products to qualified veterans for individual use, individuals who are covered under worker’s compensation insurance, and private individuals who pay out of pocket.  In April 2024, CMS approved a final payment level of $91,031.93 for Medicare reimbursement of the Ekso Indego Personal, which took effect on April 1, 2024. We intend to seek insurance coverage beyond CMS and to seek additional indications of use for our products. We believe that our Personal Health business line has the potential for a higher growth rate than our Enterprise Health business line.

 

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EksoWorks

 

Sales of products to able-bodied individuals for use in industrial or work-related use are represented by our EksoWorks segment. Our only active product within our EksoWorks segment is EVO. Our primary end market for our EksoWorks segment is comprised of commercial enterprises that are focused on solving ergonomic challenges for their workers. These challenges include injury prevention, fatigue reduction, and/or improved worker productivity. While EVO is a general-purpose product, we currently target specific vertical markets including aerospace, automotive, general manufacturing, and certain construction trades. 

 

Economic and Industry Trends   
 

Our revenue is highly dependent on market demand for our exoskeleton products. This market demand is influenced by many factors including the level of awareness of robotic exoskeleton rehabilitation among the rehabilitation clinics with significant stroke, ABI, and SCI populations, the imperatives among construction and manufacturing companies to drive adoption of improved safety and health practices, the levels of reimbursements our customers will be able to receive, as well as conditions relating to overall economic growth and general business activity. Difficult and challenging economic conditions, including an increasingly inflationary environment, could lead to increased price-based competition. In particular, the effects of such increasing price-based competition may have an especially significant impact on certain products that we offer, including the EksoNR and Ekso Indego, which have a lengthy sale and purchase order cycle because they are major capital expenditure items and generally require the approval of senior management at purchasing institutions. Furthermore, we do business in the Americas, EMEA and APAC, which results in our business being impacted by demand changes in each of those regions, as well as changes in the strength of the local currencies relative to the U.S. Dollar. 
 
With the recent approval of CMS lump sum reimbursement for Indego Personal, we believe we will see increased demand for this device as we are able to more economically serve the larger U.S. patient population suffering from SCI. Specifically, according to the National Spinal Cord Injury Statistical Center, an estimated 305,000 individuals are currently living with SCI and another 18,000 suffer from new SCI injuries each year. Approximately 57% of individuals with SCI are enrolled in Medicare or Medicaid within 5 years post-injury. With Medicare reimbursement recently approved, we have begun selling products to individuals in this market through Durable Medical Equipment suppliers (DMEs). DMEs typically resell products from DME manufacturers to individual users. DMEs are responsible for the Medicare reimbursement process, which requires a physician’s prescription and evidence of medical necessity to be submitted to and approved by Medicare before reimbursement is provided.  See “Part I—Item 1A. Risk Factors,” specifically the risk titled “Coverage policies and reimbursement levels of third-party payers, including Medicare or Medicaid, may impact sales of our products” in our Annual Report for more information.

 

Critical Accounting Estimates

 

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Our estimates form the basis for our judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Our most critical accounting estimates include:

 

 

•

the standalone selling prices used to allocate the contract consideration to the individual performance obligations in our device sales arrangements, which impacts revenue recognition;
 

•

the unobservable inputs and assumptions used by management in estimating the fair value of our warrant liabilities, which impacts net income or loss;
  • the valuation of inventory, which impacts gross profit margins;
 

•

the estimates made regarding the recoverability of our net deferred tax asset, which impacts our financial condition;
  • the fair value of the tangible and intangible assets acquired and liabilities assumed in our business combination;
 

•

future warranty costs;
  • accounting for leases; and
  • useful lives assigned to long-lived assets.

 

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Standalone Selling Prices

 

Our device sales arrangements contain multiple products and services, most often including the device(s) and service, both of which we have identified as distinct performance obligations. Revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which we separately sell the products or services. If a standalone selling price is not directly observable, then we estimate the standalone selling prices considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, type of customer, and gross margin targets. Changes in the relative standalone selling price between devices and service can have an impact on how transaction prices are allocated between revenue and deferred revenue.

 

Warrant Liabilities

 

We use the Black-Scholes option-pricing model to value our warrant liabilities at each reporting period, which requires the input of highly subjective assumptions, most notably the estimated volatility of our common stock over the expected term. We use our historical common stock volatility to estimate expected volatility over the warrant terms. Changes in these assumptions could have potential material impacts on the estimated fair value of warrant liabilities.

 

Inventory Valuation

 

Inventory is stated at the lower of cost or net realizable value. Cost is computed using the standard cost method which approximates actual cost on a first-in, first-out basis. The cost basis of our inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. If actual future demand or market conditions are less favorable than those projected by management, additional inventory write-downs may be required, which could have a material adverse effect on the results of our operations.

 

Deferred Tax Asset

 

We estimate a valuation allowance in consideration of the realizability of our net deferred tax assets, primarily based on our assessment of the timing, likelihood and amounts of potential future income during which such items become deductible. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes and estimate future amounts. Management does not believe it is more likely than not that we will generate future income in a timeframe and amount sufficient to realize our net deferred tax assets. Changes in management's estimate of future income in the timeframe during which the temporary differences and carryforwards comprising our deferred tax assets become deductible could result in a material impact to our financial position including the recognition of a net deferred tax asset.

 

Assets Acquired and Liabilities Assumed in Business Combinations

 

We allocate the fair value of the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, the amount and timing of projected future cash flows based on expected future growth rates and margins, discount rate used to determine the present value of these cash flows, future changes in technology and royalty for similar brand licenses, and asset lives. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Allocation of purchase consideration to identifiable assets and liabilities affects our amortization expense, as acquired finite-lived intangible assets are amortized over the useful life, whereas any indefinite-lived intangible assets, including goodwill, are not amortized. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are included in the consolidated statement of operations.

 

Future Warranty Costs

 

Sales of devices generally include an initial warranty for parts and services for one year in the Americas, two years in EMEA, and one to three years in the APAC region. A liability for the estimated cost of product warranty is established at the time revenue is recognized based on the historical experience of known product failure rates and expected material and labor costs to provide warranty services. Specific additional warranty accruals may be made if unforeseen technical problems arise. Alternatively, if estimates are determined to be greater than the actual amounts necessary, a portion of the liability may be reversed in future periods. At the end of each reporting period, we estimate our future warranty costs related to products sold during the period. This liability represents our best estimate of the costs we will incur to fulfill warranty obligations for products sold during the period. At least annually, we review and update our estimates based on actual warranty claims experience.

 

Accounting for Leases

 

In accordance with ASC 842, Leases, at the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present, generally based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize our incremental borrowing rate to determine the present value of the future lease payments, which is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received. Lease payments may be fixed or variable; however, only fixed payments are included in our lease liability. Variable lease payments may include costs such as common area maintenance, utilities, or other costs. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments is incurred.

 

Useful Lives Assigned to Long-Lived Assets

 

The useful life of an asset represents the period during which the asset is expected to contribute directly or indirectly to future cash flows. We estimate the useful lives of the Company’s long-lived assets based on various factors, including the expected period of economic benefit of the asset in use, our intended use of the asset, economic factors such asset obsolescence and technological advances, any limitations imposed by legal, regulatory, or contractual requirements, and industry norms. These assumptions affect the timing and amount of depreciation expense, which could have a material adverse effect on the results of our operations.

 

Accounting Policies

 

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. We believe that our critical accounting policies reflect the more significant estimates and assumptions used in the preparation of the consolidated financial statements. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies and Estimates in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

 

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Results of Operations

 

 

The following table presents our results of operations for the three months ended September 30, 2024 and 2023 (in thousands, except percentages):

 

   

Three Months Ended September 30,

                  
   

2024

    

2023

    

Change

    

% Change

  
                                 

Revenue

   $ 4,129     $ 4,607     $ (478 )     (10 )%

Cost of revenue

     1,920       2,151       (231 )     (11 )%

Gross profit

     2,209       2,456       (247 )     (10 )%

Gross profit %

     53 %     53 %                
                                 

Operating expenses:

                                

Sales and marketing

     1,760       2,052       (292 )     (14 )%

Research and development

     777       1,159       (382 )     (33 )%

General and administrative

     2,311       2,176       135       6 %

Total operating expenses

     4,848       5,387       (539 )     (10 )%

Loss from operations

     (2,639 )     (2,931 )     292       (10 )%

Other income (expense), net:

                                

Interest expense, net

     (79 )     (64 )     (15 )     23 %

Gain on revaluation of warrant liabilities

     14       60       (46 )     (77 )%

Unrealized gain (loss) on foreign exchange

     634       (433 )     1,067       (246 )%

Other (expense) income, net

     (2 )     3       (5 )     (167 )%

Total other income (expense), net

     567       (434 )     1,001       (231 )%

Net loss

   $ (2,072 )   $ (3,365 )   $ 1,293       (38 )%

 

Revenue

 

Revenue decreased $0.5 million, or 10%, for the three months ended September 30, 2024, compared to the same period of 2023. This decrease was comprised of a $0.3 million decrease in EksoHealth revenue and a $0.2 million decrease in EksoWorks revenue.

 

The decrease in EksoHealth revenue was primarily driven by adecrease in the volume of Enterprise Health device shipments and lower volume of EksoNR subscriptions, partially offset by an increase in the volume of Personal Health device shipments. The decrease in EksoWorks revenue was primarily driven by a decrease in the volume of EVO shipments.

 

Gross Profit and Gross Margin

 

Gross profit decreased $0.2 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by adecrease in sales in the EksoHealth and EksoWorks segments, partially offset by cost savings in supply chain and a reduction in service costs.

 

Gross margin increased to 53.5% for the three months ended September 30, 2024, compared to a gross margin of 53.3% for the same period of 2023, primarily driven by cost savings in supply chain and a reduction in service costs, partially offset by lower margin sales related to increased volume through distribution.

 

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Operating Expenses

 

Sales and marketing expenses decreased $0.3 million, or 14%, for the three months ended September 30, 2024, compared to the same period of 2023. The decrease was primarily due to lower headcount, discretionary payroll and travel expenses.

 

Research and development expenses decreased $0.4 million, or 33%, for the three months ended September 30, 2024, compared to the same period of 2023, primarily due to a decrease in the Company's use of product development consultants.

 

General and administrative expenses increased $0.1 million, or 6%, for the three months ended September 30, 2024, compared to the same period of 2023, primarily due to higher consultant costs.

 

Total Other Income (Expense), Net

 

Interest expense, net increased 23% for the three months ended September 30, 2024 compared to the same period of 2023. This increase is primarily related to lower interest income from cash deposits, partially offset by lower interest expense related to the Promissory Note principal payments.

 

Gain on revaluation of warrant liabilities was de minimis for the three months ended September 30, 2024 as compared to a gain on revaluation of warrant liabilities of $0.1 million for the three months ended September 30, 2023, and was associated with the revaluation of warrants issued in 2019, 2020 and 2021. Gains and losses on revaluation of warrants are primarily driven by changes in our stock price, stock price volatility, time to maturity and the risk-free interest rate.

 

Unrealized gain on foreign exchange for the three months ended September 30, 2024 was$0.6 million compared to an unrealized loss on foreign exchange of $0.4 million for the same period of 2023. These unrealized gains and losses are primarily the result of foreign currency revaluations of our inter-company monetary assets and liabilities.

 

The following table presents our results of operations for the nine months ended September 30, 2024 and 2023 (in thousands, except percentages):

 

   

Nine Months Ended September 30,

                  
   

2024

    

2023

    

Change

    

% Change

  
                                 

Revenue

   $ 12,835     $ 13,432     $ (597 )     (4 )%

Cost of revenue

     6,038       6,722       (684 )     (10 )%

Gross profit

     6,797       6,710       87       1 %

Gross profit %

     53 %     50 %                
                                 

Operating expenses:

                                

Sales and marketing

     5,424       6,489       (1,065 )     (16 )%

Research and development

     3,029       3,712       (683 )     (18 )%

General and administrative

     6,574       8,172       (1,598 )     (20 )%

Total operating expenses

     15,027       18,373       (3,346 )     (18 )%

Loss from operations

     (8,230 )     (11,663 )     3,433       (29 )%

Other income (expense), net:

                                

Interest expense, net

     (210 )     (236 )     26       (11 )%

Loss on modification of warrant

     (109 )     —       (109 )     *  

Gain on revaluation of warrant liabilities

     440       186       254       137 %

Unrealized gain (loss) on foreign exchange

     194       (223 )     417       (187 )%

Other expense, net

     (2 )     (48 )     46       (96 )%

Total other income (expense), net

     313       (321 )     634       (198 )%

Net loss

   $ (7,917 )   $ (11,984 )   $ 4,067       (34 )%

(*)  Not meaningful

 

Revenue

 

Revenue decreased $0.6 million, or 4%, for the nine months ended September 30, 2024, compared to the same period of 2023. This decrease was comprised of a $0.6 million decrease in EksoHealth revenue, offset by a de minimis increase in EksoWorks revenue.

 

The decrease in EksoHealth revenue was primarily due to a decrease in the volume of Enterprise Health device shipments and lower volume of EksoNR subscriptions, partially offset by an increase in service revenue. The increase in EksoWorks revenue was primarily driven by an increase in the volume of EVO shipments.

 

Gross Profit and Gross Margin

 

Gross profit increased $0.1 million for the nine months ended September 30, 2024 compared to the same period of 2023, driven by cost savings in supply chain and a reduction in service costs.

 

Gross margin increased to 53% for the nine months ended September 30, 2024, compared to a gross margin of 50% for the same period of 2023. The overall increase in gross margin was primarily driven by cost savings in supply chain and a reduction in service costs.

 

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Operating Expenses

 

Sales and marketing expenses decreased $1.1 million, or 16%, for the nine months ended September 30, 2024, compared to the same period of 2023. The decrease was primarily due to lower headcount, discretionary payroll and consultant costs.

 

Research and development expenses decreased $0.7 million, or 18%, for the nine months ended September 30, 2024, compared to the same period of 2023, primarily due to a decrease in the Company's use of product development consultants and discretionary payroll costs.

 

General and administrative expenses decreased $1.6 million, or 20%, for the nine months ended September 30, 2024, compared to the same period of 2023, primarily due to lower discretionary payroll, accounting and legal costs.

 

Total Other Income (Expense), Net

 

Interest expense, net decreased 11% for the nine months ended September 30, 2024 compared to the same period of 2023. This decrease is primarily related to lower interest expense from the Promissory Note principal payments.

 

Loss on modification of warrants of $0.1 million for the nine months ended September 30, 2024 was due to the reduction of the exercise price of the May 2019 Warrants from $3.52 per share to $1.55 per share, in connection with the January 2024 Offering. There was no comparable amount for the nine months ended September 30, 2023.

 

Gain on revaluation of warrant liabilities was $0.4 million for the nine months ended September 30, 2024 as compared to a gain on revaluation of warrant liabilities of $0.2 million for the nine months ended September 30, 2023, and was associated with the revaluation of warrants issued in 2019, 2020 and 2021. Gains and losses on revaluation of warrants are primarily driven by changes in our stock price, stock price volatility, time to maturity and the risk-free interest rate.

 

Unrealized gain on foreign exchange for the nine months ended September 30, 2024 was $0.2 million compared to unrealized loss on foreign exchange of $0.2 million for the same period of 2023. These unrealized gains and losses are primarily the result of foreign currency revaluations of our inter-company monetary assets and liabilities.

 

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Liquidity and Capital Resources

 

As of September 30, 2024, $8.3 million of cash was held domestically and by our foreign subsidiaries. Cash consisted of bank deposits with third-party financial institutions. As described in Note 9 in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report under the caption Notes Payable, net, borrowings under our secured term loan agreement with Banc of California have a requirement of minimum cash on hand equivalent to the current outstanding principal balance, which is due in full August 2026. As of September 30, 2024, $2.0 million of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of September 30, 2024 was approximately $6.3 million.

 

On September 30, 2024, we had working capital of $13.6 million, compared to working capital of $12.1 million as of December 31, 2023. The increase in working capital was primarily due to a higher accounts receivable balance and a lower accrued liability balance.

 

We have funded our operations primarily through the issuance and sale of equity securities and bank debt.

 

On September 3, 2024, we sold 3,100,000 shares of common stock, a Pre-Funded Warrant to purchase 2,900,000 shares of common stock, Series A Warrants to purchase an aggregate of 6,000,000 shares of common stock, and Series B Warrants to purchase an aggregate of 6,000,000 shares of common stock in an underwritten public offering (the "September 2024 Offering"), which generated net proceeds of approximately $5.0 million after deducting the underwriting discount and commissions and offering expenses paid by the Company. We are using the net proceeds from the September 2024 Offering for general corporate purposes, which may include growth and expansion of our EksoHealth segment as we work to increase our revenue following the establishment of Medicare CMS reimbursement of the Ekso Indego Personal device, research and development activities, selling, general and administrative costs, and pursuing strategic initiatives, which initiatives may include potential synergistic and accretive acquisitions, as well as meeting our other working capital needs.

 

On January 16, 2024, we sold an aggregate of 3.0 million shares of common stock in a registered direct offering (the "January 2024 Offering") at a price of $1.55 per share, which generated net proceeds of approximately $3.9 million after deducting placement agent fees and our estimated offering expenses.

 

In October 2020, we entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC (the "Agent"), under which we may issue and sell shares of our common stock, from time to time, to or through the Agent. Offers and sales of shares of common stock by us through the Agent may be made by any method deemed to be an “at the market offering” as defined under SEC Rule 415 or in privately negotiated transactions, subject to certain conditions. Such shares may be offered pursuant to the registration statement on Form S-3 (File No. 333-272607) (the “Registration Statement”), which was declared effective by the SEC on June 20, 2023, and a related prospectus supplement filed with the SEC on July 28, 2023 (the “ATM Prospectus”). Pursuant to the Registration Statement and the ATM Prospectus, shares having an aggregate offering price of up to $5.0 million may be offered and sold, subject to certain SEC rules limiting the amount of shares of the Company’s common stock that we may sell under the Registration Statement. In June 2023, we entered into an amendment to the ATM Agreement that removed the requirement that shares of our common stock may not be sold for a price lower than $6.75 per share. During the three months ended September 30, 2024, we did not sell any shares of common stock under the ATM Agreement. During the nine months ended September 30, 2024, we sold 105,049 shares of common stock under the ATM Agreement at an average price of $1.43, for aggregate proceeds of $85,073, net of commission and issuance costs. As of September 30, 2024, we had $4.1 million available for future offerings under the prospectus filed with respect to the ATM Agreement.

 

Cash

 

The following table summarizes the sources and uses of cash (in thousands).

 

   

Nine months ended September 30,

  
   

2024

    

2023

  

Net cash used in operating activities

   $ (8,413 )   $ (10,470 )

Net cash used in investing activities

     (16 )     (114 )

Net cash provided by financing activities

     8,083       —  

Effect of exchange rate changes on cash

     —       (4 )

Net decrease in cash

     (346 )     (10,588 )

Cash and restricted cash at beginning of period

     8,638       20,525  

Cash and restricted cash at end of period

   $ 8,292     $ 9,937  

 

Net Cash Used in Operating Activities

 

Net cash used in operating activities decreased by $2 million, or 20%, for the nine months ended September 30, 2024, compared to the same period of 2023 primarily due to the absence of payments related to the acquisition and integration of HMC and cost savings on supply chain, reduction in service costs and other efficiencies in operating activities.

 

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Net Cash Used in Investing Activities

 

Net cash used in investing activities decreased by $0.1 million, or 86%, for the nine months ended September 30, 2024, compared to the same period of 2023, primarily due to the reduction in manufacturing equipment purchases.

 

Net Cash Provided by Financing Activities

 

Net cash provided by financing activities of $8.1 million for the nine months ended September 30, 2024 was related to net proceeds of $5.0 million from the September 2024 Offering after deducting the underwriting discount and commissions and offering expenses paid by us, net proceeds of $3.9 million from the January 2024 Offering after deducting placement agent fees and offering expenses, proceeds of $0.1 million from shares of common stock sold under the ATM Agreement, partially offset by $0.9 million of principal payments towards the Promissory Note.

 

Material Cash Requirements and Going Concern

 

Our material cash requirements include the following items, some of which are represented in the table of Contractual Obligations and Commitments: (1) employee wages, benefits and incentives, (2) the procurement of raw materials and components to support the manufacturing and sale of our products, (3) expenditures for the ongoing improvement and development of existing and new technologies, (4) debt repayments (for additional information see Note 9 in the notes to our condensed consolidated financial statements included elsewhere in the Quarterly Report on Form 10-Q), (5) operating lease payments (for additional information see Note 10 in the notes to our condensed consolidated financial statements included elsewhere in the Quarterly Report on Form 10-Q), and (6) pursuing strategic initiatives.

 

We expect that our operating cash requirements in the near term will continue to exceed cash provided by operations with the significant research and development activities related to the development of the Company's advanced technology and commercialization of such technology into its medical device business and with the service of our Promissory Note with Parker Hannifin. As described in Note 1. Organization: Liquidity and Going Concern of the notes to our condensed consolidated financial statements, management believes that substantial doubt exists about our ability to meet cash requirements twelve months from the issuance of such financial statements, and such substantial doubt is not alleviated by our plans.

 

The Company does not expect, nor do our historical operating results suggest, that cash flows generated from operations will be sufficient to meet our material cash requirements in the long term. Management expects that the Company's historical reliance on external financing, from both equity and debt financings, will continue to provide the capital necessary to meet its material cash requirements in the long term. Management has not yet determined the form such additional financing may take, but management expects that the most likely forms include one or more of the following: (i) underwritten offerings of shares of our common stock or other offerings of equity and/or equity-linked securities, (ii) sales of shares of our common stock under an "at the market" offering program, (iii) incurring indebtedness with one or more financial institutions, (iv) sale of product line or technology, and (v) the factoring of trade receivables.

 

Contractual Obligations and Commitments

 

The following table summarizes our outstanding contractual obligations as of September 30, 2024, and the effect those obligations are expected to have on our liquidity and cash flows in future periods (in thousands):

 

   

Payments Due By Period:

  
           

Less than

                  
   

Total

    

One Year

    

1-3 Years

    

3-5 Years

  

Term loan

   $ 2,308     $ 161     $ 2,147     $ —  

Promissory note

     3,750       1,250       2,500       —  

Facility operating leases

     1,083       497       586       —  

Purchase obligations

     1,511       1,511       —       —  

Total

   $ 8,652     $ 3,419     $ 5,233     $ —  

 

Refer to Note 14. Commitments and Contingencies in the notes to our condensed consolidated financial statements for additional information regarding our contractual obligations and lease commitments.

 

39
Table of Contents

 

Item 3. Quantitative and Qualitative Disclosure About Market Risk

 

There have been no material changes in our market risk during the nine months ended September 30, 2024, compared to the disclosures in Part II, Item 7A of our Annual Report.

 

Item 4. Controls and Procedures

 

Disclosure Controls and Procedures.

 

Our management, with the participation of our principal executive officer and principal financial officer, conducted an evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of such date, our disclosure controls and procedures were effective to ensure that information required to be disclosed in reports filed by us under the Exchange Act is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

It should be noted that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment and makes assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. Management believes that the financial statements included in this Quarterly Report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

40
Table of Contents
 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time we are subject to legal proceedings and claims arising in the ordinary course of business. Based on our current knowledge, we believe that the amount or range of reasonably possible losses will not, either individually or in the aggregate, have a material adverse effect on our business, results of operations, or financial condition.

 

The results of any litigation cannot be predicted with certainty, and an unfavorable resolution in any legal proceedings could materially affect our future business, results of operations, or financial condition. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. For additional information, please refer to Note 14. Commitments and Contingencies and Note 17. Related Party Transactions in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report.

 

Item 1A. Risk Factors

 

We have not identified any material changes to the risk factors previously disclosed in Part I - Item 1A - “Risk Factors” in our Annual Report other than as set forth below:

 

The markets in which our products are sold are highly competitive and continue to develop, and important assumptions about the potential market for our current and future products may be inaccurate.

 

We face competition within the medical devices and industrial robotics markets on the basis of product features, clinical outcomes, price, services and other factors. Our competitive position will depend on multiple, complex factors, including our ability to achieve market acceptance for our products, develop new products, implement production and marketing plans, secure regulatory approvals for products under development and protect our intellectual property. Competitors may offer, or may attempt to develop, more efficacious, safer, cheaper, or more convenient alternatives to our products, including alternatives that could make the need for robotic exoskeletons obsolete. The entry into the market of manufacturers located in low-cost manufacturing locations may also create pricing pressure, particularly in developing markets. Our future success depends, among other things, upon our ability to compete effectively against current technology, as well as to respond effectively to technological advances, and upon our ability to successfully implement our marketing strategies and execute our research and development plan. If customers do not perceive our product offerings to be of value or to be easy and comfortable to use, we may not be able to attract and retain customers. If we are unable to successfully retain existing customers and attract new customers and achieve volume sales of our products, our business, prospects, financial condition and operating results will be materially and adversely affected.

 

Our business strategy is based, in part, on our estimates of the number of individuals with physical limitations and disability and considers the occurrence of strokes, ABIs, SCIs and multiple sclerosis in our target markets, and the percentage of those groups that would be able to use our current and future products. Limited sources exist to obtain reliable market data with respect to the number of mobility-impaired individuals and the incurrence of ABIs, SCIs and strokes in our target markets. In addition, there are no third-party reports or studies regarding what percentage of those with limited mobility and/or SCIs would be able to use exoskeletons, in general, or our current or planned future products, in particular. Our assumptions may be inaccurate and may change. If our estimates of our current or future addressable market are incorrect, our business may not develop as we expect, and the price of our common stock may suffer.

 

Furthermore, the markets for medical and industrial robotic exoskeletons are continuing to develop. We cannot be certain that the markets for robotic exoskeletons will continue to develop as we expect, or that robotic exoskeletons for medical or industrial use will achieve widespread market acceptance. Additionally, the development of new or improved products, processes or technologies by other companies may render our products or proposed products less competitive or obsolete. The use of robotic devices is not universally accepted in the rehabilitation community and may never be. Current or future clinical trials and studies may not provide sufficient data that the rehabilitation community interprets to support the use of exoskeletons in rehabilitation. Any of these outcomes could materially and adversely affect our business, financial condition and operating results and prospects.

 

Coverage policies and reimbursement levels of third-party payers, including Medicare or Medicaid, may impact sales of our products.
 

To the extent that the adoption of our products by our customers is dependent in the future on their ability to obtain adequate reimbursement for the products or treatments provided using our product from third-party payers, including government payors such as Medicare and Medicaid, managed care organizations and commercial payors, the coverage policies and reimbursement levels of these third-party payers may impact the decisions of healthcare providers, facilities, or end users to purchase our products or the prices they would be willing to pay for those products. Reimbursement rates could also affect the acceptance rates of new technologies. We have no control over these factors.

 

In the United States, the principal decisions about reimbursement for new medical products are typically made by CMS. CMS decides whether and to what extent a new product will be covered and reimbursed under Medicare and private payors tend to follow CMS to a substantial degree. Because there is no uniform policy of coverage and reimbursement in the United States, each payor generally determines for its own enrollees or insured patients whether to cover or otherwise establish a policy to reimburse our diagnostic tests, and seeking payor approvals is a time-consuming and costly process. Our business plan within our Personal Health business line depends in a large part on sales of our Ekso Indego Therapy product by individuals with SCI who are covered by Medicare or Medicaid. 

 

If CMS delays or cancels reimbursement decisions, or materially changes the reimbursement level it has set, our ability to sell into this market may be diminished. In addition, the policies affecting the implementation of individual reimbursement decisions are made by regional DME MACs. Certain policies are not yet known to us and may affect the number of individual purchases that are approved to receive reimbursement in the future. In addition, we may not be able to obtain insurance coverage beyond CMS. We cannot be certain that coverage for our current and our planned future products will be provided in the future by additional payors or that existing agreements, policy decisions or reimbursement levels will remain in place, remain adequate, or be fulfilled under existing terms and provisions. If we cannot obtain coverage and adequate reimbursement from private and governmental payors such as Medicare and Medicaid for our current products or new products that we may develop in the future, demand for such products may decline or may not grow as we expect, which could limit our ability to generate revenue and have a material adverse effect on our financial condition, results of operations and cash flow.

 

The coverage and reimbursement market may be additionally impacted by future legislative changes. There are increasing efforts by governmental and third-party payors in the United States and abroad to cap or reduce healthcare costs which may cause such organizations to limit both coverage and the level of reimbursement for newly approved products and, as a result, they may not cover or provide adequate payment for our products. Specifically, there have been several recent U.S. presidential executive orders, Congressional inquiries, and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to drug and medical device pricing, reduce the cost under Medicare, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies. We expect to experience pricing pressures in connection with the sale of any of our products due to the trend toward managed healthcare, the increasing influence of health maintenance organizations, cost containment initiatives and additional legislative changes.

 

If we fail to manage the complex and lengthy reimbursement process, our business and operating results could be adversely affected. 
 
The sale of products in our Personal Health business line primarily depends on reimbursements provided by third party payors. We distribute these products to end users through the VA hospitals. Our products are also distributed through DME suppliers, who will then pursue reimbursement from Medicare, Medicaid, or private insurance providers. Our financial condition and results of operations may be affected by coverage and reimbursement policies of these payors, which are also subject to change over time. The reimbursement process is complex and can involve lengthy delays between the time that a product is delivered to the consumer and the time that the reimbursement amounts are settled. Depending on the payor, we or our customers may be required to obtain certain payor-specific documentation from physicians and other healthcare providers before submitting claims for reimbursement. Certain payors have filing deadlines and they will not pay claims submitted after such time. We are also subject to extensive pre-payment and post-payment audits by governmental and private payors that could result in material delays, refunds of monies received or denials of claims submitted for payment under such third-party payor programs and contracts. We cannot ensure that we will be able to continue to effectively manage the process which would adversely affect our business, financial condition and results of operations.

 

We must obtain certain regulatory approvals in the EU, which could be costly and time-consuming and subject us to unanticipated delays or prevent us from marketing certain devices. 
 
In the EU, we are required to comply with the EU MDR and obtain CE Certificates of Conformity in order to affix the CE Mark and market medical devices. As of September 30, 202 4, none of our products had yet been approved under the EU MDR. We are currently in the process of obtaining CE Certificates of Conformity in order to affix the CE Mark to the products we acquired in the HMC Acquisition, including Ekso Indego Therapy and Ekso Indego Personal. Until we complete this process, we will not be able to import these products in the EU. While our application for the CE mark for these products is under regulatory review, we have not received confirmation of a specific date by which this review will be completed. In addition, changes in regulatory policy for the approval or CE marking of a medical device during the period of product development and regulatory agency review or notified body review of each submitted new application may cause delays or rejections. In March 2023, the European Commission extended the original compliance dates for the EU MDR. As a result, the MDR transitional period deadline for our products was set to December 31, 2028. Failure to comply with the EU MDR requirements by the MDR transitional period deadline would prevent us from generating revenue from sales of our products in the EU, which could adversely affect our business, results of operations and financial condition.

 

You may be diluted from future issuances of our equity securities, including in future financings or strategic transactions, from compensatory equity awards and exercises of outstanding warrants, and such issuances, or perception that such issuances may occur, could depress the market price of our common stock.
 
Future operating or business decisions may cause dilution to our existing stockholders. For example, we may sell equity securities or issue securities exercisable or convertible into shares of our common stock in connection with strategic transactions or for financing purposes, including under the ATM Agreement or otherwise through registered or unregistered offerings. As of September 30, 2024, we had $4.1 million available for future offerings under the prospectus filed with respect to the ATM Agreement. Furthermore, a substantial majority of the outstanding shares of our common stock are, and all of the shares sold in this offering will be, freely tradable without restriction or further registration under the Securities Act, unless these shares are owned or purchased by “affiliates” as that term is defined in Rule 144 under the Securities Act. We may also make equity grants under one or more employee equity incentive plan or our employee stock purchase plan or issue common stock as matching contributions to our employees under our 401(k) Plan. You may also be subject to dilution from the exercise or settlement of outstanding options or restricted stock units under the Restated 2014 Plan, and from the exercise of our warrants, including the exercise of any pre-funded warrants. In addition, sales or issuances of a substantial number of shares of our common stock, or other equity-related securities in the public markets, or the perception that such sales or issuances could occur, could depress the market price of our common stock.
 
We may not achieve profitability in the near term or at all, and historically we have not been profitable. Management has historically financed the Company’s operations through external financings, from both equity and debt financings, like issuances under our ATM Agreement, the January 2024 Offering, and the September 2024 Offering, for example. To the extent our cash on hand and the proceeds from the September 2024 Offering do not provide sufficient capital for us to achieve profitability, or we are unable to maintain profitability once initially achieved, we expect we will need to raise additional capital through future financings. To the extent we decide to conduct a financing in the future, the form of such financing may include one or more of the following: (i) underwritten offerings of shares of our common stock, (ii) sales of shares of our common stock under an "at the market" offering program, (iii) incurring indebtedness with one or more financial institutions, (iv) sale of product line or technology, and (v) the factoring of trade receivables. Additional funding may not be available to us on acceptable terms, or at all, or we may be required to seek other more costly or time-consuming methods. Any failure to raise capital as and when needed could have a negative impact on our financial condition and on our ability to pursue our business plans and strategies.
 

Item 5. Other Information

 

During the quarter ended September 30, 2024, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," each as defined in Regulation S-K Item 408.

 

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Table of Contents
 

Item 6. Exhibits

 

Exhibit

Number

  

Description

  
         
4.1   Form of Pre-Funded Warrant (incorporated by reference from Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed September 3, 2024)  
       
4.2   Form of Series A Warrant (incorporated by reference from Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed September 3, 2024)  
       
4.3   Form of Series B Warrant (incorporated by reference from Exhibit 4.3 to the Registrant's Current Report on Form 8-K filed September 3, 2024)  
       
10.1   Amended and Restated 2014 Equity Incentive Plan (incorporated by reference from Exhibit 10.4 to the Registrant’s Registration Statement on Form S-1 filed July 29, 2024)  
       
10.2   Form of Restricted Stock Unit Award under Amended and Restated 2014 Equity Incentive Plan (incorporated by reference from Exhibit 10.7 to the Registrant’s Registration Statement on Form S-1 filed July 29, 2024)  
       

31.1*

  

Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

  
         

31.2*

  

Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

  
         

32.1+

  

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

  
         

32.2+

  

Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

  
         

101*

  

The following financial statements from the Ekso Bionics Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline Extensible Business Reporting Language (“iXBRL”):

  
   

•

unaudited condensed consolidated balance sheets;

  
   

•

unaudited condensed consolidated statements of operations and comprehensive income (loss);

  
   

•

unaudited condensed consolidated statements of stockholders’ equity;

  
   

•

unaudited condensed consolidated statement of cash flows; and

  
   

•

notes to unaudited condensed consolidated financial statements.

  
101.ins   Inline XBRL Instant Document  
101.sch   Inline XBRL Taxonomy Schema Document  
101.cal   Inline XBRL Taxonomy Calculation Linkbase Document  
101.def   Inline XBRL Taxonomy Definition Linkbase Document  
101.lab   Inline XBRL Taxonomy Label Linkbase Document  
101.pre   Inline XBRL Taxonomy Presentation Linkbase Document  
104   Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)  

 

 

*

Filed herewith.
 

+

Furnished herewith.

 

42
Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, Ekso Bionics Holdings, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

EKSO BIONICS HOLDINGS, INC.
   

Date: October 28, 2024

By:

/s/ Scott G. Davis
   

Scott G. Davis
   

Chief Executive Officer
   

(Principal Executive Officer)
     
     

Date: October 28, 2024

By:

/s/ Jerome Wong
   

Jerome Wong
   

Chief Financial Officer
   

(Principal Financial and Accounting Officer)

 

43

Exhibit 31.1

 

CERTIFICATION

 

I, Scott G. Davis, certify that:

 

 

(1)

I have reviewed this Quarterly Report on Form 10-Q of Ekso Bionics Holdings, Inc.;

 

 

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

 

 

(4)

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

 

 

(5)

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

 

Date: October 28, 2024

 

 

/s/ Scott G. Davis
 

Scott G. Davis
 

Principal Executive Officer

 

 

Exhibit 31.2

 

CERTIFICATION

 

I, Jerome Wong, certify that:

 

 

(1)

I have reviewed this Quarterly Report on Form 10-Q of Ekso Bionics Holdings, Inc.;

 

 

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

 

 

(4)

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

 

 

(5)

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

 

Date: October 28, 2024

 

 

/s/ Jerome Wong
 

Jerome Wong
 

Principal Financial Officer

 

 

Exhibit 32.1

 

CERTIFICATION BY THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report on Form 10-Q of Ekso Bionics Holdings, Inc. (the “Company”), for the quarterly period ended September 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), I, Scott G. Davis, Chief Executive Officer and principal executive officer, hereby certify as of the date hereof, solely for purposes of 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

 

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

 

Dated: October 28, 2024

 

 

/s/ Scott G. Davis
 

Scott G. Davis
 

Principal Executive Officer

 

 

 

Exhibit 32.2

 

CERTIFICATION BY THE PRINCIPAL FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report on Form 10-Q of Ekso Bionics Holdings, Inc. (the “Company”), for the quarterly period ended September 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), I, Jerome Wong, Chief Financial Officer and principal financial officer, hereby certify as of the date hereof, solely for purposes of 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

 

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

 

Dated: October 28, 2024

 

 

/s/ Jerome Wong
 

Jerome Wong
 

Principal Financial Officer

 

 
v3.24.3
Document And Entity Information - shares
 9 Months Ended
Sep. 30, 2024
Oct. 25, 2024
Document Information [Line Items]    
Entity Central Index Key 0001549084  
Entity Registrant Name EKSO BIONICS HOLDINGS, INC.  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2024  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-37854  
Entity Incorporation, State or Country Code NV  
Entity Tax Identification Number 99-0367049  
Entity Address, Address Line One 101 Glacier Point, Suite A  
Entity Address, City or Town San Rafael  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94901  
City Area Code 510  
Local Phone Number 984-1761  
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol EKSO  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   21,998,369
v3.24.3
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and restricted cash $ 8,292 $ 8,638
Accounts receivable, net of allowances of $29 and $79, respectively 6,964 5,645
Inventories 5,031 5,050
Prepaid expenses and other current assets 779 875
Total current assets 21,066 20,208
Property and equipment, net 1,628 2,018
Right-of-use assets 891 977
Intangible assets, net 4,662 4,892
Goodwill 431 431
Other assets 531 392
Total assets 29,209 28,918
Current liabilities:    
Accounts payable 1,808 1,847
Accrued liabilities 1,975 2,664
Deferred revenues, current 2,039 1,993
Notes payable, current 1,250 1,250
Lease liabilities, current 434 363
Total current liabilities 7,506 8,117
Deferred revenues 1,971 2,169
Notes payable, net 4,106 4,832
Lease liabilities 556 723
Warrant liabilities 35 366
Other non-current liabilities 165 105
Total liabilities 14,339 16,312
Commitments and Contingencies (Note 14)
Stockholders’ equity:    
Convertible preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023 0 0
Common stock, $0.001 par value; 141,429 shares authorized; 21,998 and 14,848 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 22 15
Additional paid-in capital 261,898 251,580
Accumulated other comprehensive income 12 156
Accumulated deficit (247,062) (239,145)
Total stockholders’ equity 14,870 12,606
Total liabilities and stockholders’ equity $ 29,209 $ 28,918
v3.24.3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
shares in Thousands, $ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Allowance for doubtful accounts $ 29 $ 79
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000 10,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized (in shares) 141,429 141,429
Common stock, issued (in shares) 21,998 14,848
Common stock, outstanding (in shares) 21,998 14,848
v3.24.3
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue $ 4,129 $ 4,607 $ 12,835 $ 13,432
Cost of revenue 1,920 2,151 6,038 6,722
Gross profit 2,209 2,456 6,797 6,710
Operating expenses:        
Sales and marketing 1,760 2,052 5,424 6,489
Research and development 777 1,159 3,029 3,712
General and administrative 2,311 2,176 6,574 8,172
Total operating expenses 4,848 5,387 15,027 18,373
Loss from operations (2,639) (2,931) (8,230) (11,663)
Other income (expense), net:        
Interest expense, net (79) (64) (210) (236)
Loss on modification of warrant 0 0 (109) 0
Gain on revaluation of warrant liabilities 14 60 440 186
Unrealized gain (loss) on foreign exchange 634 (433) 194 (223)
Other (expense) income, net (2) 3 (2) (48)
Total other income (expense), net 567 (434) 313 (321)
Net loss (2,072) (3,365) (7,917) (11,984)
Other comprehensive income (loss) (527) 374 (144) 170
Comprehensive loss $ (2,599) $ (2,991) $ (8,061) $ (11,814)
Net loss per share applicable to common shareholders, basic and diluted (in dollars per share) $ (0.1) $ (0.24) $ (0.42) $ (0.88)
Weighted average number of common shares outstanding, basic and diluted (in shares) 20,310 14,073 18,657 13,672
v3.24.3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
September 2024 Offering [Member]
Preferred Stock [Member]
September 2024 Offering [Member]
Common Stock [Member]
September 2024 Offering [Member]
Additional Paid-in Capital [Member]
September 2024 Offering [Member]
AOCI Attributable to Parent [Member]
September 2024 Offering [Member]
Retained Earnings [Member]
September 2024 Offering [Member]
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Total
Balance (in shares) at Dec. 31, 2022             0 13,203        
Balance at Dec. 31, 2022             $ 0 $ 13 $ 248,813 $ 563 $ (223,947) $ 25,442
Net loss             $ 0 $ 0 0 0 (4,389) (4,389)
Equity incentive plan (in shares)             0 139        
Stock-based compensation expense             $ 0 $ 0 424 0 0 424
Foreign currency translation adjustments             $ 0 $ 0 0 (194) 0 (194)
Balance (in shares) at Mar. 31, 2023             0 13,342        
Balance at Mar. 31, 2023             $ 0 $ 13 249,237 369 (228,336) 21,283
Balance (in shares) at Dec. 31, 2022             0 13,203        
Balance at Dec. 31, 2022             $ 0 $ 13 248,813 563 (223,947) 25,442
Net loss                       (11,984)
Matching contribution to 401(k) plan                 249      
Balance (in shares) at Sep. 30, 2023             0 14,235        
Balance at Sep. 30, 2023             $ 0 $ 14 250,441 733 (235,931) 15,257
Balance (in shares) at Mar. 31, 2023             0 13,342        
Balance at Mar. 31, 2023             $ 0 $ 13 249,237 369 (228,336) 21,283
Net loss             $ 0 $ 0 0 0 (4,230) (4,230)
Matching contribution to 401(k) plan (in shares)             0 161        
Matching contribution to 401(k) plan             $ 0 $ 0 249 0 0 249
Equity incentive plan (in shares)             0 304        
Stock-based compensation expense             $ 0 $ 0 514 0 0 514
Foreign currency translation adjustments             $ 0 $ 0 0 (10) 0 (10)
Balance (in shares) at Jun. 30, 2023             0 13,807        
Balance at Jun. 30, 2023             $ 0 $ 14 250,000 359 (232,566) 17,807
Net loss             $ 0 $ 0 $ 0 0 (3,365) (3,365)
Matching contribution to 401(k) plan (in shares)                 161      
Equity incentive plan (in shares)             0 428        
Stock-based compensation expense             $ 0 $ 0 $ 441 0 0 441
Foreign currency translation adjustments             $ 0 $ 0 0 374 0 374
Balance (in shares) at Sep. 30, 2023             0 14,235        
Balance at Sep. 30, 2023             $ 0 $ 14 250,441 733 (235,931) 15,257
Balance (in shares) at Dec. 31, 2023             0 14,848        
Balance at Dec. 31, 2023             $ 0 $ 15 251,580 156 (239,145) 12,606
Net loss             $ 0 $ 0 0 0 (3,429) (3,429)
Equity financing, net (in shares)             0 2,997        
Equity financing, net             $ 0 $ 3 3,967 0 0 3,970
Matching contribution to 401(k) plan (in shares)             0 163        
Matching contribution to 401(k) plan             $ 0 $ 0 237 0 0 237
Equity incentive plan (in shares)             0 88        
Equity incentive plan               $ 0        
Stock-based compensation expense             $ 0 0 376 0 0 376
Foreign currency translation adjustments             $ 0 $ 0 0 291 0 291
Balance (in shares) at Mar. 31, 2024             0 18,096        
Balance at Mar. 31, 2024             $ 0 $ 18 256,160 447 (242,574) 14,051
Balance (in shares) at Dec. 31, 2023             0 14,848        
Balance at Dec. 31, 2023             $ 0 $ 15 251,580 156 (239,145) 12,606
Balance (in shares) at Jun. 30, 2024             0 18,444        
Balance at Jun. 30, 2024             $ 0 $ 19 256,491 539 (244,990) 12,059
Balance (in shares) at Dec. 31, 2023             0 14,848        
Balance at Dec. 31, 2023             $ 0 $ 15 251,580 156 (239,145) 12,606
Net loss                       (7,917)
Matching contribution to 401(k) plan                 237      
Balance (in shares) at Sep. 30, 2024             0 21,998        
Balance at Sep. 30, 2024             $ 0 $ 22 261,898 12 (247,062) 14,870
Balance (in shares) at Mar. 31, 2024             0 18,096        
Balance at Mar. 31, 2024             $ 0 $ 18 256,160 447 (242,574) 14,051
Net loss             $ 0 $ 0 0 0 (2,416) (2,416)
Equity financing, net (in shares)             0 75        
Equity financing, net             $ 0 $ 0 47 0 0 47
Equity incentive plan (in shares)             0 273        
Equity incentive plan               $ 1        
Stock-based compensation expense             $ 0 0 284 0 0 284
Foreign currency translation adjustments             $ 0 $ 0 0 92 0 92
Balance (in shares) at Jun. 30, 2024             0 18,444        
Balance at Jun. 30, 2024             $ 0 $ 19 256,491 539 (244,990) 12,059
Net loss             $ 0 $ 0 $ 0 0 (2,072) (2,072)
Equity financing, net (in shares) 0 3,100         0 119        
Equity financing, net $ 0 $ 3 $ 5,001 $ 5,004            
Matching contribution to 401(k) plan (in shares)                 163      
Equity incentive plan               $ 0        
Stock-based compensation expense             $ 0 0 $ 406 0 0 406
Foreign currency translation adjustments             $ 0 $ 0 0 (527) 0 (527)
Exercise of warrants (in shares)             0 335        
Exercise of warrants             $ 0 $ 0 0 0
Balance (in shares) at Sep. 30, 2024             0 21,998        
Balance at Sep. 30, 2024             $ 0 $ 22 $ 261,898 $ 12 $ (247,062) $ 14,870
v3.24.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Operating activities:    
Net loss $ (7,917) $ (11,984)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 1,210 1,266
Changes in provision for credit losses on accounts receivable 73 25
Gain on revaluation of warrant liabilities (440) (186)
Stock-based compensation expense 1,066 1,379
Loss on modification of warrant 109 0
Common stock contribution to 401(k) plan 177 304
Unrealized loss (gain) on foreign currency transactions (194) 223
Changes in operating assets and liabilities:    
Accounts receivable (1,427) (1,348)
Inventories (80) (162)
Prepaid expenses and other assets, current and noncurrent 63 (370)
Accounts payable (41) (647)
Accrued, lease and other liabilities, current and noncurrent (852) (522)
Deferred revenues (160) 1,552
Net cash used in operating activities (8,413) (10,470)
Investing activities:    
Acquisition of property and equipment (16) (114)
Net cash used in investing activities (16) (114)
Financing activities:    
Principal payments under notes payable (938) 0
Proceeds from issuance of common stock, net 9,021 0
Net cash provided by financing activities 8,083 0
Effect of exchange rate changes on cash 0 (4)
Net decrease in cash (346) (10,588)
Cash and restricted cash at beginning of period 8,638 20,525
Cash and restricted cash at end of period 8,292 9,937
Supplemental disclosure of cash flow activities    
Cash paid for interest 142 145
Cash paid for income taxes 9 33
Supplemental disclosure of non-cash activities    
Transfer of inventory to (from) property and equipment 105 (146)
Initial recognition of operating lease liability and right of use asset 180 0
Share issuance RSU 1 0
Modification of operating lease right-of-use asset and lease liability 0 (10)
Share issuance for common stock contribution to 401(k) plan $ 237 $ 249
v3.24.3
Note 1 - Organization
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]

1.         Organization

 

Description of Business

 

Ekso Bionics Holdings, Inc. (the “Company”) designs, develops, and markets wearable powered and non-powered exoskeleton products to augment human strength, endurance and mobility. The Company’s exoskeleton technology is primarily focused on aiding in the recovery and improved quality of life of individuals who have suffered from a variety of neurological conditions and allows for neurorehabilitation ranging from hospital to home, and also has technology that can be utilized by able-bodied users in the workplace. The Company has marketed devices that (i) enable individuals with neurological conditions affecting gait, including acquired brain injury ("ABI") and multiple sclerosis ("MS"), and spinal cord injury ("SCI") to rehabilitate and to stand and walk in neurorehabilitation settings and, for patients with a SCI, for home and community use, (ii) assist individuals with a broad range of upper extremity impairments, and (iii) allow industrial workers to perform difficult repetitive work for extended periods. Founded in 2005, the Company is headquartered in the San Francisco Bay area and listed on the Nasdaq Capital Market under the symbol “EKSO”.

 

Liquidity and Going Concern

 

As of September 30, 2024, the Company had an accumulated deficit of $247,062.  Largely as a result of significant research and development activities related to the development of the Company’s advanced technology and commercialization of such technology into its medical device business, the Company has incurred significant operating losses and negative cash flows from operations since inception. During the nine months ended September 30, 2024, the Company used $8,413 of cash in its operations. Cash on hand as of September 30, 2024 was $8,292.

 

As described in Note 9. Notes Payable, net, borrowings under the Company’s secured term loan agreement with Banc of California have a liquidity covenant requiring minimum cash on hand equivalent to the current outstanding principal balance. As of September 30, 2024, $2,000 of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of September 30, 2024 was approximately $6,292.

 

Our expectation to generate operating losses and negative operating cash flows in the future and the need for additional funding to support our planned operations raise substantial doubt regarding our ability to continue as a going concern for a period of one year after the date that the condensed consolidated financial statements are issued. Management intends to raise funds through one or more financings. However, due to several factors, including those outside management’s control, there can be no assurance that the Company will be able to complete such financings on acceptable terms or in amounts sufficient to continue operating the business under the operating plan. If we are unable to complete sufficient additional financings, management’s plans include delaying or abandoning certain product development projects, cost reduction efforts for our products, and refocused sales efforts to accelerate revenue growth above historical results. We have concluded the likelihood that our plan to successfully reduce expenses to align with our available cash, while reasonably possible, is less than probable. Accordingly, we have concluded that substantial doubt exists about our ability to continue as a going concern for a period of at least 12 months from the date of issuance of these condensed consolidated financial statements. 

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

 
v3.24.3
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies and Estimates
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

2.         Basis of Presentation and Summary of Significant Accounting Policies and Estimates

 

Basis of Presentation and Consolidation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 4, 2024.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the audited consolidated financial statements for the fiscal year ended December 31, 2023, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein.

 

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending  December 31, 2024 or any future periods.

 

The condensed consolidated financial statements include the financial statements of Ekso Bionics Holdings, Inc. and its subsidiaries. All significant transactions and balances between Ekso Bionics Holdings, Inc. and its subsidiaries have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. For the Company, these estimates include, but are not limited to, intangible and tangible assets acquired and liabilities assumed in business combinations, revenue recognition, deferred revenue, the valuation of warrants and employee equity awards, future warranty costs, accounting for leases, useful lives assigned to long-lived assets, valuation of inventory, realizability of deferred tax assets, and contingencies. Actual results could differ from those estimates.

 

Foreign Currency

 

The assets and liabilities of foreign subsidiaries and equity investments, where the local currency is the functional currency, are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at average rates during the period, with resulting foreign currency translation adjustments recorded in accumulated other comprehensive income as a component of stockholders’ equity. Gains and losses from the re-measurement of balances denominated in currencies other than the entities' functional currencies, are recorded in other expense, net in the accompanying condensed consolidated statements of operations and comprehensive loss.

 

Inventory

 

Inventories are recorded at the lower of cost or net realizable value. Cost is computed using the standard cost method, which approximates actual cost on a first-in, first-out basis. Materials from vendors are received and recorded as raw materials. Once the raw materials are incorporated in the fabrication of the product, the related value of the component is recorded as work in progress ("WIP"). Direct and indirect labor and applicable overhead costs are also allocated and recorded to WIP inventory. Finished goods are comprised of completed products that are ready for customer shipment. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over sales and forecasted demand. Excess and obsolete inventories identified, if any, are recorded as an inventory impairment charge within the condensed consolidated statements of operations and comprehensive loss. The Company's estimate of write-downs for excess and obsolete inventory is based on a detailed analysis which includes on-hand inventory and purchase commitments in excess of forecasted demand. Subsequent disposals of inventories are recorded as a reduction of inventory.

 

Leases

 

The Company records its leases in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, Leases. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received.

 

Lease expense is recognized over the expected lease term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, lease liabilities current and lease liabilities non-current.

 

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term.

 

Revenue Recognition

 

The Company records its revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which when capable of being distinct, are accounted for as separate performance obligations. Revenue recognition is evaluated based on the following five steps: (i) identification of the contract with the customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied.

 

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are determined based on observable prices at which the Company separately sells its products or services. If a standalone selling price is not directly observable, judgment is made to estimate the selling price based on market conditions and entity-specific factors including cost plus analyses, features and functionality of the product and/or services, the geography of the Company’s customers, and type of customer. Any discounts or other reductions to the transaction price are allocated proportionately to all performance obligations within the multiple-element arrangement. The Company periodically validates the stand-alone selling price for performance obligations by evaluating whether changes in the key assumptions used to determine the stand-alone selling prices will have a significant effect on the allocation of transaction price between multiple performance obligations.

 

The Company exercised judgement to determine that a product return reserve was not required as historical returns activity have not been material.

 

Concentration of Credit Risk and Other Risks and Uncertainties

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.

 

The Company's cash balances held in domestic banks are deposited into accounts at various institutions with each balance under the $250 Federal Deposit Insurance Corporation ("FDIC") insurance limit. The Company has significant cash balances at foreign financial institutions which regularly exceed the applicable country cash deposit insurance limits of approximately $100 at each of the Company's two foreign banks. Any foreign exchange loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.

 

The Company extends credit to customers in the normal course of business. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the condensed consolidated financial statements. The Company does not require collateral from its customers to secure accounts receivable. Accounts receivable are derived from the sale of products shipped and services performed for customers primarily located in the U.S., Europe, Asia, and Australia. Invoices are aged based on contractual terms with the customer. The Company reviews accounts receivable for collectability and provides an allowance for potential credit losses. The allowance for potential credit losses on trade receivables reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. The Company has not experienced material losses related to accounts receivable as of  September 30, 2024 and December 31, 2023.

 

Many of the sales contracts with customers outside of the U.S. are settled in a foreign currency other than the U.S. dollar. The Company does not enter into any foreign currency hedging agreements and is susceptible to gains and losses from foreign currency fluctuations. To date, the Company has not experienced significant gains or losses upon collecting receivables denominated in a foreign currency.

 

The Company hadtwo customers with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable as of  September 30, 2024 (14% and 13%), as compared with no customers as of  December 31, 2023.

 

During the three months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (26%), as compared with three customers in the three months ended  September 30, 2023 (18%, 11% and 11%).

 

During the nine months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (15%), as compared with two customers in the nine months ended  September 30, 2023 (17% and 10%).

 

Recent Accounting Pronouncements

 

In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), to enhance income tax reporting disclosures and require disclosure of specific categories in the tabular rate reconciliation. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We are currently evaluating the impact on our disclosures.

 

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 looks to provide improvements to the segment disclosure by providing users with more decision-useful information about reportable segments in a public entity. The main provisions require a company to disclose, on an annual and interim basis, significant expenses included within each reported measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements with an effective date for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2023-07 to be material on its consolidated financial statements.

 

Accounting Pronouncements Adopted in 2024

 

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which simplified the accounting for convertible instruments. ASU 2020-06 eliminated certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminated certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance became effective for the Company in the first quarter of 2024 and was applied using a full retrospective approach. The adoption did not have a material impact on the Company's consolidated financial statements.

 
v3.24.3
Note 3 - Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

3.         Accumulated Other Comprehensive Income (Loss)

 

The Company's accumulated other comprehensive income (loss) consists of the accumulated net unrealized gains or losses on foreign currency translation adjustments. The change in accumulated other comprehensive income (loss) presented on the condensed consolidated balance sheets for the nine months ended September 30, 2024 and 2023, is reflected in the table below net of tax:

 

   

Nine Months Ended September 30,

  
   

2024

    

2023

  

Balance at beginning of period

   $ 156     $ 563  

Net unrealized gain (loss) on foreign currency translation

     (144 )     170  

Balance at end of period

   $ 12     $ 733  

 

 
v3.24.3
Note 4 - Fair Value Measurement
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4.         Fair Value Measurement

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value which are the following:

 

•

Level 1—Quoted prices in active markets for identical assets or liabilities. The Company considers a market to be active when transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

•

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The valuation of Level 3 investments requires the use of significant management judgments or estimation.

 

The Company’s fair value hierarchies for its financial assets and liabilities, which require fair value measurement on a recurring basis are as follows:

 

   

Total

    

Level 1

    

Level 2

    

Level 3

  

September 30, 2024

                                

Liabilities

                                

Warrant liabilities

   $ 35     $ —     $ —     $ 35  

December 31, 2023

                                

Liabilities

                                

Warrant liabilities

   $ 366     $ —     $ —     $ 366  

 

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2024, which were measured at fair value on a recurring basis:

 

   

Warrant Liabilities

  

Balance as of December 31, 2023

   $ 366  

Loss on modification of warrant

     109  

Gain on revaluation of warrants

     (440 )

Balance as of September 30, 2024

   $ 35  

 

Refer to Note 11. Capitalization and Equity Structure – Warrants for additional information regarding the valuation of warrants.

 
v3.24.3
Note 5 - Inventories
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Inventory Disclosure [Text Block]

5.         Inventories

 

Inventories as of September 30, 2024 and December 31, 2023 consisted of the following:

 

   

September 30, 2024

    

December 31, 2023

  

Raw materials

   $ 3,917     $ 4,298  

Work in progress

     301       290  

Finished goods

     813       462  

Inventories

   $ 5,031     $ 5,050  

 
v3.24.3
Note 6 - Revenue
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6.         Revenue

 

The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support and maintenance contracts. Revenue from medical device product sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility for sales of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements ranging from 12 to 48 months. Revenue is recognized evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 24 months.

 

The Company’s industrial device segment (EksoWorks) revenue is primarily generated through the sale of the upper body exoskeleton EVO and associated accessories. Revenue from industrial device sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility. 

 

Deferred Revenue

 

Deferred revenue is comprised mainly of unearned revenue related to extended support and maintenance contracts, but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service.

 

Deferred revenue consisted of the following:

 

  

September 30, 2024

  

December 31, 2023

 

Deferred extended maintenance and support

 $3,850   3,993 

Deferred device and advances

  160   169 

Total deferred revenues

  4,010   4,162 

Less current portion

  (2,039)  (1,993)

Deferred revenues, non-current

 $1,971  $2,169 

 

On September 25, 2023, the Company entered into a warranty claim lump-sum agreement with Parker Hannifin Corporation ("Parker"), pursuant to which, among other things, Parker paid the Company $700 for the release of Parker's obligation to reimburse the Company for its costs and expenses associated with servicing certain product warranty obligations.  The Company recorded the lump sum payment as deferred revenue and recognizes revenue as services are performed.

 

Deferred revenue activity consisted of the following for the nine months ended September 30, 2024:

 

Beginning balance

 $4,162 

Deferral of revenue

  2,168 

Recognition of deferred revenue

  (2,320)

Ending balance

 $4,010 

 

The Company expects to recognize approximately $703 of the deferred revenue during the remainder of 2024, $1,559 in 2025, and $1,748 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $3,417, related to its customer orders received but not fulfilled and other ancillary products and services of $2,885, expected to be recognized during 2024 and 2025, and contracts for subscription units of $532, expected to be recognized during 2024, 2025 and 2026.

 

Disaggregation of Revenue

 

The following table disaggregates the Company’s revenue by major source for the three months ended September 30, 2024:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,096  $24  $3,120 

Service and support

  691   —   691 

Subscriptions

  123   —   123 

Parts and other

  177   18   195 
  $4,087  $42  $4,129 

 

The following table disaggregates the Company’s revenue by major source for the three months ended September 30, 2023:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,390  $190  $3,580 

Service and support

  726   —   726 

Subscriptions

  245   —   245 

Parts and other

  27   29   56 
  $4,388  $219  $4,607 

 

The following table disaggregates the Company’s revenue by major source for the nine months ended September 30, 2024:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $9,337  $351  $9,688 

Service and support

  2,292   —   2,292 

Subscriptions

  413   —   413 

Parts and other

  388   54   442 
  $12,430  $405  $12,835 

 

The following table disaggregates the Company’s revenue by major source for the nine months ended September 30, 2023:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $10,041  $308  $10,349 

Service and support

  2,092   —   2,092 

Subscriptions

  781   —   781 

Parts and other

  158   52   210 
  $13,072  $360  $13,432 

 
v3.24.3
Note 7 - Accrued Liabilities
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

7.         Accrued Liabilities

 

Accrued liabilities as of September 30, 2024 and December 31, 2023 consisted of the following:

 

   

September 30, 2024

    

December 31, 2023

  

Salaries, benefits and related expenses

   $ 1,414     $ 2,058  

Device warranty

     443       461  

Other

     118       145  

Total

   $ 1,975     $ 2,664  

 

Warranty

 

The current portion of the device warranty liability is classified as a component of Accrued liabilities, while the long-term portion of the device warranty liability is classified as a component of Other non-current liabilities in the condensed consolidated balance sheets. A reconciliation of the changes in the device warranty liability for the three and nine months ended September 30, 2024 is as follows:

 

   

Three Months Ended

    

Nine Months Ended

  
   

September 30, 2024

    

September 30, 2024

  

Balance at beginning of the period

   $ 561     $ 566  

Additions for estimated future expense

     210       526  

Incurred costs

     (163 )     (484 )

Balance at end of the period

   $ 608     $ 608  

 

   

Balance as of September 30, 2024

  

Current portion

   $ 443  

Long-term portion

     165  

Total

   $ 608  

 
v3.24.3
Note 8 - Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

8.         Goodwill and Intangible Assets

 

On December 5, 2022, the Company acquired the Human Motion Control ("HMC") business unit from Parker (the "HMC Acquisition"). The assets acquired from the business unit included intellectual property rights associated with the Ekso Indego Personal, Ekso Indego Therapy, and future products in the orthotics and prosthetics space.

 

Goodwill

 

The Company accounted for the acquisition as a business combination in accordance with ASC 805, Business Combinations, by applying the acquisition method, and accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the purchase price over the net assets acquired of $431 was recorded as goodwill. The goodwill recognized is attributed primarily to expected synergies of HMC with the Company.

 

The Company determined no impairment existed for goodwill for the three and nine months ended September 30, 2024 and 2023.

 

Intangible Assets

 

The following table summarizes the components of gross intangible assets, accumulated amortization, and net carrying values for definite and indefinite lived intangible asset balances as of September 30, 2024 and December 31, 2023:

 

   

September 30, 2024

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (526 )   $ 1,784  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (32 )     108  

Total intangible assets

   $ 5,220     $ (558 )   $ 4,662  

(1)  Intellectual property not yet placed in service as of September 30, 2024.

 

   

December 31, 2023

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (310 )   $ 2,000  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (18 )     122  

Total intangible assets

   $ 5,220     $ (328 )   $ 4,892  

(1)  Intellectual property not yet placed in service as of December 31, 2023.

 

Definite lived intangible assets are amortized over their estimated lives using the straight-line method, which is estimated as eight years for developed technology, 12 years for intellectual property and eight years for customer relationships. The acquired trade name was estimated to have an indefinite life, and consequently, no amortization expense was recorded. The Company determined no impairment existed for intangible assets for the three and nine months ended September 30, 2024 and 2023.

 

The estimated future amortization expenses related to definite lived intangible assets as of September 30, 2024 were as follows:

 

Fiscal Year

  

Amount

  

2024 - remainder

   $ 82  

2025

     345  

2026

     345  

2027

     345  

2028

     345  

2029 and thereafter

     890  

Total

   $ 2,352  

 

Amortization expense related to the acquired definite lived intangible assets was $77 and $82 for the three months ended September 30, 2024 and 2023, respectively, and $230 and $245 for the nine months ended September 30, 2024 and 2023, respectively, and was included as a component of operating expenses and cost of revenue in the condensed consolidated statement of operations and comprehensive loss. 

 
v3.24.3
Note 9 - Notes Payable, Net
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Long-Term Debt [Text Block]

9.         Notes Payable, net

 

BoC Term Loan

 

In August 2020, the Company entered into a loan agreement (the "BoC Loan Agreement") with Pacific Western Bank, which merged with the Banc of California (the "Lender") in 2024. The Company received a loan in the principal amount of $2,000 (the "BoC Term Loan") that bore interest on the outstanding daily balance at a rate equal to the greater of: (a) 0.50% above the variable rate of interest announced by the Lender as its “prime rate” then in effect; or (b) 4.50%. The BoC Loan Agreement created a first priority security interest with respect to substantially all assets of the Company, including proceeds of intellectual property, but expressly excluding intellectual property itself.

 

The Company was required to pay accrued interest on the current loan on the 13th day of each month through and including August 13, 2023, at which time the unpaid principal and accrued and unpaid interest was due and payable in full. On August 17, 2023, the Company entered into an amendment to the BoC Loan Agreement, extending the maturity date to August 13, 2026 with interest only payments until such date, having daily borrowings bearing interest at a variable annual rate equal to the greater of the Lender's "prime rate" then in effect and 4.50%, and caused the Company to maintain all of its depository, operating, and investment accounts with the Lender. The Company determined this amendment constituted a loan modification under ASC 470, and used the updated imputed interest rate to recalculate debt discounts, debt issuance costs and final payment to be amortized over the new term.

 

The BoC Loan Agreement contains a liquidity covenant, which requires that the Company maintain cash in accounts of the Lender or subject to control agreements in favor of the Lender in an amount equal to at least the outstanding balance of the BoC Term Loan, which was $2,000 as of September 30, 2024. It also contains a primary depository covenant, which restricts the Company from having more than $1,000 held in subsidiary bank accounts outside of the United States. As of September 30, 2024, the Company was compliant with all covenants.

 

The interest rate of the BoC Term Loan is subject to increase in the event of late payment and after occurrence of and during the continuation of an event of default. The Company may elect to prepay the BoC Term Loan at any time, in whole or in part, without penalty or premium.

 

The debt issuance costs and debt discounts combined with the stated interest resulted in an effective interest rate of 8.67% and 9.00% for the three months ended September 30, 2024 and 2023, respectively, and 8.71% and 8.80% for the nine months ended September 30, 2024 and 2023, respectively. The debt issuance costs and debt discounts are amortized to interest expense using the effective interest method over the life of the loan. Interest expense for the BoC Term Loan totaled $44 and $45 for the three months ended September 30, 2024 and 2023, respectively, and $130 and $132 for the nine months ended September 30, 2024 and 2023, respectively.

 

The following table presents scheduled principal payments of the Company’s BoC Term Loan as of September 30, 2024:

 

Period

  

Amount

  

2024-2025

   $ —  

2026

     2,000  

Total principal payments

     2,000  

Less debt discount and issuance cost

     (4 )

Notes payable, net

   $ 1,996  
         

Current portion

   $ —  

Long-term portion

     1,996  

Notes payable, net

   $ 1,996  

 

Parker Hannifin Promissory Note

 

In connection with the HMC Acquisition, on December 5, 2022, the Company delivered a $5,000 unsecured, subordinated promissory note (the "Promissory Note") to Parker. The Promissory Note, subordinate to the BoC Term Loan, bears no interest with principal payable in sixteen equal installments due on the last day of each quarter, which commenced on December 31, 2023 and matures on September 30, 2027. 

 

The Promissory Note, upon the occurrence of an event of default, allows for the levying of interest equal to the lesser of (a) 5% per annum and (b) the maximum interest rate permitted under applicable law on the then entire outstanding principal balance, and also for the acceleration of all outstanding liabilities and obligations, making them immediately payable. Under the terms of the Promissory Note, the following occurrences constitute a default, and could, upon written notice or declaration by Parker, allow for the levying of interest and or the acceleration of principal outstanding: (i) failure to pay any amount of the principal when due and payable, (ii) the dissolution of the Company (including the declaration of bankruptcy), and (iii) the acquisition of the Company by another entity or the sale of substantially all of its assets to another entity.

 

The Company recorded the Promissory Note of $4,055 in its condensed consolidated balance sheets under the captions Notes Payable, Current and Notes Payable, Net, estimating an implicit discount rate of 7.5% via reference to the interest charged on the Company's BoC Term Loan and other relevant economic factors present at the execution date of the Promissory Note. The amortization of debt discounts resulted in an effective interest rate of 7.00% and 7.31% for the three months ended September 30, 2024 and 2023, respectively, and 7.52% and 7.31% for the nine months ended September 30, 2024 and 2023, respectively. The debt discount is amortized to interest expense using the effective interest method over the life of the loan. Interest expense on the Promissory Note was $66 and $81 for the three months ended September 30, 2024 and 2023, respectively, and $210 and $239 for the nine months ended September 30, 2024 and 2023, respectively.

 

The following table presents scheduled principal payments of the Company's Promissory Note as of September 30, 2024:

 

Period

  

Amount

  

2024 - remainder

   $ 312  

2025

     1,250  

2026

     1,250  

2027

     938  

Total principal payments

     3,750  

Less debt discount

     (390 )

Notes payable, net

   $ 3,360  
         

Current portion

     1,250  

Long-term portion

     2,110  

Notes payable, net

   $ 3,360  

 
v3.24.3
Note 10 - Lease Obligations
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

10.         Lease Obligations

 

The Company's operating lease agreement for its headquarters and manufacturing facility in San Rafael, California (the "San Rafael Lease") commenced in  July 2022 and expires in October 2026, and it provides the Company with the option to renew for an additional three-year period at the prevailing market rate at the time of extension. 

 

The San Rafael Lease constitutes an operating lease under ASC 842 and the Company estimates the lease term as July 2022 through October 2026. The option to extend for a three-year period lacks significant economic incentives and disincentives, which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate as of the date of contract execution and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as common area maintenance costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for the San Rafael Lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

The Company's operating lease agreement for its office in Hamburg, Germany (the "Hamburg Lease") commenced in  May 2022 and expires in June 2025, and it provides the Company with an option to renew for one five-year period. 

 

The Hamburg Lease constitutes a lease under ASC 842, and the Company estimates the lease term as May 2022 through June 2025. The option to extend for a five-year period lacks significant economic incentives and disincentives which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as common area maintenance costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for this lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

The Company's operating lease agreement for its shared service and manufacturing facility in Brecksville, Ohio (the "Ohio Lease") commenced in June 2024 and expires in July 2027, and it provides the Company with the option to renew for an additional three-year period at the prevailing market rate at the time of extension. In July 2024, the Company relocated from its Macedonia, Ohio facility to the new Brecksville, Ohio facility. 

 

The Company has determined that the Ohio Lease constitutes an operating lease under ASC 842 and estimates the lease term as July 2024 through July 2027. The option to extend for a three-year period lacks significant economic incentives and disincentives, which would make exercise reasonably certain. Fixed lease payments for identified lease components over the identified term were discounted at the Company's estimated incremental borrowing rate as of the date of contract execution and are reflected in the condensed consolidated balance sheets under the captions Lease liabilities, current and Lease liabilities, and the corresponding right of use asset is reflected in the condensed consolidated balance sheets under the caption Right-of-use assets. Non-lease components, such as operating costs, are excluded from the lease liability calculation and expensed as incurred. The Company records a straight-line monthly rent expense for the Ohio Lease equal to the sum of all fixed lease payments divided by the number of months in the lease term.

 

 

The Company’s future lease payments as of September 30, 2024, which are presented as Lease liabilities, current and Lease liabilities on the Company’s condensed consolidated balance sheets are as follows:

 

Periods

 

Operating Leases

 

2024 - remainder

 $127 

2025

  484 

2026

  431 

2027

  41 

Total lease payments

  1,083 

Less: imputed interest

  (93)

Present value of lease liabilities

 $990 
     

Weighted-average remaining lease term (in years)

  2.15 

Weighted-average discount rate

  8.3%

 

Lease expense under the Company’s operating leases was $161 and $146 for the three months ended  September 30, 2024 and 2023, respectively, and $432 and $417 for the nine months ended September 30, 2024 and 2023, respectively.

 

 
v3.24.3
Note 11 - Capitalization and Equity Structure
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Equity [Text Block]

11.         Capitalization and Equity Structure

 

Summary

 

The Company’s authorized capital stock at  September 30, 2024 and  December 31, 2023 consisted of 141,429 shares of common stock and 10,000 shares of preferred stock. As of September 30, 2024 and December 31, 2023, there were 21,998 and 14,848, respectively, shares of common stock issued and outstanding and no shares of preferred stock issued and outstanding.

 

September 2024 Offering

 

On August 29, 2024, the Company entered into an underwriting agreement with Craig-Hallum Capital Group LLC as underwriter (the "Underwriter") pursuant to which the Company issued and sold, in a firm commitment underwritten public offering (the "September 2024 Offering"), 3,100 shares of common stock, a Pre-Funded Warrant to purchase 2,900 shares of common stock (the "Pre-Funded Warrant"), Series A Warrants to purchase an aggregate of 6,000 shares of common stock (the "Series A Warrants"), and Series B Warrants to purchase an aggregate of 6,000 shares of common stock (the "Series B Warrants"). The September 2024 Offering closed on September 3, 2024. The Company received net proceeds of approximately $5,004 in the September 2024 Offering, after deducting the underwriting discount and commissions and offering expenses paid by the Company. The Company will use the net proceeds from the September 2024 Offering for general corporate purposes, which  may include growth and expansion of the EksoHealth segment as the Company works to increase its revenue following the establishment of Medicare CMS reimbursement of the Ekso Indego Personal device, research and development activities, selling, general and administrative costs, and pursuing strategic initiatives, which initiatives may include potential synergistic and accretive acquisitions, as well as meeting the Company's other working capital needs.

 

January 2024 Offering

 

On  January 10, 2024, the Company entered into a securities purchase agreement with certain institutional investors to sell an aggregate of 2,968 shares of the Company’s common stock in a registered direct offering (the “January 2024 Offering”) at an offering price of $1.55 per share. The net proceeds of the January 2024 Offering were approximately $3,932 after deducting placement agent fees and offering expenses paid by the Company. The Company used the net proceeds from the January 2024 Offering for general corporate purposes, which included research and development activities, selling, general and administrative costs, strategic initiatives and to meet working capital needs.

 

At the Market Offering

 

In October 2020, the Company entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC (the "Agent"), under which the Company may issue and sell shares of its common stock, from time to time, to or through the Agent. The Company may offer and sell shares having an aggregate offering price of up to $5,000 under the registration statement and prospectus supplement filed with the SEC related to such offering. In June 2023, the Company entered into an amendment to the ATM Agreement that removed the requirement that shares of the Company's common stock may not be sold for a price lower than $6.75 per share. During the three months ended September 30, 2024, the Company did not sell any shares under the ATM Agreement. During the nine months ended September 30, 2024, the Company sold 105 shares of common stock under the ATM Agreement at an average price of $1.43 per share, for aggregate proceeds of $85, net of commission and issuance costs. The Company did not sell any shares under the ATM Agreement during the three and nine months ended September 30, 2023. As of September 30, 2024, the Company had $4,134 available for future offerings under the prospectus filed with respect to the ATM Agreement.

 

Warrants

 

Warrants outstanding as of September 30, 2024 and  December 31, 2023 were as follows:  

 

                           

Source

 

Exercise Price

  

Remaining term (Years)

  

December 31, 2023

  

Issued

  

Expired

  

Exercised

  

September 30, 2024

 

September 2024 Pre-Funded Warrant

 $0.001   *   —   2,900   —   (335)  2,565 

September 2024 Series A Warrants

 $1.00   4.9   —   6,000   —   —   6,000 

September 2024 Series B Warrants

 $1.00   0.9   —   6,000   —   —   6,000 

2021 Warrants

 $12.81   1.4   273   —   —   —   273 

June 2020 Investor Warrants

 $5.18   1.2   127   —   —   —   127 

June 2020 Placement Agent Warrants

 $5.64   0.7   39   —   —   —   39 

December 2019 Warrants

 $8.10   0.7   556   —   —   —   556 

December 2019 Placement Agent Warrants

 $8.44   0.2   52   —   —   —   52 

May 2019 Warrants

 $1.55   —   193   —   (193)  —   — 
           1,240   14,900   (193)  (335)  15,612 

(*)  The September 2024 Pre-Funded Warrant exercise term does not expire.

 

 

September 2024 Warrants

 

In September 2024, the Company issued the Pre-Funded Warrant to purchase 2,900 shares of common stock, with an exercise price of $0.001 per share, for $2,897 in aggregate cash proceeds, which represents the September 2024 Offering price for the Company's common stock of $1.00, less the per share exercise price. The Pre-Funded Warrant was exercisable immediately and does not expire.

 

In September 2024, the Company issued the Series A Warrants, which are exercisable for an aggregate of up to 6,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Series A Warrants were exercisable immediately and expire on September 4, 2029.

 

In September 2024, the Company issued the Series B Warrants, which are exercisable for an aggregate of up to 6,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The Series B Warrants were exercisable immediately and expire on September 3, 2025.

 

The Pre-Funded Warrant, the Series A Warrants, and the Series B Warrants (collectively, the “September 2024 Warrants”) may be exercised, at the holder’s discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the applicable September 2024 Warrant. However, a holder will not be entitled to exercise any portion of the September 2024 Warrants if the holder’s ownership of the Company’s common stock would exceed 4.99% (the “Beneficial Ownership Limitation”). The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

In the event the Company enters into a Fundamental Transaction, as defined in the applicable September 2024 Warrant, the Pre-Funded Warrant shall be automatically cashless exercised, and the holders of the Series A Warrants and Series B Warrants will be entitled to receive, upon exercise of these warrants, the kind of amounts of securities, cash, or other property that the holders would have received had they exercised these warrants immediately prior to such Fundamental Transaction without regard to the Beneficial Ownership Limitation contained in such September 2024 Warrant. In addition, upon a Fundamental Transaction, subject to certain limitations and exceptions, the holder of the Series A Warrant may put the warrant back to the Company for an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of the Series A Warrant, however, if such Fundamental Transaction is not considered within control of the Company, and not approved by the Company's Board of Directors, then the holder of the Series A Warrant would not be able to put the Series A Warrant back to the Company for cash.

 

The September 2024 Warrants are classified as a component of stockholders’ equity within additional paid-in capital and were recorded at the September 2024 Public Offering issuance date. The September 2024 Warrants are equity classified because they (i) are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, (ii) are immediately exercisable, (iii) do not embody an obligation for the Company to repurchase its shares, (iv) permit the holders to receive a fixed number of shares of common stock upon exercise, (v) are indexed to the Company’s common stock, and (vi) meet the equity classification criteria. In addition, such September 2024 Warrants do not provide any guarantee of value or return.

 

2021 Warrants

 

In February 2021, the Company issued warrants (the "2021 Warrants"), exercisable for up to 273 shares of the Company’s common stock at an exercise price of $12.81 per share. The 2021 Warrants were exercisable immediately and expire on February 11, 2026. The 2021 Warrants may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The 2021 Warrants will be automatically exercised on a cashless basis on their expiration date. The 2021 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the 2021 Warrants, the Company or any successor entity will, at the option of a holder of a 2021 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s 2021 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s 2021 Warrant within five trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the 2021 Warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the 2021 Warrants is measured at fair value upon issuance and at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the 2021 Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $12.81  $12.81 

Risk-free interest rate

  3.86%  4.20%

Expected term (years)

  1.36   2.11 

Volatility of stock

  105.8%  76.5%

 

June 2020 Investor Warrants

 

In June 2020, the Company issued warrants (the "June 2020 Investor Warrants"), exercisable for up to 874 shares of the Company’s common stock at an exercise price of $5.18 per share. The June 2020 Investor Warrants were immediately exercisable and expire on December 10, 2025. The June 2020 Investor Warrants  may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The June 2020 Investor Warrants will be automatically exercised on a cashless basis on their expiration date. The June 2020 Investor Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the June 2020 Investor Warrants, the holders of the June 2020 Investor Warrants will be entitled to receive upon exercise of the June 2020 Investor Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the June 2020 Investor Warrants immediately prior to such Fundamental Transaction. Alternatively, the Company or any successor entity will, at the option of a holder of a June 2020 Investor Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s June 2020 Investor Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s June 2020 Investor Warrant. Because of this put-option provision, the June 2020 Investor Warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the June 2020 Investor Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Investor Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.18  $5.18 

Risk-free interest rate

  3.92%  4.26%

Expected term (years)

  1.19   1.94 

Volatility of stock

  109.4%  78.2%

 

June 2020 Placement Agent Warrants

 

In June 2020, the Company issued warrants (the "June 2020 Placement Agent Warrants"), exercisable for up to 122 shares of the Company’s common stock, to the placement agent for such offering. The June 2020 Placement Agent Warrants have substantially the same form as the June 2020 Investor Warrants, including the put option described above, except that they have an exercise price per share equal to $5.64, subject to adjustment in certain circumstances, and expire on June 7, 2025.

 

Because of the put-option provision in the June 2020 Placement Agent Warrants, these warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the June 2020 Placement Agent Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Placement Agent Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.64  $5.64 

Risk-free interest rate

  4.23%  4.54%

Expected term (years)

  0.69   1.44 

Volatility of stock

  93.3%  83.0%

 

December 2019 Warrants

 

In December 2019, pursuant to a securities purchase agreement (the "December 2019 Offering"), the Company issued warrants (the "December 2019 Warrants") to purchase 556 shares of common stock. The December 2019 Warrants are currently exercisable, have an exercise price of $8.10 per share, and expire on June 21, 2025. The December 2019 Warrants  may be exercised, at the holder's discretion, by (i) payment in full in immediately available funds for the number of shares of common stock purchased upon such exercise or (ii) if there is not an effective registration statement registering, or the prospectus contained therein is not available for the issuance of, the underlying common stock, a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the 2021 Warrant. However, a holder will not be entitled to exercise any portion of the 2021 Warrants if the holder’s ownership of the Company’s common stock would exceed the Beneficial Ownership Limitation. The holder, upon notice to the Company, may increase the Beneficial Ownership Limitation to 9.99%, which increase shall not be effective until the 61st day after such notice is delivered to the Company.

 

The December 2019 Warrants will be automatically exercised on a cashless basis on their expiration date. The December 2019 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the December 2019 Warrants, the Company or any successor entity will, at the option of a holder of a December 2019 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s December 2019 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s December 2019 Warrant within five trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the December 2019 Warrants are classified as a liability and are marked to market at each reporting date.

 

The warrant liability related to the December 2019 Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.10  $8.10 

Risk-free interest rate

  4.21%  4.53%

Expected term (years)

  0.72   1.47 

Volatility of stock

  98.6%  82.3%

 

December 2019 Placement Agent Warrants

 

In December 2019, in connection with the December 2019 Offering, the Company issued warrants to purchase 52 shares of the Company’s common stock to the placement agent for such offering (the "December 2019 Placement Agent Warrants"). The December 2019 Placement Agent Warrants have substantially the same form as the December 2019 Warrants, except that they have an exercise price per share equal to $8.44, subject to adjustment in certain circumstances, and expire on December 18, 2025.

 

The warrant liability related to the December 2019 Placement Agent Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Placement Agent Warrants:

 

  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.44  $8.44 

Risk-free interest rate

  4.79%  4.82%

Expected term (years)

  0.22   0.97 

Volatility of stock

  103.0%  85.2%

 

Management has assessed that the likelihood of a Change of Control (as defined in the December 2019 Placement Agent Warrants), occurring during the term of the December 2019 Placement Agent Warrants is low, and that if such an event were to occur, the difference between the cashless exercise value and the warrants fair value is nominal.

 

May 2019 Warrants

 

In May 2019, pursuant to an underwriting agreement (the "May 2019 Offering"), the Company issued the warrants (the "May 2019 Warrants") to purchase 444 shares of common stock. The May 2019 Warrants had a five-year term from the date of issuance and expired in May 2024.

 

The warrant liability related to the May 2019 Warrants was measured at fair value at each reporting and exercise date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. Because of the price protection feature contained in the May 2019 Warrants, the Company used a combination of the Black-Scholes Model and the Lattice Model to estimate the fair value of the warrants at each reporting period. The following assumptions were used in the Black-Scholes Model in combination with the Lattice Model to measure the fair value of the May 2019 Warrants:

 

  

September 30, 2024

  

December 31, 2023

  

Share price

  N/A  $1.88 

(1)

Conversion price

  N/A  $3.52  

Risk-free interest rate

  N/A   5.3% 

Expected term (years)

  —   0.4  

Volatility of stock

  N/A   77.5% 

(1) As of December 31, 2023, management determined that a financing event was likely in the first quarter of 2024, and reduced the share price used in the model by 25% in order to reflect the total amount that would be realized accordingly.

 
v3.24.3
Note 12 - Stock-based Compensation
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

12.         Stock-based Compensation

 

Shares available for grant

 

The Company's Amended and Restated 2014 Equity Incentive Plan (the "2014 Plan") expired on  January 31, 2024. Following such expiration and prior to the 2024 Annual Meeting of Stockholders (the "Annual Meeting"), no grants were made under the 2014 Plan. On June 6, 2024, the Company held its Annual Meeting and amended and restated the 2014 Plan (the "Restated 2014 Plan") to extend the term of the 2014 Plan until April 15, 2034, and to increase the total number of shares of common stock authorized for issuance by 1,000 shares relative to the amount available for issuance at the time the 2014 Plan expired. As of September 30, 2024, the total number of shares authorized for grant under the Restated 2014 Plan was 4,724, of which 980 were available for future grants.

 

Stock Options

 

The following table summarizes information about the Company’s stock options outstanding as of September 30, 2024, and activity during the nine months then ended:

 

          

Weighted-

     
          

Average

     
      

Weighted-

  

Remaining

  

Aggregate

 
  

Stock

  

Average

  

Contractual

  

Intrinsic

 
  

Awards

  

Exercise Price

  

Life (Years)

  

Value

 

Balance as of December 31, 2023

  252  $36.17         

Options cancelled

  (67)  45.30         

Balance as of September 30, 2024

  185  $32.90   3.80  $— 

Vested and expected to vest as of September 30, 2024

  185  $32.90   3.79  $— 

Exercisable as of September 30, 2024

  185  $32.91   3.80  $— 

 

There were no stock options awarded during the three and nine months ended September 30, 2024 and 2023, and no unrecognized compensation cost related to unvested stock options as of September 30, 2024.

 

Restricted Stock Units

 

The Company issues time-based restricted stock units (“RSUs”) and performance-based restricted stock units ("PSUs") to employees and non-employees. Each RSU and PSU represents the right to receive one share of the Company’s common stock upon vesting and subsequent settlement. PSUs vest upon achievement of performance targets based on the Company's annual operating plan. The fair values of RSUs and PSUs are determined based on the closing price of the Company’s common stock on the date of grant.

 

Combined RSU and PSU activity for the nine months ended September 30, 2024 is summarized below:

 

      

Weighted-

 
  

Number of

  

Average Grant

 
  

Shares

  

Date Fair Value

 

Unvested as of December 31, 2023

  1,305  $1.67 

Granted

  413   1.12 

Vested

  (635)  1.95 

Forfeited

  (49)  1.76 

Unvested as of September 30, 2024

  1,034  $1.30 

 

As of September 30, 2024, $722 of total unrecognized compensation expense related to unvested RSUs and PSUs was expected to be recognized over a weighted average period of 0.97 years.

 

Compensation Expense

 

Stock-based compensation expense is included in the condensed consolidated statements of operations and comprehensive loss in general and administrative, research and development, or sales and marketing expenses, depending on the nature of the services provided. Stock-based compensation expense related to RSUs and PSUs was recorded as follows:

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Sales and marketing

 $22  $69  $80  $209 

Research and development

  27   107   198   320 

General and administrative

  357   265   788   850 
  $406  $441  $1,066  $1,379 

 

401(k) Plan Share Match

 

During the nine months ended September 30, 2024 and 2023, the Company issued 163 and 161 shares of common stock with a fair value of $237 and $249, respectively, to eligible employees’ deferral accounts for the 401(k) Plan matching contribution representing 50% of each eligible employee’s elected deferral (up to the statutory limit) for the years ended December 31, 2023 and 2022.

 

The expense for the 401(k) Plan share matching was $177 and $304 for the nine months ended September 30, 2024 and 2023, respectively.

 
v3.24.3
Note 13 - Income Taxes
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

13.         Income Taxes

 

There were no material changes to the unrecognized tax benefits in the nine months ended September 30, 2024, and the Company does not expect significant changes to unrecognized tax benefits through the end of the fiscal year.

 
v3.24.3
Note 14 - Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

14.         Commitments and Contingencies

 

Material Contracts

 

The Company has two license agreements with the Regents of the University of California to maintain exclusive rights to certain patents. The Company is required to pay 1% of net sales of licensed medical devices sold to entities other than the U.S. government. In addition, the Company is required to pay 21% of consideration collected from any sub-licensee for the grant of the sub-license.

 

The Company has two license agreements with Vanderbilt University to maintain exclusive rights to patents on the Company's behalf.

 

Under the Vanderbilt Exoskeleton License Agreement, the Company is required to pay 6% of net sales of licensed patent products and 3% of net sales of licensed software products. The minimum annual royalty for licensed products is $250. The Vanderbilt Exoskeleton License Agreement will continue until April 29, 2038, unless sooner terminated.

 

Under the Vanderbilt Knee License Agreement, the Company is required to pay 3.75% of net sales for licensed patent products and the minimum annual royalty is $75 due on or before July 31, 2028 and $100 per year thereafter. The Vanderbilt Knee License Agreement will continue until February 15, 2041, unless sooner terminated.

 

Purchase Obligations

 

The Company purchases components from a variety of suppliers and uses contract manufacturers to provide manufacturing services for its products. Purchase obligations are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. 

 

The Company had purchase obligations primarily for purchases of inventory and manufacturing related service contracts totaling $1,511 as of September 30, 2024, which are expected to be paid within one year, and $2,783 as of December 31, 2023. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations.

 

The Company has operating lease commitments totaling $1,083 payable over 34 months related to the San Rafael Lease, the Ohio Lease, and the Hamburg Lease as disclosed in Note 10. Lease Obligations.

 

Loss Contingencies

 

In the normal course of business, the Company is subject to various legal matters. In the opinion of management, the resolution of such matters will not have a material adverse effect on the Company’s condensed consolidated financial statements.

 
v3.24.3
Note 15 - Net Loss Per Share
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

15.         Net Loss Per Share

 

The following table sets forth the computation of basic and diluted net loss per share:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Numerator:

                

Net loss applicable to common stockholders, basic and diluted

 $(2,072) $(3,365) $(7,917) $(11,984)
                 

Denominator:

                

Weighted-average number of common shares, basic and diluted

  20,310   14,073   18,657   13,672 
                 

Net loss per common share, basic and diluted

 $(0.10) $(0.24) $(0.42) $(0.88)

 

The following table sets forth potential shares of common stock that are not included in the calculation of diluted net loss per common share because to do so would be anti-dilutive as of the end of each period presented:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Options to purchase common stock

  185   254   185   254 

Restricted stock units

  1,034   1,474   1,034   1,474 

Warrants for common stock(1)

  13,047   1,240   13,047   1,240 

Total common stock equivalents

  14,266   2,968   14,266   2,968 

(1) Represents the number of shares of common stock underlying our outstanding warrants as of such dates except for the 2,900 shares of common stock underlying the Pre-Funded Warrant issued during the three and nine months ended September 30, 2024. Refer to Note 11. Capitalization and Equity Structure – Warrants for additional information regarding the warrants.

 
v3.24.3
Note 16 - Segment Disclosures
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16.         Segment Disclosures

 

The Company has two reportable segments: EksoHealth and EksoWorks. The EksoHealth segment designs, manufactures, and markets exoskeletons for applications in the medical markets. The EksoWorks segment designs, manufactures, and markets exoskeleton devices to allow able-bodied users to perform difficult repetitive work for extended periods. The reportable segments are each managed separately because they serve distinct markets.

 

The Company evaluates performance and allocates resources based on segment gross profit. The Company does not consider operating expenses or net assets as segment measures and, accordingly, are not allocated.

 

Segment reporting information is as follows:

 

   

EksoHealth

    

EksoWorks

    

Total

  

Three months ended September 30, 2024

                        

Revenue

   $ 4,087     $ 42     $ 4,129  

Cost of revenue

     1,834       86       1,920  

Gross profit

   $ 2,253     $ (44 )   $ 2,209  
                         

Three months ended September 30, 2023

                        

Revenue

   $ 4,388     $ 219     $ 4,607  

Cost of revenue

     2,006       145       2,151  

Gross profit

   $ 2,382     $ 74     $ 2,456  

 

   

EksoHealth

    

EksoWorks

    

Total

  

Nine months ended September 30, 2024

                        

Revenue

   $ 12,430     $ 405     $ 12,835  

Cost of revenue

     5,685       353       6,038  

Gross profit

   $ 6,745     $ 52     $ 6,797  
                         

Nine months ended September 30, 2023

                        

Revenue

   $ 13,072     $ 360     $ 13,432  

Cost of revenue

     6,378       344       6,722  

Gross profit

   $ 6,694     $ 16     $ 6,710  

 

The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa ("EMEA"), and (3) Asia Pacific ("APAC"). Individual countries with revenue greater than 10% of total revenue for the three and nine months ended September 30, 2024 and 2023 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:

 

   

Three Months Ended September 30,

    

Nine Months Ended September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Americas

                                

United States

   $ 1,877     $ 3,099     $ 6,763     $ 9,741  

Other

     18       138       380       149  

Americas revenue

     1,895       3,237       7,143       9,890  
                                 

EMEA

                                

France

     1,067       176       1,935       177  

Poland

     113       496       209       1,007  

Other

     537       374       1,919       1,480  

EMEA revenue

     1,717       1,046       4,063       2,664  
                                 

APAC

                                

Hong Kong

     214       178       335       475  

Other

     303       146       1,294       403  

APAC revenue

     517       324       1,629       878  
                                 

Total Revenue

   $ 4,129     $ 4,607     $ 12,835     $ 13,432  

 
v3.24.3
Note 17 - Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

17.          Related Party Transactions

 

On February 4, 2023, the Company entered into a mutual release and settlement agreement with an entity to settle and resolve any and all potential claims brought forth in connection with a consulting agreement executed between the entity and the Company in July 2017. Under the terms of the consulting agreement, the Company was required to make milestone payments for the introduction of potential partners for, and the consummation of, a strategic joint venture. A member of the Company's board of directors is affiliated with one of two entities under common control.

 

The Company's total settlement amount was $325 and to be paid in cash over 14 months, with an initial payment of $145 paid in the first 40 days and $15 per month for the remaining 12 months. The total settlement amount was fully paid in April 2024. The Company had a liability of $0 and $60 related to this settlement on its condensed consolidated balance sheet under the caption Accrued Liabilities as of September 30, 2024 and December 31, 2023, respectively.
v3.24.3
Insider Trading Arrangements
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Insider Trading Arr Line Items    
Material Terms of Trading Arrangement [Text Block]  

Item 5. Other Information

 

During the quarter ended September 30, 2024, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," each as defined in Regulation S-K Item 408.
Rule 10b5-1 Arrangement Adopted [Flag] false  
Non-Rule 10b5-1 Arrangement Adopted [Flag] false  
Rule 10b5-1 Arrangement Terminated [Flag] false  
Non-Rule 10b5-1 Arrangement Terminated [Flag] false  
v3.24.3
Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Consolidation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 4, 2024.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the audited consolidated financial statements for the fiscal year ended December 31, 2023, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein.

 

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending  December 31, 2024 or any future periods.

 

The condensed consolidated financial statements include the financial statements of Ekso Bionics Holdings, Inc. and its subsidiaries. All significant transactions and balances between Ekso Bionics Holdings, Inc. and its subsidiaries have been eliminated in consolidation.

 
Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. For the Company, these estimates include, but are not limited to, intangible and tangible assets acquired and liabilities assumed in business combinations, revenue recognition, deferred revenue, the valuation of warrants and employee equity awards, future warranty costs, accounting for leases, useful lives assigned to long-lived assets, valuation of inventory, realizability of deferred tax assets, and contingencies. Actual results could differ from those estimates.

 
Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

 

The assets and liabilities of foreign subsidiaries and equity investments, where the local currency is the functional currency, are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at average rates during the period, with resulting foreign currency translation adjustments recorded in accumulated other comprehensive income as a component of stockholders’ equity. Gains and losses from the re-measurement of balances denominated in currencies other than the entities' functional currencies, are recorded in other expense, net in the accompanying condensed consolidated statements of operations and comprehensive loss.

 
Inventory, Policy [Policy Text Block]

Inventory

 

Inventories are recorded at the lower of cost or net realizable value. Cost is computed using the standard cost method, which approximates actual cost on a first-in, first-out basis. Materials from vendors are received and recorded as raw materials. Once the raw materials are incorporated in the fabrication of the product, the related value of the component is recorded as work in progress ("WIP"). Direct and indirect labor and applicable overhead costs are also allocated and recorded to WIP inventory. Finished goods are comprised of completed products that are ready for customer shipment. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over sales and forecasted demand. Excess and obsolete inventories identified, if any, are recorded as an inventory impairment charge within the condensed consolidated statements of operations and comprehensive loss. The Company's estimate of write-downs for excess and obsolete inventory is based on a detailed analysis which includes on-hand inventory and purchase commitments in excess of forecasted demand. Subsequent disposals of inventories are recorded as a reduction of inventory.

 
Lessee, Leases [Policy Text Block]

Leases

 

The Company records its leases in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, Leases. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received.

 

Lease expense is recognized over the expected lease term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, lease liabilities current and lease liabilities non-current.

 

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term.

 
Revenue [Policy Text Block]

Revenue Recognition

 

The Company records its revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which when capable of being distinct, are accounted for as separate performance obligations. Revenue recognition is evaluated based on the following five steps: (i) identification of the contract with the customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied.

 

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are determined based on observable prices at which the Company separately sells its products or services. If a standalone selling price is not directly observable, judgment is made to estimate the selling price based on market conditions and entity-specific factors including cost plus analyses, features and functionality of the product and/or services, the geography of the Company’s customers, and type of customer. Any discounts or other reductions to the transaction price are allocated proportionately to all performance obligations within the multiple-element arrangement. The Company periodically validates the stand-alone selling price for performance obligations by evaluating whether changes in the key assumptions used to determine the stand-alone selling prices will have a significant effect on the allocation of transaction price between multiple performance obligations.

 

The Company exercised judgement to determine that a product return reserve was not required as historical returns activity have not been material.

 
Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk and Other Risks and Uncertainties

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.

 

The Company's cash balances held in domestic banks are deposited into accounts at various institutions with each balance under the $250 Federal Deposit Insurance Corporation ("FDIC") insurance limit. The Company has significant cash balances at foreign financial institutions which regularly exceed the applicable country cash deposit insurance limits of approximately $100 at each of the Company's two foreign banks. Any foreign exchange loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.

 

The Company extends credit to customers in the normal course of business. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the condensed consolidated financial statements. The Company does not require collateral from its customers to secure accounts receivable. Accounts receivable are derived from the sale of products shipped and services performed for customers primarily located in the U.S., Europe, Asia, and Australia. Invoices are aged based on contractual terms with the customer. The Company reviews accounts receivable for collectability and provides an allowance for potential credit losses. The allowance for potential credit losses on trade receivables reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance based on known troubled accounts, historical experience, and other currently available evidence. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. The Company has not experienced material losses related to accounts receivable as of  September 30, 2024 and December 31, 2023.

 

Many of the sales contracts with customers outside of the U.S. are settled in a foreign currency other than the U.S. dollar. The Company does not enter into any foreign currency hedging agreements and is susceptible to gains and losses from foreign currency fluctuations. To date, the Company has not experienced significant gains or losses upon collecting receivables denominated in a foreign currency.

 

The Company hadtwo customers with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable as of  September 30, 2024 (14% and 13%), as compared with no customers as of  December 31, 2023.

 

During the three months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (26%), as compared with three customers in the three months ended  September 30, 2023 (18%, 11% and 11%).

 

During the nine months ended September 30, 2024, the Company had one customer with sales of 10% or more of the Company’s total revenue (15%), as compared with two customers in the nine months ended  September 30, 2023 (17% and 10%).

 
New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

 

In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), to enhance income tax reporting disclosures and require disclosure of specific categories in the tabular rate reconciliation. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We are currently evaluating the impact on our disclosures.

 

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 looks to provide improvements to the segment disclosure by providing users with more decision-useful information about reportable segments in a public entity. The main provisions require a company to disclose, on an annual and interim basis, significant expenses included within each reported measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements with an effective date for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2023-07 to be material on its consolidated financial statements.

 

Accounting Pronouncements Adopted in 2024

 

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which simplified the accounting for convertible instruments. ASU 2020-06 eliminated certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminated certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance became effective for the Company in the first quarter of 2024 and was applied using a full retrospective approach. The adoption did not have a material impact on the Company's consolidated financial statements.

 
v3.24.3
Note 3 - Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
   

Nine Months Ended September 30,

  
   

2024

    

2023

  

Balance at beginning of period

   $ 156     $ 563  

Net unrealized gain (loss) on foreign currency translation

     (144 )     170  

Balance at end of period

   $ 12     $ 733  
v3.24.3
Note 4 - Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
   

Total

    

Level 1

    

Level 2

    

Level 3

  

September 30, 2024

                                

Liabilities

                                

Warrant liabilities

   $ 35     $ —     $ —     $ 35  

December 31, 2023

                                

Liabilities

                                

Warrant liabilities

   $ 366     $ —     $ —     $ 366  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
   

Warrant Liabilities

  

Balance as of December 31, 2023

   $ 366  

Loss on modification of warrant

     109  

Gain on revaluation of warrants

     (440 )

Balance as of September 30, 2024

   $ 35  
v3.24.3
Note 5 - Inventories (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   

September 30, 2024

    

December 31, 2023

  

Raw materials

   $ 3,917     $ 4,298  

Work in progress

     301       290  

Finished goods

     813       462  

Inventories

   $ 5,031     $ 5,050  
v3.24.3
Note 6 - Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]
  

September 30, 2024

  

December 31, 2023

 

Deferred extended maintenance and support

 $3,850   3,993 

Deferred device and advances

  160   169 

Total deferred revenues

  4,010   4,162 

Less current portion

  (2,039)  (1,993)

Deferred revenues, non-current

 $1,971  $2,169 

Beginning balance

 $4,162 

Deferral of revenue

  2,168 

Recognition of deferred revenue

  (2,320)

Ending balance

 $4,010 
Disaggregation of Revenue [Table Text Block]
  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,096  $24  $3,120 

Service and support

  691   —   691 

Subscriptions

  123   —   123 

Parts and other

  177   18   195 
  $4,087  $42  $4,129 
  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $3,390  $190  $3,580 

Service and support

  726   —   726 

Subscriptions

  245   —   245 

Parts and other

  27   29   56 
  $4,388  $219  $4,607 
  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $9,337  $351  $9,688 

Service and support

  2,292   —   2,292 

Subscriptions

  413   —   413 

Parts and other

  388   54   442 
  $12,430  $405  $12,835 
  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $10,041  $308  $10,349 

Service and support

  2,092   —   2,092 

Subscriptions

  781   —   781 

Parts and other

  158   52   210 
  $13,072  $360  $13,432 
v3.24.3
Note 7 - Accrued Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Accrued Liabilities [Table Text Block]
   

September 30, 2024

    

December 31, 2023

  

Salaries, benefits and related expenses

   $ 1,414     $ 2,058  

Device warranty

     443       461  

Other

     118       145  

Total

   $ 1,975     $ 2,664  
Product Maintenance And Warranty [Table Text Block]
   

Three Months Ended

    

Nine Months Ended

  
   

September 30, 2024

    

September 30, 2024

  

Balance at beginning of the period

   $ 561     $ 566  

Additions for estimated future expense

     210       526  

Incurred costs

     (163 )     (484 )

Balance at end of the period

   $ 608     $ 608  
   

Balance as of September 30, 2024

  

Current portion

   $ 443  

Long-term portion

     165  

Total

   $ 608  
v3.24.3
Note 8 - Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Finite-Lived Intangible Assets [Table Text Block]
   

September 30, 2024

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (526 )   $ 1,784  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (32 )     108  

Total intangible assets

   $ 5,220     $ (558 )   $ 4,662  
   

December 31, 2023

  
   

Gross Carrying Amount

    

Accumulated Amortization

    

Net Carrying Amount

  

Developed technology

   $ 2,310     $ (310 )   $ 2,000  

Trade name

     2,310       N/A       2,310  

Intellectual property(1)

     460       —       460  

Customer relationships

     140       (18 )     122  

Total intangible assets

   $ 5,220     $ (328 )   $ 4,892  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Fiscal Year

  

Amount

  

2024 - remainder

   $ 82  

2025

     345  

2026

     345  

2027

     345  

2028

     345  

2029 and thereafter

     890  

Total

   $ 2,352  
v3.24.3
Note 9 - Notes Payable, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Maturities of Long-Term Debt [Table Text Block]

Period

  

Amount

  

2024-2025

   $ —  

2026

     2,000  

Total principal payments

     2,000  

Less debt discount and issuance cost

     (4 )

Notes payable, net

   $ 1,996  
         

Current portion

   $ —  

Long-term portion

     1,996  

Notes payable, net

   $ 1,996  

Period

  

Amount

  

2024 - remainder

   $ 312  

2025

     1,250  

2026

     1,250  

2027

     938  

Total principal payments

     3,750  

Less debt discount

     (390 )

Notes payable, net

   $ 3,360  
         

Current portion

     1,250  

Long-term portion

     2,110  

Notes payable, net

   $ 3,360  
v3.24.3
Note 10 - Lease Obligations (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Periods

 

Operating Leases

 

2024 - remainder

 $127 

2025

  484 

2026

  431 

2027

  41 

Total lease payments

  1,083 

Less: imputed interest

  (93)

Present value of lease liabilities

 $990 
     

Weighted-average remaining lease term (in years)

  2.15 

Weighted-average discount rate

  8.3%
v3.24.3
Note 11 - Capitalization and Equity Structure (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
                           

Source

 

Exercise Price

  

Remaining term (Years)

  

December 31, 2023

  

Issued

  

Expired

  

Exercised

  

September 30, 2024

 

September 2024 Pre-Funded Warrant

 $0.001   *   —   2,900   —   (335)  2,565 

September 2024 Series A Warrants

 $1.00   4.9   —   6,000   —   —   6,000 

September 2024 Series B Warrants

 $1.00   0.9   —   6,000   —   —   6,000 

2021 Warrants

 $12.81   1.4   273   —   —   —   273 

June 2020 Investor Warrants

 $5.18   1.2   127   —   —   —   127 

June 2020 Placement Agent Warrants

 $5.64   0.7   39   —   —   —   39 

December 2019 Warrants

 $8.10   0.7   556   —   —   —   556 

December 2019 Placement Agent Warrants

 $8.44   0.2   52   —   —   —   52 

May 2019 Warrants

 $1.55   —   193   —   (193)  —   — 
           1,240   14,900   (193)  (335)  15,612 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $12.81  $12.81 

Risk-free interest rate

  3.86%  4.20%

Expected term (years)

  1.36   2.11 

Volatility of stock

  105.8%  76.5%
  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.18  $5.18 

Risk-free interest rate

  3.92%  4.26%

Expected term (years)

  1.19   1.94 

Volatility of stock

  109.4%  78.2%
  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $5.64  $5.64 

Risk-free interest rate

  4.23%  4.54%

Expected term (years)

  0.69   1.44 

Volatility of stock

  93.3%  83.0%
  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.10  $8.10 

Risk-free interest rate

  4.21%  4.53%

Expected term (years)

  0.72   1.47 

Volatility of stock

  98.6%  82.3%
  

September 30, 2024

  

December 31, 2023

 

Current share price

 $1.16  $2.50 

Conversion price

 $8.44  $8.44 

Risk-free interest rate

  4.79%  4.82%

Expected term (years)

  0.22   0.97 

Volatility of stock

  103.0%  85.2%
  

September 30, 2024

  

December 31, 2023

  

Share price

  N/A  $1.88 

(1)

Conversion price

  N/A  $3.52  

Risk-free interest rate

  N/A   5.3% 

Expected term (years)

  —   0.4  

Volatility of stock

  N/A   77.5% 
v3.24.3
Note 12 - Stock-based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
          

Weighted-

     
          

Average

     
      

Weighted-

  

Remaining

  

Aggregate

 
  

Stock

  

Average

  

Contractual

  

Intrinsic

 
  

Awards

  

Exercise Price

  

Life (Years)

  

Value

 

Balance as of December 31, 2023

  252  $36.17         

Options cancelled

  (67)  45.30         

Balance as of September 30, 2024

  185  $32.90   3.80  $— 

Vested and expected to vest as of September 30, 2024

  185  $32.90   3.79  $— 

Exercisable as of September 30, 2024

  185  $32.91   3.80  $— 
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block]
      

Weighted-

 
  

Number of

  

Average Grant

 
  

Shares

  

Date Fair Value

 

Unvested as of December 31, 2023

  1,305  $1.67 

Granted

  413   1.12 

Vested

  (635)  1.95 

Forfeited

  (49)  1.76 

Unvested as of September 30, 2024

  1,034  $1.30 
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]
  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Sales and marketing

 $22  $69  $80  $209 

Research and development

  27   107   198   320 

General and administrative

  357   265   788   850 
  $406  $441  $1,066  $1,379 
v3.24.3
Note 15 - Net Loss Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Numerator:

                

Net loss applicable to common stockholders, basic and diluted

 $(2,072) $(3,365) $(7,917) $(11,984)
                 

Denominator:

                

Weighted-average number of common shares, basic and diluted

  20,310   14,073   18,657   13,672 
                 

Net loss per common share, basic and diluted

 $(0.10) $(0.24) $(0.42) $(0.88)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Options to purchase common stock

  185   254   185   254 

Restricted stock units

  1,034   1,474   1,034   1,474 

Warrants for common stock(1)

  13,047   1,240   13,047   1,240 

Total common stock equivalents

  14,266   2,968   14,266   2,968 
v3.24.3
Note 16 - Segment Disclosures (Tables)
 9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

EksoHealth

    

EksoWorks

    

Total

  

Three months ended September 30, 2024

                        

Revenue

   $ 4,087     $ 42     $ 4,129  

Cost of revenue

     1,834       86       1,920  

Gross profit

   $ 2,253     $ (44 )   $ 2,209  
                         

Three months ended September 30, 2023

                        

Revenue

   $ 4,388     $ 219     $ 4,607  

Cost of revenue

     2,006       145       2,151  

Gross profit

   $ 2,382     $ 74     $ 2,456  
   

EksoHealth

    

EksoWorks

    

Total

  

Nine months ended September 30, 2024

                        

Revenue

   $ 12,430     $ 405     $ 12,835  

Cost of revenue

     5,685       353       6,038  

Gross profit

   $ 6,745     $ 52     $ 6,797  
                         

Nine months ended September 30, 2023

                        

Revenue

   $ 13,072     $ 360     $ 13,432  

Cost of revenue

     6,378       344       6,722  

Gross profit

   $ 6,694     $ 16     $ 6,710  
Revenue from External Customers by Geographic Areas [Table Text Block]
   

Three Months Ended September 30,

    

Nine Months Ended September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Americas

                                

United States

   $ 1,877     $ 3,099     $ 6,763     $ 9,741  

Other

     18       138       380       149  

Americas revenue

     1,895       3,237       7,143       9,890  
                                 

EMEA

                                

France

     1,067       176       1,935       177  

Poland

     113       496       209       1,007  

Other

     537       374       1,919       1,480  

EMEA revenue

     1,717       1,046       4,063       2,664  
                                 

APAC

                                

Hong Kong

     214       178       335       475  

Other

     303       146       1,294       403  

APAC revenue

     517       324       1,629       878  
                                 

Total Revenue

   $ 4,129     $ 4,607     $ 12,835     $ 13,432  
v3.24.3
Note 1 - Organization (Details Textual) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Retained Earnings (Accumulated Deficit) $ (247,062)   $ (239,145)
Net Cash Provided by (Used in) Operating Activities (8,413) $ (10,470)  
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents 8,292    
Debt Covenant, Covenant Compliance, Unrestricted Cash 2,000    
Unrestricted Cash $ 6,292    
v3.24.3
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies and Estimates (Details Textual) - Customer Concentration Risk [Member]
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Accounts Receivable [Member]          
Number Of Customers     2   0
Accounts Receivable [Member] | Customer A [Member]          
Concentration Risk, Percentage     14.00%    
Accounts Receivable [Member] | Customer B [Member]          
Concentration Risk, Percentage     13.00%    
Revenue from Contract with Customer Benchmark [Member]          
Number Of Customers 1 3 1 2  
Revenue from Contract with Customer Benchmark [Member] | Customer A [Member]          
Concentration Risk, Percentage 26.00% 18.00% 15.00% 17.00%  
Revenue from Contract with Customer Benchmark [Member] | Customer B [Member]          
Concentration Risk, Percentage   11.00%   10.00%  
Revenue from Contract with Customer Benchmark [Member] | Customer C [Member]          
Concentration Risk, Percentage   11.00%      
v3.24.3
Note 3 - Accumulated Other Comprehensive Income (Loss) - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Balance $ 12,606 $ 25,442
Net unrealized gain (loss) on foreign currency translation (144) 170
Balance 14,870 15,257
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]    
Balance 156 563
Balance $ 12 $ 733
v3.24.3
Note 4 - Fair Value Measurement - Fair Value Hierarchies (Details) - Fair Value, Recurring [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Warrant liabilities $ 35 $ 366
Fair Value, Inputs, Level 1 [Member]    
Warrant liabilities 0 0
Fair Value, Inputs, Level 2 [Member]    
Warrant liabilities 0 0
Fair Value, Inputs, Level 3 [Member]    
Warrant liabilities $ 35 $ 366
v3.24.3
Note 4 - Fair Value Measurement - Changes in Fair Value (Details) - Derivative Financial Instruments, Liabilities [Member]
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Balance $ 366
Loss on modification of warrant 109
Gain on revaluation of warrants (440)
Balance $ 35
v3.24.3
Note 5 - Inventories - Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Raw materials $ 3,917 $ 4,298
Work in progress 301 290
Finished goods 813 462
Inventories $ 5,031 $ 5,050
v3.24.3
Note 6 - Revenue 1 (Details Textual) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 25, 2023
Contract With Customer, Liability, Non-Cancellable Backlog $ 3,417  
Product and Service, Other [Member]    
Contract With Customer, Liability, Non-Cancellable Backlog 2,885  
Subscription [Member]    
Contract With Customer, Liability, Non-Cancellable Backlog $ 532  
Parker [Member]    
Deferred Revenue, Warranty Claim Lump Sum   $ 700
Minimum [Member] | Ekso Health [Member]    
Contracts With Customer, Accounts Receivable, Payment Terms, Duration (Month) 12 months  
Maximum [Member] | Ekso Health [Member]    
Contracts With Customer, Accounts Receivable, Payment Terms, Duration (Month) 48 months  
v3.24.3
Note 6 - Revenue 2 (Details Textual)
$ in Thousands
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Amount $ 703
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Amount $ 1,559
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Amount $ 1,748
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) 1 year
v3.24.3
Note 6 - Revenue - Deferred Revenue (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Deferred extended maintenance and support $ 3,850 $ 3,993
Deferred device and advances 160 169
Total deferred revenues 4,010 4,162
Less current portion (2,039) (1,993)
Deferred revenues, non-current 1,971 $ 2,169
Beginning balance 4,162  
Deferral of revenue 2,168  
Recognition of deferred revenue (2,320)  
Ending balance $ 4,010  
v3.24.3
Note 6 - Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue $ 4,129 $ 4,607 $ 12,835 $ 13,432
Ekso Health [Member]        
Revenue 4,087 4,388 12,430 13,072
Ekso Works [Member]        
Revenue 42 219 405 360
Product [Member]        
Revenue 3,120 3,580 9,688 10,349
Product [Member] | Ekso Health [Member]        
Revenue 3,096 3,390 9,337 10,041
Product [Member] | Ekso Works [Member]        
Revenue 24 190 351 308
Service [Member]        
Revenue 691 726 2,292 2,092
Service [Member] | Ekso Health [Member]        
Revenue 691 726 2,292 2,092
Service [Member] | Ekso Works [Member]        
Revenue 0 0 0 0
Subscription [Member]        
Revenue 123 245 413 781
Subscription [Member] | Ekso Health [Member]        
Revenue 123 245 413 781
Subscription [Member] | Ekso Works [Member]        
Revenue 0 0 0 0
Product and Service, Other [Member]        
Revenue 195 56 442 210
Product and Service, Other [Member] | Ekso Health [Member]        
Revenue 177 27 388 158
Product and Service, Other [Member] | Ekso Works [Member]        
Revenue $ 18 $ 29 $ 54 $ 52
v3.24.3
Note 7 - Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Salaries, benefits and related expenses $ 1,414 $ 2,058
Device warranty 443 461
Other 118 145
Total $ 1,975 $ 2,664
v3.24.3
Note 7 - Accrued Liabilities - Warrant Liability (Details) - Warranty [Member]
$ in Thousands
 6 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Balance at beginning of the period $ 561 $ 566
Additions for estimated future expense 210 526
Incurred costs (163) (484)
Balance at end of the period 608 608
Current portion 443 443
Long-term portion 165 165
Total $ 608 $ 608
v3.24.3
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Goodwill $ 431   $ 431   $ 431
Acquired Finite-Lived Intangible Asset, Amortization $ 77 $ 82 $ 230 $ 245  
Developed Technology Rights [Member]          
Finite-Lived Intangible Asset, Useful Life (Year) 8 years   8 years    
Intellectual Property [Member]          
Finite-Lived Intangible Asset, Useful Life (Year) 12 years   12 years    
Customer Relationships [Member]          
Finite-Lived Intangible Asset, Useful Life (Year) 8 years   8 years    
v3.24.3
Note 8 - Goodwill and Intangible Assets - Goodwill and Intangible Assets Balances (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Intangibles, Accumulated Amortization $ (558) $ (328)
Intangibles, Net Carrying Amount 2,352  
Total Intangible Assets, Gross Carrying Amount 5,220 5,220
Total Intangible Assets, Net Carrying Amount 4,662 4,892
Trade Names [Member]    
Intangibles, Gross Carrying Amount 2,310 2,310
Developed Technology Rights [Member]    
Intangibles, Gross Carrying Amount 2,310 2,310
Intangibles, Accumulated Amortization (526) (310)
Intangibles, Net Carrying Amount 1,784 2,000
Intellectual Property [Member]    
Intangibles, Gross Carrying Amount 460 [1] 460 [2]
Intangibles, Accumulated Amortization 0 [1] 0 [2]
Intangibles, Net Carrying Amount 460 [1] 460 [2]
Customer Relationships [Member]    
Intangibles, Gross Carrying Amount 140 140
Intangibles, Accumulated Amortization (32) (18)
Intangibles, Net Carrying Amount $ 108 $ 122
[1] Intellectual property not yet placed in service as of September 30, 2024.
[2] Intellectual property not yet placed in service as of December 31, 2023.
v3.24.3
Note 8 - Goodwill and Intangible Assets - Schedule of Finite Lived Intangible Assets (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
2024 - remainder $ 82
2025 345
2026 345
2027 345
2028 345
2029 and thereafter 890
Total $ 2,352
v3.24.3
Note 9 - Notes Payable, Net (Details Textual)
$ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended
Dec. 05, 2022
USD ($)
Aug. 30, 2020
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Term Loan [Member] | PWB Agreement [Member]            
Line of Credit Facility, Maximum Borrowing Capacity   $ 2,000        
Debt Instrument, Basis Spread on Variable Rate   0.50%        
Debt Instrument, Interest Rate, Stated Percentage   4.50%        
Long-Term Debt, Gross     $ 2,000   $ 2,000  
Debt Instrument, Covenant Compliance, Maximum Deposits Outside Of United States         $ 1,000  
Line of Credit Facility, Interest Rate During Period     8.67% 9.00% 8.71% 8.80%
Interest Expense, Debt     $ 44 $ 45 $ 130 $ 132
Subordinated Debt [Member] | Promissory Note [Member]            
Debt Instrument, Basis Spread on Variable Rate 5.00%          
Debt Instrument, Interest Rate, Stated Percentage 0.00%          
Long-Term Debt, Gross     $ 3,750   $ 3,750  
Line of Credit Facility, Interest Rate During Period     7.00% 7.31% 7.52% 7.31%
Interest Expense, Debt     $ 66 $ 81 $ 210 $ 239
Debt Instrument, Face Amount $ 5,000          
Debt Instrument, Periodic Payment, Number of Installments 16          
Subordinated Debt     $ 4,055   $ 4,055  
Debt Instrument, Discount Rate, Percentage         7.50%  
v3.24.3
Note 9 - Notes Payable, Net - Schedule of Long-term Debt Maturities (Details)
Sep. 30, 2024
USD ($)
Term Loan [Member] | PWB Agreement [Member]  
2024-2025 $ 0
2026 2,000,000
Long-Term Debt, Gross 2,000,000
Less debt discount and issuance cost (4,000)
Notes payable, net 1,996,000
Current portion 0
Long-term portion 1,996,000
2026 2,000,000
Total principal payments 2,000,000
Notes payable, net 1,996,000
Current portion 0
Long-term portion 1,996,000
Subordinated Debt [Member] | Promissory Note [Member]  
2026 1,250,000
Long-Term Debt, Gross 3,750,000
Notes payable, net 3,360
Current portion 1,250,000
Long-term portion 2,110,000
2024 - remainder 312,000
2025 1,250,000
2026 1,250,000
2027 938,000
Total principal payments 3,750,000
Less debt discount (390,000)
Notes payable, net 3,360
Current portion 1,250,000
Long-term portion $ 2,110,000
v3.24.3
Note 10 - Lease Obligations (Details Textual)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Jul. 31, 2022
Feb. 28, 2022
Operating Lease, Expense $ 161 $ 146 $ 432 $ 417    
San Rafael California [Member]            
Lessee, Operating Lease, Renewal Term (Year) 3 years   3 years   3 years  
Brecksville Ohio [Member]            
Lessee, Operating Lease, Renewal Term (Year) 3 years   3 years      
Hamburg Germany [Member]            
Lessee, Operating Lease, Renewal Term (Year) 5 years   5 years      
Lessee Operating Lease, Number of Extension           1
v3.24.3
Note 10 - Lease Obligations - Schedule of Future Lease Liabilities (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
2024 - remainder $ 127
2025 484
2026 431
2027 41
Lessee, Operating Lease, Liability, to be Paid 1,083
Less: imputed interest (93)
Present value of lease liabilities $ 990
Weighted-average remaining lease term (in years) (Year) 2 years 1 month 24 days
Weighted-average discount rate 8.30%
v3.24.3
Note 11 - Capitalization and Equity Structure (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended
Sep. 03, 2024
Jan. 10, 2024
Sep. 30, 2024
Feb. 28, 2021
Oct. 31, 2020
Jun. 30, 2020
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Dec. 31, 2019
Jun. 30, 2019
May 31, 2019
Common Stock, Shares Authorized (in shares)     141,429,000       141,429,000         141,429,000   141,429,000      
Preferred Stock, Shares Authorized (in shares)     10,000,000       10,000,000         10,000,000   10,000,000      
Common Stock, Shares, Outstanding (in shares)     21,998,000       21,998,000         21,998,000   14,848,000      
Preferred Stock, Shares Outstanding (in shares)     0       0         0   0      
Proceeds from Issuance of Common Stock                       $ 9,021 $ 0        
Stock Issued During Period, Value, New Issues               $ 47 $ 3,970                
Class Of Warrant Or Right Issued (in shares)                       14,900,000          
Class of Warrant or Right, Outstanding (in shares)     15,612,000       15,612,000         15,612,000   1,240,000      
Common Stock, Shares, Issued (in shares)     21,998,000       21,998,000         21,998,000   14,848,000      
Preferred Stock, Shares Issued (in shares)     0       0         0   0      
September 2024 Pre-funded Warrants [Member]                                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 2,900   2,900       2,900         2,900          
Shares Issued, Price Per Share (in dollars per share)     $ 1       $ 1         $ 1          
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 0.001       $ 0.001         $ 0.001          
Proceeds from Issuance of Warrants     $ 2,897                            
Class Of Warrant Or Right Issued (in shares)                       2,900          
Class of Warrant or Right, Outstanding (in shares)     2,565       2,565         2,565   0      
September 2024 Series A Warrants [Member]                                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 6,000   6,000       6,000         6,000          
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 1       $ 1         $ 1          
Class Of Warrant Or Right Issued (in shares)                       6,000          
Class of Warrant or Right, Outstanding (in shares)     6,000       6,000         6,000   0      
Warrants and Rights Outstanding, Term (Year)     4 years 10 months 24 days       4 years 10 months 24 days         4 years 10 months 24 days          
September 2024 Series B Warrants [Member]                                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 6,000   6,000       6,000         6,000          
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 1       $ 1         $ 1          
Class Of Warrant Or Right Issued (in shares)                       6,000          
Class of Warrant or Right, Outstanding (in shares)     6,000       6,000         6,000   0      
Warrants and Rights Outstanding, Term (Year)     10 months 24 days       10 months 24 days         10 months 24 days          
September 2024 Warrants [Member]                                  
Beneficial Ownership Limitation, Percentage     4.99%                            
Beneficial Ownership Limitation, Contingency, Percentage Increase Available for Grant     9.99%                            
A2021 Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 12.81 $ 12.81     $ 12.81         $ 12.81          
Beneficial Ownership Limitation, Contingency, Percentage Increase Available for Grant                       9.99%          
Class Of Warrant Or Right Issued (in shares)       273,000               0          
Class of Warrant or Right, Outstanding (in shares)     273,000       273,000         273,000   273,000      
Warrants and Rights Outstanding, Term (Year)     1 year 4 months 24 days       1 year 4 months 24 days         1 year 4 months 24 days          
June 2020 Investor Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 5.18     $ 5.18 $ 5.18         $ 5.18          
Beneficial Ownership Limitation, Contingency, Percentage Increase Available for Grant                       9.99%          
Class Of Warrant Or Right Issued (in shares)                       0          
Class of Warrant or Right, Outstanding (in shares)     127,000     874,000 127,000         127,000   127,000      
Warrants and Rights Outstanding, Term (Year)     1 year 2 months 12 days       1 year 2 months 12 days         1 year 2 months 12 days          
June 2020 Placement Agent Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 5.64     $ 5.64 $ 5.64         $ 5.64          
Class Of Warrant Or Right Issued (in shares)           122,000           0          
Class of Warrant or Right, Outstanding (in shares)     39,000       39,000         39,000   39,000      
Warrants and Rights Outstanding, Term (Year)     8 months 12 days       8 months 12 days         8 months 12 days          
December 2019 Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 8.1       $ 8.1         $ 8.1       $ 8.1  
Beneficial Ownership Limitation, Contingency, Percentage Increase Available for Grant                       9.99%          
Class Of Warrant Or Right Issued (in shares)                       0          
Class of Warrant or Right, Outstanding (in shares)     556,000       556,000         556,000   556,000   556,000  
Warrants and Rights Outstanding, Term (Year)     8 months 12 days       8 months 12 days         8 months 12 days          
December 2019 Placement Agent Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 8.44       $ 8.44         $ 8.44     $ 8.44    
Class Of Warrant Or Right Issued (in shares)                       0          
Class of Warrant or Right, Outstanding (in shares)     52,000       52,000         52,000   52,000 52,000    
Warrants and Rights Outstanding, Term (Year)     2 months 12 days       2 months 12 days         2 months 12 days          
May 2019 Warrants [Member]                                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)     $ 1.55       $ 1.55         $ 1.55          
Class Of Warrant Or Right Issued (in shares)                       0          
Class of Warrant or Right, Outstanding (in shares)     0       0         0   193,000     444,000
Warrants and Rights Outstanding, Term (Year)                                 5 years
September 2024 Offering [Member]                                  
Stock Issued During Period, Shares, New Issues (in shares) 3,100                                
Proceeds from Issuance or Sale of Equity $ 5,004                                
Stock Issued During Period, Value, New Issues             $ 5,004                    
January 2024 Offering [Member]                                  
Stock Issued During Period, Shares, New Issues (in shares)   2,968,000                              
Shares Issued, Price Per Share (in dollars per share)   $ 1.55                              
Proceeds from Issuance of Common Stock   $ 3,932                              
At the Market Offering [Member]                                  
Stock Issued During Period, Shares, New Issues (in shares)             0     0 105,000            
Proceeds from Issuance of Common Stock                     $ 85            
Stock Issued During Period, Value, New Issues         $ 5,000                        
Shares Issued, Average Price Per Share (in dollars per share)                     $ 1.43            
Sale Of Stock, Stock Available For Issuance, Value                     $ 4,134            
At the Market Offering [Member] | Minimum [Member]                                  
Share Price (in dollars per share)         $ 6.75                        
v3.24.3
Note 11 - Capitalization and Equity Structure - Schedule of Warrant Share Activity (Details) - $ / shares
 1 Months Ended 9 Months Ended
Feb. 28, 2021
Jun. 30, 2020
Sep. 30, 2024
Dec. 31, 2019
Jun. 30, 2019
May 31, 2019
Balance (in shares)     1,240,000      
Warrants issued (in shares)     14,900,000      
Warrants expired (in shares)     (193,000)      
Warrants exercised (in shares)     (335,000)      
Balance (in shares)     15,612,000      
September 2024 Pre-funded Warrants [Member]            
Exercise price (in dollars per share)     $ 0.001      
Balance (in shares)     0      
Warrants issued (in shares)     2,900      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     (335)      
Balance (in shares)     2,565      
September 2024 Series A Warrants [Member]            
Exercise price (in dollars per share)     $ 1      
Balance (in shares)     0      
Warrants issued (in shares)     6,000      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     6,000      
Term (Year)     4 years 10 months 24 days      
September 2024 Series B Warrants [Member]            
Exercise price (in dollars per share)     $ 1      
Balance (in shares)     0      
Warrants issued (in shares)     6,000      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     6,000      
Term (Year)     10 months 24 days      
A2021 Warrants [Member]            
Exercise price (in dollars per share) $ 12.81   $ 12.81      
Balance (in shares)     273,000      
Warrants issued (in shares) 273,000   0      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     273,000      
Term (Year)     1 year 4 months 24 days      
June 2020 Investor Warrants [Member]            
Exercise price (in dollars per share)   $ 5.18 $ 5.18      
Balance (in shares)     127,000      
Warrants issued (in shares)     0      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)   874,000 127,000      
Term (Year)     1 year 2 months 12 days      
June 2020 Placement Agent Warrants [Member]            
Exercise price (in dollars per share)   $ 5.64 $ 5.64      
Balance (in shares)     39,000      
Warrants issued (in shares)   122,000 0      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     39,000      
Term (Year)     8 months 12 days      
December 2019 Warrants [Member]            
Exercise price (in dollars per share)     $ 8.1   $ 8.1  
Balance (in shares)     556,000      
Warrants issued (in shares)     0      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     556,000      
Term (Year)     8 months 12 days      
December 2019 Placement Agent Warrants [Member]            
Exercise price (in dollars per share)     $ 8.44 $ 8.44    
Balance (in shares)     52,000      
Warrants issued (in shares)     0      
Warrants expired (in shares)     0      
Warrants exercised (in shares)     0      
Balance (in shares)     52,000      
Term (Year)     2 months 12 days      
May 2019 Warrants [Member]            
Exercise price (in dollars per share)     $ 1.55      
Balance (in shares)     193,000      
Warrants issued (in shares)     0      
Warrants expired (in shares)     (193,000)      
Warrants exercised (in shares)     0      
Balance (in shares)     0      
Term (Year)           5 years
v3.24.3
Note 11 - Capitalization and Equity Structure - Schedule of Assumptions used in Black-Scholes Model to Measure Fair Value (Details)
Sep. 30, 2024
Dec. 31, 2023
A2021 Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input 1.16 2.5
A2021 Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input 12.81 12.81
A2021 Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input 0.0386 0.042
A2021 Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input 1.36 2.11
A2021 Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input 1.058 0.765
June 2020 Investor Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input 1.16 2.5
June 2020 Investor Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input 5.18 5.18
June 2020 Investor Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input 0.0392 0.0426
June 2020 Investor Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input 1.19 1.94
June 2020 Investor Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input 1.094 0.782
June 2020 Placement Agent Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input 1.16 2.5
June 2020 Placement Agent Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input 5.64 5.64
June 2020 Placement Agent Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input 0.0423 0.0454
June 2020 Placement Agent Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input 0.69 1.44
June 2020 Placement Agent Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input 0.933 0.83
December 2019 Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input 1.16 2.5
December 2019 Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input 8.1 8.1
December 2019 Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input 0.0421 0.0453
December 2019 Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input 0.72 1.47
December 2019 Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input 0.986 0.823
December 2019 Placement Agent Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input 1.16 2.5
December 2019 Placement Agent Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input 8.44 8.44
December 2019 Placement Agent Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input 0.0479 0.0482
December 2019 Placement Agent Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input 0.22 0.97
December 2019 Placement Agent Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input 1.03 0.852
May 2019 Warrants [Member] | Measurement Input, Share Price [Member]    
Warrant, measurement input [1]   1.88
May 2019 Warrants [Member] | Measurement Input, Conversion Price [Member]    
Warrant, measurement input   3.52
May 2019 Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]    
Warrant, measurement input   0.053
May 2019 Warrants [Member] | Measurement Input, Expected Term [Member]    
Warrant, measurement input   0.4
May 2019 Warrants [Member] | Measurement Input, Price Volatility [Member]    
Warrant, measurement input   0.775
[1] As of December 31, 2023, management determined that a financing event was likely in the first quarter of 2024, and reduced the share price used in the model by 25% in order to reflect the total amount that would be realized accordingly.
v3.24.3
Note 12 - Stock-based Compensation (Details Textual) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Jun. 06, 2024
Sep. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)   0       0  
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount   $ 0       $ 0  
Stock Issued During Period, Value, Employee Benefit Plan     $ 237   $ 249    
Defined Contribution Plan, Employer Matching Contribution, Percent of Match           50.00%  
Common Stock Contribution           $ 177 $ 304
Additional Paid-in Capital [Member]              
Stock Issued During Period, Shares, Employee Benefit Plan (in shares)   163   161      
Stock Issued During Period, Value, Employee Benefit Plan     $ 237   $ 249 $ 237 $ 249
Restricted Stock Units (RSUs) [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)           413  
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount   $ 722       $ 722  
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)           11 months 19 days  
Equity Incentive Plan 2014 [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) 1,000            
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)   4,724       4,724  
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)   980       980  
v3.24.3
Note 12 - Stock-based Compensation - Stock Option Outstanding (Details) - Equity Incentive Plan 2014 [Member]
$ / shares in Units, shares in Thousands, $ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
$ / shares
shares
Balance (in shares) | shares 252
Balance (in dollars per share) | $ / shares $ 36.17
Options cancelled (in shares) | shares (67)
Options cancelled (in dollars per share) | $ / shares $ 45.3
Balance (in shares) | shares 185
Balance (in dollars per share) | $ / shares $ 32.9
Balance as of September 30, 2024 (Year) 3 years 9 months 18 days
Balance as of September 30, 2024 | $ $ 0
Vested and expected to vest as of September 30, 2024 (in shares) | shares 185
Vested and expected to vest as of September 30, 2024 (in dollars per share) | $ / shares $ 32.9
Vested and expected to vest as of September 30, 2024 (Year) 3 years 9 months 14 days
Vested and expected to vest as of September 30, 2024 | $ $ 0
Exercisable as of September 30, 2024 (in shares) | shares 185
Exercisable as of September 30, 2024 (in dollars per share) | $ / shares $ 32.91
Exercisable as of September 30, 2024 (Year) 3 years 9 months 18 days
Exercisable as of September 30, 2024 | $ $ 0
v3.24.3
Note 12 - Stock-based Compensation - RSU and PSU Activity (Details) - $ / shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Granted (in shares) 0 0
Restricted Stock Units (RSUs) [Member]    
Balance (in shares)   1,305
Balance (in dollars per share)   $ 1.67
Granted (in shares)   413
Granted (in dollars per share)   $ 1.12
Vested (in shares)   (635)
Vested (in dollars per share)   $ 1.95
Forfeited (in shares)   (49)
Forfeited (in dollars per share)   $ 1.76
Balance (in shares) 1,034 1,034
Balance (in dollars per share) $ 1.3 $ 1.3
v3.24.3
Note 12 - Stock-based Compensation - Stock Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Stock based compensation $ 406 $ 441 $ 1,066 $ 1,379
Selling and Marketing Expense [Member]        
Stock based compensation 22 69 80 209
Research and Development Expense [Member]        
Stock based compensation 27 107 198 320
General and Administrative Expense [Member]        
Stock based compensation $ 357 $ 265 $ 788 $ 850
v3.24.3
Note 14 - Commitments and Contingencies (Details Textual)
$ in Thousands
 9 Months Ended 21 Months Ended
Mar. 01, 2022
USD ($)
Oct. 15, 2012
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Number Of License Agreements     2 2  
Purchase Obligation     $ 1,511 $ 1,511 $ 2,783
Long-Term Purchase Commitment, Period (Year)     1 year    
Lessee, Operating Lease, Liability, to be Paid     $ 1,083 $ 1,083  
San Rafael, Brecksville, and Hamburg [Member]          
Lessee, Operating Lease, Term of Contract (Year)     34 years 34 years  
Royalty Agreement Terms [Member]          
Royalty Percentage   3.75%      
Royalty Expense $ 75 $ 250   $ 100  
Royalty Agreement Terms [Member] | Licensed Patent Products [Member]          
Royalty Percentage   6.00%      
Royalty Agreement Terms [Member] | Licensed Software Products [Member]          
Royalty Percentage   3.00%      
Sales Revenue Goods Net Excluding Government Sales [Member] | Royalty Agreement Terms [Member]          
Royalty Percentage     1.00%    
License Revenue [Member] | Royalty Agreement Terms [Member]          
Royalty Percentage     21.00%    
v3.24.3
Note 15 - Net Loss Per Share (Details Textual)
 9 Months Ended
Sep. 30, 2024
shares
Class Of Warrant Or Right Issued (in shares) 14,900,000
Pre-Funded Warrants [Member]  
Class Of Warrant Or Right Issued (in shares) 2,900
v3.24.3
Note 15 - Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Net loss applicable to common stockholders, basic and diluted $ (2,072) $ (3,365) $ (7,917) $ (11,984)
Weighted-average number of common shares, basic and diluted (in shares) 20,310 14,073 18,657 13,672
Net loss per common share, basic and diluted (in dollars per share) $ (0.1) $ (0.24) $ (0.42) $ (0.88)
v3.24.3
Note 15 - Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities (in shares) 14,266 2,968 14,266 2,968
Share-Based Payment Arrangement, Option [Member]        
Antidilutive Securities (in shares) 185 254 185 254
Restricted Stock [Member]        
Antidilutive Securities (in shares) 1,034 1,474 1,034 1,474
Warrant [Member]        
Antidilutive Securities (in shares) 13,047 1,240 13,047 1,240
v3.24.3
Note 16 - Segment Disclosures (Details Textual)
 9 Months Ended
Sep. 30, 2024
Number of Reportable Segments 2
v3.24.3
Note 16 - Segment Disclosures - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue $ 4,129 $ 4,607 $ 12,835 $ 13,432
Cost of revenue 1,920 2,151 6,038 6,722
Gross profit 2,209 2,456 6,797 6,710
Ekso Health [Member]        
Revenue 4,087 4,388 12,430 13,072
Cost of revenue 1,834 2,006 5,685 6,378
Gross profit 2,253 2,382 6,745 6,694
Ekso Works [Member]        
Revenue 42 219 405 360
Cost of revenue 86 145 353 344
Gross profit $ (44) $ 74 $ 52 $ 16
v3.24.3
Note 16 - Segment Disclosures - Geographic Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue $ 4,129 $ 4,607 $ 12,835 $ 13,432
UNITED STATES        
Revenue 1,877 3,099 6,763 9,741
Americas Other [Member]        
Revenue 18 138 380 149
Americas [Member]        
Revenue 1,895 3,237 7,143 9,890
FRANCE        
Revenue 1,067 176 1,935 177
POLAND        
Revenue 113 496 209 1,007
EMEA Other [Member]        
Revenue 537 374 1,919 1,480
EMEA [Member]        
Revenue 1,717 1,046 4,063 2,664
HONG KONG        
Revenue 214 178 335 475
APAC Other [Member]        
Revenue 303 146 1,294 403
Asia Pacific [Member]        
Revenue $ 517 $ 324 $ 1,629 $ 878
v3.24.3
Note 17 - Related Party Transactions (Details Textual) - Angel Pond Capital LLC [Member] - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Related Party Transaction, Amounts of Transaction $ 325  
Accounts Payable 0 $ 60
Initial Payment1 [Member]    
Related Party Transaction, Amounts of Transaction $ 145  
Related Party Transaction, Payment Term (Month) 40 months  
Initial Payment [Member]    
Related Party Transaction, Amounts of Transaction $ 15  
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