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EKSO BIONICS: Lack of Cash on Hand Casts Going Concern Doubt

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Ekso Bionics Holdings, Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $2,534,000 on $1,468,000 of revenue for the three months ended March 31, 2020, compared to a net loss of $6,551,000 on $3,616,000 of revenue for the same period in 2019.

At March 31, 2020, the Company had total assets of $16,944,000, total liabilities of $11,716,000, and $5,228,000 in total stockholders’ equity.

The Company said, “Based on current forecasted amounts, our cash on hand will not be sufficient to satisfy our operations for the next twelve months from the date of issuance of these condensed consolidated financial statements, which raises substantial doubt about our ability to continue as a going concern.”

As of March 31, 2020, the Company had an accumulated deficit of $185.8 million. 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. In the three months ended March 31, 2020, the Company used $1.7 million of cash in its operations.

Cash on hand as of March 31, 2020 was $8.5 million, compared to $10.9 million as of December 31, 2019. Borrowings under the Company’s term loan agreement have a requirement of minimum cash on hand approximately equivalent to three months of cash burn. As of March 31, 2020, the most recent determination of this restriction, $3.6 million of cash must remain as restricted, with such amounts to be re-computed at each month end. After considering cash restrictions, effective unrestricted cash as of March 31, 2020 is estimated to be $5.0 million. Subsequent to March 31, 2020, the Company entered into an amendment to its term loan agreement, which reduces the minimum liquidity covenant to the current outstanding principal balance.

A copy of the Form 10-Q is available at:

https://is.gd/4XNwUG

Ekso Bionics Holdings, Inc. designs, develops, and sells exoskeletons for use in the healthcare, industrial, and military markets in North America, Europe, the Middle East, and Africa. The company operates through EksoHealth and EksoWorks segments. It primarily offers Ekso GT, a bionic suit that provides the ability to stand and walk over ground with a reciprocal gait using a cane, crutches, or a walker to individuals with spinal cord injuries and hemiplegia due to stroke. The company’s Ekso device is primarily used in a hospital and rehabilitation setting. The company has a license agreement with Lockheed Martin Corporation, Regents of the University of California, and Garrett Brown, as well as with OttoBock Healthcare Products Gmbh. The company was founded in 2005 and is headquartered in Richmond, California.

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