RBR50 company Ekso Bionics, which went public in January 2014 and simultaneously raised $20.6 million, reports that revenue increased 52 percent to $1.1 million in the first quarter (Q1) of 2014, compared to $696,000 in Q1 2013.
Medical device revenue was $0.5 million for the period ended March 31, 2014, compared to $0.3 million during the same period of 2013. The increase of $0.2 million in medical device revenue was due to an increase in recognized revenue, as the number of medical device sales being amortized to revenue nearly doubled compared to the same period in 2013.
Ekso says it has now sold more than 60 exoskeletons since February 2012 in 15 countries.
?Ekso made substantial progress during the first quarter of 2014 as we continue to pioneer the field of robotic exoskeletons to augment human strength, endurance and mobility,? says Nathan Harding chief executive officer and co-founder, Ekso Bionics. ?In January we simultaneously became a public company and closed a financing, strengthening our balance sheet and giving us the opportunity to expand our commercial capability and executive team. We are now focused on driving adoption of our Ekso GT systems in rehabilitation centers in the U.S. and abroad as well as generating additional projects within Ekso Labs.?
Engineering services revenue was $0.5 million for the period, compared to $0.4 million during the same period of 2013. The increase of approximately $0.2 million in engineering services revenue was primarily due to an increase of $0.5 million in revenue related to a federal agency contract partially offset by $0.3 million in decreased revenue resulting from the completion of projects with other government agencies.
During the first quarters of both 2013 and 2014, cost of revenue was $0.6 million. Medical device cost of revenue increased to $0.3 million from $0.2 million due to an increase in recognized cost of revenue related to the increase in medical device sales being amortized to revenue as noted above. Engineering services cost of revenue remained relatively flat at approximately $0.3 million for both periods due to lower costs related to the completion of projects with other government agencies noted above, partially offset by an increase in costs related to the current federal agency contract.
Operating expenses for the quarter were $4.4 million compared to $3.3 million during the same period of 2013, an increase of 34%. This increase was largely driven by approximately $1.1 million of non-recurring expenses, primarily associated with the merger and private placement financing.
Non-operating expenses increased by $77.2 million in the first quarter of 2014 as compared to the same period of 2013, primarily due to a $77.4 million non-cash charge related to the issuance of warrants in the private placement financing. The warrants issued in the first quarter of 2014 are classified as liabilities and are adjusted to fair value on a quarterly basis, with the change in fair value being included in net loss. The amount included in net loss is a non-cash item, as Bionics is not required to expend any cash to settle the warrant liability. The warrant liability is primarily affected by changes in the company?s stock price during each financial reporting period, which causes the warrant liability to fluctuate as the market price of the company?s stock fluctuates.
Net losses for the three months ended March 31, 2014, were $81.8 million, or ($1.22) per share, including the $77.4 million warrant liability and $0.4 million in stock-based compensation, compared to net losses of $3.8 million, or ($0.18) per share, including $0.1 million in stock-based compensation, for the same period of 2013.
Ekso ended the first quarter with cash and cash equivalents of $14.6 million. The cash used in operating activities was $5.6 million for the three months ended March 31, 2014, compared to $2.4 million for the same period in 2013. Net cash provided by financing activities was $19.5 million for the quarter, compared to $1.1 million for the same period in 2013.
The company recently expanded its leadership team, naming Thomas Looby chief marketing officer and Glenn Davis VP of sales for the Americas.
The recently launched Ekso Labs division won its first award from Special Operations Command (SOCOM) to develop technologies for the Tactical Assault Light Operator Suit (TALOS) ? the ?Ironman? suit