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Ekso Bionics Holdings Inc. (Nasdaq: EKSO), a Marin County company that makes wearable robotic exoskeletons to help people walk after injury or boost strength in industrial jobs, reported improved financial results for the third quarter.
In addition to a new sale of $3.7 million in stock, the company on Wednesday also said it is studying possible major changes to its business. These could include acquiring a business in a different industry or selling all or most of its current exoskeleton operations. Any deal would need shareholder approval and likely involve issuing new shares, Ekso said. The company gave no timeline and said it will keep running its core business during the review.
For the three months ended Sept. 30, Ekso reported revenue of $4.2 million, up 2% from $4.1 million in the same period last year and a 105% increase from $2.1 million in the second quarter.
Gross profit — the money left after subtracting the direct cost of making products—was $2.5 million, or 60.3% of revenue. That was up from 53.5% a year earlier. Higher sales of its medical division, EksoHealth, and lower manufacturing costs drove the improvement.
The net loss, or the amount by which expenses exceeded revenue, was $1.4 million, equal to 54 cents per share. That was better than the $2.1 million loss ($1.53 per share) a year before. Operating expenses fell 19% to $4 million, partly from the employee retention tax credit and lower payroll after job cuts.
Ekso ended the quarter with $2.7 million in cash, down from $4.5 million at the end of last year. It also launched Ekso University, an online training program for therapists, and issued its first continuing education unit (CEU) credit to a physical therapist in Connecticut.
Ekso on Wednesday said it sold 769,490 new shares of common stock at $4.81 each, raising $3.7 million before fees. The company said it will use the money for research, marketing, administrative costs and general operations.
With the stock offering and news of financial results and the potential new direction, the share price surged almost 10% from Tuesday to $5.29 during midday trading, with trading volume double the average. The stock price closed at $5.25, $5.10 and $5.35 Wednesday, Thursday and Friday. Over the past year, Ekso shares have declined 63%, amid challenges like cash burn and health insurance reimbursement delays, with a 52-week range of $2.73 to $15.00. Year-to-date, the stock was down by over one-third.
Jeff Quackenbush joined North Bay Business Journal in May 1999. He covers primarily wine, construction and real estate. Reach him at jeff@nbbj.news or 707-521-4256.