Annual report pursuant to Section 13 and 15(d)

Revenue

v3.23.1
Revenue
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and subscription of the EksoNR, EksoUE, 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 UE, Ekso Indego Therapy, and Ekso Indego Personal devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements. The separately priced support and maintenance contracts range from 12 to 48 months. The Company typically receives payment at the inception of the contract and recognizes revenue evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 12 months.

The Company’s industrial device segment (EksoWorks) revenue is primarily generated through the sale and subscription 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. Revenue from industrial device subscriptions is recognized evenly over the contract term, typically 12 months.

In June of 2022, the Company ceased commercialization of the EksoZeroG support arm and related products and accessories. Refer to Note 16. Commitment and Contingencies for further information regarding commitments and obligations related to the EksoZeroG product line.

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:
December 31, 2022 December 31, 2021
Deferred extended maintenance and support $ 2,124  $ 2,349 
Deferred royalties —  280 
Deferred device and advances 29  66 
Total deferred revenues 2,153  2,695 
Less current portion (1,121) (1,220)
Deferred revenues, non-current $ 1,032  $ 1,475 
 
Deferred revenue activity consisted of the following for the years ended December 31, 2021 and December 31, 2022:
Year Ended December 31, 2022 Year Ended December 31, 2021
Beginning balance $ 2,695  $ 3,302 
Deferral of revenue 1,397  1,189 
Recognition of deferred revenue (1,939) (1,796)
Ending balance $ 2,153  $ 2,695 
 
At December 31, 2022, the Company’s deferred revenue was $2,153. The Company expects to recognize approximately $1,121 of the deferred revenue during 2023, $579 in 2024, and $453 thereafter.

In addition to deferred revenue, the Company has a non-cancellable backlog of $2,288, expected to be recognized between 2023 and 2025, related to its contracts for subscription units with its customers. These subscription contracts typically have twelve to twenty-four month terms and subscription income is recognized on a straight-line basis over the lease term.
Disaggregation of revenue
 
The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2022:
  EksoHealth EksoWorks Total
Device revenue $ 8,305  $ 588  $ 8,893 
Service and support 1,923  —  1,923 
Subscriptions 967  136  1,103 
Parts and other 528  358  886 
Collaborative arrangements 107  —  107 
  $ 11,830  $ 1,082  $ 12,912 

The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2021:
  EksoHealth EksoWorks Total
Device revenue $ 6,428  $ 1,138  $ 7,566 
Service and support 1,891  —  1,891 
Subscriptions 723  254  977 
Parts and other 578  104  682 
Collaborative arrangements 130  —  130 
  $ 9,750  $ 1,496  $ 11,246