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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, 2023

 

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 23, 2023 was 14,234,818.



 

 

 

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, 2023 (unaudited) and December 31, 2022

4

     
 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months ended September 30, 2023 and 2022 (unaudited)

5

     
 

Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months ended September 30, 2023 and 2022 (unaudited)

6

     
 

Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2023 and 2022 (unaudited)

8

     
 

Notes to Condensed Consolidated Financial Statements (unaudited)

9

     

Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

32

     

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

41

     

Item 4.

Controls and Procedures

41

     
 

PART II. OTHER INFORMATION

 
     

Item 1.

Legal Proceedings

42

     

Item 1A.

Risk Factors

42

     
Item 5. Other Information 42
     

Item 6.

Exhibits

43

     
 

Signatures

44

 

 

 

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

 

Ekso Bionics Holdings, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value)

 

  

September 30, 2023

  

December 31, 2022

 
  

(unaudited)

  

(Note 2)

 

Assets

        

Current assets:

        

Cash and restricted cash

 $9,937  $20,525 

Accounts receivable, net of allowances of $8 and $40, respectively

  5,873   4,625 

Inventories

  5,487   5,187 

Prepaid expenses and other current assets

  1,065   700 

Total current assets

  22,362   31,037 

Property and equipment, net

  2,086   2,680 

Right-of-use assets

  1,053   1,307 

Intangible assets, net

  4,972   5,217 

Goodwill

  431   431 

Other assets

  279   231 

Total assets

 $31,183  $40,903 
         

Liabilities and Stockholders’ Equity

        

Current liabilities:

        

Accounts payable

 $2,502  $3,151 

Accrued liabilities

  2,096   2,278 

Deferred revenues, current

  1,635   1,121 

Notes payable, current

  1,250   2,310 

Lease liabilities, current

  351   341 

Total current liabilities

  7,834   9,201 

Deferred revenues

  2,064   1,032 

Notes payable, net

  5,066   3,767 

Lease liabilities

  817   1,087 

Warrant liabilities

  47   233 

Other non-current liabilities

  98   141 

Total liabilities

  15,926   15,461 

Commitments and contingencies (Note 15)

          

Stockholders’ equity:

        

Convertible preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding at September 30, 2023 and December 31, 2022

      

Common stock, $0.001 par value; 141,429 shares authorized; 14,235 and 13,203 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

  14   13 

Additional paid-in capital

  250,441   248,813 

Accumulated other comprehensive income

  733   563 

Accumulated deficit

  (235,931)  (223,947)

Total stockholders’ equity

  15,257   25,442 

Total liabilities and stockholders’ equity

 $31,183  $40,903 

 

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

 

 

4

 

 

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,

 
   

2023

   

2022

   

2023

   

2022

 

Revenue

  $ 4,607     $ 3,329     $ 13,432     $ 9,361  

Cost of revenue

    2,151       1,643       6,722       4,825  

Gross profit

    2,456       1,686       6,710       4,536  
                                 

Operating expenses:

                               

Sales and marketing

    2,052       1,742       6,489       5,212  

Research and development

    1,159       887       3,712       2,680  

General and administrative

    2,176       2,711       8,172       7,764  

Total operating expenses

    5,387       5,340       18,373       15,656  
                                 

Loss from operations

    (2,931 )     (3,654 )     (11,663 )     (11,120 )
                                 

Other (expense) income, net:

                               

Interest expense, net

    (64 )     (34 )     (236 )     (90 )

Gain on revaluation of warrant liabilities

    60       112       186       1,011  

Unrealized loss on foreign exchange

    (433 )     (732 )     (223 )     (1,704 )

Other income (expense), net

    3       4       (48 )     1  

Total other expense, net

    (434 )     (650 )     (321 )     (782 )
                                 

Net loss

  $ (3,365 )   $ (4,304 )   $ (11,984 )   $ (11,902 )

Other comprehensive income

    374       652       170       1,503  

Comprehensive loss

  $ (2,991 )   $ (3,652 )   $ (11,814 )   $ (10,399 )
                                 

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

  $ (0.24 )   $ (0.33 )   $ (0.88 )   $ (0.92 )
                                 

Weighted average number of shares outstanding, basic and diluted

    14,073       13,071       13,672       12,896  

 

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

 

5

 

 

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  

 

6

 

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, 2021

        $       12,693     $ 13     $ 246,090     $ (17 )   $ (208,867 )   $ 37,219  

Net loss

                                        (4,620 )     (4,620 )

Issuance of common stock under:

                                                               

Matching contribution to 401(k) plan

                68             176                   176  

Equity incentive plan

                83                                

Stock-based compensation expense

                            499                   499  

Foreign currency translation adjustments

                                  212             212  

Balance as of March 31, 2022

        $       12,844     $ 13     $ 246,765     $ 195     $ (213,487 )   $ 33,486  

Net loss

                                        (2,978 )     (2,978 )

Issuance of common stock under:

                                                               

Equity incentive plan

                166                                

Stock-based compensation expense

                            582                   582  

Foreign currency translation adjustments

                                  639             639  

Balance at June 30, 2022

        $       13,010     $ 13     $ 247,347     $ 834     $ (216,465 )   $ 31,729  

Net loss

                                        (4,304 )     (4,304 )

Issuance of common stock under:

                                                               

Equity incentive plan

                117                                

Stock-based compensation expense

                            537                   537  

Foreign currency translation adjustments

                                  652             652  

Balance as of September 30, 2022

        $       13,127     $ 13     $ 247,884     $ 1,486     $ (220,769 )   $ 28,614  

 

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

 

7

 

 

Ekso Bionics Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

   

Nine Months Ended September 30,

 
   

2023

   

2022

 

Operating activities:

               

Net loss

  $ (11,984 )   $ (11,902 )

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

               

Depreciation and amortization

    1,023       629  

Changes in allowance for doubtful accounts

    25       (11 )

Gain on revaluation of warrant liabilities

    (186 )     (1,011 )

Amortization of debt discounts

    243       3  

Stock-based compensation expense

    1,379       1,618  

Common stock contribution to 401(k) plan

    304       147  

Unrealized loss on foreign currency transactions

    223       1,704  

Changes in operating assets and liabilities:

               

Accounts receivable

    (1,348 )     1,044  

Inventories

    (162 )     (1,477 )

Prepaid expenses and other assets, current and noncurrent

    (370 )     (277 )

Accounts payable

    (647 )     (704 )

Accrued, lease and other liabilities, current and noncurrent

    (522 )     (270 )

Deferred revenues

    1,552       (537 )

Net cash used in operating activities

    (10,470 )     (11,044 )

Investing activities:

               

Acquisition of property and equipment

    (114 )     (141 )

Net cash used in investing activities

    (114 )     (141 )

Effect of exchange rate changes on cash

    (4 )     (41 )

Net decrease in cash

    (10,588 )     (11,226 )

Cash and restricted cash at beginning of period

    20,525       40,406  

Cash and restricted cash at end of period

  $ 9,937     $ 29,180  
                 

Supplemental disclosure of cash flow activities

               

Cash paid for interest

  $ 145     $ 88  

Cash paid for income taxes

  $ 33     $ 14  

Supplemental disclosure of non-cash activities

               

Transfer of inventory (from) to property and equipment

  $ (146 )   $ 192  

Initial recognition of operating lease liability and right of use asset

  $     $ 1,459  

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

  $ (10 )   $  

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

  $ 249     $ 176  

 

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

 

 
8

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 exoskeleton products to augment human strength, endurance and mobility. The Company’s exoskeleton technology serves multiple markets and can be utilized both by able-bodied users and by persons with physical disabilities. 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 walk again, (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”.

 

On December 5, 2022, the Company acquired the Human Motion and Control (“HMC”) Business Unit from Parker Hannifin Corporation (“Parker”), an Ohio corporation. The assets acquired from the business unit include intellectual property rights for devices which are U.S. Food and Drug Administration ("FDA")-cleared lower-limb powered exoskeletons that enable task-specific, overground gait training to patients with weakness or paralysis in their lower extremities. Products include Ekso Indego Personal, a light-weight exoskeleton for safe use in most home and community environments, and Ekso Indego Therapy, an adjustable exoskeleton for patients with spinal cord injury and stroke, complementing Ekso’s product offering in outpatient facilities.

 

Liquidity and Going Concern

 

As of September 30, 2023, the Company had an accumulated deficit of $235,931.  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 nine months ended September 30, 2023, the Company used $10,470 of cash in its operations. Cash on hand as of September 30, 2023 was $9,937.

 

As described in Note 10, Notes payable, net, borrowings under the Company’s secured term loan agreement with Pacific Western Bank have a liquidity covenant requiring minimum cash on hand equivalent to the current outstanding principal balance. As of September 30, 2023, $2,000 of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of September 30, 2023 is approximately $7,937.

 

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 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 unaudited financial statements. 

 

9

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

The accompanying 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 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.

 

 

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 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, 2022, which was filed with the SEC on March 28, 2023.

 

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, 2022, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein.

 

Certain reclassifications have been made to the amounts in prior periods to conform to the current period’s presentation.

 

The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending  December 31, 2023 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, 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.

 

10

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.

 

11

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 has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $250. Any 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, 2023 and December 31, 2022.

 

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.

 

At September 30, 2023 the Company had two customers with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable (11% and 11%) as compared with no customers at December 31, 2022.

 

During the three months ended September 30, 2023, the Company had three customers with sales of 10% or more of the Company’s total revenue (18%, 11% and 11%), as compared with two in the three months ended  September 30, 2022 (20% and 14%).

 

During the nine months ended September 30, 2023 the Company had two customers with sales of 10% or more of the Company’s total revenue (17% and 10%), as compared with one in the nine months ended September 30, 2022 (14%).

 

Accounting Pronouncements Adopted in 2023

 

In June 2016, the FASB issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-10, which amended the current approach to estimate credit losses on certain financial assets, including trade and other receivables. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Upon the initial recognition of such assets, which is based on, among other things, historical information, current conditions, and reasonable supportable forecasts. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Previously, U.S. GAAP required entities to write down credit losses only when losses were probable and loss reversals were not permitted. The Company adopted ASU 2016-13 as of January 1, 2023, using the modified retrospective transition method. The adoption of ASU 2016-13 did not have a material impact on the Company's financial position or the results of operations.

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates 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 is effective for the Company beginning in the first quarter of 2024 and must be applied using either a modified or full retrospective approach. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2020-06 to be material on its condensed consolidated financial statements.

 

12

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, 2023 and 2022, is reflected in the table below net of tax:

 

  

Nine Months Ended September 30,

 
  

2023

  

2022

 

Balance at beginning of period

 $563  $(17)

Net unrealized gain on foreign currency translation

  170   1,503 

Balance at end of period

 $733  $1,486 

 

 

4.          Human Motion and Control Acquisition

 

On December 5, 2022, the Company acquired the HMC business from Parker. The assets acquired from the business unit include intellectual property rights for devices which are FDA-cleared lower-limb powered exoskeletons that enable task-specific, overground gait training to patients with weakness or paralysis in their lower extremities. Products include Ekso Indego Personal, a light-weight exoskeleton for safe use in most home and community environments, and Ekso Indego Therapy, an adjustable exoskeleton for patients with spinal cord injury and stroke, complementing Ekso’s product offering in outpatient facilities.

 

The assets purchased by the Company include intellectual property related to the aforementioned Ekso Indego devices and future products in the orthotics and prosthetics space, inventories related to the Ekso Indego product line, fixed assets configured for the manufacture of the Ekso Indego products, and Ekso Indego devices maintained for service and sales demonstrations. The Company did not acquire any cash in connection with the acquisition of the business unit.

 

As consideration for the assets acquired, the Company (i) paid Parker $5,000 in cash and (ii) delivered to Parker a $5,000 unsecured, subordinated zero percent interest promissory note (the “Promissory Note”). Under the terms of the Promissory Note, the Company shall pay Parker sixteen (16) equal quarterly installments of $313, with the first payment being due and payable December 31, 2023, and the last payment being due and payable September 30, 2027. For additional information see Note 10.

 

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 of $9,055, as calculated in the table below, was allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The fair values presented for fixed assets, intangible assets, and goodwill are preliminary figures pending final fair value analyses. In accordance with ASC 805, the acquirer has a year from the date of acquisition to recognize measurement period adjustments. The preliminary fair values presented below could be subject to change as result of the aforementioned adjustments. The excess of the purchase price over the preliminary net assets acquired of $431 was recorded as goodwill. The goodwill recognized is attributed primarily to expected synergies of HMC with the Company. From the acquisition date through  September 30, 2023, there were no changes in the recognized amounts of goodwill resulting from the acquisition.

 

13

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

The following table summarizes the preliminary fair values of the assets acquired, liabilities assumed and consideration given as of the acquisition date. These estimates are preliminary, pending final evaluation of certain assets, and therefore, are subject to revisions that may result in adjustments to the values presented below:

 

Inventories

 $1,935 

Fixed assets

  1,599 

Intangible assets

  5,240 

Goodwill

  431 

Total assets

 $9,205 
     

Accrued royalties

  150 

Total liabilities

 $150 
     

Net assets acquired

 $9,055 
     

Cash delivered at close

 $5,000 

Fair value of promissory note

  4,055 

Total consideration

 $9,055 

 

The fair value of finished goods inventories acquired was estimated at retail selling price less estimated costs to sell and a reasonable profit allowance for the selling effort. The fair value of raw materials acquired were estimated using current prices from suppliers. The preliminary fair value of fixed assets was estimated using a cost approach, adjusting historical gross asset values for inflation, reduced for the remaining estimated economic life of the assets. The preliminary fair values of intangible assets were estimated using a relief from royalty method, the excess earnings method, and a distributor method, all income approaches, which required significant estimates from management regarding future sales expectations, long-term operating margins, the weighted average cost of capital or other appropriate discount rates, and royalty rates. The fair value of the promissory note was estimated as the present value of scheduled principal payments discounted at the Company's estimated borrowing rate.

 

The Company recorded $5,240 to intangible assets as of the acquisition date and is amortizing the value of the developed technology, customer relationships and intellectual property over a weighted average estimated useful life of eight years. Amortization expense related to the acquired definite lived intangible assets was $82 and $245 for the three and nine months ended September 30, 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. Of the $431 of goodwill, none was expected to be deductible for tax purposes.

 

 

5.         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.

 

14

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, 2023

                

Liabilities

                

Warrant liabilities

 $47  $  $  $47 

December 31, 2022

                

Liabilities

                

Warrant liabilities

 $233  $  $  $233 

 

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, 2023, which were measured at fair value on a recurring basis:

 

  

Warrant Liabilities

 

Balance as of December 31, 2022

 $233 

Net gain on revaluation of warrants issued

  (186)

Balance as of September 30, 2023

 $47 

 

Refer to Note 12. Capitalization and Equity Structure Warrants for additional information regarding the valuation of warrants.

 

 

6.         Inventories

 

Inventories consisted of the following:

 

  

September 30, 2023

  

December 31, 2022

 

Raw materials

 $4,271  $3,837 

Work in progress

  365   487 

Finished goods

  851   863 

Inventories

 $5,487  $5,187 

 

 

7.         Revenue

 

The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, Ekso Indego Personal devices, and Ekso UE 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, Ekso Indego Personal devices, and Ekso UE. 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 to 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. In June of 2022, the Company ceased commercialization of the EksoZeroG support arm and related products and accessories. 

 

15

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, 2023

  

December 31, 2022

 

Deferred extended maintenance and support

 $3,619   2,124 

Customer advances

  80   29 

Total deferred revenues

  3,699   2,153 

Less current portion

  (1,635)  (1,121)

Deferred revenues, non-current

 $2,064  $1,032 

 

On September 25, 2023, the Company entered into a warranty claim lump-sum agreement with Parker, pursuant to which, among other things, Parker paid the Company $700 for 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, 2023:

 

Beginning balance

 $2,153 

Deferral of revenue

  3,506 

Recognition of deferred revenue

  (1,960)

Ending balance

 $3,699 

 

The Company expects to recognize approximately $518 of the deferred revenue during the remainder of 2023, $1,456 in 2024, and $1,725 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $1,445, expected to be recognized between 2023 and 2025, primarily related to its contracts for subscription units with its customers. These subscription contracts typically have 12 to 24 month terms, and subscription income is recognized on a straight-line basis over the term of the contract.

 

Disaggregation of Revenue

 

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 

 

16

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

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 

 

The following table disaggregates the Company’s revenue by major source for the three months ended September 30, 2022:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $2,338  $72  $2,410 

Service and support

  484      484 

Subscriptions

  237      237 

Parts and other

  165   33   198 
  $3,224  $105  $3,329 

 

The following table disaggregates the Company’s revenue by major source for the nine months ended September 30, 2022:

 

  

EksoHealth

  

EksoWorks

  

Total

 

Device revenue

 $5,670  $544  $6,214 

Service and support

  1,440      1,440 

Subscriptions

  678      678 

Parts and other

  438   484   922 

Collaborative arrangements

  107      107 
  $8,333  $1,028  $9,361 

 

17

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

8.         Accrued Liabilities

 

Accrued liabilities consisted of the following:

 

  

September 30, 2023

  

December 31, 2022

 

Salaries, benefits and related expenses

 $1,542  $1,843 

Device warranty

  359   274 

Other

  195   161 

Total

 $2,096  $2,278 

 

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, 2023 is as follows:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30, 2023

  

September 30, 2023

 

Balance at beginning of period

 $442  $413 

Additions for estimated future costs

  91   327 

Incurred costs

  (75)  (282)

Balance at end of period

 $458  $458 

 

  

Balance as of September 30, 2023

 

Current portion

 $359 

Long-term portion

  99 

Total

 $458 

 

 

9.         Goodwill and Intangible Assets

 

Goodwill

 

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

 

Intangible Assets

 

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

 

  

September 30, 2023

 
  

Gross Carrying Amount

  

Accumulated Amortization

  

Net Carrying Amount

 

Developed technology

 $2,310  $(237) $2,073 

Trade name

  2,310      2,310 

Intellectual property

  460      460 

Customer relationships

  140   (14)  126 

Below market lease

  20   (17)  3 

Total intangible assets

 $5,240  $(268) $4,972 

 

18

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, eight years for customer relationships and one year for below market lease. 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 months ended September 30, 2023.

 

The estimated future amortization expenses related to definite lived intangible assets as of September 30, 2023 is as follows:

 

Fiscal Year

 

Amount

 

2023 - remainder

 $80 

2024

  306 

2025

  345 

2026

  345 

2027

  345 

2028 and thereafter

  1,240 

Total

 $2,661 

 

 

10.         Notes Payable, net

 

PWB Term Loan

 

In August 2020, the Company entered into a loan agreement (the "PWB Loan Agreement") with a lender, Pacific Western Bank, and received a loan in the principal amount of $2,000 (the "PWB 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 PWB 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 PWB 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 cause the Company to maintain all of its depository, operating, and investment accounts with Pacific Western Bank. 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 PWB 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 PWB Term Loan, which was $2,000 as of September 30, 2023. As of September 30, 2023 the Company was compliant with all covenants.

 

The interest rate of the PWB 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 PWB 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 9.00% and 8.80% for the three and nine months ended September 30, 2023, respectively. The debt issuance costs are amortized to interest expense using the effective interest method over the life of the loan.

 

19

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 PWB term loan as of September 30, 2023:

 

Period

 

Amount

 

2023-2025

 $ 

2026

  2,000 

Total principal payments

  2,000 

Less debt discount and issuance cost

  3 

Note payable, net

 $1,997 
     

Current portion

 $ 

Long-term portion

  1,997 

Note payable, net

 $1,997 

 

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 PWB Term Loan, bears no interest with principal payable in sixteen equal installments due on the last day of each quarter, commencing on December 31, 2023 and maturing on September 30, 2027. For additional information see Note 4.

 

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 PWB 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 7.31% for the three and nine months ended September 30, 2023. 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 $81 and $239 for the three and nine months ended September 30, 2023, respectively.

 

The following table presents scheduled principal payments of the Company's note payable as of September 30, 2023:

 

Period

 

Amount

 

2023 - remainder

 $313 

2024

  1,250 

2025

  1,250 

2026

  1,250 

2027

  937 

Total principal payments

  5,000 

Less debt discount

  (680)

Note payable, net

 $4,320 
     

Current portion

  1,250 

Long-term portion

  3,070 

Note payable, net

 $4,320 

 

20

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

11.         Lease Obligations

 

The Company maintained a five-year operating lease agreement for its headquarters and manufacturing facility in Richmond, California (the "Richmond Lease") which expired at the end of May 2022. The Company continued to maintain its tenancy at this location until the end of August 2022, while incurring monthly expenses equal to the most recent monthly lease payment under the expired lease agreement and common area maintenance costs.

 

In July 2022, the Company entered into an operating lease agreement for its new headquarters and manufacturing facility in San Rafael, California (the "San Rafael Lease") expiring in October 2026 with the option to renew for an additional three-year period at the prevailing market rate at the time of extension. At the end of August 2022, the Company relocated to its new headquarters and manufacturing facility in San Rafael.

 

The Company has determined that the new San Rafael Lease constitutes an operating lease under ASC 842 and 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 have been 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 previously maintained a five-year operating lease agreement for its European operations office in Hamburg, Germany, which was originally set to expire in July 2022. In February 2022, the Company executed a new lease agreement with the same landlord for a replacement office in Hamburg, Germany commencing May 1, 2022 and expiring June 30, 2025 with an option to renew for one five-year period. Upon the early termination of the previous lease agreement, it was agreed between the landlord and the Company that access to the previously leased office space would be revoked and the Company would be relieved of its payment obligations for the final two months of the lease term. Consequently, the Company removed the right of use asset and lease liability, $15 and $16 respectively, recorded in its condensed consolidated financial statements related to the original Hamburg tenancy.

 

The Company has determined that the new Hamburg lease agreement constitutes a lease under ASC 842 and 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 have been 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.

 

21

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, 2023, which are presented as Lease liabilities, current and Lease liabilities on the Company’s condensed consolidated balance sheets are as follows:

 

Periods

 

Operating Leases

 

2023 - remainder

 $107 

2024

  434 

2025

  415 

2026

  363