Subsequent events |
12 Months Ended |
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Dec. 31, 2018 | |
| Subsequent Events [Abstract] | |
| Subsequent events |
Subsequent events
In January 2019, the Company entered into an agreement with Zhejiang Youchuang Venture Capital Investment Co., Ltd (ZYVC) and another partner to establish a joint venture designed to develop and serve the exoskeleton market in China and other Asian markets and to create a global exoskeleton manufacturing center.
In exchange for contributing licenses for its manufacturing technology and relevant Chinese patent rights, the Company received a 20% ownership position in the joint venture. The other partners have committed to contribute over $90,000 in cash in exchange for the remaining 80% ownership. Concurrent with the signing of the agreement, the partners agreed to make a $10,000 equity investment in the Company, $5,000 of which was due to be invested upon the signing of the agreement with the remaining $5,000 to be invested upon the shipment of the first products from the manufacturing facility. The Company received the first $5,000 equity investment after the signing of the agreement. The Company will also be entitled to receive royalties on the joint venture’s medical and industrial product sales in China, Hong Kong, Malaysia, and Singapore.
The joint venture will develop, sell and support exoskeleton products into China, Hong Kong, Malaysia, and Singapore, and will be capitalized at greater than $100,000 over its term. The joint venture is expected to have multiple benefits for the Company primarily by gaining access to the world’s largest market for stroke rehabilitation services which is expected to expand the Company’s revenue opportunities while providing economics of scale that will accrue to its current markets and support profitable expansion into other developing markets. The joint venture’s manufacturing facility, which will be purpose-built to manufacture the component parts of the Company’s products at scale, is expected to also improve the Company’s profit margins.
Pursuant to the consulting agreement that the Company entered into in July 2017 with Angel Pond, upon the consummation of the joint venture in China, the Company is required to make a $1,000 payment to Angel Pond in consideration for its services related to the Company’s entry into the joint venture. Refer to Note 12. Related Party Transactions.
During the first quarter of 2019 through February 28, 2019, pursuant to the ATM Agreement and the ATM Prospectus, the Company sold 1,294 shares of common stock for $2,328, net of fees and commissions, at an average price of $1.85.
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