Annual report pursuant to Section 13 and 15(d)

Revenue

v3.22.0.1
Revenue
 12 Months Ended
Dec. 31, 2021
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, associated software (SmartAssist and VariableAssist), the sale and subscription of the EksoUE, the sale of accessories, and the sale of support and maintenance contracts (Ekso Care). In 2021, the Company moved to a customer subscription sales model and away from a rental sales model. Under the rental sales model, the Company offered customers a short term rental arrangement of its products to help bridge to a capital purchase since customers typically have challenges in obtaining approvals for capital expenditures. Subscription sales arrangements, however, bypass the customer capital purchase process, are intended to renew annually, and provide a long term revenue stream.
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, software and accessories. Ekso Care support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements. The separately priced Ekso Care contracts range from 12 to 48 months. The Company 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 initial contract term, typically over 12 months.

The Company’s industrial device segment (EksoWorks) revenue is generated through the sale and subscription of the upper body exoskeletons (EksoVest and the recently introduced EVO) and the support arm (EksoZeroG). 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.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers and receipt of payment. For the sale of its products, the Company generally recognizes revenue at a point in time through the ship-and-bill performance obligations. For the subscription of its products, the Company generally recognizes revenue over the subscription term commencing upon the completion of customer training. For service agreements, the Company generally invoices customers at the beginning of the coverage period and records revenue related to the billed amounts over time, equivalent to the coverage period of the maintenance and support contract.
Deferred revenue is comprised mainly of unearned revenue related to extended support and maintenance contracts (Ekso Care), 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, 2021 December 31, 2020
Deferred extended maintenance and support $ 2,349  $ 2,902 
Deferred royalties 280  282 
Deferred device and advances 66  118 
Total deferred revenues 2,695  3,302 
Less current portion (1,220) (1,496)
Deferred revenues, non-current $ 1,475  $ 1,806 
 
Deferred revenue activity consisted of the following for the year ended December 31, 2021:
Beginning balance $ 3,302 
Deferral of revenue 1,189 
Recognition of deferred revenue (1,796)
Ending balance $ 2,695 
 
At December 31, 2021, the Company’s deferred revenue was $2,695. The Company expects to recognize approximately $1,220 of the deferred revenue during 2022, $698 in 2023, and $777 thereafter.

In addition to deferred revenue, the Company has a non-cancellable backlog of $1,218 related to its contracts for subscription units with its customers. These subscription contracts typically have 12-month terms and subscription income is recognized on a straight-line basis over the lease term.
 
As of December 31, 2021 and 2020, accounts receivable, net of allowance for doubtful accounts, were $4,662 and $3,224, respectively, and are included in current assets on the Company’s consolidated balance sheets.
The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance 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.
 
Disaggregation of revenue
 
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 

The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2020:
  EksoHealth EksoWorks Total
Device revenue $ 5,012  $ 689  $ 5,701 
Service and support 1,723  —  1,723 
Subscriptions 782  55  837 
Parts and other 294  72  366 
Collaborative arrangements 255  —  255 
  $ 8,066  $ 816  $ 8,882