Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.1
Revenue
 3 Months Ended
Mar. 31, 2023
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 2022, the Company ceased commercialization of the EksoZeroG support arm and related products and accessories. Refer to Note 15. 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:
March 31, 2023 December 31, 2022
Deferred extended maintenance and support $ 2,519  $ 2,124 
Customer advances 144  29 
Total deferred revenues 2,663  2,153 
Less current portion (1,296) (1,121)
Deferred revenues, non-current $ 1,367  $ 1,032 
 
Deferred revenue activity consisted of the following for the three months ended March 31, 2023:
Beginning balance $ 2,153 
Deferral of revenue 1,170 
Recognition of deferred revenue (660)
Ending balance $ 2,663 
 
The Company expects to recognize approximately $1,080 of the deferred revenue during the remainder of 2023, $795 in 2024, and $788 thereafter.

In addition to deferred revenue, the Company has a non-cancellable backlog of $1,396, expected to be recognized between 2023 and 2025, 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 March 31, 2023:
  EksoHealth EksoWorks Total
Device revenue $ 3,048  $ 111  $ 3,159 
Service and support 644  —  644 
Subscriptions 275  7  282 
Parts and other 30  7  37 
  $ 3,997  $ 125  $ 4,122 
 
The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2022:
  EksoHealth EksoWorks Total
Device revenue $ 963  $ 309  $ 1,272 
Service and support 467  —  467 
Subscriptions 216  69  285 
Parts and other 156  308  464 
Collaborative arrangements 79  —  79 
  $ 1,881  $ 686  $ 2,567