Quarterly report [Sections 13 or 15(d)]

Note 6 - Revenue

v3.25.1
Note 6 - Revenue
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6.         Revenue

 

The Company’s revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support and maintenance contracts. Revenue from 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 these devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements ranging from 12 to 48 months. Revenue is recognized evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 24 months.

 

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, 2025

    

December 31, 2024

  

Deferred extended maintenance and support

   $ 3,649       3,669  

Deferred device and advances

     223       207  

Total deferred revenues

     3,872       3,876  

Less current portion

     (1,913 )     (1,956 )

Deferred revenues, non-current

   $ 1,959     $ 1,920  

  

Deferred revenue activity consisted of the following for the three months ended March 31, 2025:

 

Balance as of December 31, 2024

   $ 3,876  

Deferral of revenue

     596  

Recognition of deferred revenue

     (600 )

Balance as of March 31, 2025

   $ 3,872  

 

The Company expects to recognize approximately $1,579 of the deferred revenue during the remainder of 2025, $1,147 in 2026, and $1,146 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $3,415 expected to be recognized across 2025 and 2026, which includes customer orders received but not fulfilled and other ancillary products and services of $2,981, and contracts for subscription units of $434.

 

Disaggregation of Revenue

 

The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2025:

 

   

Total

  

Device revenue

   $ 2,487  

Service and support

     708  

Subscriptions

     87  

Parts and other

     93  
    $ 3,375  

 

The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2024:

 

   

Total

  

Device revenue

   $ 2,753  

Service and support

     765  

Subscriptions

     144  

Parts and other

     94  
    $ 3,756  

 

The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa ("EMEA"), and (3) Asia Pacific ("APAC"). Individual countries with revenue greater than 10% of total revenue for the three months ended March 31, 2025 and 2024 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:

 

   

Three Months Ended March 31,

  
   

2025

    

2024

  

Americas

                

United States

   $ 1,783     $ 2,297  

Remaining countries combined

     17       32  

Americas revenue

     1,800       2,329  
                 

EMEA

                

France

     422       346  

Italy

     407       12  

Remaining countries combined

     255       472  

EMEA revenue

     1,084       830  
                 

APAC

                

Countries combined

     491       597  

APAC revenue

     491       597  
                 

Total Revenue

   $ 3,375     $ 3,756