QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Page No. | ||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
(unaudited) | (Note 2) | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash | $ | $ | |||||||||
Accounts receivable, net of allowances of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Deferred revenues, current | |||||||||||
Note payable, current | |||||||||||
Lease liabilities, current | |||||||||||
Total current liabilities | |||||||||||
Deferred revenues | |||||||||||
Notes payable, net | |||||||||||
Lease liabilities | |||||||||||
Warrant liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||
Stockholders’ equity: | |||||||||||
Convertible preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenue | $ | $ | |||||||||
Cost of revenue | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Sales and marketing | |||||||||||
Research and development | |||||||||||
General and administrative | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other (expense) income, net: | |||||||||||
Interest expense | ( | ( | |||||||||
Gain on revaluation of warrant liabilities | |||||||||||
Other expense, net | ( | ( | |||||||||
Total other (expense) income, net | ( | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income | |||||||||||
Comprehensive loss | $ | ( | $ | ( | |||||||
Basic and diluted net loss per share applicable to common shareholders | $ | ( | $ | ( | |||||||
Weighted average number of shares outstanding, basic and diluted |
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | — | $ | — | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock under: | |||||||||||||||||||||||||||||||||||||||||||||||
Equity financing, net | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of warrants | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Matching contribution to 401(k) plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | — | $ | — | $ | $ | $ | ( | $ | ( | $ |
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | — | $ | — | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock under: | |||||||||||||||||||||||||||||||||||||||||||||||
Matching contribution to 401(k) plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
In lieu of cash compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares issued as a result of rounding due to reverse-stock split | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | — | $ | — | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Depreciation and amortization | |||||||||||
Changes in allowance for doubtful accounts | |||||||||||
Gain on revaluation of warrant liabilities | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Amortization of debt discount and accretion of final payment fee | |||||||||||
Common stock contribution to 401(k) plan | |||||||||||
Unrealized loss on foreign currency transactions | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses, operating lease right-of-use assets, and other assets current and noncurrent | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued and lease liabilities | |||||||||||
Deferred revenues | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock and warrants, net | |||||||||||
Principal payments on note payable | ( | ||||||||||
Proceeds from exercise of warrants | |||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net increase (decrease) in cash | ( | ||||||||||
Cash at beginning of period | |||||||||||
Cash at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow activities | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | |||||||||||
Supplemental disclosure of non-cash activities | |||||||||||
Fair value of warrants issued upon equity financing | $ | $ | |||||||||
Reclassification of warrant liability to equity upon exercise of warrants | |||||||||||
Transfer of inventory to property and equipment | |||||||||||
Share issuance for common stock contribution to 401(k) plan | |||||||||||
Share issuance in lieu of cash compensation |
Accumulated Other Comprehensive Loss | |||||
Balance at December 31, 2020 | $ | ( | |||
Net unrealized gain on foreign currency translation | |||||
Balance at March 31, 2021 | $ | ( |
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Warrant liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Warrant liabilities | $ | $ | $ | $ |
Warrant Liability | ||||||||
Balance at December 31, 2020 | $ | |||||||
Initial fair value of warrants in connection with 2021 financing | ||||||||
Gain on revaluation of warrants issued in connection with the February 2021, June 2020, December 2019 and May 2019 financings | ( | |||||||
Reclassification of warrant liability to equity upon exercise of warrants | ( | |||||||
Balance at March 31, 2021 | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Inventories, net | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Deferred extended maintenance and support | $ | $ | |||||||||
Deferred royalties | |||||||||||
Deferred device and advances | |||||||||||
Total deferred revenues | |||||||||||
Less current portion | ( | ( | |||||||||
Deferred revenues, non-current | $ | $ |
Beginning balance | $ | ||||
Deferral of revenue | |||||
Recognition of deferred revenue | ( | ||||
Ending balance | $ |
EksoHealth | EksoWorks | Total | |||||||||||||||
Device revenue | $ | $ | $ | ||||||||||||||
Service and support | |||||||||||||||||
Rentals and subscriptions | |||||||||||||||||
Parts and other | |||||||||||||||||
Collaborative arrangements | |||||||||||||||||
$ | $ | $ |
EksoHealth | EksoWorks | Total | |||||||||||||||
Device revenue | $ | $ | $ | ||||||||||||||
Service and support | |||||||||||||||||
Rentals | |||||||||||||||||
Parts and other | |||||||||||||||||
Collaborative arrangements | |||||||||||||||||
$ | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Salaries, benefits and related expenses | $ | $ | |||||||||
Device warranty | |||||||||||
Other | |||||||||||
Total | $ | $ |
March 31, 2021 | |||||
Balance at beginning of period | $ | ||||
Additions for estimated future expense | |||||
Incurred costs | ( | ||||
Balance at end of period | $ | ||||
Current portion | $ | ||||
Long-term portion | |||||
Total | $ |
Period | Amount | |||||||
Remainder of 2021 - 2022 | $ | |||||||
2023 | ||||||||
Total principal payments | ||||||||
Less debt discount and issuance cost | ||||||||
Note payable, net | $ | |||||||
Current portion | $ | |||||||
Long-term portion | ||||||||
Note payable, net | $ |
Period | Amount | |||||||
Remainder of 2021 | $ | |||||||
2022 | ||||||||
Total principal payments | $ | |||||||
Current portion | $ | |||||||
Long-term portion | ||||||||
Note payable, net | $ |
Period | Operating Leases | |||||||
Remainder of 2021 | $ | |||||||
2022 | ||||||||
Total lease payments | ||||||||
Less: imputed interest | ( | |||||||
Present value of lease liabilities | $ | |||||||
Lease liabilities, current | $ | |||||||
Lease liabilities, noncurrent | ||||||||
Total lease liabilities | $ | |||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Source | Exercise Price | Term (Years) | December 31, 2020 | Issued | Exercised | March 31, 2021 | ||||||||||||||||||||||||||||||||
2021 Warrants | $ | |||||||||||||||||||||||||||||||||||||
June 2020 Investor Warrants | $ | ( | ||||||||||||||||||||||||||||||||||||
June 2020 Placement Agent Warrants | $ | ( | ||||||||||||||||||||||||||||||||||||
December 2019 Warrants | $ | |||||||||||||||||||||||||||||||||||||
December 2019 Placement Agent Warrants | $ | |||||||||||||||||||||||||||||||||||||
May 2019 Warrants | $ | ( | ||||||||||||||||||||||||||||||||||||
( |
March 31, 2021 | February 11, 2021 | ||||||||||
Current share price | $ | $ | |||||||||
Conversion price | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Volatility of stock | % | % |
March 31, 2021 | December 31, 2020 | ||||||||||
Current share price | $ | $ | |||||||||
Conversion price | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Volatility of stock | % | % |
March 31, 2021 | December 31, 2020 | ||||||||||
Current share price | $ | $ | |||||||||
Conversion price | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Volatility of stock | % | % |
March 31, 2021 | December 31, 2020 | |||||||||||||
Current share price | $ | $ | ||||||||||||
Conversion price | $ | $ | ||||||||||||
Risk-free interest rate | % | % | ||||||||||||
Expected term (years) | ||||||||||||||
Volatility of stock | % | % |
March 31, 2021 | December 31, 2020 | ||||||||||
Current share price | $ | $ | |||||||||
Conversion price | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Volatility of stock | % | % |
March 31, 2021 | December 31, 2020 | ||||||||||
Current share price | $ | $ | |||||||||
Conversion price | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Volatility of stock | % | % |
Stock Awards | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance as of December 31, 2020 | $ | ||||||||||||||||||||||
Options granted | |||||||||||||||||||||||
Options exercised | |||||||||||||||||||||||
Options forfeited | ( | ||||||||||||||||||||||
Options cancelled | ( | ||||||||||||||||||||||
Balance as of March 31, 2021 | $ | $ | |||||||||||||||||||||
Vested and expected to vest at March 31, 2021 | $ | $ | |||||||||||||||||||||
Exercisable as of March 31, 2021 | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Dividend yield | |||||||||||
Risk-free interest rate | N/A | % | |||||||||
Expected term (in years) | N/A | ||||||||||
Volatility | N/A | % |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||
Unvested as of December 31, 2020 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2021 | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Sales and marketing | $ | $ | |||||||||
Research and development | |||||||||||
General and administrative | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Numerator: | |||||||||||
Net loss applicable to common stockholders, basic and diluted | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Weighted-average number of shares, basic and diluted | |||||||||||
Net loss per share, basic and diluted | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Options to purchase common stock | |||||||||||
Restricted stock units | |||||||||||
Warrants for common stock | |||||||||||
Total common stock equivalents |
EksoHealth | EksoWorks | Total | |||||||||||||||
Three months ended March 31, 2021 | |||||||||||||||||
Revenue | $ | $ | $ | ||||||||||||||
Cost of revenue | |||||||||||||||||
Gross profit | $ | $ | $ | ||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||
Revenue | $ | $ | $ | ||||||||||||||
Cost of revenue | |||||||||||||||||
Gross profit | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
United States | $ | $ | |||||||||
All Other | |||||||||||
$ | $ |
Three months ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Change | % Change | ||||||||||||||||||||
Revenue | $ | 1,910 | $ | 1,468 | $ | 442 | 30 | % | |||||||||||||||
Cost of Revenue | 675 | 831 | (156) | (19) | % | ||||||||||||||||||
Gross profit | 1,235 | 637 | 598 | 94 | % | ||||||||||||||||||
Gross profit % | 65 | % | 43 | % | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 1,793 | 2,520 | (727) | (29) | % | ||||||||||||||||||
Research and development | 603 | 711 | (108) | (15) | % | ||||||||||||||||||
General and administrative | 1,978 | 2,187 | (209) | (10) | % | ||||||||||||||||||
Total operating expenses | 4,374 | 5,418 | (1,044) | (19) | % | ||||||||||||||||||
Loss from operations | (3,139) | (4,781) | 1,642 | (34) | % | ||||||||||||||||||
Other (expense) income, net: | |||||||||||||||||||||||
Interest expense | (26) | (52) | 26 | (50) | % | ||||||||||||||||||
Gain on warrant liabilities | 11 | 2,519 | (2,508) | n/m(1) | |||||||||||||||||||
Other expense, net | (516) | (220) | (296) | 135 | % | ||||||||||||||||||
Total other (expense) income, net | (531) | 2,247 | (2,778) | (124) | % | ||||||||||||||||||
Net loss | $ | (3,670) | $ | (2,534) | $ | (1,136) | 45 | % |
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net cash used in operating activities | $ | (2,000) | $ | (1,722) | |||||||
Net cash provided by (used in) financing activities | 38,712 | (589) | |||||||||
Effect of exchange rate changes on cash | (35) | (45) | |||||||||
Net increase (decrease) in cash | 36,677 | (2,356) | |||||||||
Cash at the beginning of the period | 12,862 | 10,872 | |||||||||
Cash at the end of the period | $ | 49,539 | $ | 8,516 |
Payments Due By Period: | |||||||||||||||||||||||||||||
Total | Less than One Year | 1-3 Years | 3-5 Years | After 5 Years | |||||||||||||||||||||||||
Note payable, principal and interest | $ | 3,324 | $ | 924 | $ | 2,400 | $ | — | $ | — | |||||||||||||||||||
Facility operating leases | 646 | 547 | 99 | — | — | ||||||||||||||||||||||||
Purchase obligations | 919 | 919 | — | — | — | ||||||||||||||||||||||||
Total | $ | 4,889 | $ | 2,390 | $ | 2,499 | $ | — | $ | — |
Exhibit Number | Description | ||||||||||
101* | The following financial statements from the Ekso Bionics Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Extensible Business Reporting Language (“XBRL”): | ||||||||||
• | unaudited condensed consolidated balance sheets; | ||||||||||
• | unaudited condensed consolidated statements of operations and comprehensive income (loss); | ||||||||||
• | unaudited condensed consolidated statements of stockholders’ equity; | ||||||||||
• | unaudited condensed consolidated statement of cash flows; and | ||||||||||
• | notes to unaudited condensed consolidated financial statements. |
* | Filed herewith. | |||||||
EKSO BIONICS HOLDINGS, INC. | ||||||||
Date: April 29, 2021 | By: | /s/ Jack Peurach | ||||||
Jack Peurach | ||||||||
President and Chief Executive Officer | ||||||||
Date: April 29, 2021 | By: | /s/ John F. Glenn | ||||||
John F. Glenn | ||||||||
Chief Financial Officer | ||||||||
(Duly Authorized Officer and Principal Financial and Accounting Officer) |
/s/ Jack Peurach | |||||
Jack Peurach | |||||
Principal Executive Officer |
/s/ John F. Glenn | |||||
John F. Glenn | |||||
Principal Financial Officer |
/s/ Jack Peurach | |||||
Jack Peurach | |||||
Principal Executive Officer |
/s/ John F. Glenn | |||||
John F. Glenn | |||||
Principal Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 129 | $ 42 |
Convertible Preferred stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Convertible Preferred stock, shares issued (in shares) | 0 | 0 |
Convertible Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 141,429,000 | 141,429,000 |
Common stock, shares issued (in shares) | 12,655,000 | 8,349,000 |
Common stock, shares outstanding (in shares) | 12,655,000 | 8,349,000 |
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Statement [Abstract] | ||
Revenue | $ 1,910 | $ 1,468 |
Cost of revenue | 675 | 831 |
Gross profit | 1,235 | 637 |
Operating expenses: | ||
Sales and marketing | 1,793 | 2,520 |
Research and development | 603 | 711 |
General and administrative | 1,978 | 2,187 |
Total operating expenses | 4,374 | 5,418 |
Loss from operations | (3,139) | (4,781) |
Other (expense) income, net: | ||
Interest expense | (26) | (52) |
Gain on revaluation of warrant liabilities | 11 | 2,519 |
Other expense, net | (516) | (220) |
Total other (expense) income, net | (531) | 2,247 |
Net loss | (3,670) | (2,534) |
Other comprehensive income | 465 | 173 |
Comprehensive loss | $ (3,205) | $ (2,361) |
Basic and diluted net loss per share applicable to common shareholders (in dollars per share) | $ (0.34) | $ (0.44) |
Weighted average number of shares outstanding, basic and diluted (in shares) | 10,752 | 5,803 |
Organization |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Description of Business Ekso Bionics Holdings, Inc. (the “Company”) designs, develops, sells and rents 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 persons with physical disabilities. The Company has sold and rented devices that (i) enable individuals with neurological conditions affecting gait (acquired brain injury and spinal cord injury) 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”. All common stock share and per share amounts have been adjusted to reflect the one-for-fifteen reverse stock split effected on March 24, 2020. See Note 10, Capitalization and Equity Structure – Reverse Stock Split. Liquidity and Going Concern As of March 31, 2021, the Company had an accumulated deficit of $202,773. 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 three months ended March 31, 2021, the Company used $2,000 of cash in its operations. Cash on hand as of March 31, 2021 was $49,539. As described in Note 8, 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 March 31, 2021, $2,000 of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of March 31, 2021 is approximately $47,539. With this unrestricted cash balance, the Company believes that it currently has sufficient cash to fund its operations beyond the look forward period of one year from the issuance of these condensed consolidated financial statements.
|
Basis of Presentation and Summary of Significant Accounting Policies and Estimates |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies and Estimates | Basis of Presentation and Summary of Significant Accounting Policies and Estimates Basis of Presentation 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, 2020, which was filed with the SEC on February 25, 2021. 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, 2020, 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 months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods. Use of Estimates The preparation of the 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, revenue recognition, deferred revenue and the deferral of the associated costs, the valuation of warrants and employee stock options, 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. 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 material. 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 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 At the inception of any lease arrangement, the Company determines whether the arrangement is or contains a lease under ASC 842 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 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. The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and rental of the EksoNR and EksoGT, associated software (SmartAssist and VariableAssist), the sale and rental of the EksoUE, the sale of accessories, and the sale of support and maintenance contracts (Ekso Care). 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 or EksoGT, 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 over the term of the agreement. Revenue from medical device rentals is recognized over the rental term, typically over 12 months. The Company’s industrial device segment (EksoWorks) revenue is generated through the sale, subscription and rental of the upper body exoskeletons (EksoVest and the recently introduced EVOTM) 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 and rentals is recognized over the subscription or rental term, typically 12 months. Refer to Note 6, Revenue Recognition for further information, including revenue disaggregated by source. Going Concern The Company assesses its ability to continue as a going concern at every interim and annual period in accordance with ASC 205-40. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. 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 maintains cash accounts in excess of federally insured limits. However, the Company believes it is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. The Company extends credit to customers in the normal course of business and performs ongoing credit evaluations of its customers. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the 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 Company has not experienced material losses related to accounts receivable as of March 31, 2021 and December 31, 2020. 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 settling contracts denominated in a foreign currency. At March 31, 2021, the Company had one customer with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable (16%), as compared with two customers at December 31, 2020 (13% and 10%). During the three months ended March 31, 2021, the Company had two customers with sales of 10% or more of the Company’s total revenue (14% and 11%), as compared with one customer in the three months ended March 31, 2020 (16%). Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards 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 amends 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 will be 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. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The update will be effective for the Company in the first quarter of 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. 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 2022 and must be applied using either a modified or full retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The Company's accumulated other comprehensive loss consists of the accumulated net unrealized gains or losses on foreign currency translation adjustments. The change in accumulated other comprehensive loss presented on the condensed consolidated balance sheets for the three months ended March 31, 2021, is reflected in the table below net of tax:
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Fair Value Measurements |
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Fair Value Measurements | 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. The Company’s fair value hierarchies for its financial assets and liabilities, which require fair value measurement, on a recurring basis are as follows:
The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the period ended March 31, 2021, which were measured at fair value on a recurring basis:
Refer to Note 10. Capitalization and Equity Structure – Warrants for additional information regarding the valuation of warrants.
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Inventories, net | Inventories, net Inventories consisted of the following:
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Revenue Recognition |
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Revenue Recognition | Revenue Recognition 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, the Company estimates the selling price based on market conditions and entity-specific factors including features and functionality of the product and/or services, the geography of the Company’s customers, and type of the Company’s markets. Any discounts or other reductions to the transaction price are allocated proportionately to all performance obligations within the multiple-element arrangement. 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 rental of its products, the Company generally recognizes revenue over the rental 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:
Deferred revenue activity consisted of the following for the three months ended March 31, 2021:
As of March 31, 2021, the Company’s deferred revenue was $3,137. The Company expects to recognize approximately $1,193 of the deferred revenue during the remainder of 2021, $964 in 2022, and $980 thereafter. In addition to deferred revenue, the Company has non-cancellable backlog of $890 related to its contracts for rental units with its customers. These rental contracts typically have 12-month lease terms and rental income is recognized on a straight-line basis over the lease term. As of March 31, 2021 and December 31, 2020, accounts receivable, net of allowance for doubtful accounts, were $2,276 and $3,224, respectively, and are included in current assets on the Company’s condensed 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 three months ended March 31, 2021:
The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2020:
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Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following:
The current portion of the warranty liability is classified as a component of accrued liabilities, while the long-term portion of the 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 months ended March 31, 2021 is as follows:
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Note Payable, net | Notes Payable, net WAB and PWB Term Loans WAB Term Loan In December 2016, the Company entered into a loan agreement with Western Alliance Bank (the "WAB loan") and received a loan in the principal amount of $7,000 that bore interest on the outstanding daily balance at a floating per annum rate equal to the 30-day U.S. LIBOR plus 5.41%. The Company was required to pay accrued interest on the WAB loan on the first day of each month through and including January 1, 2018. Commencing on February 1, 2018, the Company was required to make equal monthly payments of principal, together with accrued and unpaid interest maturing on January 1, 2021. On April 29, 2020 the Company entered into a second amendment to the WAB loan to defer principal payments for three months beginning in May 2020, with adjustments when the principal payments resumed on August 1, 2020. During the three-month deferral period the Company was required to make interest only payments. The final payment fee, debt issuance costs, and the initial fair value of the success fee combined with the stated interest resulted in an effective interest rate for the WAB loan of 8.49% for the year ended December 31, 2020. The final payment fee, debt issuance costs and the initial fair value of the success fee were accreted/amortized to interest expense using the effective interest method over the life of the loan. PWB Term Loan In August 2020, the Company entered into a new loan agreement (the "PWB Loan Agreement") with a different lender, Pacific Western Bank, and received a loan in the principal amount of $2,000 (the "PWB Term Loan") that bears 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 proceeds of the PWB Term Loan were used to pay off the entire amount of the Company's indebtedness on the WAB loan, which amounted to $1,512. Pursuant to the PWB Loan Agreement, the remainder of the PWB Term Loan proceeds may be used for general corporate purposes, which totaled $480, net of debt discounts and issuance costs. The Company is required to pay accrued interest on the current loan on the 13th day of each month through and including August 13, 2023. The principal balance of the PWB Term Loan matures on August 13, 2023, at which time all unpaid principal and accrued and unpaid interest shall be due and payable in full. The interest rate of the PWB Term Loan is subject to increase in the event of late payments and after occurrence of and during the continuation of an event of default. Upon maturity, all unpaid principal and accrued and unpaid interest shall be due and payable in full. The Company may elect to prepay the PWB Term Loan at any time, in whole or in part, without penalty or premium. The PWB Loan Agreement contains a liquidity covenant, which requires that the Company maintain unrestricted cash and cash equivalents 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 March 31, 2021. On March 31, 2021, with cash on hand of $49,539, the Company was compliant with this liquidity covenant and all other covenants. The debt issuance costs and debt discounts combined with the stated interest resulted in an effective interest rate of 4.70% for the three months ended March 31, 2021. The debt issuance costs will be amortized to interest expense using the effective interest method over the life of the loan. The following table presents scheduled principal payments of the Company’s PWB term loan as of March 31, 2021:
Paycheck Protection Program Loan On April 20, 2020, the Company received an unsecured loan in the principal amount of $1,086 under the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration, or the SBA, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), or the PPP loan. The PPP loan provides for an interest rate of 1.00% per year, and matures two years after the date of initial disbursement. The terms of the PPP Loan were subsequently revised in accordance with the provisions of the Paycheck Protection Flexibility Act of 2020, or the PPP Flexibility Act, which was enacted on June 5, 2020. Based on management's interpretation of the PPP Flexibility Act, the Company expects to begin making principal and interest payments on the PPP loan beginning in 2022. The overall timing of payments with respect to the amounts of principal and interest due could change based on the ultimate determination of what may or may not be forgiven. The PPP loan may be used for payroll costs, costs related to certain group health care benefits and insurance premiums, rent payments, utility payments, mortgage interest payments and interest payments on any other debt obligation that were incurred before February 15, 2020. Under the terms of the CARES Act and the PPP Flexibility Act, the Company may apply for and be granted forgiveness for all or a portion of loan granted under the PPP loan, with such forgiveness to be determined, subject to limitations (including where employees of the Company have been terminated and not re-hired by a certain date), based on the use of the loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. The terms of any forgiveness may also be subject to further requirements in regulations and guidelines adopted by the SBA. While the Company currently believes that the majority of the use of the PPP loan proceeds will meet the conditions for forgiveness under the PPP, no assurance is provided that the Company will obtain partial forgiveness of the loan. The Company expects to apply for forgiveness of the loan in the second quarter of 2021. Terms of the loan may change subject to future enactments relating to the PPP. The follow table presents the scheduled principal payments of the Company's PPP loan note payable as of March 31, 2021, if the loan is not forgiven:
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Lease Obligations |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Obligations | Lease Obligations The Company maintains a five-year operating lease agreement for its headquarters and manufacturing facility in Richmond, California, or the Richmond Lease, which expires in May 2022, with no further options to extend or terminate. The lease includes non-lease components (i.e. common area maintenance costs) that are paid separately from rent based on actual costs incurred. In June 2020, the Company entered into an amendment to the Richmond Lease to make a one-time payment of $300 to cover its remaining lease obligations for the remainder of 2020, resulting in a $48 abatement and a lease payment deferral of $79 to be paid in equal monthly installments in 2021. The Company's five-year operating lease agreement for its European operations office in Hamburg, Germany expires in July 2022. The Company has an option to extend the lease for another five-year term. The Company’s future lease payments as of March 31, 2021 are as follows, which are presented as lease liabilities on the Company’s condensed consolidated balance sheets:
Lease expense under the Company’s operating leases was $132 and $138 for the three months ended March 31, 2021 and March 31, 2020, respectively. Practical Expedients 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.
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Capitalization and Equity Structure |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization and Equity Structure | Capitalization and Equity Structure Reverse Stock Split After the close of the stock market on March 24, 2020, the Company effected a 1-for-15 reverse split of its common stock (the "Reverse Stock Split"). As a result, all common stock share amounts included in this filing have been retroactively reduced by a factor of fifteen, rounded up to the nearest whole share, and all common stock per share amounts have been increased by a factor of fifteen, with the exception of the Company's common stock par value and the Company's authorized shares. Amounts affected include common stock outstanding, restricted stock units, common stock underlying stock options and warrants. Summary The Company’s authorized capital stock at March 31, 2021 consisted of 141,429 shares of common stock and 10,000 shares of preferred stock. As of March 31, 2021, there were 12,655 shares of common stock issued and outstanding and no shares of preferred stock issued and outstanding. Common Stock February 2021 Offering In February 2021, the Company entered into an amended and restated underwriting agreement (the "Underwriting Agreement") with H.C. Wainwright & Co., LLC ("Wainwright"), to sell 3,902 shares of the Company's common stock for a public price of $10.25 per share, for gross proceeds of $40,000 (the "February 2021 Offering"). The Company received net proceeds of $36,504 from the February 2021 Offering after deducting underwriting discounts, commissions and estimated offering expenses. Pursuant to the Underwriting Agreement, the Company issued, to certain designees of Wainwright, five year warrants (the “2021 Warrants”) to purchase shares of Common Stock in an amount equal to 7.0% of the aggregate number of shares sold in the February 2021 Offering, or 273 shares, at an exercise price of $12.81 per share. At the Market Offering In October 2020, the Company entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC (the "Agent"), under which the Company may issue and sell shares of its common stock, from time to time, to or through the Agent. The Company may offer and sell shares having an aggregate offering price of up to $7,500 under the registration statement and prospectus supplement filed with the SEC related to such offering. Under the ATM Agreement, shares of the Company's common stock may not be sold for a price lower than $6.75 per share. During the three months ended March 31, 2021, the Company sold 78 shares of common stock at an average price per share of $10.72 for proceeds of $791, net of commission and issuance costs, under the ATM Agreement. As of March 31, 2021, the Company has $6,668 available for future offerings under the prospectus filed with respect to the ATM Agreement. Warrants Warrant shares outstanding as of December 31, 2020 and March 31, 2021 were as follows:
During the three months ended March 31, 2021, the Company received net proceeds of $1,417 from the exercise of 358 warrants. 2021 Warrants In February 2021, the Company issued the 2021 Warrants, exercisable for up to 273 shares of the Company’s common stock at an exercise price of $12.81 per share. The 2021 Warrants were issued as exercisable immediately, and will expire five years from the date of issuance, or on February 11, 2026. In addition, the 2021 Warrants contain a cashless exercise provision, whereby, if, at the time a holder exercises its 2021 Warrants, a registration statement registering the issuance or the resale of the shares of common stock underlying the 2021 Warrants under the Securities Act is not then effective or available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate exercise price, the holder may elect to instead receive, upon such exercise (either in whole or in part), the net number of shares of the Company’s common stock determined according to a formula set forth in the 2021 Warrant. The 2021 Warrants will be automatically exercised on a cashless basis on their expiration date. The 2021 Warrants could also require payment of liquidated damages by the Company in the form of cash payments in the event of a failure by the Company to timely deliver shares of common stock upon exercise of such warrants. The 2021 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the 2021 Warrants, the Company or any successor entity will, at the option of a holder of a 2021 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s 2021 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s 2021 Warrant within trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the 2021 Warrants are classified as a liability and are marked to market at each reporting date. The warrant liability related to the 2021 Warrants is measured at fair value upon issuance and at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the 2021 Warrants:
June 2020 Investor Warrants In June 2020, the Company issued warrants (the "June 2020 Investor Warrants"), exercisable for up to 874 shares of the Company’s common stock at an exercise price of $5.18 per share. The June 2020 Investor Warrants were issued as exercisable immediately, and will expire five and one-half years from the date of issuance, or on December 10, 2025. In addition, the June 2020 Investor Warrants contain a cashless exercise provision, whereby, if, at the time a holder exercises its June 2020 Investor Warrants, a registration statement registering the issuance or the resale of the shares of common stock underlying the June 2020 Investor Warrants under the Securities Act is not then effective or available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate exercise price, the holder may elect to instead receive, upon such exercise (either in whole or in part), the net number of shares of the Company’s common stock determined according to a formula set forth in the June 2020 Investor Warrant. The June 2020 Investor Warrants will be automatically exercised on a cashless basis on their expiration date. The June 2020 Investor Warrants could also require payment of liquidated damages by the Company in the form of cash payments in the event of a failure by the Company to timely deliver shares of common stock upon exercise of such warrants. During the year ended December 31, 2020 and the three months ended March 31, 2021, 477 and 270 shares of the June 2020 Investor Warrants were exercised, respectively. The June 2020 Investor Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the June 2020 Investor Warrants, the holders of the June 2020 Investor Warrants will be entitled to receive upon exercise of the June 2020 Investor Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the June 2020 Investor Warrants immediately prior to such fundamental transaction. Alternatively, the Company or any successor entity will, at the option of a holder of a June 2020 Investor Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s June 2020 Investor Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s June 2020 Investor Warrant. Because of this put-option provision, the June 2020 Investor Warrants are classified as a liability and are marked to market at each reporting date. The warrant liability related to the June 2020 Investor Warrants is measured at fair value at each reporting and exercise date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Investor Warrants:
June 2020 Placement Agent Warrants In June 2020, the Company issued warrants (the "June 2020 Placement Agent Warrants"), exercisable for up to 122 shares of the Company’s common stock, to the placement agent for such offering. The June 2020 Placement Agent Warrants have substantially the same form as the June 2020 Investor Warrants, including the put option described above, except that they have an exercise price per share equal to $5.64, subject to adjustment in certain circumstances, and will expire on June 7, 2025. During the three months ended March 31, 2021, 83 shares of the June 2020 Placement Agent Warrants were exercised. Because of the put-option provision in the June 2020 Placement Agent Warrants, these warrants are classified as a liability and are marked to market at each reporting date. The warrant liability related to the June 2020 Placement Agent Warrants is measured at fair value at each reporting and exercise date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the June 2020 Placement Agent Warrants:
December 2019 Warrants In December 2019, pursuant to a securities purchase agreement (the "December 2019 Offering"), the Company issued warrants (the "December 2019 Warrants") to purchase 556 shares of common stock. The December 2019 Warrants are currently exercisable, have an exercise price of $8.10 per share, and will expire five years from the date they initially became exercisable, or on June 21, 2025. The December 2019 Warrants also contain a put option, under which, if the Company enters into a Fundamental Transaction, as defined in the December 2019 Warrants, the Company or any successor entity will, at the option of a holder of a December 2019 Warrant, exercisable concurrently with or at any time within 30 days after the consummation of such Fundamental Transaction, purchase such holder’s December 2019 Warrant by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such holder’s December 2019 Warrant within trading days after the notice of exercise by the holder of the put option. Because of this put-option provision, the December 2019 Warrants are classified as a liability and are marked to market at each reporting date. The warrant liability related to the December 2019 Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Warrants:
December 2019 Placement Agent Warrants In December 2019, in connection with the December 2019 Offering, the Company issued warrants to purchase 52 shares of the Company’s common stock to the placement agent for such offering (the "December 2019 Placement Agent Warrants"). The December 2019 Placement Agent Warrants have substantially the same form as the December 2019 Warrants, except that they have an exercise price per share equal to $8.44, subject to adjustment in certain circumstances, and will expire on December 18, 2025. The warrant liability related to the December 2019 Placement Agent Warrants is measured at fair value at each reporting date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in the Black-Scholes Model to measure the fair value of the December 2019 Placement Agent Warrants:
Management has assessed that the likelihood of a Change of Control (as defined in the December 2019 Placement Agent Warrants), occurring during the term of the December 2019 Placement Agent Warrants is low, and that if such an event were to occur, the difference between the cashless exercise value and the warrants fair value is nominal. May 2019 Warrants In May 2019, pursuant to an underwriting agreement, (the "May 2019 Offering"), the Company issued the warrants (the "May 2019 Warrants") to purchase 444 shares of common stock. The May 2019 Warrants are currently exercisable and have a current exercise price of $3.52 per share and will expire five years from the date of their issuance, or on May 24, 2024. The May 2019 Warrants contain a price protection feature, pursuant to which, subject to certain exceptions, if shares of common stock are sold or issued in the future, or securities convertible or exercisable for shares of the Company’s common stock are sold or issued in the future, for consideration, or with an exercise price or conversion price, as applicable, per share less than the exercise price per share then in effect for the May 2019 Warrants, the exercise price of the May 2019 Warrants is reduced to the consideration paid for, or the exercise price or conversion price of, as the case may be, the securities issued in such offering. Pursuant to this provision, in connection with the June 2020 Offering, the exercise price of the May 2019 Warrants was reduced to $3.52 per share, being the amount that is equal to the lower of (x) the consideration paid for the securities issued in the June 2020 Offering, or $4.51 per share, (y) the lowest exercise price of the June 2020 Investor Warrants, or $5.18, and (z) the lowest one-day volume-weighted average price of the Company’s Common Stock on the Nasdaq Capital Market as measured each day during the five trading day period starting on June 8, 2020, rounded to the nearest share, or $3.52. During the year ended December 31, 2020 and the three months ended March 31, 2021, 246 and 5 shares of the May 2019 warrants were exercised, respectively. In addition, if the Company effects or enters into any issuance of common stock or options or convertible securities exercisable for or convertible into common stock at a price which varies or may vary with the market price of the shares of the Company's common stock, subject to certain exceptions, a May 2019 Warrant holder may, at the time of exercise of the holder’s warrant, elect to exercise the warrant at such variable price. The May 2019 Warrants include a put option, whereby while the May 2019 Warrants are outstanding, if the Company enters into a Change of Control, as defined in the May 2019 Warrants, the Company or any successor entity will, at the option of a 2019 Warrant holder exercise within 90 days after the public disclosure of the Change of Control transaction, purchase such holder’s May 2019 Warrants by paying to such holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of such warrants on the later date of consummation of the Change of Control transaction or two trading days after the notice of such request. Because of this put option provision, the May 2019 Warrants are classified as a liability and are marked to market at each reporting date. The warrant liability related to the May 2019 Warrants is measured at fair value at each reporting and exercise date using certain estimated inputs, which are classified within Level 3 of the fair value hierarchy. The following assumptions were used in a combination of the Black-Scholes Model and the Lattice Model to measure the fair value of the May 2019 Warrants:
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Stock-based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation See Note 10, Capitalization and Equity Structure – Reverse Stock Split. As of March 31, 2021, the total shares authorized for grant under the 2014 Plan was 1,974, of which 937 were available for future grants. Stock Options The following table summarizes information about the Company’s stock options outstanding as of March 31, 2021, and activity during the three months then ended:
As of March 31, 2021, total unrecognized compensation cost related to unvested stock options was $1,869. This amount is expected to be recognized as stock-based compensation expense in the Company’s condensed consolidated statements of operations and comprehensive income over the remaining weighted average vesting period of 1.84 years. The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes Model using the following assumptions:
Restricted Stock Units The Company issues time-based restricted stock units (“RSUs”) and performance-based restricted stock units ("PSUs") to employees and non-employee service providers. Each RSU and PSU represents the right to receive one share of the Company’s common stock upon vesting and subsequent settlement. PSUs vest upon achievement of performance targets based on the Company's annual operating plan. The fair values of RSUs and PSUs are determined based on the closing price of the Company’s common stock on the date of grant. RSU and PSU activity for the three months ended March 31, 2021 is summarized below:
As of March 31, 2021, $1,935 of total unrecognized compensation expense related to unvested RSUs and PSUs was expected to be recognized over a weighted average period of 2.67 years. Compensation Expense Total stock-based compensation expense related to options, RSUs and PSUs granted to employees is included in the condensed consolidated statements of operations and comprehensive loss as follows:
401(k) Plan Share Match During the three months ended March 31, 2021, the Company issued 26 shares of common stock to eligible employees’ deferral accounts for the 401(k) Plan matching contribution representing 50% of each eligible employee’s elected deferral (up to the statutory limit) for the fiscal year ended December 31, 2020. The expense related to the contribution was $152 for the three months ended March 31, 2021.
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Income Taxes |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThere were no material changes to the unrecognized tax benefits in the three months ended March 31, 2021, and the Company does not expect significant changes to unrecognized tax benefits through the end of the fiscal year. Because of the Company’s history of tax losses, all years remain open to tax examination. |
Commitments and Contingencies |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Material Contracts The Company enters various license, research collaboration and development agreements, which provide for payments to the Company primarily for technology transfer and license fees, and royalty payments on sales. The Company has two license agreements with the Regents of the University of California to maintain exclusive rights to certain patents. The Company is required to pay 1% of net sales of licensed medical devices sold to entities other than the U.S. government. In addition, the Company is required to pay 21% of consideration collected from any sub-licensee for the grant of the sub-license. In connection with acquisition of Equipois, LLC ("Equipois"), the Company assumed the rights and obligations of Equipois under a license agreement with the developer of certain intellectual property related to mechanical balance and support arm technologies, which grants the Company an exclusive license with respect to the technology and patent rights for certain fields of use. Pursuant to the terms of the license agreement, the Company is required to pay the developer a single-digit royalty on net receipts, subject to a $50 annual minimum royalty requirement. Purchase Obligations The Company purchases components from a variety of suppliers and uses contract manufacturers to provide manufacturing services for its products. Purchase obligations are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The Company had purchase obligations primarily for purchases of inventory and manufacturing related service contracts totaling $919 as of March 31, 2021, which is expected to be paid within a year. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations. Contingencies In the normal course of business, the Company is subject to various legal matters. In the opinion of management, the resolution of such matters will not have a material adverse effect on the Company’s condensed consolidated financial statements.
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share:
The following table sets forth potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented:
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Segment Disclosures |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures | Segment Disclosures The Company has two reportable segments: EksoHealth and EksoWorks. The EksoHealth segment designs, engineers, manufactures, sells and rents exoskeletons for applications in the medical markets. The EksoWorks segment designs, engineers, manufactures, sells, and rents exoskeleton devices to allow able-bodied users to perform difficult repetitive work for extended periods. The reportable segments are each managed separately because they serve distinct markets. The Company evaluates performance and allocates resources based on segment gross profit margin. The Company does not consider net assets as a segment measure and, accordingly, assets are not allocated. Segment reporting information is as follows:
Geographic information for revenue based on location of customers is as follows:
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Basis of Presentation and Summary of Significant Accounting Policies and Estimates (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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, 2020, which was filed with the SEC on February 25, 2021. 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, 2020, 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 months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods.
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Use of Estimates | Use of Estimates The preparation of the 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, revenue recognition, deferred revenue and the deferral of the associated costs, the valuation of warrants and employee stock options, 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.
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Foreign Currency | 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.
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Inventory | 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 material. 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 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.
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Leases | Leases At the inception of any lease arrangement, the Company determines whether the arrangement is or contains a lease under ASC 842 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.
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Revenue Recognition | Revenue Recognition 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. The Company’s medical device segment (EksoHealth) revenue is primarily generated through the sale and rental of the EksoNR and EksoGT, associated software (SmartAssist and VariableAssist), the sale and rental of the EksoUE, the sale of accessories, and the sale of support and maintenance contracts (Ekso Care). 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 or EksoGT, 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 over the term of the agreement. Revenue from medical device rentals is recognized over the rental term, typically over 12 months. The Company’s industrial device segment (EksoWorks) revenue is generated through the sale, subscription and rental of the upper body exoskeletons (EksoVest and the recently introduced EVOTM) 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 and rentals is recognized over the subscription or rental term, typically 12 months. Refer to Note 6, Revenue Recognition for further information, including revenue disaggregated by source.
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Going Concern | Going Concern The Company assesses its ability to continue as a going concern at every interim and annual period in accordance with ASC 205-40. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
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Concentration of Credit Risk and Other Risks and Uncertainties | 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 maintains cash accounts in excess of federally insured limits. However, the Company believes it is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. The Company extends credit to customers in the normal course of business and performs ongoing credit evaluations of its customers. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the 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 Company has not experienced material losses related to accounts receivable as of March 31, 2021 and December 31, 2020. 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 settling contracts denominated in a foreign currency. At March 31, 2021, the Company had one customer with an accounts receivable balance totaling 10% or more of the Company’s total accounts receivable (16%), as compared with two customers at December 31, 2020 (13% and 10%). During the three months ended March 31, 2021, the Company had two customers with sales of 10% or more of the Company’s total revenue (14% and 11%), as compared with one customer in the three months ended March 31, 2020 (16%).
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards 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 amends 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 will be 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. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The update will be effective for the Company in the first quarter of 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. 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 2022 and must be applied using either a modified or full retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
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Accumulated Other Comprehensive Loss (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The change in accumulated other comprehensive loss presented on the condensed consolidated balance sheets for the three months ended March 31, 2021, is reflected in the table below net of tax:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s fair value hierarchies for its financial assets and liabilities, which require fair value measurement, on a recurring basis are as follows:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the period ended March 31, 2021, which were measured at fair value on a recurring basis:
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Inventories, net (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, net | Inventories consisted of the following:
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with Customer, Assets and Liabilities | Deferred revenue consisted of the following:
Deferred revenue activity consisted of the following for the three months ended March 31, 2021:
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Disaggregation of Revenue | The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2021:
The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2020:
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Accrued Liabilities (Tables) |
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Schedule of Accrued Liabilities | Accrued liabilities consisted of the following:
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Product Maintenance And Warranty | A reconciliation of the changes in the device warranty liability for the three months ended March 31, 2021 is as follows:
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Note Payable, net (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The following table presents scheduled principal payments of the Company’s PWB term loan as of March 31, 2021:
The follow table presents the scheduled principal payments of the Company's PPP loan note payable as of March 31, 2021, if the loan is not forgiven:
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Lease Obligations (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Future Obligations | The Company’s future lease payments as of March 31, 2021 are as follows, which are presented as lease liabilities on the Company’s condensed consolidated balance sheets:
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Capitalization and Equity Structure (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warrant share activity | Warrant shares outstanding as of December 31, 2020 and March 31, 2021 were as follows:
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Schedule of assumption used in valuation | The following assumptions were used in the Black-Scholes Model to measure the fair value of the 2021 Warrants:
|
Stock-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes information about the Company’s stock options outstanding as of March 31, 2021, and activity during the three months then ended:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes Model using the following assumptions:
|
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Schedule of Unvested Restricted Stock Units Roll Forward | RSU and PSU activity for the three months ended March 31, 2021 is summarized below:
|
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Total stock-based compensation expense related to options, RSUs and PSUs granted to employees is included in the condensed consolidated statements of operations and comprehensive loss as follows:
|
Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share:
|
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented:
|
Segment Disclosures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Segment reporting information is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Geographic Information | Geographic information for revenue based on location of customers is as follows:
|
Organization (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 24, 2020 |
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accumulated deficit | $ 202,773 | $ 199,103 | ||
Cash used in operations | 2,000 | $ 1,722 | ||
Cash | 49,539 | $ 12,862 | ||
Debt covenant, unrestricted cash | 2,000 | |||
Unrestricted cash | $ 47,539 | |||
Reverse stock split | 0.06667 |
Accumulated Other Comprehensive Loss (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 4,434 |
Net unrealized gain on foreign currency translation | 465 |
Ending balance | 40,975 |
Accumulated Other Comprehensive Loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (847) |
Ending balance | $ (382) |
Fair Value Measurements - Fair Value Hierarchies (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Liabilities | ||
Warrant liabilities | $ 5,501 | $ 6,037 |
Recurring | ||
Liabilities | ||
Warrant liabilities | 5,501 | 6,037 |
Level 1 | Recurring | ||
Liabilities | ||
Warrant liabilities | 0 | 0 |
Level 2 | Recurring | ||
Liabilities | ||
Warrant liabilities | 0 | 0 |
Level 3 | Recurring | ||
Liabilities | ||
Warrant liabilities | $ 5,501 | $ 6,037 |
Fair Value Measurements - Change in Level 3 (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Gain on revaluation of warrant liabilities | $ (11) | $ (2,519) |
Warrant Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 6,037 | |
Initial fair value of warrants in connection with 2021 financing | 1,936 | |
Gain on revaluation of warrant liabilities | (11) | |
Reclassification of warrant liability to equity upon exercise of warrants | (2,461) | |
Ending Balance | $ 5,501 |
Inventories, net (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,530 | $ 1,724 |
Work in progress | 279 | 18 |
Finished goods | 345 | 236 |
Inventories, net | $ 2,154 | $ 1,978 |
Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Deferred extended maintenance and support | $ 2,757 | $ 2,902 |
Deferred royalties | 280 | 282 |
Deferred device and advances | 100 | 118 |
Total deferred revenues | 3,137 | 3,302 |
Less current portion | (1,493) | (1,496) |
Deferred revenues, non-current | $ 1,644 | $ 1,806 |
Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Change In Contract With Customer, Liability Rollforward [Roll Forward] | |
Beginning balance | $ 3,302 |
Deferral of revenue | 289 |
Recognition of deferred revenue | (454) |
Ending balance | $ 3,137 |
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | ||
Salaries, benefits and related expenses | $ 1,267 | $ 1,194 |
Device warranty | 153 | 188 |
Other | 55 | 47 |
Total | $ 1,475 | $ 1,429 |
Accrued Liabilities - Product Maintenance and Warranty (Details) - Warranty - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2021 |
|
Accrued Liabilities, Rollforward [Roll Forward] | ||
Beginning Balance | $ 226 | |
Additions for estimated future expense | 46 | |
Incurred costs | (77) | |
Closing Balance | 195 | |
Current portion | $ 153 | |
Long-term portion | 42 | |
Total | $ 195 | $ 195 |
Notes Payable, net - Debt Repayment (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Remainder of 2021 - 2022 | $ 0 |
2023 | 2,000 |
Note payable, net | 1,990 |
Less debt discount and issuance cost | 10 |
Current portion | 0 |
Long-term portion | 1,990 |
PWB Loan Agreement | Term Loan | |
Debt Instrument [Line Items] | |
Note payable, net | $ 2,000 |
Notes Payable, net - Principal Repayment (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Remainder of 2021 - 2022 | $ 0 |
Current portion | 0 |
Long-term portion | 1,990 |
Note payable, net | 1,990 |
Unsecured debt | |
Debt Instrument [Line Items] | |
Remainder of 2021 - 2022 | 0 |
2022 | 1,086 |
Total principal payments | 1,086 |
Current portion | 814 |
Long-term portion | 272 |
Note payable, net | $ 1,086 |
Lease Obligations -Additional Information (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Lessee, Lease, Description [Line Items] | |||
Lease liabilities | $ 646 | ||
Lease expense | $ 132 | $ 138 | |
Richmond, California | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease | 5 years | ||
Lease payment | $ 300 | ||
Operating Lease, Abatement | $ 48 | ||
Lease liabilities | $ 79 | ||
Hamburg,Germany | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease | 5 years | ||
Renewal term | 5 years |
Lease Obligations - Future Minimum Payments (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Remainder of 2021 | $ 447 | |
2022 | 235 | |
Total lease payments | 682 | |
Less: imputed interest | (36) | |
Present value of lease liabilities | 646 | |
Lease liabilities, current | 547 | $ 548 |
Lease liabilities, noncurrent | 99 | $ 233 |
Total lease liabilities | $ 646 | |
Weighted-average remaining lease term (in years) | 1 year 2 months 8 days | |
Weighted-average discount rate | 10.50% |
Stock-based Compensation - Valuation Assumptions (Details) - 2014 Plan |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 1.58% | |
Expected term (in years) | 6 years | |
Volatility | 102.00% |
Stock-based Compensation - RSU Activity (Details) - RSU shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
$ / shares
shares
| |
Number of Shares | |
Beginning Balance (in shares) | shares | 143 |
Granted (in shares) | shares | 208 |
Vested (in shares) | shares | (2) |
Forfeited (in shares) | shares | (24) |
Ending Balance (in shares) | shares | 325 |
Weighted- Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 6.21 |
Granted (in dollars per share) | $ / shares | 6.91 |
Vested (in dollars per share) | $ / shares | 5.74 |
Forfeited (in dollars per share) | $ / shares | 8.16 |
Ending Balance (in dollars per share) | $ / shares | $ 6.60 |
Stock-based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 356 | $ 587 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 99 | 138 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 52 | 73 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 205 | $ 376 |
Commitments and Contingencies (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
license_agreement
| |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments due by period | $ 50 |
Contractual obligation | $ 919 |
Royalty Agreement Terms | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Number of license agreements | license_agreement | 2 |
Royalty Agreement Terms | Net sales | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Royalty percentage | 1.00% |
Royalty Agreement Terms | License fees | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Royalty percentage | 21.00% |
Net Loss Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Numerator: | ||
Net loss applicable to common stockholders, basic and diluted | $ (3,670) | $ (2,534) |
Denominator: | ||
Weighted average number of shares outstanding, basic and diluted (in shares) | 10,752 | 5,803 |
Basic and diluted net loss per share applicable to common shareholders (in dollars per share) | $ (0.34) | $ (0.44) |
Net Loss Per Share - Antidilutive Shares (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,087 | 1,847 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 522 | 576 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 325 | 99 |
Warrants for common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,240 | 1,172 |
Segment Disclosures - Operating Segments (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
segment
|
Mar. 31, 2020
USD ($)
|
|
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenue | $ 1,910 | $ 1,468 |
Cost of revenue | 675 | 831 |
Gross profit | 1,235 | 637 |
EksoHealth | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,727 | 1,191 |
Cost of revenue | 542 | 618 |
Gross profit | 1,185 | 573 |
EksoWorks | ||
Segment Reporting Information [Line Items] | ||
Revenue | 183 | 277 |
Cost of revenue | 133 | 213 |
Gross profit | $ 50 | $ 64 |
Segment Disclosures - Geographical Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,910 | $ 1,468 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,041 | 1,249 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 869 | $ 219 |
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