Ekso Bionics Holdings, Inc.

Hello, and welcome to the Exobionics Q2 2023 Financial Results Conference call and webcast. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may press star one at any time to be placed in the question queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Matt Steinberg with FinPartners. Please go ahead, Matt.

Thank you, operator. Thank you all for participating in today's call. Joining me from Exobionics are Scott Davis, Chief Executive Officer, Jason Jones, Chief Operating Officer, and Jerome Wong, Chief Financial Officer. Earlier today, Exobionics released financial results for the second quarter of 2023. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that will include forward-looking statements within the meaning of the federal securities laws which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements made during this call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including statements regarding our business strategy, Future financial or operational expectations or our expectations of the regulatory landscape governing our products and operations are based upon management's current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. or a list and description of the risks and uncertainties associated with our businesses, please see our filings with the Securities and Exchange Commission. EXO disclaims any intention or obligation, except as required by law, to update or revise any financial or operational projections, our regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise, which speak only as of today, July 27th, I will now turn the call over to ExoBionics CEO, Scott Davis.

Thank you, Matt, and thank you to everyone for joining us today. We are very pleased with our second quarter results, most notably a record number of ExoHealth device bookings and strong revenue growth of 36% year over year. Driven by the ongoing performance of our ExoNR, the positive contributions from our ExoIndigo products, and continued solid execution of our team, we are making tremendous progress in reaching more patients across the continuum of care. EXO has taken an approach of using our technology and rehabilitative programs to follow patients from post-acute to outpatient care and on to continued home and community use. This helps differentiate us in the industry and provides our patients with more options for use of technology in their recovery process. We believe this differentiating strategy gives us access to a sizable addressable market. Specifically, we believe the VA alone with its programs around the ExoIndigo Personal provides us a market opportunity of more than $300 million. Additionally, with a full Indigo product line, our reach now expands to outpatient facilities that total almost 63,000 centers domestically along with wellness centers, which is an emerging market for us that total approximately 31,000 across the U.S. Our commercial and marketing teams are hard at work to drive greater awareness as we seek to penetrate these large markets. In the second quarter, we booked a total of 44 ExoHealth devices, a quarterly record. This includes devices within the ExoNR and ExoIndigo product lines. Among these bookings was another significant multi-unit order from an integrated delivery network, or IDN, for 12 of our XONR devices. This represents the second straight quarter of a sizable booking number with a large IDN customer. We believe that our customers are seeing firsthand how our cutting-edge devices elevate the standard of care for neurorehabilitation. Our research suggests that post-acute care centers gain clear benefits with our ExoNR and ExoIndigo devices in the form of positive patient outcomes, a differentiated and more efficient offering, and better economic value. Furthermore, we are leveraging our current customer base to heighten awareness for individuals who can benefit from the use of ExoIndigo Personal. These adoption drivers are among the reasons our commercial team is generating strong demand from new and existing network operators, putting us in a position to reach a significantly larger patient population. Internationally, we're pleased to have recorded a strong booking quarter, particularly in Europe. One exciting deal of note is through a distributor in Hungary that resulted in a six-unit XONR deal. The strength in Europe underscores our investment in indirect partnerships in the region. In APAC, we secured our first XO Indigo booking. We continue to see these regions as important growth drivers in the years to come. Turning to an update on the progress with our industrial product line, XO Works. During the second quarter, as we previously mentioned, we continued focusing on a different go-to-market strategy. placing increased emphasis on EVO and its placement into large industrial settings where we believe there is an addressable market opportunity of approximately $5 billion. This refocus takes time with a longer sales cycle, but I'm pleased to report subsequent to quarter end, we want a competitive bid with a global automotive leader and have a number of other promising opportunities in our pipeline. During the quarter, we also shipped our first EVO from our new contract manufacturer, which brings us a better pricing structure. Looking ahead, our ExoWorks commercial team is focused on targeting large customers and increasing engagement to drive demand and ensure the success and safety of our customers' workforce. another exciting development at the end of the quarter was the recently updated 2024 home health prospective payment system rate from the centers for medicare and medicaid services or cms with a newly proposed rule that is relevant for our business and our patients this rule would codify the long-standing medicare definition of grace to provide clarification on the scope of the Medicare Part B benefit for leg, arm, back, and neck braces, and as a result, would classify certain exoskeleton-type devices as braces for Medicare payment purposes. This is a positive step in facilitating the potential for Medicare coverage of personal exoskeletons, such as our EXO Indigo Personal, for qualified patients as a lump sum reimbursement. We fully support the codifying of the proposal to further enhance potential access for Medicare beneficiaries and look forward to providing updates around this proposed rule in coming quarters. Overall, we are encouraged by our performance, highlighted by record quarter results of revenues and bookings, securing multi-unit orders with large network operators, and inroads we are making in large markets across the continuum of care. Driven by the strength of our commercial team and newly expanded portfolio, we look forward to bringing our life-changing solutions to a greater number of patients in need worldwide. Now, I will turn the call over to our Chief Operating Officer, Jason Jones.