Ekso Bionics Holdings, Inc.

Greetings, and welcome to the ExoBionics Quarter 3, 2023 Financial Results Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Matt Steinberg of FinPartners. Please go ahead.

Thank you, operator. And 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 third 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 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. For 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, a regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise, which speak only as of today, October 26, 2023. I'll now turn the call over to ExoBionics CEO, Scott Davis.

Thank you, Matt. And thank you to everyone for joining us today. Pleased to announce that we achieved another strong quarter of sales for ExoNR and Indigo devices that propelled us to grow our quarterly revenues by a significant 38% year over year. In addition, we have established the groundwork for our ExoWorks segment, resulting in a record quarterly number of EVO unit sales. Finally, we continue to work hard to improve our bottom line by focusing on improvements in operating efficiencies and costs, resulting in a $700,000 narrowing in our operating loss compared to Q3 of 2022. Overall, our third quarter results reflect the growing adoption of our products across our target markets, as well as the continued execution of our team. We sold or recognized new revenue on a total of 41 ExoHealth devices in the third quarter, which includes devices within the ExoNR and ExoIndigo product lines. As in previous quarters, we believe a key to our growth will be our ability to continue building a strong multi-unit order pipeline with top network operators, like our 10 ExoNR device order in the quarter from a large integrated delivery network. Additionally, we remain committed to leveraging our longstanding relationships with our existing customer base to heighten awareness for individuals who can benefit from the long-term use of our personal devices in their daily activities. Our relationship with the U.S. Department of Veteran Affairs, or VA, remains a critical part of our go-to-market strategy with our XO Indigo product line. We were encouraged by the increasing adoption of our advanced technology through this relationship. The lightweight, modular design and slim profiles of both our XO Indigo personal and our exo-indigo therapy devices are compatible with many wheelchairs and can bring much needed rehabilitation support to our valued veterans in both home and community use settings. We remain committed in bringing our exoskeleton solutions to more VA hospitals and clinics in the hope of giving our veterans who have suffered a spinal cord injury better access to this potentially life-changing technology. On the international front, we secured several multi-unit orders highlighting the success of our strategic investment in our indirect partnerships. In Europe, we sold six XONR devices as part of a multi-unit order to one of our largest distributors. In APAC, in addition to an XONR order, we secured a three-unit XO Indigo personal order, which is among our first global multi-unit orders for Indigo. We remain focused on building relationships with larger customers in these regions, while raising awareness of our expanded exo-health capabilities that now stretch across the continuum of care. As mentioned on our second quarter call, the Centers for Medicare and Medicaid Services, or CMS, proposed a new rule to include personal exoskeletons in the Medicare benefit category for braces in the updated 2024 Home Health Prospective Payment Sim rate. This proposed rule is important because it would classify certain exoskeleton-type devices as braces for Medicare payment purposes. If approved, we believe this expanded coverage could significantly grow the addressable population for exoindigo personal to the estimated 164,000 individuals with a spinal cord injury who have Medicare or Medicaid coverage. Importantly, these individuals could obtain their exoindigo personal device at a fraction of the current cost. Additionally, we recently applied EXO Indigo Personal for Medicare code determination. We look forward to CMS's ruling, including level of reimbursement, which is expected in late November. Now turning to an update on our industrial product line, EXO Works. As part of our new volume pricing strategy, we secured a sharply higher number of EVO units sold compared to the third quarter of 2022, resulting in a record quarter for this product. Driven by our commercial efforts, employers are recognizing the meaningful productivity and safety benefits that Evo provides to industrial workers. With several promising opportunities in our pipeline and the implementation of our new high volume contract manufacturer, we were encouraged by this initial momentum. While revenue contributions from our industrial segment were modest, our focus remains on placing an increased emphasis on Evo's placement in large industrial settings. which consists of an addressable market opportunity of approximately $5 billion. We look forward to providing additional updates as we drive further market penetration across our industrial verticals. As we continue to scale ExoWorks for future growth, we are pleased to have recently launched an e-commerce platform that will allow customers to purchase EVOs directly from Exo. This new site provides customers with a user-friendly experience to also acquire XO branded apparel and accessories. We invite all listeners and customers to visit our site at shop.exobionics.com. Overall, we are encouraged by our third quarter performance and the progress we have made throughout 2023. Going forward, we're focused on driving greater awareness and adoption of our products. expanding market access for our customers, securing more multi-unit orders with new and existing large network operators, and on continual improvements in operating efficiencies. Achieving 38% year-over-year revenue growth and driving sustained demand in our target markets across the continuum of care is a testament to the strength of our commercial team and expanded product portfolio. Now, I will turn the call over to our Chief Operating Officer, Dave Zones.