Ekso Bionics Holdings, Inc.

Greetings and welcome to the ExoBionics fourth quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow a 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. It is now my pleasure to introduce your host, Matt Steinberg, FinPartners. Thank you. You may begin.

Thank you, Operator, and thank you all for participating in today's call. Joining me from Exobionics are Scott Davis, Chief Executive Officer, Jerome Wong, Chief Financial Officer, and Jason Jones, Chief Operating Officer. Earlier today, Exobionics released financial results for the quarter and year ended December 31, 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 fact 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 obligation, except as required by law, to update or revise any financial or operational projections, its regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise. Any forward-looking statements made on this call speak only as of the date of this call. I will now turn the call over to ExoBionics Chief Executive Officer Scott Davis.

Thank you, Matt. We're excited to have closed out 2023 on a positive note, highlighted by record annual revenues of $18.3 million, an increase of 42% from the prior year period. Our solid results reflect continued improvements in consistency of returns from our scalable commercial strategy, in addition to the early contributions of our Indigo product lines that we acquired in late 2022. On today's call, I'll briefly review our fourth quarter 2023 results and share other business updates. Starting with our Q4 results, we generated revenue of $4.8 million in the fourth quarter of 2023. 36% increase from the same period in 2022. During the quarter, we sold 38 ExoHealth devices. Throughout our enterprise ExoHealth segment, inpatient rehabilitation facilities continue to leverage our advanced exoskeleton technology to help stroke, traumatic brain injury, multiple sclerosis, and spinal cord injury patients on the road to recovery. Our clinically proven patient improvements in functional outcomes support our efforts to elevate the standard of care for neuro-rehabilitation. Additionally, the economic value proposition for neuro-rehab providers that implement our ExoNR and ExoIndigo therapy devices into their programs have been shown to increase patient throughput and drive higher patient volumes. Altogether, we continue to translate these compelling data points into our commercial strategy by selling both multi-unit orders and multi-unit renewals to our vast network of operators. The output from our commercial team led to a record year of ExoHealth devices sold. For the full year 2023, we sold 151 ExoHealth devices, up 51% from 2022 levels. We believe we are well positioned to build upon this momentum to drive sustained growth for our ExoHealth enterprise devices as we continue to strengthen our distribution network and expand our pipeline of opportunities. Earlier this year, we were pleased to have launched our GateCoach software for XONR. GateCoach is our next generation gate therapy software for XONR that simplifies the use of robotics. The intention is to improve user trust in technology, provide impactful dynamic feedback, and offer specific guidance acting as an extra set of clinical eyes. We believe GateCoach will reduce training demands and increase utilization, making the device more intuitive and easier to use for both patients and physical therapists, and marking a milestone in improvement of our product portfolio. Users of XONR recently introduced to GateCoach through initial survey results have exhibited support for this software upgrade, with nearly all users finding it to be intuitive. Feedback also indicated that guidance from GateCoach makes XONR easier to use. is useful for new or less experienced therapists at the clinic, and is believed to further help patients achieve their clinical goals. A demonstration of this exciting new software can be found on our website. Now turning to an update on our ExoIndigo Personal device. On February 29th, CMS announced that it deferred payment determination for personal exoskeletons, including the ExoIndigo Personal. As part of its communication, CMS requested additional examples of non-Medicare payer data that would support a payment determination for products to qualify under HCPCS code K1007, such as our Indigo Personal. We intend to provide materials to CMS to help provide additional commercial details supporting a reimbursement rate. Until a reimbursement rate has been established, we will provide relevant support to help our customers process Medicare claims on a case-by-case basis. As we've done throughout 2023, we will continue to offer our Indigo personal device to veterans through the VA's established reimbursement program. The lightweight, packable, modular design of this device allows individuals living with a spinal cord injury to more easily bring it along with them for use in their communities, and the advanced gait feature allows them to achieve average walking speeds, an important consideration if navigating crosswalks. XO is committed to delivering well-built, affordable products and to help enable this potentially life-changing technology reach a higher number of individuals living with a spinal cord injury. We look forward to our continued work with CMS and the SCI community. On the international front, we achieved solid performance across EMEA and APAC regions as we generated an increase in sales volume built on the strength of our distribution network. Not only are we getting more placements, but our network enables us to gain operating leverage abroad. Notably, in the fourth quarter, we generated multi-unit EXO NR sales across Eastern Europe. Looking ahead, we continue to focus on building relationships with larger customers in these regions as we invest in our international footprint to support EXO's ongoing growth across the globe. Now I'd like to turn to an update on our industrial segment, EXO Works. In 2023, we drove notable progress in our industrial product line, especially on the operational side with the implementation and initial supply of EVOs from our new high volume contract manufacturer. By reducing supply constraints and substantially lowering costs for our contract manufacturer relationship, we believe we'll be able to better meet the supply and pricing demands of our potentially high volume industrial customer pipeline. Based on this, we feel we are poised for continued growth and market expansion. While revenue contributions from our industrial segment have recently been at modest levels, we remain steadfast in our commitment to maximize EVOS placement in large industrial settings, leveraging a significant emerging market opportunity. Overall, I'm enthusiastic with our record-breaking revenue performance in 2023. We're focused on building out the market across the continuum of care for pioneering exo-health devices and believe we are well-positioned to deliver on our objectives. Now, I will turn the call over to Jason Jones, our Chief Operating Officer, for an operational update.