Ekso Bionics Holdings, Inc.

Greetings, and welcome to the ExoBionics fourth quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the phone presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Stephen Kilmer. Thank you, and we begin.

Thank you, Operator, and good afternoon, everyone. Earlier today, Exco Bionics released financial results for the quarter and year ended December 31st, 2024. A copy of the press release is available on our website. I would like to point out that management will make statements during this call that include foreign-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 shall 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 that materially differ from those anticipated or implied by these four looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with the company's business, please see its filings with the Securities and Exchange Commission. Xcode disclaims any obligation except as required by law to update or revise any financial or operational projections, as regulatory outlook or other foreign-looking statements, whether because of new information, future events, or otherwise. Any foreign-looking statements made on this call speak only as of the date of this call. Representing Exco Bionics today are Scott Davis, our Chief Executive Officer, Jerome Wong, our Chief Financial Officer, and Jason Jones, our Chief Operating Officer. With that said, I will now turn the call over to Jerome.

Thank you, Steve. Good afternoon, everyone. and welcome to our fourth quarter and fall year 2024 conference call. On behalf of the management team and everyone at ExoBionics, I would like to thank you for your interest in our company, and for those of you who are shareholders, we appreciate your support. For the benefit of those who are new to the ExoBionics story, I would like to take a moment to summarize our business. Exo designs, develops, and markets exoskeleton products that augment human strength, endurance, and mobility. The primary end market for exoskeleton technology is healthcare, where our technology primarily serves people with physical disabilities or impairment in both physical rehabilitation and mobility. We operate as one operating and reportable segment with two markets, enterprise health and personal health. Our revenues are primarily generated to the sale and subscription of our ExoNR device, our legacy wearable robotic exoskeleton specifically designed to be used in a rehabilitation setting to assist individuals recovering from both acute and chronic conditions. Our ExoIndigo therapy device, our modular, adjustable, lightweight, lower limb powered exoskeleton that can be custom sized and fitted to patients for use in rehabilitation and wellness applications. Our ExoIndigo personal device, which is a wearable lower extremity powered exoskeleton that enables certain individuals living with spinal cord injuries with the ability to stand and walk independently, along with the sale of support and maintenance contracts. I will turn the call over to Scott in a moment for an update on our commercial activities and growth plans. However, before I do, I would like to provide a brief summary of our financial results. To streamline things, all of the numbers I will refer to have been rounded, so they are approximate. The company recorded revenue of $5.1 million in the fourth quarter of 2024. an increase of 5% compared to $4.8 million for the same period in 2023. Gross profit for the fourth quarter was $2.7 million, representing a gross margin of approximately 53% compared to a gross profit of $2.4 million and a gross margin of 49% for the same period of 2023. The increase in gross profit and gross margin was primarily due to cost savings in supply chain and reduction in service costs. Operating expenses for the fourth quarter of 2024, which consists of R&D, G&A, and sales and marketing expenses, were $4.9 million, a 15% decrease compared to $5.8 million for the fourth quarter of 2023. This was primarily due to a decrease in headcount, discretionary payroll, and consultant costs. Net loss applicable to common stockholders for the fourth quarter was $3.4 million or 14 cents per basic and diluted share compared to a net loss of $3.2 million or 22 cents per basic and diluted share for the same period of 2023. For the fourth quarter of 2024, the company used $1.4 million of net cash in operations compared to $1.6 million for the same period in 2023. Turning now to our full year 2024 results. Revenue of $17.9 million was down from $18.3 million for the same period in 2023. I think it's fair to pause here for a moment to address the marginal year over year decline. It essentially came down to a difficult 2023 comparable driven by two main factors. First, we were on the procurement cycle with several of the large independent delivery networks in 2023, but not in 2024. Second, 2023 was our first full year of having the Indigo personal product line, which we acquired from Parker Hannafin in late 2022. As part of that acquisition, we inherited an approximately $2 million pipeline that Parker Hannafin had with the VA, but weren't able to fulfill due to the impact of COVID. We delivered most of those devices in 2023, and we're rebuilding that pipeline in VA through 2024. Gross profit for the full year ended December 31, 2024, with $9.5 million, representing a gross margin of approximately 53% compared to a gross profit of $9.1 million for the same period in 2023, representing a gross margin of 50%. The increase in gross profit was a result of cost savings in supply chain and a reduction in service costs. Operating expenses for the 2024 full year were $20 million, a 17% decrease from $24.2 million for the prior year period. The improvement was a result of lower headcount, discretionary payroll, consultant, legal, and accounting costs. Net loss applicable to common stockholders for the 2024 full year was $11.3 million, or $0.56 per basic and diluted share, compared to a net loss of $15.2 million, or $1.10 per basic and diluted share for the 2023 full year. Cash used in operating activities in the 2024 fiscal year was $9.8 million, down from $12.1 million for the same 12-month period in 2023. As of December 31, 2024, the company had cash and restricted cash of $6.5 million. That's it for my summary of the fourth quarter and full year 2024 results. Please see our form 10-K for further details regarding the results. I'll now turn the call over to Scott.