Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

In this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (this "Quarterly Report"), the "Company", "we", "its" and "our" refers to Ekso Bionics Holdings, Inc. and its wholly-owned subsidiaries. The following discussion of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which is incorporated herein by reference (the "Annual Report").

This Quarterly Report contains forward-looking statements. These forward-looking statements include statements other than statements of historical facts contained or incorporated by reference in this Quarterly Report, including statements regarding (i) the plans and objectives of management for future operations, including those relating to the design, development and commercialization of exoskeleton products for humans, (ii) the manufacturing of our products and strengthening of our supply chain, and potential opportunities for strategic partnerships, (iii) beliefs regarding the regulatory path for our products, including potential approvals required and timing of approvals, (iv) our future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in our results of operations, (v) our beliefs regarding the potential for commercial opportunities, including for exoskeleton technology and our exoskeleton products, and for strategic partnerships, (vi) our beliefs regarding potential clinical and other health benefits of our medical devices, (vii) the actions we will take in seeking reimbursements from Centers for Medicare and Medicaid Services ("CMS") and the success of such actions, (viii) the timing and amounts of CMS reimbursement, (ix) our ability to grow and expand our Ekso Indego Personal Health market as we work to grow revenue in light of Medicare reimbursement from CMS of the Ekso Indego Personal, (x) our ability to obtain insurance coverage beyond CMS, (xi) our ability to obtain additional indications for products that cover the Ekso Indego Personal, (xii) the timing of executing large sales contracts, (xiii) the impact and effects of the other risk factors on our business, results of operations or prospects, and (xiv) the assumptions underlying or relating to any statement described in points (i) through (xiii) above. The words "may," "might," "would," "should," "could," "project," "estimate," "pro-forma," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and similar expressions (including the negative of any of the foregoing) are intended to identify forward-looking statements.

The following factors, among others, including those described in the section titled "Risk Factors" included in our Annual Report, as updated and supplemented in this Quarterly Report under the heading "Part II - Item 1A. Risk Factors," could cause our future results to differ materially from those expressed in the forward-looking information:

•

our ability to obtain adequate financing to fund operations and to develop or enhance our technology;

•

our ability to generate sufficient cash flow to service our debt obligations;

•

our ability to obtain or maintain regulatory approval to market our medical devices;

•

our ability to complete clinical trials on a timely basis and that completed clinical trials will be sufficient to support commercialization of our products;

•

the anticipated timing, cost and progress of the development and commercialization of new products or services, and improvements to our existing products, and related impacts on our profitability and cash position;

•

our ability to effectively market and sell our products and expand our business, both in unit sales and product diversification;

•

our ability to achieve broad customer adoption of our products and services;

	•	existing or increased competition;
	•	our estimates regarding our current or future addressable market;

•

our ability to sell additional units, and, once sold, recognize the expected margins and revenue, using the reimbursement code for our Ekso Indego Personal device with CMS;

	•	our ability to obtain reimbursement from CMS in a timely manner and at the expected reimbursement levels;
	•	our ability to obtain insurance coverage beyond CMS;
	•	our ability to obtain additional indications of use for our devices;
	•	rapid changes in technological solutions available to our markets;
	•	volatility with our business, including long and variable sales cycles, which could have a negative impact on our results of operations for any given quarter;

•

changes to our domestic or international sales and operations;

•

our ability to obtain or maintain patent protection for our intellectual property;

•

the scope, validity and enforceability of our and third-party intellectual property rights;

•

significant government regulation of medical devices and the healthcare industry;

•

our ability to receive regulatory clearance from certain government authorities, including any conditions, limitations or restrictions placed on such approvals;

•

our customers' ability to get third-party reimbursement for our products and services associated with them and our ability to manage the complex and lengthy reimbursement process;

•

the potential for our products to be subject to voluntary or involuntary recall;

•

our product liability insurance may not adequately cover potential claims;

•

warrant claims and our accelerated maintenance program results in additional operating costs to us;

•

our failure to implement our business plan or strategies, including our expectation that CMS reimbursements will be a significant source of revenue;

•

our ability to successfully consummate acquisitions on acceptable terms and to integrate any such acquisitions;

•

our early termination of leases, difficulty filling vacancies or negotiating improved lease terms;

•

our ability to retain or attract key employees;

•

scope, scale and duration of the impact of outbreaks of global health events;

•

stock volatility or illiquidity;

•

our ability to maintain adequate internal controls over financial reporting;

•

the impacts of foreign currency price fluctuations; and

•

overall economic and market conditions.

Although we believe that the assumptions underlying the forward-looking statements and forward-looking information contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, such statements and information included in this Quarterly Report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements and forward-looking information included herein, the inclusion of such statements and information should not be regarded as a representation by us or any other person that the results or conditions described in such statements and information or that our objectives and plans will be achieved. Such forward-looking statements speak only as of the date of this Quarterly Report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Overview

Our Business

We design, develop, and market exoskeleton products that augment human strength, endurance, and mobility. The primary end market for our exoskeleton technology is healthcare, where our technology primarily serves people with physical disabilities or impairments in both physical rehabilitation and mobility. The majority of our sales are generated from our Enterprise Health products, which includes the sales of products and services related to neurorehabilitation in clinical settings. We also provide products and services from our Personal Health market to individual users.

In addition to our current products and services, we continue to explore business development initiatives to fuel growth and long-term value in our existing markets.

Enterprise Health Market

Our sales priority for Enterprise Health customers involves the education of clinical and executive stakeholders on the economic and clinical value of our robotic exoskeleton portfolio, including the EksoNR and the Ekso Indego Therapy devices. In tandem, we continue to leverage our EksoNR and Ekso Indego customer base to educate and mentor strategic target centers that specialize in stroke, traumatic brain injury ("TBI"), multiple sclerosis ("MS"), and spinal cord injury ("SCI") rehabilitation and treatment in specific geographies.

Within our Enterprise Health market we also sell our EVO product to commercial and industrial companies that are focused on solving ergonomic challenges for their workers. These challenges range from injury prevention, fatigue reduction, and/or improved worker productivity. Sales of EVO are focused on applications that involve repetitive work at shoulder height and above. While EVO is a general-purpose product, we currently target specific vertical markets, including aerospace, automotive, general manufacturing, and certain construction trades.

Personal Health Market

Within the Personal Health market, we serve individual users with the Ekso Indego Personal, which is intended to provide overground ambulation in community and home settings. The primary use case for Ekso Indego Personal is for users with SCI. For this user population, confinement to a wheelchair can cause severe physical and psychological deterioration. As a result, the secondary medical consequences of paralysis can include difficulty with bowel and urinary tract function, osteoporosis, loss of lean mass, gain in fat mass, insulin resistance, diabetes, and heart disease. The cost of treating these conditions is substantial.

On April 11, 2024, CMS approved a payment level of approximately $91,000 for Medicare reimbursement of the Ekso Indego Personal, which took effect on April 1, 2024. CMS reimbursement creates the possibility that we will see increased demand for this device as we are able to more economically serve the larger U.S. patient population suffering from SCI. Specifically, according to the National Spinal Cord Injury Statistical Center, an estimated 305,000 individuals are currently living with SCI and another 18,000 suffer from new SCI injuries each year. According to the National Spinal Cord Injury Statistical Center, approximately 57% of individuals with SCI are enrolled in Medicare or Medicaid within five years post-injury.

With Medicare reimbursement recently approved, we have begun selling products to individuals in this market through Durable Medical Equipment suppliers ("DMEs"). DMEs typically resell products from DME manufacturers, like us, to individual users. DMEs are responsible for the Medicare reimbursement process, which requires a physician's prescription and evidence of medical necessity to be submitted to and approved by Medicare before reimbursement is provided.

Operating within the CMS reimbursement environment is relatively new for us. Our first Ekso Indego Personal CMS reimbursement claim was submitted by our legacy DME in May 2024, and was reimbursed in July 2024. The second Ekso Indego Personal CMS reimbursement claim, submitted in June 2024, was reimbursed in April 2025 after a favorable response from an Administrative Law Judge in early 2025. During the first half of 2025, additional reimbursement claims have been submitted by our Orthotics & Prosthetics ("O&P") and DME partners, which are pending reimbursement and being managed through the appeals process with the support of our industry partners. As this category of product is new within CMS, we have taken a measured approach, focusing on continued refinement and improvement. Once we have optimized this process, we expect to more aggressively increase our CMS reimbursement submissions. In support of this effort, to date we have signed distribution agreements with National Seating & Mobility for selling exclusivity into the Complex Rehabilitation Technology segment, with Bionic Prosthetics & Orthotics Group, a respected O&P provider serving 14 states, and we continue to develop partnerships and pilots with other regional and national O&P suppliers that we believe will bear fruit in the second half of 2025 and beyond. In addition to this work, we have ramped up our direct marketing efforts and continue to develop and grow a sales backlog for the Ekso Indego Personal device. As of June 2025, we had approximately 45 people who we believe qualify for reimbursement over the coming months. We anticipate that many of these individuals will have their claims submitted to CMS by our partners in 2025 and early 2026, though we expect our processes and procedures to continue to be refined as we work to scale up this sales channel over time. Given this ramp, we expect the majority of our revenue in 2025 will continue to come from Enterprise Health sales, but with Personal Health product sales contributing more quarter over quarter.

Another key part of our growth strategy is seeking insurance coverage beyond CMS and seeking additional indications of use for our products. We believe that sales of our Personal Health products have the potential to be a significant growth driver for us as we work to gain coverage by other insurance providers, expand the products' indications of use beyond SCI and optimize our reimbursement submission processes.

Nomad is currently for sale in limited volumes in the Personal Health market for use in a non-Company-sponsored single clinical study. Subject to clinical and patient feedback from clinical trials, we expect to begin the general commercialization process for Nomad in 2026.

Economic and Industry Trends

Our revenue is highly dependent on market demand for our exoskeleton products. This market demand is influenced by many factors including the level of awareness of robotic exoskeleton rehabilitation among the rehabilitation clinics with significant stroke, ABI, and SCI populations, the levels of reimbursements our customers will be able to receive, the level of reimbursement we will able to receive from Medicare and private insurers on claims related to our Ekso Indego Personal, as well as conditions relating to overall economic growth and general business activity. Difficult and challenging economic conditions, including an increasingly inflationary environment, has led to increased price-based competition. In particular, the effects of such increasing price-based competition have had an especially significant impact on certain products that we offer, including the EksoNR and Ekso Indego Therapy in the United States, which have a lengthy sale and purchase order cycle because they are major capital expenditure items and generally require the approval of senior management at purchasing institutions. The timing of executing sales contracts with large hospital networks can be unpredictable, which has and may continue to impact the timing and amounts of device sales. Furthermore, we do business in the EMEA and APAC regions, which results in our business being impacted by changes in the strength of the local currencies relative to the U.S. Dollar.

See "Part I-Item 1A. Risk Factors," specifically the risk titled "Coverage policies and reimbursement levels of third-party payors, including Medicare or Medicaid, may impact sales of our products" in our Annual Report for more information.

Critical Accounting Estimates

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Our estimates form the basis for our judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Our most critical accounting estimates include:

•

the standalone selling prices used to allocate the contract consideration to the individual performance obligations in our device sales arrangements, which impact revenue recognition;

	•	the unobservable inputs and assumptions used by management in estimating the fair value of our warrant liabilities, which impacts net income or loss;
	•	the provision for credit losses on accounts receivable;
	•	the valuation of inventory, which impacts gross profit margins;

•

the estimates made regarding the recoverability of our net deferred tax asset, which impacts our financial condition;

	•	the fair value of the tangible and intangible assets acquired and liabilities assumed in our business combination;
	•	future warranty costs;
	•	accounting for leases; and
	•	useful lives assigned to long-lived assets.

Standalone Selling Prices

Our device sales arrangements contain multiple products and services, most often including the device(s) and service, both of which we have identified as distinct performance obligations. Revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which we separately sell the products or services. If a standalone selling price is not directly observable, then we estimate the standalone selling prices considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, type of customer, and gross margin targets. Changes in the relative standalone selling price between devices and service can have an impact on how transaction prices are allocated between revenue and deferred revenue.

Warrant Liabilities

We use the Black-Scholes option-pricing model to value our warrant liabilities at each reporting period, which requires the input of highly subjective assumptions, most notably the estimated volatility of our common stock over the expected term. We use our historical common stock volatility to estimate expected volatility over the warrant terms. Management also made certain estimates regarding the likelihood and timing of certain future events for application of the Lattice Model for the valuation of certain warrants. Changes in these assumptions could have potential material impacts on the estimated fair value of warrant liabilities.

Provision for Credit Losses on Accounts Receivable

We carry accounts receivable at invoiced amounts less an allowance (or "provision") for credit losses. We review accounts receivables for collectability and determine an allowance for credit losses. The allowance for credit losses on accounts receivables reflects the Company's best estimate of probable losses inherent in the accounts receivable balance based on historical bad debt expense, the aging of the accounts, known troubled accounts, customer payment history, and other currently available evidence.

Inventory Valuation

Inventory is stated 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. The cost basis of our inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. If actual future demand or market conditions are less favorable than those projected by management, additional inventory write-downs may be required, which could have a material adverse effect on the results of our operations.

Deferred Tax Asset

We estimate a valuation allowance in consideration of the realizability of our net deferred tax assets, primarily based on our assessment of the timing, likelihood and amounts of potential future income during which such items become deductible. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes and estimate future amounts. Management does not believe it is more likely than not that we will generate future income in a timeframe and amount sufficient to realize our net deferred tax assets. Changes in management's estimate of future income in the timeframe during which the temporary differences and carryforwards comprising our deferred tax assets become deductible could result in a material impact to our financial position including the recognition of a net deferred tax asset.

Assets Acquired and Liabilities Assumed in Business Combinations

We allocate the fair value of the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, the amount and timing of projected future cash flows based on expected future growth rates and margins, discount rate used to determine the present value of these cash flows, future changes in technology and royalty for similar brand licenses, and asset lives. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Allocation of purchase consideration to identifiable assets and liabilities affects our amortization expense, as acquired finite-lived intangible assets are amortized over the useful life, whereas any indefinite-lived intangible assets, including goodwill, are not amortized. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are included in the condensed consolidated statement of operations.

Future Warranty Costs

Sales of devices generally include an initial warranty for parts and services for one year in the Americas, two years in EMEA, and one to three years in the APAC region. A liability for the estimated cost of product warranty is established at the time revenue is recognized based on the historical experience of known product failure rates and expected material and labor costs to provide warranty services. Specific additional warranty accruals may be made if unforeseen technical problems arise. Alternatively, if estimates are determined to be greater than the actual amounts necessary, a portion of the liability may be reversed in future periods. At the end of each reporting period, we estimate our future warranty costs related to products sold during the period. This liability represents our best estimate of the costs we will incur to fulfill warranty obligations for products sold during the period. At least annually, we review and update our estimates based on actual warranty claims experience.

Accounting for Leases

In accordance with ASC 842, Leases, at the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present, generally based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. 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, we utilize our incremental borrowing rate to determine the present value of the future lease payments, which is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay 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 payments may be fixed or variable; however, only fixed payments are included in our lease liability. Variable lease payments may include costs such as common area maintenance, utilities, or other costs. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments is incurred.

Useful Lives Assigned to Long-Lived Assets

The useful life of an asset represents the period during which the asset is expected to contribute directly or indirectly to future cash flows. We estimate the useful lives of the Company's long-lived assets based on various factors, including the expected period of economic benefit of the asset in use, our intended use of the asset, economic factors such asset obsolescence and technological advances, any limitations imposed by legal, regulatory, or contractual requirements, and industry norms. These assumptions affect the timing and amount of depreciation expense, which could have a material adverse effect on the results of our operations.

Accounting Policies

Results of Operations

The following table presents our results of operations for the three months ended June 30, 2025 and 2024 (in thousands, except percentages):

		Three Months Ended June 30,
		2025				2024				Change				% Change
Revenue		$	2,057			$	4,950			$	(2,893	)			(58	)%
Cost of revenue			1,238				2,313				(1,075	)			(46	)%
Gross profit			819				2,637				(1,818	)			(69	)%
Gross profit %			40	%			53	%
Operating expenses:
Sales and marketing			1,690				1,846				(156	)			(8	)%
Research and development			852				1,116				(264	)			(24	)%
General and administrative			2,252				2,010				242				12	%
Total operating expenses			4,794				4,972				(178	)			(4	)%
Loss from operations			(3,975	)			(2,335	)			(1,640	)			70	%
Other income (expense), net:
Interest expense, net			(65	)			(74	)			9				(12	)%
Gain on revaluation of warrant liabilities			-				84				(84	)			(100	)%
Unrealized gain (loss) on foreign exchange			1,339				(91	)			1,430				(1571	)%
Other expense, net			(8	)			-				(8	)			*
Total other income (expense), net			1,266				(81	)			1,347				(1663	)%
Net loss		$	(2,709	)		$	(2,416	)		$	(293	)			12	%

^(*)Not meaningful

Revenue

Revenue decreased $2.9 million, or 58%, for the three months ended June 30, 2025, compared to the same period of 2024. The decrease in revenue was primarily driven by a decrease in the volume of Enterprise Health device sales in the Americas region, mainly due to short-term delays in completing two multiple-device sale contracts, that are expected to close in the third quarter of 2025. This decrease was partially offset by an increase in the volume of Personal Health device sales.

Gross Profit and Gross Margin

Gross profit decreased $1.8 million for the three months ended June 30, 2025, compared to the same period of 2024, primarily driven by a decrease in revenues associated with our Enterprise Health devices, partially offset by an increase in revenues associated with our Personal Health device and reduction in service costs.

Gross margin decreased to 40% for the three months ended June 30, 2025, compared to a gross margin of 53% for the same period of 2024, primarily driven by fixed costs of goods in relation to the decrease of Enterprise Health sales, lower margin sales related to increased volume through distribution, and an increase in shipping costs, partially offset by improved margins in service.

Operating Expenses

Sales and marketing expenses decreased $0.2 million, or 8%, for the three months ended June 30, 2025, compared to the same period of 2024. The decrease was primarily due to lower discretionary payroll expense.

Research and development expenses decreased $0.3 million, or 24%, for the three months ended June 30, 2025, compared to the same period of 2024, primarily due to lower headcount.

General and administrative expenses increased $0.2 million, or 12%, for the three months ended June 30, 2025, compared to the same period of 2024, primarily due to lower allocable costs to manufacturing.

Total Other Income (Expense), Net

Interest expense, net decreased 12% for the three months ended June 30, 2025 compared to the same period of 2024. This decrease is primarily related to lower interest expense related to the Promissory Note principal payments, partially offset by lower interest income from cash deposits.

Gain on revaluation of warrant liabilities was de minimis for the three months ended June 30, 2025 as compared to again on revaluation of warrant liabilities of $0.1 million for the three months ended June 30, 2024, and was associated with the revaluation of warrants issued in 2019, 2020 and 2021. Gains and losses on revaluation of warrants are primarily driven by changes in our stock price, stock price volatility, time to maturity and the risk-free interest rate.

Unrealized gain on foreign exchange for the three months ended June 30, 2025 was $1.3 million compared to an unrealized loss on foreign exchange of $0.1 million for the same period of 2024. These unrealized gains and losses are primarily the result of foreign currency revaluations of our inter-company monetary assets and liabilities.

The following table presents our results of operations for the six months ended June 30, 2025 and 2024 (in thousands, except percentages):

		Six Months Ended June 30,
		2025				2024				Change				% Change
Revenue		$	5,432			$	8,706			$	(3,274	)			(38	)%
Cost of revenue			2,807				4,118				(1,311	)			(32	)%
Gross profit			2,625				4,588				(1,963	)			(43	)%
Gross profit %			48	%			53	%
Operating expenses:
Sales and marketing			3,397				3,664				(267	)			(7	)%
Research and development			1,839				2,252				(413	)			(18	)%
General and administrative			4,804				4,263				541				13	%
Total operating expenses			10,040				10,179				(139	)			(1	)%
Loss from operations			(7,415	)			(5,591	)			(1,824	)			33	%
Other income (expense), net:
Interest expense, net			(136	)			(131	)			(5	)			4	%
Gain on revaluation of warrant liabilities			1				426				(425	)			(100	)%
Loss on modification of warrant			-				(109	)			109				(100	)%
Unrealized gain (loss) on foreign exchange			1,965				(440	)			2,405				(547	)%
Other expense, net			(15	)			-				(15	)			*
Total other income (expense), net			1,815				(254	)			2,069				(815	)%
Net loss		$	(5,600	)		$	(5,845	)		$	245				(4	)%

^(*)Not meaningful

Revenue

Revenue decreased $3.3 million, or 38%, for the six months ended June 30, 2025, compared to the same period of 2024. The decrease in revenue was primarily driven by a decrease in the volume of Enterprise Health device sales in the Americas region, mainly due to short-term delays in completing two multiple-device sale contracts, that are expected to close in the third quarter of 2025. This decrease was partially offset by an increase in the volume of Personal Health device sales.

Gross Profit and Gross Margin

Gross profit decreased $2.0 million for the six months ended June 30, 2025, compared to the same period of 2024, driven by a decrease in revenues associated with our Enterprise Health devices, partially offset by an increase in revenues associated with our Personal Health device and reduction in service costs.

Gross margin decreased to 48%for the six months ended June 30, 2025, compared to a gross margin of 53% for the same period of 2024, primarily driven by fixed costs of goods in relation to the decrease of Enterprise Health sales, lower margin sales related to increased volume through distribution, and an increase in shipping costs, partially offset by improved margins in service.

Operating Expenses

Sales and marketing expenses decreased $0.3 million, or 7%, for the six months ended June 30, 2025, compared to the same period of 2024.The decrease was primarily due to lower discretionary payroll expense.

Research and development expenses decreased $0.4 million, or 18%, for the six months ended June 30, 2025, compared to the same period of 2024, primarily due to a decrease in the Company's use of product development consultants and lower headcount, partially offset by severance expense.

General and administrative expenses increased $0.5 million, or 13%, for the six months ended June 30, 2025, compared to the same period of 2024, primarily due to a loss on impairment of an intangible asset, higher legal and audit costs, and a decrease in allocable costs to manufacturing, partially offset by lower discretionary payroll.

Total Other Income (Expense), Net

Interest expense, net increased 4% for the six months ended June 30, 2025 compared to the same period of 2024. This increase is primarily related to lower interest income from cash deposits, partially offset by lower interest expense related to the Promissory Note principal payments.

Loss on modification of warrant of $0.1 million for the six months ended June 30, 2024 was due to the reduction of the exercise price of the May 2019 Warrants, in connection with the January 2024 Offering. There was no comparable amount for the six months ended June 30, 2025.

Gain on revaluation of warrant liabilities was de minimis for the six months ended June 30, 2025 as compared to a gain on revaluation of warrant liabilities of $0.4 million for the six months ended June 30, 2024, and was associated with the revaluation of warrants issued in 2019, 2020 and 2021. Gains and losses on revaluation of warrants are primarily driven by changes in our stock price, stock price volatility, time to maturity and the risk-free interest rate.

Unrealized gain on foreign exchange for the six months ended June 30, 2025 was $2.0 million compared to an unrealized loss on foreign exchange of $0.4 million for the same period of 2024. These unrealized gains and losses are primarily the result of foreign currency revaluations of our inter-company monetary assets and liabilities.

Liquidity and Capital Resources

As of June 30, 2025, $5.2 million of cash was held domestically and by our foreign subsidiaries. Cash consisted of bank deposits with third-party financial institutions. As described in Note 9. Notes Payable, net in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report, borrowings under our secured term loan agreement with Banc of California are subject to a liquidity covenant requiring minimum cash on hand equivalent to the current outstanding principal balance, which is due in full in August 2026. As of June 30, 2025, $2.0 million of cash must remain as restricted. After considering cash restrictions, effective unrestricted cash as of June 30, 2025 was approximately $3.2 million.

Asof June 30, 2025, we had working capital of $9.3 million, compared to working capital of $11.3 million as of December 31, 2024. The decrease in working capital was primarily due to a lower cash balance and accounts receivable balance, partially offset by a higher inventory balance and a lower accrued liabilities balance.

We have funded our operations primarily through the issuance and sale of equity securities and bank debt.

On March 17, 2025, we entered into a warrant inducement agreement (the "Inducement Agreement") with an existing holder (the "Investor") of one of the Company's Series A common stock purchase warrants and one of the Company's Series B common stock purchase warrants (collectively, the "Existing Investor Warrants") that we issued as part of the September 2024 Offering, pursuant to which, among other things, the Investor exercised for cash its Existing Investor Warrants to purchase an aggregate of 653 thousand shares (the "Existing Investor Warrant Shares") of our common stock at a reduced exercise price of $6.36 per share (the "Inducement Exercise"). In consideration for exercising the Existing Investor Warrants, we issued to the Investor a new common stock purchase warrant to purchase up to an aggregate of 700 thousand shares of common stock (such warrant, the "Inducement Warrant" and such shares of common stock issuable upon exercise thereof, the "Inducement Warrant Shares") (collectively, the "March 2025 Inducement Warrant"). The Inducement Warrant became exercisable on May 16, 2025, andmay be exercised following such date through May 16, 2030, at an exercise price of $6.36 per share. We received net proceeds of approximately $3.9 million from the March 2025 Inducement Warrant, after deducting the transaction expenses paid by the Company. We are using the net proceeds from the March 2025 Inducement Warrant for general corporate purposes, which include growth and expansion of the Personal Health products as we work to increase its revenue following the establishment of Medicare CMS reimbursement of the Ekso Indego Personal device, research and development activities, selling, general and administrative costs, pursuing strategic initiatives, and meeting our other working capital needs.

On September 3, 2024, we sold 207 thousand shares of common stock, a Pre-Funded Warrant to purchase 193 thousand shares of common stock, Series A common stock purchase warrants to purchase an aggregate of 400 thousand shares of common stock, and Series B common stock purchase warrants to purchase an aggregate of 400 thousand shares of common stock in an underwritten public offering (the "September 2024 Offering"), which generated net proceeds of approximately $5.0 million after deducting the underwriting discount and commissions and offering expenses paid by the Company. We used the net proceeds from the September 2024 Offering for general corporate purposes, which included growth and expansion of our Personal Health products as we work to increase our revenue following the establishment of Medicare CMS reimbursement of the Ekso Indego Personal device, research and development activities, selling, general and administrative costs, pursuing strategic initiatives, and meeting our other working capital needs.

On January 16, 2024, we sold an aggregate of 198 thousand shares of common stock in a registered direct offering (the "January 2024 Offering") at a price of $23.25 per share, which generated net proceeds of approximately $3.9 million after deducting placement agent fees and our estimated offering expenses.

In October 2020, we entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC (the "Agent"), under which we may issue and sell shares of our common stock, from time to time, to or through the Agent. Offers and sales of shares of common stock by us through the Agent may be made by any method deemed to be an "at the market offering" as defined under SEC Rule 415 or in privately negotiated transactions, subject to certain conditions. Such shares may be offered pursuant to the registration statement on Form S-3 (File No. 333-272607) (the "Registration Statement"), which was declared effective by the SEC on June 20, 2023, and a related prospectus supplement filed with the SEC on July 28, 2023 (the "ATM Prospectus"). Pursuant to the Registration Statement and the ATM Prospectus, shares having an aggregate offering price of up to $5.0 million may be offered and sold, subject to certain SEC rules limiting the amount of shares of the Company's common stock that we may sell under the Registration Statement. During the three and six months ended June 30, 2025, we sold 231 thousand shares of common stock under the ATM Agreement at an average price of $4.36 per share, for aggregate proceeds of $0.9 million, net of commission and issuance costs. As of June 30, 2025, we had $3.1 million available for future offerings under the prospectus filed with respect to the ATM Agreement.

Cash and Restricted Cash

The following table summarizes the sources and uses of cash for the periods stated (in thousands).

		Six months ended June 30,
		2025				2024
Net cash used in operating activities		$	(5,409	)		$	(6,136	)
Net cash used in investing activities			(50	)			(8	)
Net cash provided by financing activities			4,145				3,392
Effect of exchange rate changes on cash			63				(1	)
Net decrease in cash			(1,251	)			(2,753	)
Cash and restricted cash at beginning of period			6,493				8,638
Cash and restricted cash at end of period		$	5,242			$	5,885

Net Cash Used in Operating Activities

Net cash used in operating activities decreased by $0.7 million, or 12%, for the six months ended June 30, 2025, compared to the same period of 2024, primarily due to higher collections of accounts receivable, cost savings on supply chain, reduction in service costs and other efficiencies in operating activities.

Net Cash Used in Investing Activities

Net cash used in investing activities was de minimis for the six months ended June 30, 2025 and 2024.

Net Cash Provided by Financing Activities

Net cash provided by financing activities of $4.1 million for the six months ended June 30, 2025 was related to net proceeds of $3.9 million from the March 2025 Inducement Warrant, after deducting the transaction expenses paid by us, and $0.9 million from sales of our common stock under our ATM Agreement, partially offset by $0.6 million of principal payments towards the Promissory Note.

Material Cash Requirements and Going Concern

Our material cash requirements include the following items, some of which are represented in the table of Contractual Obligations and Commitments: (1) employee wages, benefits and incentives, (2) the procurement of raw materials and components to support the manufacturing and sale of our products, (3) expenditures for the ongoing improvement and development of existing and new technologies, (4) debt repayments (for additional information see Note 9. Notes Payable, net in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report), and (5) operating lease payments (for additional information see Note 10. Lease Obligations in the notes to our condensed consolidated financial statements included elsewhere in this Quarterly Report).

We expect that our operating cash requirements in the near term will continue to exceed cash provided by operations. As described in Note 1. Organization: Liquidity and Going Concern of the notes to our condensed consolidated financial statements, management believes that substantial doubt exists about our ability to meet cash requirements 12 months from the issuance of such financial statements, and such substantial doubt is not alleviated by our plans. We are seeking additional financing and evaluating financing alternatives in the near term in order to meet our cash requirements for the next 12 months. Management currently estimates that the Company's unrestricted cash will fund its operations into the fourth quarter of 2025.

We do not expect, nor do our historical operating results suggest, that cash flows generated from operations will be sufficient to meet our material cash requirements in the long term. Management expects that our historical reliance on external financing, from both equity and debt financings, will continue to provide the capital necessary to meet our material cash requirements in the long term. Management has not yet determined the form such additional financing may take, but management expects that the most likely forms include one or more of the following: (i) underwritten offerings of shares of our common stock, (ii) sales of shares of our common stock under an "at the market" offering program, (iii) issuing shares of our common stock upon the exercise of warrants at reduced exercise prices, (iv) incurring indebtedness with one or more financial institutions, (v) sale of product line or technology, and (vi) the factoring of trade receivables.

Contractual Obligations and Commitments

The following table summarizes our outstanding contractual obligations as of June 30, 2025, and the effect those obligations are expected to have on our liquidity and cash flows in future periods (in thousands):

		Payments Due By Period:
						Less than
		Total				One Year				1-3 Years				3-5 Years
Term loan		$	2,176			$	151			$	2,025			$	-
Promissory note			2,812				1,250				1,562				-
Facility operating leases			877				494				352				31
Purchase obligations			1,357				1,357				-				-
Total		$	7,222			$	3,252			$	3,939			$	31

Refer to Note 14. Commitments and Contingencies in the notes to our condensed consolidated financial statements for additional information regarding our contractual obligations and lease commitments.