Greetings and welcome to the Ekso Bionics First Quarter 2025 Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stephen Kilmer of Investor Relations. Thank you. You may begin.

Thank you, operator, and good afternoon, everyone. Earlier today, Ekso Bionics released financial results for the first quarter ended March 31, 2025. 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 forward-looking statements within the meaning of the federal securities, 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 performance 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 the company's businesses, please see its filings with the Securities and Exchange Commission. Ekso 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. Representing Ekso 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'll now turn the call over to Jerome.

Thank you, Steve. Good afternoon, everyone, and welcome to our first quarter 2025 conference call. On behalf of the management team and everyone at Ekso Bionics, I would like to thank you for your interest in our company. And for those who are shareholders, we appreciate your support. For the benefit of those who are new to the Ekso Bionics story, I would like to take a moment to summarize our business: Ekso designs, develops, and markets exoskeleton products that augment human strength, endurance, and mobility. The primary end market for exoskeleton technology is health care, where our technology primarily serves people with physical disabilities or impairments in both physical rehabilitation and mobility. We operate as one operating and reportable segment with two markets: Enterprise Health and Personal Health. Our legacy Enterprise Health products consist mainly of our EksoNR device, which is our wearable robotic exoskeleton specifically designed to be used in a rehabilitation setting to assist individuals recovering from both acute and chronic conditions, and our Ekso Indego Personal Device, a wearable, lower extremity powered exoskeleton that enables certain individuals living with spinal cord injuries to stand and walk independently. Both products also include 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 the numbers I refer to have been rounded, so they are approximate. The company recorded revenue of $3.4 million in the first quarter of 2025 compared to $3.8 million for the same period in 2024. This reduction was due to capital budget impact from certain inpatient rehabilitation facilities related to our EksoNR Enterprise Health product. Gross profit for the first quarter was $1.8 million, representing a gross margin of approximately 54% compared to a gross profit of $2 million and a gross margin of 52% for the same period of 2024. The change in gross profit was driven by a decrease in revenues from Enterprise Health devices, partially offset by cost savings in the supply chain and a reduction in service costs. The increase in gross margin was primarily due to cost savings in the supply chain and a reduction in service costs, partially offset by lower margin sales related to increased volume through distribution. Operating expenses for the first quarter of 2025, which consists of R&D, G&A and sales and marketing expenses, were $5.3 million, essentially unchanged from $5.2 million for the first quarter of 2024. Net loss applicable to common stockholders for the 2025 first quarter was $2.9 million or $0.12 per basic and diluted share compared to a net loss of $3.4 million or $0.20 per basic and diluted share for the same period of 2024. For the fourth quarter of 2025, the company used $2 million of net cash in operations compared to $3.5 million for the same period in 2025. As of March 31, 2025, the company had cash and restricted cash of $8.1 million, up from $6.5 million as of the end of 2024. That's it for my summary of our first quarter 2025 results. Please see our Form 10-Q filed earlier today for further details regarding the results. I'll now turn the call over to Scott.

Thank you, Joe. While we saw some softness in our legacy enterprise business in Q1 as we had several customers whose capital budgets were at least temporarily impacted by reactions to macroeconomic uncertainties, that was partially offset by good growth from our Ekso Indigo Personal. As we have discussed in the past, CMS established pricing determination for our Indigo Personal exoskeleton in Q2 of 2024. This regulatory change created a significant opportunity to help Medicare enrollees living with a spinal cord injury by removing what had historically been a primary barrier to accessing our exoskeleton. Accordingly, we immediately set out to establish a go-to-market strategy aimed at notifying as many early physician and provider adopters as possible of the new CMS-benefit category redetermination and the fee schedule listing. Additionally, we began working closely with our extensive network of NeuroRehabilitation partners across the country, focused on education efforts, and on appropriate patient selection and process for patients prescribed an Ekso Indigo Personal for the home and community setting. With that early work largely completed, we then shifted our primary focus from building awareness and providing customer education to advancing our scalable go-to-market strategy for the personal channel. As we discussed on our Q4 call just a few weeks ago, one of the key changes we made was to engage PRIA Healthcare, one of the leaders in market access services, which has been instrumental in the successful commercialization of over 300 medical devices. As a quick status update, we also recently announced bringing on Bionic P&O as a new and our first O&P distributor. We're excited to report that they already submitted their first patient claim for the Indigo Personal exoskeleton to Medicare in Q1. With Ekso's focused marketing efforts, we've developed a pipeline of more than 35 Medicare beneficiaries that we believe are qualified candidates for Ekso Indigo Personal in 2025. That's 37% from where we were on our Q4 call in early March. Factors considered for the candidates to be represented in our pipeline include, among other things, Medicare enrollment, appropriate indication for use, and medical necessity. Moving forward, we believe working with our growing distribution network and leveraging our new relationship with PRIA throughout the claims process places qualified candidates in a good position of having their claims successfully processed. That said, as we cautioned on our last call, we obviously cannot guarantee that all of our pipeline will result in new claims submissions within this time frame or ultimately be paid. Nevertheless, we believe that we can leverage our experience over the past year and the capabilities and reach of our new partners to navigate the complexities of coding, coverage, and payment, which will allow us to more effectively put Ekso Indigo Personal within reach of the individuals who need this potentially life-changing mobility-enhancing technology. In summary, with a strong focus on business development activities, Ekso is building a more scalable go-to-market strategy for our Ekso Indigo Personal. This is exemplified by our most recent, separate but clearly related moves, where we named National Seating & Mobility as the company's exclusive distributor of the device within the U.S. complex rehabilitation technology industry. Additionally, our most recent engagement with Bionic P&O as a nonexclusive distributor of Indigo Personal within the orthotics and prosthetics industry. We believe that NSM and Bionic P&O will significantly broaden access to our portable exoskeleton device for individuals living with spinal cord injuries and, longer term, perhaps other mobility challenges across the United States. NSM brings a network of over 180 locations and more than 2,400 team members who support more than 250,000 mobility solutions each year. Bionic P&O, a leading national provider of prosthetic and orthotic solutions, is an ABC-accredited independent clinical practice group that now operates across 12 states. While the majority of our revenue in 2025 will still come from Enterprise Health, we believe with our significant investment in these scalable programs we will continue to see rapidly increasing contribution from our personal health products throughout 2025. In summary, the first quarter was another period of significant progress for Ekso Bionics marked by a growing shift between legacy enterprise and newer personal revenue contributions, good gross margins, lower cash burn, a strong balance sheet, a growing pipeline of Medicare beneficiaries, and what we believe are excellent candidates for Indigo Personal in 2025, along with the continued building of a scalable go-to-market strategy for Indigo Personal, supported by both established and new industry-leading DME, O&P, and market access partners. This ends our prepared remarks for today. With that, we're happy to take any questions that you might have.

Thank you. We'll now be conducting a question-and-answer session. Our first question is from Ben Haynor from Lake Street Capital Markets. Please go ahead.

Good afternoon, gentlemen. Thanks for taking the questions. First off for me, now that you've got the O&P channel covered with Bionic or at least initially covered, and you have the complex rehabilitation therapy channel, the traditional kind of Medicare DME along with the kind of post-acute rehab clinics on the more enterprise side. How should investors think about where the patients will fall this year in terms of the Indigo Personal and kind of as a kind of a third, a third, a third with CRT, O&P, and the traditional channel? And then what do you expect from your enterprise folks?

Yes, great question. Ben, thank you. Again, the majority of our business historically has come out of our enterprise health product portfolio. In general, as we move through 2025, we still expect that the enterprise product will represent the large majority of what we do: 75% to 80% of our business represented by that product category. Moving into the Personal product, as we have worked to develop our initial channels into that segment and we've really scaled up our market access capabilities, we've driven a good pipeline; we do expect solid contribution growing quarter-over-quarter as we move through the year, with the balance of our business represented from that segment. As far as how that falls between CRT and O&P space, I think there's a bit more familiarity in the space. The product lends itself a little bit more to reimbursement through O&P providers. However, there's been a big investment with NSM in the space, so we do expect that as the year progresses, we'll see a good contribution from there as well. How that actually falls as we move through the year, we're uncertain of, but it could be as much as 50-50; it could be a little less. We just won't know until that program really starts to ramp up on the CRT side.

Okay. That's fair enough. And then with PRIA, I guess, any more color on how things are going there? Are you getting a sense of what's kind of a no-go submission, if you don't have certain documentation or things of that nature that you need or don't need, and kind of coming up with the knowledge you need to have more successful claims down the road?

Yes. We have learned from the claims that we've submitted; past claims, and we've had a claim that ended up in ALJ, which gave us a very clear indication of perhaps what they were looking for. We believe that what we've put together right now as far as the requirements for what we consider to be a solid claim or a successful claim is strong. That being said, there has not been a definitive set of criteria that have been published through CMS and through the DME Max which indicate what is their definition of exactly what's required in those claims. However, based on what we've seen, our interactions, and what we learned through our engagement with PRIA, we feel like the claims that are being submitted today are very comprehensive and have a high probability of going through.

Okay. Got it. That's encouraging. And then on the IDN front, it sounds like there's still some budget constraints. Obviously, there's a lot of uncertainty out there, just generally speaking, do you have a sense of what these folks are looking at on the capital budgeting side later this year? Or how much of a read-through do you have on that sort of part of the business?

Yes. As I had talked about in previous quarters, we had mentioned 2024 being an off-cycle year for IDNs. We do have a lot of renewals coming up with IDNs in 2025, and those appear to be on track at the moment. We expect in North America that to be a solid contribution to our Enterprise Health business in 2024. We also have a lot of inpatient rehab facilities that may be part of larger health networks independent, independent hospitals that have capital budgets where we've been working with them for some of them for years, others for months. We've seen a little bit of softness certainly in Q1 around economic uncertainties, and we've seen those capital budgets, which were there, disappear rather suddenly. We also have many of our capital customers who receive federal grants for some of this technology, and the status of those grants is uncertain at the moment as well. So while we have a strong pipeline on the enterprise business, we are seeing budget impact at least temporarily around some of those purchases, which certainly affected us in Q1. It's something that we are preparing ourselves for as we move through 2025 that this could be a bit of a longer-term fact. But to date, we don't have anything definitive that it will be.

Okay. Got it. And then lastly for me on the gross margin. It's been four consecutive quarters that you've been north of 53%. It looks like you're clearly trending in the right direction there. I mean, is this kind of a new baseline? And as revenues expand from here, do you move gross margin higher with that?

We believe so. The operations team, Jason, and the operations team have done just an amazing job as it relates to keeping our costs down, raw material costs, build material costs on the product. We expected margins to be a bit higher. In Q1, it was really just driven by the lower volume of products that we put out that had an impact on those margins. Some of it was mixed too; we had again, a fair contribution from Europe as well.

Got it. Excellent. Well, thanks for taking the questions, guys.

Next question here is from Swayampakula Ramakanth from H.C. Wainwright.

Thank you. Good afternoon, Scott. Jerome. Okay, how are you? So, just trying to expand a little bit on the two relationships that you built over the last quarter or so, that's the NSM and Bionic P&O. When I take a quick look at where their locations are, obviously, Bionic is smaller compared to National Seating & Mobility. Does their clientele being in certain areas, similar areas in certain geographies? Will that be an issue for you? Or actually, will that enhance your product in these geographies?

Yes. We believe that these partnerships enhance our value because of the strength of these organizations. They have existing relationships with processing large numbers of claims through the DME Max; they are experts, certainly National Seating & Mobility is an expert in the mobility side of things with power wheelchairs and high-tech mobility products. They understand how to work with the patient and the payers and physicians around that. When we look at Bionic P&O, they are used to dealing with complex orthotics, and they can really help coordinate that experience for the patient in helping them gain what they need from their physician, as well as other health care providers who work with the payer to ensure that they have a solid claim. They are both geared towards that. For National Seating & Mobility, they are quite a large organization, so maintaining the right certifications in taxonomy on a state-by-state basis is something that they're working on and building out. As they build out their coverage, they do have full national coverage. As they build that out, the reach will expand with them. Bionic P&O is currently in 12 states. As it turns out, we have a lot of folks within our growing pipeline of potential beneficiaries, and we have a lot of crossovers in their states. We're also continuing to develop the programs so that we have good coverage across all 50 states to ensure that individuals who qualify for this technology have a convenient location and a convenient partner to work with. We believe that their expertise helps facilitate cleaner and better submissions.

Okay. And then having these relationships, I'm just trying to understand how much of a help does it give you in terms of your G&A expenses, because you don't have to have that many feet on the ground, so to speak. But at the same time, how much of that gets neutralized by the amount of pay away that you'll need to do to these two groups?

Sure. As we assess our options, we decided to rely on experts in the field instead of building this capability in-house, which significantly reduces our costs. For market access and B2C business, it would take a massive investment for Ekso to hire enough personnel to handle all claims and be present locally during fittings and screenings. This would be extremely challenging for us. By establishing a distribution network, we can utilize larger organizations that have extensive teams with regional and national reach. However, this comes with the need to support the margins for our distributors. Thanks to Jason and his team's efforts in controlling costs for our devices and enhancing our operational efficiency, we believe that as our volume increases, we will be able to maintain sufficient margins for this distribution network while still keeping our margins consistent with what our stakeholders expect, in the high-50s range or higher.

Thank you. Thank you, Scott, for taking my questions.

This concludes the question-and-answer session. I'd like to turn the floor back to management for any closing comments.

Thank you, Matt, and thank you to everyone for joining us today. We look forward to updating you as we continue to progress.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.