EKSO BIONICS HOLDING (OTCBB:EKSO) is a penny stock targeting a very unique industry. The company mostly works on the development of exoskeletons to help paralyzed people move again. Furthermore, the company also has a military portfolio, which includes exoskeletons to help increase a soldier’s performance. However, there are a few troubles that the company is facing, when it comes to generating profits.
EKSO reported its 1Q2015 results, with little show in terms of progress. The company reported revenues of $1.7 million, compared to $1.1 million for the same period in the preceding year. Majority of this revenue came from the medical devices wing of the company, which registered an 87% increase. However, the cost of revenue also registered an increase of 142%. Similarly, engineering services reported an increase in revenue of $0.2 million and an increase in the cost of revenue by the same amount.
Consequently, profits for the company have been declining and the company reported a net loss of $4.1 million. The loss for the current quarter is significantly much less than that in the preceding year, but it has been affecting the company’s cash reserve as well. EKSO BIONICS HOLDING (OTCBB:EKSO) has been working on adding more products to its portfolio and redesigning its business model to take care of the problem.
Recently, EKSO announced that it was working on an exoskeleton that would be perfect to be used in an industrial setting. The skeleton would provide the workers with super-strength to lift heavy objects. The “Works” project, as it is being known, is expected to have a retail price of $12,000. Additionally, the company has also seen that businesses tend to rent its exoskeleton units, rather than purchase them. So the company is trying to reinvent its business model to make use of this opportunity to turn profits, which have so far been eluding the company.