EKSO BIONICS HOLDING (OTCBB:EKSO) momentum to the upside seems to have cooled off as the Street remains wary of the company’s financial outlook. The stock had in the recent trading sessions threatened to clock highs of $2.35 a share, but has since tanked to lows of $1.40. Concerns that many companies might have displaced EKSO BIONICS from its ‘charter clinics’ on producing superior products continues to hit the stock hard. Previous key partners are now endorsing competing products significantly hurting Ekso Bionics sales.
Paid Stock Promotion concerns
Sentiments about Paid Stock Promotion have also not helped the stock as it continues to spiral to the downside. Things could get out of control at the current spending rate as the company continues to burn $15 million per year backed by revenues of less than $6 million. EKSO BIONICS HOLDING (OTCBB:EKSO) posted a net loss of $4 million for the first quarter just a highlight that the company is not hitting the high strides it ought to hit.
The rate at which employees have been exiting the company is another point of concern despite EKSO BIONICS HOLDING (OTCBB:EKSO) having only 69 full-time workers. The company has churned through 100 employees, two-thirds of them not lasting past one year.
EKSO Financial Woes
It is not the first time that EKSO BIONICS HOLDING (OTCBB:EKSO) finds itself in a tight spot with respect to its long term prospects. The company was at a point of near collapse in 2013 after being marred with financial headwinds that saw almost half of the employees go without pay.
Medical patients opting to buy products from other companies is having a big toll on EKSO BIONICS sales substantially affecting its financial flexibility. EKSO BIONICS HOLDING (OTCBB:EKSO) finds itself competing against large companies with big R&D budgets in the robotic exoskeleton considerably hurting its long-term prospects. How long the company will continue operating remains to be seen as an -84.51% downside of the stock continues to be mooted in some quarters.