EKSO BIONICS HOLDING (OTCBB:EKSO) had been the talk of the town recently and had attracted significant investor attention, unfortunately now the company seems to tied up in a series of problems. As per the SEC, EKSO is facing a law enforcement investigation. Additionally, a number of the company’s global partners have turned away from the company. Investor interest has been quickly declining and the analysts are having second thoughts on the stock as well.
Analysts now point out that even though EKSO is generating revenues, they are largely overshadowed by gigantic net losses. Additionally, the management has failed to show any sign of becoming profitable in the near future. The company has had a series of contracts relating to the exo-skeletons for military use, but it is highly improbable that the company would be able to turn profitable through them.
Additionally, EKSO’s financial architect and insider, Adam Gottbetter, has been jailed for fraud. The man was responsible for bringing EKSO out of a bankruptcy situation. The SEC also made public that EKSO had been a part of a law enforcement investigation, but unfortunately EKSO has not made any disclosures on the matter. Consequently, investors have been having growing concerns regarding the stock. They believe that EKSO has been keeping them in the dark and who is to say that it would not do so again. Additionally, having a fraudulent executive does not help the company’s case.
EKSO’s so called “charter clinics” have also started to turn their backs towards the company. The situation is quite alarming because with no more clinics to commercialize its products, EKSO will soon lose control over the market it worked so hard to establish. The charter clinics are now considering competitor products and many have stated that they are far superior than the ones manufactured by EKSO.
EKSO BIONICS HOLDING (OTCBB:EKSO) reported a loss of $0.01 in share value on June 8, after trading 102.06 million shares during the session to close at $1.39.