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Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a company specializing in industrial machinery, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement.
The notice, dated December 12, 2024, revealed that Ekso's common stock, currently trading at $0.57, had closed below the $1.00 minimum bid price for 31 consecutive business days. The stock has declined significantly, with a -77% year-to-date return according to InvestingPro data.
Under Nasdaq's Listing Rule 5550(a)(2), Ekso has until June 10, 2025, to regain compliance. To achieve this, the company's stock must maintain a closing bid price of at least $1.00 for ten consecutive business days. While the notice does not immediately affect Ekso's trading, failure to meet the criteria within the 180-day grace period could lead to delisting.
The company could request an additional 180 days if it meets certain conditions, including a possible reverse stock split to raise the share price. Despite current challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.81 and holds more cash than debt on its balance sheet.
Ekso has expressed its intention to monitor its stock price closely and explore options to comply with Nasdaq's requirement. However, the company has cautioned that there is no guarantee it will achieve compliance within the initial or any extended period, or that it will satisfy other Nasdaq listing criteria.
This development has been disclosed in a recent 8-K filing, where the company also included forward-looking statements cautioning investors about the uncertainties surrounding its ability to meet Nasdaq's requirements. The company's ongoing compliance efforts will be closely watched by investors and market participants.
Notably, analyst price targets range from $2 to $9, suggesting potential upside from current levels. For deeper insights into Ekso's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US stocks.
Ekso Bionics, previously known as PN Med Group Inc., is incorporated in Nevada and has its principal executive offices in San Rafael, California. The information regarding the potential delisting is based on a press release statement.
In other recent news, Ekso Bionics reported a decrease in its third-quarter sales from $4.6 million in the previous year to $4.1 million. Despite this, the company achieved a gross profit of $2.2 million, with a gross margin of approximately 53.5%. A key development was the approval and reimbursement of its first CMS claim for the Ekso Indego Personal device, a step that is expected to enhance access for spinal cord injury patients.
The company sold 33 EksoHealth devices, witnessing a robust performance internationally, especially in Europe and the APAC region. However, the first nine months of 2024 saw a decline in revenue to $12.8 million from $13.4 million in the same period of 2023. The net loss also stood at $7.9 million, albeit an improvement from a $12 million loss in the prior year.
Recent developments indicate Ekso Bionics' optimism about future growth, underpinned by a solid backlog and strong demand in Europe. The company is focusing on improving operational efficiencies and enhancing collaboration with healthcare providers. Furthermore, it is exploring expansions into neurological conditions through partnerships with research hospitals and aiming to normalize procurement cycles with Integrated Delivery Networks.
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