ChronoScale (CHRN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 5% year-over-year to $5.0 million, driven by higher average selling prices and increased sales in medical and industrial segments.

• Gross profit rose to $2.64 million, with gross margin improving to 53% from 48% in Q2 2023, reflecting cost savings and higher selling prices.

• Operating expenses decreased 24% year-over-year, primarily due to lower headcount, consultant, and legal costs.

• Net loss narrowed to $2.4 million from $4.23 million in Q2 2023.

• Sold 37 EksoHealth devices in Q2 2024; 66 devices sold in the first half of 2024.

Financial highlights

• Q2 2024 revenue: $5.0 million (up 5% year-over-year).

• Gross profit: $2.64 million (up from $2.25 million in Q2 2023).

• Gross margin: 53% (up from 48% in Q2 2023).

• Net loss: $2.4 million (improved from $4.23 million loss in Q2 2023).

• Six-month revenue: $8.71 million (down 1% year-over-year); net loss: $5.85 million (improved from $8.62 million loss in 2023).

Outlook and guidance

• Management expects continued operating losses and negative cash flows, with substantial doubt about the ability to continue as a going concern over the next 12 months without additional financing.

• Anticipates increased demand for Ekso Indego Personal in the second half of 2024 and longer term due to Medicare reimbursement mechanisms.

• Plans include seeking further equity or debt financing and focusing on cost reductions and revenue growth initiatives.

• Focused on scalable commercial strategy to drive growth and expand patient reach.