ChronoScale (CHRN) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $4.1 million, down 10% year-over-year, with declines in both EksoHealth and EksoWorks segments and 33 EksoHealth devices sold in the quarter.

• Net loss for Q3 2024 was $2.1 million ($0.10 per share), a 38% improvement from the prior year quarter.

• Gross margin increased to 53.5% from 53.3% year-over-year, driven by supply chain and service cost savings.

• Operating expenses decreased 18% year-over-year, with sales and marketing expenses down 14% and R&D expenses down 33%.

• Achieved initial CMS reimbursement for Ekso Indego Personal, expanding access for spinal cord injury patients.

Financial highlights

• Q3 2024 revenue: $4.1 million (down 10% YoY); nine-month revenue: $12.8 million (down 4% YoY).

• Q3 2024 net loss: $2.1 million (improved from $3.4 million YoY); nine-month net loss: $7.9 million (improved from $12.0 million YoY).

• Gross margin for Q3 2024: 53.5%; nine-month gross margin: 53% (up from 50% YoY).

• Operating cash used in nine months: $8.4 million, a 20% reduction from prior year.

• Cash and restricted cash at September 30, 2024: $8.3 million, with $2.0 million restricted.

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.

• Plans to raise additional funds through equity or debt financings; may delay or abandon projects if funding is not secured.

• Focus on expanding EksoHealth segment, leveraging recent Medicare CMS reimbursement for Ekso Indego Personal and normalizing procurement cycles with Integrated Delivery Networks.

• Growing pipeline of CMS claim submissions expected to support future sales.