EKSO BIONICS HOLDING (OTCMKTS:EKSO) Reverses Its Direction
After registering five consecutive sessions of losses this Monday the stock of EKSO BIONICS HOLDING (OTCMKTS:EKSO) sunk to its lowest point since last October of $0.93. Although the ticker closed a bit higher it was still below the $1 mark at $0.98. The stock of the company has not been able to form a more prolonged uptrend for quite a while but yesterday it finally surged in the right direction gaining 18% and returning to $1.18 per share. The traded volume also experienced a dramatic increase with investors exchanging over 1.4 million shares while the volume for the previous session stood at 248 thousand. The problem is that there is no clear reason for the sudden change in sentiment.
EKSO filed their financial report for the second quarter of the year on August 12 and it left some investors disappointed with the analyst firm Zacks downgrading the company from a “hold” rating to a “sell”. So let’s see what the report had to offer:
• $16.2 million cash
• $22.1 million total current assets
• $8.3 million total current liabilities
• $2.1 million total revenue
• $5.6 million net loss
For a pennystock the numbers found on EKSO’s balance sheet are a rare sight indeed. In addition to the sizable cash reserves the reported revenues for the period surpassed the ones for the same quarter a year ago by nearly $1 million. The problem is that quarter over quarter the revenues have declined while the net loss has increased. For the first six months of the year the net loss incurred by the company has nearly reached $10 million. With profitability nowhere in sight EKSO might be forced to look for more external financing in early 2016 if the cash burn continues to accelerate.
The robotic exoskeletons of the company may have military, medical and industrial applications but EKSO are starting to face increasing competition, which means that they will have to continuously improve their models.
The volatility of EKSO’s stock should not be underestimated. Compared to its highs of over $2.2 posted at the start of April the stock, even after yesterday’s surge, is still sitting more than 46% lower. Even if you are excited about the potential of EKSO‘s products you should still do extensive research before committing to any trades.
