Q1 2024 Ekso Bionics Holdings Inc Earnings Call
Speaker Change: [music].
Operator: Greetings and welcome to the Ekso Bionics first quarter 2024 financial results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt Steinberg of Finn Partners. Thank you. You may begin. Thank you, Operator.
Greetings and welcome to the extra bionics first quarter 'twenty 'twenty four financial results call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce Matt Steinberg with Finn partners. Thank you you may begin.
Matt Steinberg: Thank you, Operator, and thank you all for participating in today's call. Joining me from Ekso Bionics are Scott Davis, Chief Executive Officer; Jerome Wong, Chief Financial Officer; and Jason Jones, Chief Operating Officer. Earlier today, Ekso Bionics released financial results for the quarter ended March 31st, 2024.
Matt Steinberg: Thank you operator, and thank you all for participating in today's call. Joining me from XL Bionics are Scott Davis, Chief Executive Officer, Jerome Wong Chief Financial Officer, and Jason Jones, Chief Operating Officer.
Matt Steinberg: Earlier today <unk> Bionics released financial results for the quarter ended March 31 2024.
Matt Steinberg: A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that are forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements made during this call that are not statements of historical facts should be deemed to be forward-looking statements.
A copy of the press release is available on the company's website.
Matt Steinberg: Before we begin I would like to remind you that management will make statements. During this call that include forward looking statements within the meaning of the federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Matt Steinberg: Any statements made during this call that are not statements of historical facts should be deemed to be forward looking statements.
Matt Steinberg: All forward-looking statements, including statements regarding our business strategy, future financial or operational expectations, or our expectations of the regulatory landscape governing our products and operations, are based upon management's current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with Ekso's businesses, please see its filings with the Securities and Exchange Commission.
Matt Steinberg: All forward looking statements, including statements regarding our business strategy future financial or operational expectations or expectations of the regulatory landscape governing our products and operations are based upon management's current estimates and various assumptions. These.
Matt Steinberg: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements.
Speaker Change: Lee you should not place undue reliance on these statements.
Speaker Change: For a list and description of the risks and uncertainties associated with excess businesses. Please see its filings with the Securities and Exchange Commission.
Matt Steinberg: Ekso disclaims any obligation, except as required by law, to update or revise any financial or operational projections, its regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise. Any forward-looking statements made on this call speak only as of the date of this call. I will now turn the call over to Ekso Bionics Chief Executive Officer, Scott Davis. Thank you, Matt.
<unk> disclaims any obligation except as required by law to update or revise any financial or operational projections, it's regulatory outlook or other forward looking statements, whether because of new information future events or otherwise.
Speaker Change: Any forward looking statements made on this call speak only as of the date of this call.
I will now turn the call over to extra Bionics, Chief Executive Officer, Scott Davis.
Scott G. Davis: Thank you Matt.
Scott G. Davis: We closed out the first quarter and started the second quarter of 2024 with positive momentum as we were pleased to receive the final payment determination for Medicare reimbursement for our Ekso Indigo personal. Additionally, our results for the quarter reflect continued improvements from both our scalable commercial strategy and operations. I'll touch on both of these developments shortly, but first, I'll share an overview of our first quarter performance. We generated revenue of $3.8 million and sold 29 Ekso Health devices in the first quarter of 2024. Sales of the Ekso Health devices for the quarter were slightly more affected by typical seasonality due primarily to fluctuations in the larger integrated delivery network or IDN procurement cycle.
Scott G. Davis: We closed out the first quarter and started the second quarter of 2024 with positive momentum as we were pleased to receive final payment determination for Medicare reimbursement of our <unk> personal. Additionally, our results for the quarter reflect continued improvements from both our scalable commercial strategy and operations.
Speaker Change: I'll touch on both of these developments shortly but first I'll share an overview.
Speaker Change: First quarter performance.
Speaker Change: We generated revenue of $3 $8 million and sold 29.
Speaker Change: As in the first quarter 'twenty.
Speaker Change: Sales of the XO helps devices for the quarter was slightly more affected by typical seasonality due primarily to fluctuations and larger integrated delivery.
Speaker Change: Or IBM procurement cycles.
Scott G. Davis: We remain focused on executing upon our commercial strategy and growing our IDN network. We continue to deploy resources to develop new IDN relationships that will help us secure larger and more multi-unit capital deals across our North American network. In doing so, we aim to convey the clear clinical and economic benefits of our Ekso NR and our Ekso Indigo therapy devices to the right decision makers. Our pipeline of potential deals remains solid, with approximately $1 million of backlog generated in Q1 to be recognized over the course of 2024, and we remain confident that our commercial team will succeed in driving larger unit order growth. Now, for an Ekso Indigo personal update,
Speaker Change: We remain focused on executing upon our commercial strategy and growing their idea network. We continue to deploy resources to develop new IBM relationships that will help us secure larger and more multi unit deals across our North American network.
Speaker Change: In doing so we aim to date, a clear clinical and economic benefits of <unk>.
Speaker Change: And are actually going to go therapy devices was the right decision makers are.
Speaker Change: Our pipeline of potential deals remains solid with approximately $1 billion of backlog generated in Q1 to be recognized over the course of 2024, and we remain confident that our commercial team will succeed in driving larger order growth.
Speaker Change: Now turning to an <unk> personal update.
Scott G. Davis: As previously announced, CMS approved the use of the Healthcare Common Procedure Coding System, K1007, to bill Medicare for the Ekso Indigo personnel. On April 11th, CMS established a reimbursement level of $91,031 for Medicare reimbursement under this code, the Ekso Indigo Personal, effective retroactively beginning April 3rd. This pricing decision from CMS is an important next step in our commercial strategy to build demand within clinical home and community use settings
Speaker Change: As previously announced CMS approved use of healthcare common procedure coding system K 1007 to bill Medicare for the XO Indigo personal on.
Speaker Change: On April 11th CMS established reimbursement model $91031 for Medicare reimbursement under the so the <unk> going to go personal effective retroactively beginning first.
Speaker Change: Pricing decision from CMS is an important next step for our commercial strategy to build demand within clinical home and community use settings.
Scott G. Davis: We believe there are thousands of Medicare and Medicaid-covered individuals with a spinal cord injury that could potentially benefit from our differentiated personal exoskeleton device, enabling them to achieve better health outcomes along with new levels of independence. We're thrilled that our differentiated exoskeleton devices are now accessible to a larger patient population. And we look forward to providing future updates on our continued work with the SCI community, CMS, along with other public and private health insurance programs that generally follow CMS reimbursement practice.
We believe there are thousands of Medicare and Medicaid coverage individuals with spinal cord injury essentially then.
Speaker Change: Mark differentiated personal exoskeletons glass and.
Speaker Change: Labeling them to achieve better health outcomes, along with new levels.
Yes.
Speaker Change: We're thrilled to have differentiated exoskeleton devices are now accessible to a larger patient population.
Speaker Change: Look forward to providing future updates on our continued work with the Sci community CNS, along with other public and private health insurance programs that generally follow CMS reimbursement practices.
Scott G. Davis: With reimbursement pricing secured, we anticipate growing the personal health business. We believe this growth will ramp up quarter over quarter as our commercial and clinical teams engage with skilled therapists and clinicians across our expansive customer base, consisting of more than 260 clinical and rehabilitation centers domestically, are leveraging our robust network to expand our reach to a potentially higher volume of individuals living with a spinal cord injury who could benefit from our Ekso Indigo personal through establishing additional certified training centers across the US.
With reimbursement pricing secure we anticipate growing the personal health business. We believe this growth will ramp up quarter over quarter as our commercial and clinical teams engage with skilled therapist clinicians across our expansive customer base consisting of more than 260 political of rehabilitation centers domestically.
Speaker Change: Leveraging our robust network to expand our reach to potentially higher volume of individuals living with spinal cord injury.
Speaker Change: Benefit from our <unk> personal through establishing additional certified training centers across the U S.
Scott G. Davis: Turning to our international performance, we're pleased that we continue to gain momentum across EMEA and APAC. Results were particularly strong in EMEA as the French public health system has embraced the use of robotics in their neurorehabilitation programs.
Turning to our international performance, we're pleased that we continue to gain momentum across EMEA and APAC regions.
Results were particularly strong in EMEA is the French public health system has embraced the use of robotics neuro rehabilitation programs.
Scott G. Davis: Looking ahead, we are working to continue to build on the strength of our vast international distribution network, which serves as our focal point for achieving operating leverage and scalable worldwide growth. Now, I'd like to turn to an update on our industrial segment, EksoWorks. In the first quarter of 2024, sales within this segment increased nearly 60% from the same period a year ago, although against a modest level. Notably, we deliver devices to an OEM in the construction vertical along with continued shipments to potentially large volume customers in aerospace and energy systems.
Speaker Change: Looking ahead, we are working to continue to build on the strength of our Baskin International distribution network, which serves as our focal point of achieving operating leverage and scalable worldwide growth.
Speaker Change: Now I'd like to turn to an update on our industrial segment XL works.
Speaker Change: In the first quarter of 2024 sales within this segment increased nearly 60%.
Speaker Change: From the same period, a year ago, although against modest level.
Notably we delivered devices to an OEM in the construction vertical along with continued shipments potentially large volume customers in aerospace and energy segments.
Scott G. Davis: With improved cost structures driven by our new contract manufacturer, we remain focused on scaling our commercial growth for targeted customers in large industrial settings. Overall, our performance in the first quarter of 2024 demonstrated continued progress across both of our segments. Now, with CMS establishing reimbursement pricing for the Ekso Indigo Personal, we believe we are poised to take the next step in our evolution. At this time, I'd like to turn the call over to our Chief Financial Officer, Jerome Wong, to review our first quarter financial results. Thank you, Scott.
With improved cost structure is driven by our new contract manufacturer, we remain focused on scaling our commercial growth with targeted customers and large industrial settings.
Overall, our performance in the first quarter of 2024 demonstrated continued progress across both of our segments now with CMS, establishing reimbursement pricing for the extra when we go personal we believe we are poised to take the next step in our evolution.
At this time I'd like to turn the call over to our Chief Financial Officer, Jerome Long to review, our first quarter financial results.
Jerome Wong: Thank you Scott.
Jerome Wong: We generated first quarter 2020 for revenue of $3 8 million compared.
Jerome Wong: We generated first quarter 2024 revenue of $3.8 million compared to $4.1 million for the first quarter of 2023. Gross profit for the first quarters of 2024 and 2023 was $2 million in both periods, representing a gross margin of approximately 52% in the first quarter of 2024, compared to a gross margin of 49% for the first quarter of 2023. The overall increase in gross margin was primarily due to lower EksoHealth device and service costs.
Jerome Wong: Compared to $4 $1 million for the first quarter of 2023.
Jerome Wong: Gross profit for the first quarters of 2024, and 2023 was $2 million in both periods, representing a gross margin of approximately 52% first quarter of 2024 compared to a gross margin of 49% first quarter of 2023.
Jerome Wong: The overall increase in gross margin was primarily due to lower external help device and service costs.
Jerome Wong: Operating expenses for the first quarter of 2024 or $5 $2 million compared to $6 4 million for the first quarter of 2023.
Jerome Wong: The 19% decrease was primarily due to a decrease in general and administrative expenses stemming from lower legal expenses and head count and the absence of costs associated with the acquisition and integration of AMC in the comparable quarter.
Jerome Wong: Operating expenses for the first quarter of 2024 were $5.2 million compared to $6.4 million for the first quarter of 2023. The 19% decrease was primarily due to a decrease in general and administrative expenses stemming from lower legal expenses, headcount, and the absence of costs associated with the acquisition and integration of HMC in the comparable quarter. The net loss applicable to common stockholders for the first quarter was $3.4 million, or $0.20 per basic and diluted share, compared to a net loss of $4.4 million, or $0.33 per basic and diluted share for the same period in 2020.
Jerome Wong: Net loss applicable to common stockholders for the first quarter by $3 $4 million or 20 cents per basic and diluted share.
Jerome Wong: Compared to a net loss of $4 4 million or 33 cents per basic and diluted share for the same period in 2023.
Jerome Wong: Cash and restricted cash as of March 31, 2024 was $8 8 million compared to $8 6 million.
Number 31 2023.
Jerome Wong: Please see our Form 10-Q filed earlier today for further details regarding the quarter.
Operator, you May now open the line for questions.
Speaker Change: Thank you ladies and gentlemen at this time, we will be conducting a question and answer session.
Speaker Change: You'd like to ask a question you May press star one on your telephone keypad.
Speaker Change: Information tunnel indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
Jerome Wong: Cash and restricted cash as of March 31st, 2024 was $8.8 million compared to $8.6 million as of December 31, 2020. Please see our Form 10-Q filed earlier today for further details regarding the quarter. Operator, you may now open the line for questions.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
Speaker Change: Our first question comes from the line of Sean Lee with H C. Wainwright. Please proceed with your question.
Sean Lee: Good afternoon, guys. This is Shawn from H C Wainwright.
Sean Lee: <unk>.
Well, Sean Thank you.
Operator: Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you'd like to ask a question, you may press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Sean Lee with HC Wainwright. Please proceed with your question.
Sean Lee: Okay. My first question is on the recent approval by Medicare reimbursement. So I was wondering its been about two weeks sense have you seen any increase.
Sean Lee: Increase in lead generation or interesting this device as a result of the Medicare approval.
Sean Lee: Yeah. So thank you for your question.
Sean Lee: And in general we are seeing strong demand from individuals with spinal cord injuries, who are interested in the in the technology. So we.
Sean Lee: Good afternoon, guys. This is Sean from H.C. Wainwright. How are you?
Sean Lee: We saw.
Speaker Change: A definite uptick.
Scott G. Davis: Well, Sean, thank you.
Speaker Change: From the announcement of final payment termination.
Sean Lee: My first question is on the recent approval by Medicare for reimbursement. I was wondering, it's been about two weeks since, have you seen any increase in lead generation or interest in this device as a result of the Medicare approval?
Speaker Change: So yes is the short answer to that question and we.
Speaker Change: We are working.
Speaker Change: To support our <unk> to be able to get those Medicare claims submitted.
Scott G. Davis: Yeah, so thank you for your question. In general, we are seeing no strong demand from individuals with spinal cord injuries who are interested in the technology. We saw, you know, a definite uptick from the announcement of final payment termination. So yes, that is the short answer to that question, and you know we are working to support our DMEs to be able to get those Medicare claims submitted.
Speaker Change: That's great to hear.
Speaker Change: Not only elaborating on these claims so I was wondering does having a standardized reimbursement member.
Speaker Change: Streamline your sales cycle, such that it makes it easier for you too.
Speaker Change: Market these market and sell these devices.
Speaker Change: Hi.
Speaker Change: Again, the short answer to that is yes, absolutely.
Scott G. Davis: That's great to hear. On elaborating on these claims, I was wondering, does having a standardized reimbursement number streamline your sales cycles such that it makes it easier for you to, you know, market, and sell these devices?
Speaker Change: Previously with the code approved but on a case by case basis.
The level of documentation that's required for that is fairly significant and it's a rather unusual process to physicians who might be us.
Scott G. Davis: Again, the short answer to that is yes, absolutely. Previously, with the code approved, but on a case-by-case basis, the level of documentation that's required for that is fairly significant, and it's a rather unusual process for physicians who might be submitting a prescription for this or to DMEs who need to process it. With CMS establishing a payment determination, this claim now has an actual cash value behind it as those claims are being submitted. There is a recognized value that has been definitively provided by CMS. So it is more of a standardized process, you know, at this point in time.
Speaker Change: Submitting.
Speaker Change: A prescription for this or to Dnb's, who who need to process. It.
Speaker Change: With CMS, establishing a a payment determination.
Speaker Change: This claim now has an actual cash value behind it so as those.
Speaker Change: <unk> are being submitted.
Speaker Change: There is a recognized value.
Speaker Change: It has been definitively.
Speaker Change: Provided by by CMS. So it is a more of a standardized process at this point in time.
Sean Lee: That's great to hear. Thanks for that.
Speaker Change: That's great to hear thanks for that.
Sean Lee: My final question then is on the international sector. You mentioned that you're gaining momentum, especially in India. So I was wondering, is that something that we could see going forward for the remainder of the year as well, or is it more of a, you know, one-time bolus in the first quarter?
Speaker Change: My final question then is on the international sector, you mentioned Dennis.
Speaker Change: Youre, gaining momentum, especially in India. So I was wondering.
Speaker Change: Is that something that we could see going forward for the remainder of the year has always been more of a onetime bolus in the first quarter.
Scott G. Davis: Okay, in the EMEA region, yes, so we are seeing good growth there. And part of that growth is attributed to the strong distribution network that we've built throughout both the EMEA and APAC regions. You know, we've been hard at work developing our distributor network for many years now, and you know we are definitely seeing scale through the use of that channel. Additionally, there's been a significant project within the French healthcare system this year where they are adopting robotics for use in many of the hospitals throughout France, and Ekso is being selected for many of them.
Speaker Change: Okay in the EMEA in the EMEA region.
Dennis: Yes. So we are we are seeing good growth there and part of that growth is attributed to the strong distribution network.
Dennis: We've built.
Dennis: Throughout both EMEA and APAC regions, we've been hard at work in developing.
Dennis: Our distributor network over over many years now and we are definitely seeing scale through that.
Dennis: Through the use of that channel. Additionally, there has been a significant project.
Dennis: Within the French health care system. This year, where they are adopting robotics for use in many of the hospitals throughout throughout France, two which.
Dennis: XO is is being selected.
Dennis: Four for many of them.
Sean Lee: I see, I see. That makes it more clear. Thanks for that. That's all the questions I have.
Speaker Change: I see I see that makes it more clear okay. Thanks for that that's all the questions I have.
Speaker Change: Thank you Sean.
Operator: Our next question comes from the line of Ben Hainer with Lake Street. Please proceed with your question.
Speaker Change: Our next question comes from the line of Ben Hayner with Lake Street. Please proceed with your question.
Ben Hainer: Good day gentlemen, thanks for taking the question. First off, for me, you mentioned the strong demand that you've seen on the indigo personal side. Can you maybe share a little bit more color on where that's coming from? Is that directly from the patients? Is it, you know, kind of referrals from neurorehab providers? And then what is the process once you do see the demand, in this particular case, if it's directly from a patient? How does that kind of work its way through the system and ultimately get fulfilled by a DME?
Ben Hayner: Good day gentlemen, thanks for taking the questions.
Ben Hayner: First off for me you mentioned the strong demand that you've seen on the indigo personal side.
Ben Hayner: Can you maybe share a little bit more color on where that's coming from is that directly from our patients is it kind of referrals from neuro rehab providers and then kind of the process. Once you do.
Let's see that.
Ben Hayner: Let's see the demand for it.
Ben Hayner: But in the particular case, if it's a directly from a patient how does that kind of work its way through the system and ultimately get fulfilled by <unk>.
Scott G. Davis: Okay, thank you. Thank you, Ben, for the multi-part question. So I think we'll get started with where the leads are coming from. And we're seeing leads both from individuals themselves who are basically coming to our website and inquiring. And we are also seeing them through our network of neurorehab facilities who have spinal cord individuals with their individual spinal cord injuries in their programs. So it's a combination of really the two where we're seeing demand. I would say it's almost evenly matched as we look at where those leads are coming from.
Speaker Change: Okay. Thank you. Thank you Ben for the for the multi part question. So I think we'll get Okay. We'll get started with where the leads are coming from and we're seeing leads both from individuals themselves who.
Speaker Change: Who are basically coming to our website and enquiring and we are also seeing them through our network of neuro rehab facilities, who have a spinal cord.
Speaker Change: Individuals in their individual spinal cord injuries in their programs. So it's a it's a combination of of really that the the two where we're seeing a demand I would say it's.
Speaker Change: Well almost evenly matched as we as we look at the at where those leads are coming from now.
Scott G. Davis: Now, further to your question of, you know, what happens and how does the process work from here? Generally speaking, our approach to this is to work with our current customer base. We've got more than 260 centers throughout North America that currently are using Ekso products for Neuro Rehabilitation, and many of these centers have individuals who have suffered a spinal cord injury in their networks or in their programs, and, you know, we will generally, where it makes sense, connect that individual with the center for their onboarding and their training.
Speaker Change: Now further to your question of what happens and how does the process work from here.
Speaker Change: Generally speaking.
Speaker Change: Our approach to this is to work with our current customer base, we've got more than 260 centers.
Speaker Change: Throughout North America that.
Speaker Change: Currently are using XO products for neuro rehabilitation and many of these centers.
Yes.
Speaker Change: <unk>.
Speaker Change: Individuals who have suffered a spinal cord injury in their networks or in their programs.
Speaker Change: And we.
Speaker Change: We will generally where it makes sense connect that that individual with the center for their onboarding and their and their training.
Scott G. Davis: We're also working with DMEs, durable medical equipment providers, who are processing these claims. So it's not our intent to process individual Medicare claims ourselves, but rather to support our DMEs in getting the information required for that claim and also tying it into a center that can do the onboarding process and training.
Speaker Change: Also working with.
Speaker Change: <unk>.
Speaker Change: Durable durable medical equipment providers, who are processing. These claims so it's not our intent to process.
Speaker Change: Individual Medicare claims ourselves, but rather to support our <unk>.
Speaker Change: And in getting the information required for that claim and also tying it into a center, who can do the onboarding process and training.
Scott G. Davis: Okay, got it. And those documentation requirements and such that the DMEs need to fulfill, how much easier is that than the, you know, kind of previous situation?
Speaker Change: Got it and no.
The documentation requirements and such that the <unk> need to fulfill how much easier or is it then.
Kind of the previous situation.
Scott G. Davis: It's, you know, substantially easier now that there is a final payment determination set, and I think the level of comfort by even physicians who are writing prescriptions for this is at a much higher level, at least from what we've seen. So, in general, you know, having final payment determination makes this a substantially more straightforward program. However, as with any new program, you know, we do expect a ramp-up over time. So this is not quite as easy as turning on a faucet.
It's you know it is substantially easier now that.
Speaker Change: There is final payment determination set.
Speaker Change: You know and I think the level of of comfort by even physicians, who are who are writing prescriptions for this is is that a.
Speaker Change: A much higher level at least from what we from what we've seen so in in in general having final payment determination makes this a.
Speaker Change: Substantially more straightforward program however.
Speaker Change: As with any new program, we do expect a ramp up.
Speaker Change: Over time. So this is this is not quite as easy as turning on a faucet. It is is the new.
Scott G. Davis: It is a new program for reimbursement for reimbursing exoskeletons in lump sum as a brace is something that is new. And so we are taking a very deliberate approach to this with our DMEs, with the supporting physicians, and with the patients to ensure that we have good and comprehensive claims that are being submitted through CMS.
Speaker Change: Program for reimbursement for reimbursing, Exoskeletons and lump sum is embraced as a.
Speaker Change: It is something that is new and so we are taking a very deliberate approach to this.
Speaker Change: With our <unk>.
Speaker Change: With the supporting physicians and with the patients to ensure that we have good and comprehensive.
Claims that are being submitted through CMS.
Scott G. Davis: Okay, got it. It's kind of the physician's default mindset, like I'll write a prescription and make sure this goes all the way through before I write another one. Or are they comfortable with the reimbursement level being in place to go ahead and write a handful of scripts right out of the gate?
Speaker Change: Okay got it and it was kind of a physician's default mindset like.
Speaker Change: Alright, a prescription and make sure that goes all the way through before I ran another one or are they comfortable with the reimbursement level being in place to go ahead and write a handful of scripts right out of the gate.
Scott G. Davis: Well, you know, I think that's a difficult question to answer as the early claim submissions that we've been supporting have been from multiple positions as opposed to through a single one. So it's I can't really answer that at this point. I would imagine that once a physician has done one successfully, it will become easier.
Speaker Change: Well.
Speaker Change: I think that's a that's a difficult question to answer as the you know the early claim submissions that we've been supporting on have been from multiple physicians as opposed to through a single one so it's I can't really answer that at this point.
I would not happen.
Speaker Change: I would imagine that once a physician has done.
Speaker Change: <unk> successfully it it will become it will become easier that's my assumption.
Scott G. Davis: That's my assumption.
Scott G. Davis: Okay, now that makes sense. And then on the 260 plus centers that you're in, have you seen increased interest in Ekso on our side just now that reimbursement for personal devices is available?
Speaker Change: No that makes sense and then on the.
The 260 class centers that you're in it have you seen increased interest on the excellence in our side just now that the reimbursement for the personal devices is available.
Scott G. Davis: Um, you know, I certainly think that the and team of care story that we can now tell with being able to bring a patient from the hospital through to home resonates with the centers. We've heard that from many of our centers that they're excited about that. Will that actually result in potentially more NR sales? You know, that's TBD.
Speaker Change:
Speaker Change: I certainly think that the.
Speaker Change: Continuum of care.
Speaker Change: Story that we can now tell with being able to bring.
Speaker Change: Ah patient.
Speaker Change: From hospital through to home resonates with the centers, we've heard that from from many of our centers that they're excited about that.
Will that actually result in in.
Speaker Change: Potentially more in our sales.
Speaker Change: You know that's that's TBD, we do know that there's been a lot of positive feedback around our gate coach.
Scott G. Davis: We do know that there's been a lot of positive feedback around our GateCoach software, which has been newly introduced in the North American market and really helps drive ease of use in operating our exoskeletons. So where we do anticipate seeing some growth is in centers that are beginning to do more with individuals with spinal cord injuries in their outpatient facilities. Some of those centers may elect to look at using our Indigo, our Ekso Indigo therapy, which is really a resizable version of our personal device. So, you know, we have seen some additional interest in that particular product category.
Speaker Change: Software, which has been newly introduced and in.
Speaker Change: In the North American market that really helps drive ease of use.
Speaker Change: In in operating our exoskeleton, so where we do anticipate seeing.
Speaker Change: Some grow in centers that are beginning to do more with <unk>.
Speaker Change: Individuals with spinal cord injuries in their outpatient facilities.
Speaker Change: Some of those centers may elect to.
Speaker Change: Look at using our indigo.
Speaker Change: Our XO indigo therapy.
Speaker Change: Which is really a re sizeable version of our personal device. So we have seen some additional interest.
Speaker Change: Is that a particular product category.
Scott G. Davis: Okay, got it. And then lastly for me, on the million-dollar increase in the backlog, was that worldwide or just the U.S. or North America, and then is France with their rollout a big portion of that, or what's the right way to think about that from an international standpoint?
Speaker Change: Okay got it and then lastly for me on the the $1 million increase in the backlog was that.
Speaker Change: I'm sorry, if I missed this was that world wide or is that.
Just U S or North America, and then as France with their rollout.
Speaker Change: A big portion of that or what's the right way to think about that from an international standpoint.
Scott G. Davis: Yeah, so a great question. You know, largely, the backlog that we have represents both North America and EMEA, and I will say that probably a larger portion of that is reflective of the EMEA opportunity, specifically the one with French healthcare.
Yeah. So a great question you know largely the backlog that we have it represented both North America, and <unk> and EMEA.
Speaker Change: And I will say that probably a larger portion of that is reflective of the EMEA.
Speaker Change: <unk>.
Ben Hainer: Great. Well, congratulations on the progress, gentlemen, and on getting the reimbursement applause. Thank you very much.
Speaker Change: Yeah.
Speaker Change: Specifically, the one with the French health care system.
Speaker Change: Okay great.
Speaker Change: Great well congrats on the progress gentleman and getting the reimbursement of close thank you very much.
Scott G. Davis: We're excited. Thanks a lot, Ben. I appreciate it.
Speaker Change: We're excited thanks, a lot I appreciate it.
Operator: There are no further questions in the queue. I'd like to hand it back to Scott Davis for closing remarks.
Speaker Change: There are no further questions in the queue I'd like to hand, it back to you Scott Davis for closing remarks.
Scott G. Davis: All right. Thank you, Doug, and thank you to everyone joining us today. Overall, the first quarter of 2024 was an encouraging start to the year, particularly following the final pricing determination for the Ekso indigo personal. With thousands of individuals with spinal cord injuries that could benefit from our personal device, we believe this is a potentially transformative event for Ekso. In addition to this positive development, we look forward to sustaining our commercial growth while continuing to work to expand the market for our enterprise health products, with new and existing IDNs, and for Evo in large industrial settings. We look forward to providing updates on our continued progress. Thank you, and have a great day!
Scott G. Davis: Alright, Thank you, Doug and thank you to everyone joining us today overall.
Scott G. Davis: Overall, the first quarter of 2024 was an encouraging start to the year, particularly following the final pricing determination for the XO indigo personal with thousands of individuals with spinal cord injuries that could benefit from our personal device. We believe this is a potential potentially transformative event for XO.
Scott G. Davis: In addition to this positive development, we look forward to sustaining our commercial growth, while continuing to work to expand the market for our enterprise health products with new and existing IV, Ns and for Evo and large industrial settings.
Speaker Change: We look forward to providing updates on our continued progress. Thank you and have a great day.
Operator: Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.
Speaker Change: Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.