Ekso Bionics Holdings Inc (OTCMKTS:EKSO) Looking To Rebound

Source: Ekso Bionics Holdings Inc

Ekso Bionics Holdings Inc (OTCMKTS:EKSO) has been a weak performer so far in 2016. However, we think this exoskeleton leader is about to make a comeback. Ekso has a lot of intellectual property and we see the exoskeleton market as being a prime growth industry going forward.

Ekso remains at the forefront of the robotic exoskeleton technological movement and is well capitalized. Weighing on Ekso's share price was its new share offering at the end of last year. Ekso raised $15 million at $1.01 per share. Although it is nice for the company to get $15 million, the additional shares and warrants dilute existing shareholders. Shares were priced at $1.01 and warrants at $1.25. Ekso will have $26 million to continue its R&D efforts and expansion plans. Since 2005, Ekso has invested over $60 million in its technology.

Ekso’s efforts are starting to pay off and we saw that in its most recent 10-Q. In the third quarter, revenues grew from $1.5 million last year to $2.9 million this year. For the first nine months of this year, Ekso recorded total revenues of $6.7 million compared to $3.8 million in the first nine months of 2014.

The industrial area is one that Ekso plans to devote a good portion of its research and development budget. Ekso’s new models will be able to increase an individual’s workload, endurance and productivity. While there is an upfront investment from employers, Ekso believes that it can reduce employer’s overall costs with increased productivity while reducing worker’s compensation claims and insurance costs. This is a win-win for the employer and its workers.

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Ekso's latest suit is aimed squarely at the construction industry, helping workers lift and use heavy power tools for long stretches of time by literally taking the weight off their backs. The suit is designed to transfer objects’ weight to the ground via stabilizing joints on the wearer’s sides. That, plus a specialized “arm” from a company Ekso recently acquired, help the wearer manipulate power tools without having to support their weight.

In Europe, Ekso is undergoing a clinical trial called “The MOST Study” (Mobility improved after stroke when a robotic device was used in comparison to physical therapy) and is being initialized by Professor Hamzei, MD, MHBA, Chief Physician of Department of Neurological Rehabilitation, Moritz Klinik. This study is investigating the impact of gait training with the Ekso GT on functional independence of 80 patients with impaired gait as a consequence of stroke, when compared to conventional physiotherapy alone. In this study the Ekso GT will be used daily in one group, while in the control group patients will be treated with conventional physiotherapy alone, in a daily training program, over the course of three weeks. The level of functional mobility will then be compared between both groups. The study is scheduled to conclude mid-year 2017.

The Kessler Foundation is also using the EKSO GT in a multi-center randomized controlled trial (RCT) funded by a federal grant to develop new applications for wearable robotic exoskeletons (RE). The study will explore the clinical, functional and neurophysiological effectiveness of RE-assisted early intervention gait therapy with stroke patients. Researchers are looking to measure and build upon the early evidence showing improvements in functional independence measure (FIM) and neurophysiological outcomes in stroke patients who use the Ekso GT.

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With this study, the Kessler Foundation aims to further investigate the value of the Ekso GT in post stroke rehabilitation. The Ekso GT with smart Variable Assist software is the only exoskeleton available in rehabilitation institutions that can provide adaptive amounts of power, and challenge, to either side of the patient’s body, which may help to improve rehabilitation outcomes.

We see Ekso as one OTC stock with huge potential. The company has proven that human exoskeletons are more energy efficient than anyone thought possible and can be be used in the healthcare, industrial, military and consumer markets. Ekso’s exoskeleton systems are strapped over the user’s clothing and allow those with neurological conditions to walk again, soldiers to carry heavy loads for longer distances, and industrial workers to increase productivity for longer periods of time.

Currently trading at a $106 million market cap, Ekso has struggled so far this year on the back of dilution and a lack of news. However, the company has had plenty of press and it won't take much to get investors excited about Ekso. Ekso has a history of explosive moves and we think it can be a microcap runner again in the near future. Sign up to Insider Financial today and get the latest developments from EKSO and our continuing coverage of micro caps trading on the NYSE, NASDAQ and OTC markets.

Disclosure: We have no position in EKSO and have not been compensated for this article.