ReWalk Robotics Reports Third Quarter 2020 Financial Results
Highlights of and subsequent to the third quarter of 2020 include:
- Total revenue for the third quarter of 2020 was
$0.7 million , compared to$1.2 million in the prior year quarter; - Received Medicare Provider certification from the
Centers for Medicare & Medicaid Services ("CMS"); - Completed additional contract with a German payor; and
- Raised total of approximately
$9.0 million in gross proceeds from a registered direct offering of ordinary shares and a concurrent private placement of unregistered warrants to purchase ordinary shares (as previously referenced in ReWalk's Second Quarter 2020 Financial Results).
“Our most important measurements in the quarter were the achievements with CMS certification and the additional German insurance contract as they are the strategic drivers of growth for our company,” said
Third Quarter 2020 Financial Results
Total revenue was
Gross margin remained generally flat with 52% during the third quarter of 2020 compared to 53% during the third quarter of 2019.
Total operating expenses in the third quarter of 2020 were
Net loss was
Non-GAAP net loss was
Liquidity
As of
Conference Call
ReWalk management will host its third quarter 2020 conference call as follows:
| Date | ||
| Time | ||
| Telephone | (844) 423-9889 | |
| International: | (716) 247-5804 | |
| 18 09 31 53 62 | ||
| 08 00 18 15 287 | ||
| Access code | 7496152 | |
| Webcast (live, listen-only and archive) | www.rewalk.com under the “Investors” section. | |
The archived webcast will be available via the following URL https://edge.media-server.com/mmc/p/ou3s2suj
or through the 'Investors—Webcasts & Presentations' section' on www.rewalk.com.
About ReWalk Robotics Ltd.
ReWalk® is a registered trademark of
ReStore® is a registered trademark of
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements may include projections regarding ReWalk's future performance and other statements that are not statements of historical fact and, in some cases, may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "should," "would," "seek" and similar terms or phrases. The forward-looking statements contained in this press release are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of ReWalk's control. Important factors that could cause ReWalk's actual results to differ materially from those indicated in the forward-looking statements include, among others: ReWalk's management's conclusion, and its independent registered public accounting firm's statement in its opinion relating to its consolidated financial statements for the fiscal year ended December 31, 2019, that there is a substantial doubt as to the Company's ability to continue as a going concern; the current COVID-19 pandemic has adversely affected and may continue to affect adversely business and results of operations; ReWalk's ability to have sufficient funds to meet certain future capital requirements, which could impair the Company's efforts to develop and commercialize existing and new products; ReWalk's ability to maintain compliance with the continued listing requirements of the Nasdaq Capital Market and the risk that its ordinary shares will be delisted if it cannot do so; ReWalk's ability to establish a pathway to commercialize its products in China; ReWalk's ability to maintain and grow its reputation and the market acceptance of its products; ReWalk's ability to achieve reimbursement from third-party payors for its products; ReWalk's limited operating history and its ability to leverage its sales, marketing and training infrastructure; ReWalk's expectations as to its clinical research program and clinical results; ReWalk's expectations regarding future growth, including its ability to increase sales in its existing geographic markets and expand to new markets; ReWalk's ability to obtain certain components of its products from third-party suppliers and its continued access to its product manufacturers; ReWalk's ability to repay its secured indebtedness; ReWalk's ability to improve its products and develop new products; ReWalk's compliance with medical device reporting regulations to report adverse events involving the Company's products, which could result in voluntary corrective actions or enforcement actions such as mandatory recalls, and the potential impact of such adverse events on ReWalk's ability to market and sell its products; ReWalk's ability to gain and maintain regulatory approvals; ReWalk's expectations as to the results of, and the Food and Drug Administration's potential regulatory developments with respect to its mandatory 522 postmarket surveillance study; ReWalk's ability to maintain adequate protection of its intellectual property and to avoid violation of the intellectual property rights of others; the risk of a cybersecurity attack or breach of the Company's IT systems significantly disrupting its business operations; the impact of substantial sales of the Company's shares by certain shareholders on the market price of the Company's ordinary shares; ReWalk's ability to use effectively the proceeds of its offerings of securities; the risk of substantial dilution resulting from the periodic issuances of ReWalk's ordinary shares; the impact of the market price of the Company's ordinary shares on the determination of whether it is a passive foreign investment company; and other factors discussed under the heading "Risk Factors" in ReWalk's annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC and other documents subsequently filed with or furnished to the SEC. Any forward-looking statement made in this press release speaks only as of the date hereof. Factors or events that could cause ReWalk's actual results to differ from the statements contained herein may emerge from time to time, and it is not possible for ReWalk to predict all of them. Except as required by law, ReWalk undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with
For the three and nine months ended
Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, ReWalk believes that providing non-GAAP financial measures that exclude non-cash share-based compensation expense, depreciation and non-cash financial (income) expenses allows for more meaningful comparisons between operating results from period to period. Each of the Company’s non-GAAP financial measures is an important tool for financial and operational decision-making and for the Company’s evaluation of its operating results over different periods of time. The non-GAAP financial data are not measures of the Company’s financial performance under
The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. ReWalk urges investors to review the reconciliation of the Company’s non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate the Company’s business.
Investor Contact:
Chief Financial Officer
T: +972-4-9590123
E: investorrelations@rewalk.com
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 747 | $ | 1,234 | $ | 3,175 | $ | 3,692 | ||||||||
| Cost of revenues | 355 | 585 | 1,388 | 1,682 | ||||||||||||
| Gross profit | 392 | 649 | 1,787 | 2,010 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development, net | 756 | 1,018 | 2,695 | 4,292 | ||||||||||||
| Sales and marketing | 1,507 | 1,453 | 4,541 | 4,571 | ||||||||||||
| General and administrative | 1,198 | 1,209 | 3,774 | 3,988 | ||||||||||||
| Total operating expenses | 3,461 | 3,680 | 11,010 | 12,851 | ||||||||||||
| Operating loss | (3,069 | ) | (3,031 | ) | (9,223 | ) | (10,841 | ) | ||||||||
| Financial expenses, net | 242 | 360 | 723 | 1,131 | ||||||||||||
| Loss before income taxes | (3,311 | ) | (3,391 | ) | (9,946 | ) | (11,972 | ) | ||||||||
| Taxes on income (tax benefit) | 25 | (2 | ) | 85 | 4 | |||||||||||
| Net loss | $ | (3,336 | ) | $ | (3,389 | ) | $ | (10,031 | ) | $ | (11,976 | ) | ||||
| Net loss per ordinary share, basic and diluted | $ | (0.18 | ) | $ | (0.46 | ) | $ | (0.71 | ) | $ | (2.27 | ) | ||||
| Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 18,881,694 | 7,290,791 | 14,132,375 | 5,284,451 | ||||||||||||
| Reconciliation of GAAP to Non-GAAP net loss | ||||||||||||||||
| Net loss | $ | (3,336 | ) | $ | (3,389 | ) | $ | (10,031 | ) | $ | (11,976 | ) | ||||
| Non-cash share based compensation expense | 232 | 236 | 544 | 869 | ||||||||||||
| Depreciation of property and equipment, net | 64 | 69 | 215 | 242 | ||||||||||||
| Non-cash financial expenses | 59 | - | 59 | - | ||||||||||||
| Non-GAAP net loss | $ | (2,981 | ) | $ | (3,084 | ) | $ | (9,213 | ) | $ | (10,865 | ) | ||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| |
|
|||||||||||||||
| 2020 | 2019 | |||||||||||||||
| Assets | ||||||||||||||||
| Current assets | ||||||||||||||||
| Cash and cash equivalents | $ | 18,050 | $ | 16,253 | ||||||||||||
| Trade receivable, net | 715 | 794 | ||||||||||||||
| Prepaid expenses and other current assets | 833 | 903 | ||||||||||||||
| Inventories | 3,707 | 3,123 | ||||||||||||||
| Total current assets | 23,305 | 21,073 | ||||||||||||||
| Restricted cash and other long term assets | 1,034 | 1,061 | ||||||||||||||
| Operating lease right-of-use assets | 1,421 | 1,737 | ||||||||||||||
| Property and equipment, net | 474 | 501 | ||||||||||||||
| Total assets | $ | 26,234 | $ | 24,372 | ||||||||||||
| Liabilities and equity | ||||||||||||||||
| Current liabilities | ||||||||||||||||
| Current maturities of long term loans | $ | 3,280 | $ | 5,438 | ||||||||||||
| Current maturities of operating leases | 622 | 637 | ||||||||||||||
| Trade payables | 2,107 | 2,698 | ||||||||||||||
| Other current liabilities | 1,636 | 1,395 | ||||||||||||||
| Total current liabilities | 7,645 | 10,168 | ||||||||||||||
| Long term loan, net of current maturities | 154 | 1,527 | ||||||||||||||
| Noncurrent operating leases | 985 | 1,315 | ||||||||||||||
| Other long-term liabilities | 661 | 582 | ||||||||||||||
| Shareholders’ equity | 16,789 | 10,780 | ||||||||||||||
| Total liabilities and equity | $ | 26,234 | $ | 24,372 | ||||||||||||
| - | - | |||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| 2020 | 2019 | |||||||||||||||
| Net cash used in operating activities | $ | (10,131 | ) | $ | (11,225 | ) | ||||||||||
| Net cash used in investing activities | (73 | ) | (8 | ) | ||||||||||||
| Net cash provided by financing activities | 11,948 | 22,033 | ||||||||||||||
| Increase in cash, cash equivalents, and restricted cash | 1,744 | 10,800 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 16,992 | 10,347 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 18,736 | $ | 21,147 | ||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands, except units placed) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenue: | ||||||||||||||||
| $ | - | $ | - | $ | - | $ | 2 | |||||||||
| 325 | 569 | 1,172 | 1,492 | |||||||||||||
| 413 | 665 | 1,990 | 2,162 | |||||||||||||
| 2 | - | 6 | 36 | |||||||||||||
| 6 | - | 6 | - | |||||||||||||
| 1 | - | 1 | - | |||||||||||||
| Total Revenue | $ | 747 | $ | 1,234 | $ | 3,175 | $ | 3,692 | ||||||||
| Revenue: | ||||||||||||||||
| Personal units revenue | $ | 698 | $ | 1,127 | $ | 3,079 | $ | 3,524 | ||||||||
| Rehabilitation units revenue | 49 | 107 | 96 | 168 | ||||||||||||
| Total Revenue | $ | 747 | $ | 1,234 | $ | 3,175 | $ | 3,692 | ||||||||
Source: ReWalk Robotics Ltd.