ReWalk Robotics Reports Third Quarter 2023 Financial Results
Record Quarterly Revenue of
Successful Completion of AlterG Acquisition and Significant Progress of Integration
Major Advancement in Efforts to Attain Medicare Payment Coverage of Exoskeletons
Highlights of the Third Quarter of 2023 include:
- Closing of ReWalk’s acquisition of
AlterG, Inc. (“AlterG”), which adds significant scale to the annual revenue base of ReWalk and AlterG’s innovative Anti-Gravity technology to the Company’s portfolio of rehabilitation solutions that facilitate mobility and wellness in rehabilitation and daily life. - Active pace of Medicare claim submission activity during Q3’23, better positioning ReWalk for reimbursement eligibility of exoskeletons by Medicare once payments are underway.
- Significant progress advancing the 510(k) premarket notification for the next-generation ReWalk 7 toward submission by the end of 2023.
- Subsequent to the end of Q3’23, the
Centers for Medicare & Medicaid Services (“CMS”) finalized the 2024 Home Health Rule which establishes the inclusion of exoskeletons in the Medicare brace benefit category, reimbursed by Medicare on a lump-sum basis, and subsequently proposed the preliminary reimbursement level for the ReWalk Personal Exoskeleton.
“The past three months have been pivotal in our efforts to build ReWalk’s foundation for growth and profitability,” stated
Third Quarter 2023 Financial Results
Total revenue was
Gross margin was 19.6% during the third quarter of 2023, compared to 24.9% in the third quarter of 2022. On a non-GAAP basis, adjusted gross margin was 45.1% in Q3’23, compared to 25.4% in Q3’22, a 19.7 percentage point improvement. The increase in non-GAAP gross margin was attributable to higher gross margins in the legacy ReWalk business primarily driven by the higher volume of exoskeleton units sold leveraging fixed operations costs and higher average selling process from a favorable sales mix, supplemented by the contribution of higher gross margin from AlterG.
Total operating loss in the third quarter of 2023 was
Net loss was
Liquidity
As of
Conference Call
ReWalk management will host its third quarter 2023 conference call as follows:
Date | ||
Time | ||
Telephone | 1-833-316-0561 | |
International: | 1-412-317-0690 | |
1-80-9212373 | ||
0800-6647650 | ||
Access code | Please reference the “ReWalk Robotics Ltd. Call” | |
Webcast (live, listen-only and archive) | https://edge.media-server.com/mmc/p/ihgeu9si/. | |
The archived webcast will be available via the following URL https://edge.media-server.com/mmc/p/ihgeu9si/. or through the 'Investors' section' on our website at rewalk.com.
About ReWalk Robotics Ltd.
ReWalk Robotics Ltd. is a medical device company that designs, develops, and commercializes innovative technologies that enable mobility and wellness in rehabilitation and daily life for individuals with neurological conditions. ReWalk’s mission is to fundamentally change the quality of life for these individuals through the creation and development of market leading technologies. Through its recent acquisition of
ReWalk® and ReStore® are registered trademarks of ReWalk Robotics Ltd. in the United States and other jurisdictions. Alter G® is a registered trademark of AlterG, Inc. in the United States and other jurisdictions.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of the
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with
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 and acquisition costs 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.
ReWalk Media Relations:
E: media@rewalk.com
Investor Contact:
Chief Financial Officer
E: investorrelations@rewalk.com
Condensed Consolidated Statements of Operations | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Revenue | $ | 4,403 | $ | 886 | $ | 6,970 | $ | 3,332 | ||||||||||||
Cost of revenues | 3,540 | 665 | 4,960 | 2,100 | ||||||||||||||||
Gross profit | 863 | 221 | 2,010 | 1,232 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development, net | 1,262 | 1,065 | 2,830 | 2,928 | ||||||||||||||||
Sales and marketing | 4,088 | 2,588 | 9,076 | 7,119 | ||||||||||||||||
General and administrative | 3,455 | 2,001 | 7,579 | 5,282 | ||||||||||||||||
Total operating expenses | 8,805 | 5,654 | 19,485 | 15,329 | ||||||||||||||||
Operating loss | (7,942) | (5,433 | ) | (17,475 | ) | (14,097 | ) | |||||||||||||
Financial (expense) income, net | 411 | (1 | ) | 1,047 | (69 | ) | ||||||||||||||
Loss before income taxes | (7,531) | (5,434 | ) | (16,428 | ) | (14,166 | ) | |||||||||||||
Taxes on income | - | 26 | 66 | 90 | ||||||||||||||||
Net loss | $ | (7,531 | ) | $ | (5,460 | ) | $ | (16,494 | ) | $ | (14,256 | ) | ||||||||
Basic net loss per ordinary share | $ | (0.13 | ) | $ | (0.09 | ) | $ | (0.28 | ) | $ | (0.23 | ) | ||||||||
Weighted average number of shares used in computing net loss per ordinary share basic and diluted | 59,798,413 | 62,793,847 | 59,509,781 | 62,611,580 | ||||||||||||||||
*) Represents an amount lower than |
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP net loss | ||||||||||||||||||||
Net loss | $ | (7,531 | ) | $ | (5,460 | ) | $ | (16,494 | ) | $ | (14,256 | ) | ||||||||
Non-cash share based compensation expense | 333 | 320 | 955 | 646 | ||||||||||||||||
Purchase accounting impact on inventory | 607 | - | 607 | - | ||||||||||||||||
Amortization of intangible assets | 764 | - | 764 | - | ||||||||||||||||
Merger and acquisition costs | 1,314 | - | 2,358 | - | ||||||||||||||||
Non-GAAP net loss | $ | (4,513 | ) | $ | (5,140 | ) | $ | (11,810 | ) | $ | (13,610 | ) | ||||||||
Non-GAAP Net Loss | ||||||||||||||||
Quarter Ended | ||||||||||||||||
Dollars in thousands, except per share data | 2023 | 2023 | 2022 | |||||||||||||
GAAP net loss | $ | (7,531 | ) | $ | (4,642 | ) | $ | (5,460 | ) | |||||||
Adjustments: | ||||||||||||||||
Purchase accounting impact on inventory | 607 | - | - | |||||||||||||
Amortization of intangible assets | 764 | - | - | |||||||||||||
M&A transaction related costs | 1,314 | 894 | - | |||||||||||||
Rebranding and integration costs | - | - | - | |||||||||||||
Stock-based compensation expense | 333 | 318 | 320 | |||||||||||||
Non-GAAP net loss | $ | (4,513 | ) | $ | (3,430 | ) | $ | (5,140 | ) | |||||||
Shares used in net loss per share | 59,798,413 | 59,515,410 | 62,793,847 | |||||||||||||
Non-GAAP net loss per share | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.08 | ) | |||||||
Non-GAAP Operating Loss | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||||
Dollars in thousands | $ | % of revenue | $ | % of revenue | $ | % of revenue | |||||||||||||
GAAP operating loss | $ | (7,942 | ) | -180 | % | $ | (5,158 | ) | -386 | % | $ | (5,433 | ) | -613 | % | ||||
Purchase accounting impact on inventory | 607 | 14 | % | - | 0 | % | - | 0 | % | ||||||||||
Amortization of intangible assets | 764 | 17 | % | - | 0 | % | - | 0 | % | ||||||||||
M&A transaction related costs | 1,314 | 30 | % | 894 | 67 | % | - | 0 | % | ||||||||||
Rebranding and integration costs | - | 0 | % | - | 0 | % | - | 0 | % | ||||||||||
Stock-based compensation expense | 333 | 8 | % | 318 | 24 | % | 320 | 36 | % | ||||||||||
Non-GAAP operating loss | $ | (4,924 | ) | -112 | % | $ | (3,946 | ) | -295 | % | $ | (5,113 | ) | -577 | % | ||||
Non-GAAP Gross Profit | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||
Dollars in thousands | $ | % of revenue | $ | % of revenue | $ | % of revenue | |||||||||||
GAAP gross profit | $ | 863 | 19.6 | % | $ | 576 | 43.1 | % | $ | 221 | 24.9 | % | |||||
Adjustments: | |||||||||||||||||
Purchase accounting impact on inventory | 607 | 13.8 | % | - | 0.0 | % | - | 0.0 | % | ||||||||
Amortization of intangible assets | 511 | 11.6 | % | - | 0.0 | % | - | 0.0 | % | ||||||||
Stock-based compensation expense | 4 | 0.1 | % | 3 | 0.2 | % | 4 | 0.5 | % | ||||||||
Non-GAAP gross profit | $ | 1,985 | 45.1 | % | $ | 579 | 43.3 | % | $ | 225 | 25.4 | % | |||||
Non-GAAP R&D | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||
Dollars in thousands | $ | % of revenue | $ | % of revenue | $ | % of revenue | |||||||||||
GAAP research & development | $ | 1,262 | 28.7 | % | $ | 816 | 61.0 | % | $ | 1,065 | 120.2 | % | |||||
Adjustments: | |||||||||||||||||
Stock-based compensation expense | 46 | 1.0 | % | 34 | 2.5 | % | 27 | 3.0 | % | ||||||||
Non-GAAP research & development | $ | 1,216 | 27.6 | % | $ | 782 | 58.5 | % | $ | 1,038 | 117.2 | % | |||||
Non-GAAP Sales & Mktng | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||
Dollars in thousands | $ | % of revenue | $ | % of revenue | $ | % of revenue | |||||||||||
GAAP sales & marketing | $ | 4,088 | 92.8 | % | $ | 2,504 | 187.3 | % | $ | 2,588 | 292.1 | % | |||||
Adjustments: | |||||||||||||||||
Amortization of intangible assets | 215 | 4.9 | % | - | 0.0 | % | - | 0.0 | % | ||||||||
Stock-based compensation expense | 107 | 2.4 | % | 83 | 6.2 | % | 71 | 8.0 | % | ||||||||
Non-GAAP sales & marketing | $ | 3,766 | 85.5 | % | $ | 2,421 | 181.1 | % | $ | 2,517 | 284.1 | % | |||||
Non-GAAP G&A | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
2023 | 2023 | 2022 | ||||||||||||||||
Dollars in thousands | $ | % of revenue | $ | % of revenue | $ | % of revenue | ||||||||||||
GAAP general & administrative | $ | 3,455 | 78.5 | % | $ | 2,414 | 180.6 | % | $ | 2,001 | 225.8 | % | ||||||
Adjustments: | ||||||||||||||||||
M&A transaction related costs | 1,314 | 29.8 | % | - | 0.0 | % | - | 0.0 | % | |||||||||
Amortization of intangible assets | 37 | 0.8 | % | - | 0.0 | % | - | 0.0 | % | |||||||||
Stock-based compensation expense | 176 | 4.0 | % | 198 | 14.8 | % | 218 | 24.6 | % | |||||||||
Non-GAAP general & administrative | $ | 1,928 | 43.8 | % | $ | 2,216 | 165.7 | % | $ | 1,783 | 201.2 | % |
Condensed Consolidated Balance Sheets | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 32,590 | $ | 67,896 | |||||||||||||||||
Trade receivable, net | 3,529 | 1,036 | |||||||||||||||||||
Prepaid expenses and other current assets | 2,254 | 649 | |||||||||||||||||||
Inventories | 6,043 | 2,929 | |||||||||||||||||||
Total current assets | 44,416 | 72,510 | |||||||||||||||||||
Restricted cash and other long term assets | 772 | 694 | |||||||||||||||||||
Operating lease right-of-use assets | 2,077 | 836 | |||||||||||||||||||
Property and equipment, net | 1,047 | 196 | |||||||||||||||||||
Intangible assets | 13,369 | - | |||||||||||||||||||
7,538 | - | ||||||||||||||||||||
Total assets | $ | 69,219 | $ | 74,236 | |||||||||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Current maturities of operating leases liability | $ | 1,245 | $ | 564 | |||||||||||||||||
Trade payables | 5,658 | 1,950 | |||||||||||||||||||
Employees and payroll accruals | 1,701 | 1,282 | |||||||||||||||||||
Deferred revenues | 1,611 | 301 | |||||||||||||||||||
Earnout Liability | 1,906 | - | |||||||||||||||||||
Other current liabilities | 693 | 685 | |||||||||||||||||||
Total current liabilities | 12,814 | 4,782 | |||||||||||||||||||
Earnout Liability | 1,741 | - | |||||||||||||||||||
Deferred revenues | 1,645 | 890 | |||||||||||||||||||
Non-current operating leases liability | 856 | 333 | |||||||||||||||||||
Other long-term liabilities | 387 | 66 | |||||||||||||||||||
Shareholders’ equity | 51,776 | 68,165 | |||||||||||||||||||
Total liabilities and equity | $ | 69,219 | $ | 74,236 | |||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||
Net cash used in operating activities | $ | (16,183 | ) | $ | (13,978 | ) | |||||||||||||||
Net cash used in investing activities | (18,070 | ) | (25 | ) | |||||||||||||||||
Net cash used in financing activities | (992 | ) | (183 | ) | |||||||||||||||||
Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash | (24 | ) | (182 | ) | |||||||||||||||||
Decrease in cash, cash equivalents, and restricted cash | (35,269 | ) | (14,368 | ) | |||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 68,555 | 89,050 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 33,286 | $ | 74,682 | |||||||||||||||||
(unaudited) | |||||||||||||||||||||
(In thousand) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Revenue: | |||||||||||||||||||||
$ | 2,497 | $ | 395 | $ | 4,298 | $ | 1,193 | ||||||||||||||
1,466 | 488 | 2,201 | 2,023 | ||||||||||||||||||
94 | 2 | 123 | 113 | ||||||||||||||||||
Rest of the world | 346 | 1 | 348 | 3 | |||||||||||||||||
Total Revenue | $ | 4,403 | $ | 886 | $ | 6,970 | $ | 3,332 | |||||||||||||
![](https://ml.globenewswire.com/media/MDMwMjkzY2ItMmJkZi00NWQ4LWEwYzgtOTJiZjZlMTFkY2E1LTEwMjI3NTY=/tiny/ReWalk-Robotics-Ltd-.png)
Source: ReWalk Robotics Ltd.