ReWalk Robotics Reports Third Quarter 2021 Financial Results
Highlights of and subsequent to the third quarter of 2021 include:
- Total revenue of
$2.0 million reported for the third quarter of 2021 - Gross margin of approximately 58% in the third quarter of 2021
- Received FDA breakthrough device designation for ReBoot, a soft exoskeleton for stroke home and community use
- Strengthened cash position of
$91.2 million , including a$32.5 million registered direct offering closed in September
“During the third quarter we have continued to demonstrate quarter over quarter growth and the results in Q3 2021 marks our highest quarterly revenue for the last 4 years. Growth came from personal ReWalk placements in
Third Quarter 2021 Financial Results
Total revenue was
Gross margin was 58% during the third quarter of 2021, compared to 52% in the third quarter of 2020. The increase is mainly due to the higher number of units sold and increased average selling price.
Total operating expenses in the third quarter of 2021 were
Net loss was
Non-GAAP net loss was
Liquidity
As of
Conference Call
ReWalk management will host its third quarter 2021 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 | 4692387 |
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/h495e8p4 or through the 'Investors' section' on www.rewalk.com.
About
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: uncertainties associated with future clinical trials and the clinical development process, the product development process and FDA regulatory submission review and approval process; the adverse effect that the COVID-19 pandemic has had and may continue to have on the Company’s 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 maintain and grow its reputation and the market acceptance of its products; ReWalk's ability to achieve reimbursement from third-party payors, including CMS, 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 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; ReWalk’s ability to establish a pathway to commercialize its products in
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 | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 1,972 | $ | 747 | $ | 4,724 | $ | 3,175 | ||||||||
| Cost of revenues | 832 | 355 | 2,150 | 1,388 | ||||||||||||
| Gross profit | 1,140 | 392 | 2,574 | 1,787 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 638 | 756 | 2,243 | 2,695 | ||||||||||||
| Sales and marketing | 1,821 | 1,507 | 5,105 | 4,541 | ||||||||||||
| General and administrative | 1,343 | 1,198 | 4,050 | 3,774 | ||||||||||||
| Total operating expenses | 3,802 | 3,461 | 11,398 | 11,010 | ||||||||||||
| Operating loss | (2,662 | ) | (3,069 | ) | (8,824 | ) | (9,223 | ) | ||||||||
| Financial expenses, net | 27 | 242 | 14 | 723 | ||||||||||||
| Loss before income taxes | (2,689 | ) | (3,311 | ) | (8,838 | ) | (9,946 | ) | ||||||||
| Taxes on income (tax benefit) | (14 | ) | 25 | 40 | 85 | |||||||||||
| Net loss | $ | (2,675 | ) | $ | (3,336 | ) | $ | (8,878 | ) | $ | (10,031 | ) | ||||
| Net loss per ordinary share, basic and diluted | $ | (0.06 | ) | $ | (0.18 | ) | $ | (0.21 | ) | $ | (0.71 | ) | ||||
| Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 46,570,130 | 18,881,694 | 43,021,972 | 14,132,375 | ||||||||||||
| Reconciliation of GAAP to Non-GAAP net loss | ||||||||||||||||
| Net loss | $ | (2,675 | ) | $ | (3,336 | ) | $ | (8,878 | ) | $ | (10,031 | ) | ||||
| Non-cash share based compensation expense | 599 | 232 | 231 | 544 | ||||||||||||
| Depreciation of property and equipment, net | 69 | 64 | 210 | 215 | ||||||||||||
| Non-GAAP net loss | $ | (2,007 | ) | $ | (3,040 | ) | $ | (8,437 | ) | $ | (9,272 | ) | ||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| 2021 | 2020 | |||||||||||||||
| Assets | (unaudited) | |||||||||||||||
| Current assets | ||||||||||||||||
| Cash and cash equivalents | $ | 91,227 | $ | 20,350 | ||||||||||||
| Trade receivable, net | 1,275 | 684 | ||||||||||||||
| Prepaid expenses and other current assets | 762 | 672 | ||||||||||||||
| Inventories | 3,066 | 3,542 | ||||||||||||||
| Total current assets | 96,330 | 25,248 | ||||||||||||||
| Restricted cash and other long term assets | 1,085 | 1,033 | ||||||||||||||
| Operating lease right-of-use assets | 1,000 | 1,349 | ||||||||||||||
| Property and equipment, net | 303 | 437 | ||||||||||||||
| Total assets | $ | 98,718 | $ | 28,067 | ||||||||||||
| Liabilities and equity | ||||||||||||||||
| Current liabilities | ||||||||||||||||
| Current maturities of operating leases | 639 | 660 | ||||||||||||||
| Trade payables | 1,954 | 2,268 | ||||||||||||||
| Other current liabilities | 1788 | 1,740 | ||||||||||||||
| Total current liabilities | 4,381 | 4,668 | ||||||||||||||
| Noncurrent operating leases | 535 | 923 | ||||||||||||||
| Other long-term liabilities | 809 | 702 | ||||||||||||||
| Shareholders’ equity | 92,993 | 21,774 | ||||||||||||||
| Total liabilities and equity | $ | 98,718 | $ | 28,067 | ||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| 2021 | 2020 | |||||||||||||||
| Net cash used in operating activities | $ | (8,903 | ) | $ | (10,131 | ) | ||||||||||
| Net cash used in investing activities | (28 | ) | (73 | ) | ||||||||||||
| Net cash provided by financing activities | 79,808 | 11,948 | ||||||||||||||
| Increase in cash, cash equivalents, and restricted cash | 70,877 | 1,744 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 21,054 | 16,992 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 91,931 | $ | 18,736 | ||||||||||||
| (unaudited) | ||||||||||||||||
| (In thousands, except units placed) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| $ | 821 | $ | 325 | $ | 1,951 | $ | 1,172 | |||||||||
| 1,148 | 413 | 2,711 | 1,990 | |||||||||||||
| 1 | 2 | 58 | 6 | |||||||||||||
| - | 6 | - | 6 | |||||||||||||
| 2 | 1 | 4 | 1 | |||||||||||||
| Total Revenue | $ | 1,972 | $ | 747 | $ | 4,724 | $ | 3,175 | ||||||||
| Revenue: | ||||||||||||||||
| Personal units revenue | $ | 1,357 | $ | 698 | $ | 3,818 |
$ | 3,079 | ||||||||
| Rehabilitation units revenue | 615 | 49 | 906 |
96 | ||||||||||||
| Total Revenue | $ | 1,972 | $ | 747 | $ | 4,724 | $ | 3,175 | ||||||||
Source: ReWalk Robotics Ltd.