Recent Highlights and Milestones for Lifeward

 

 

 

 

 

“We continue to build the pipeline of ReWalk cases which we believe will fuel our growth in future quarters,” said Larry Jasinski, Chief Executive Officer. “While the conversion of these cases to revenue can be variable, the underlying growth in leads and qualified cases is growing as we continue to educate the U.S. market on the expanded patient access under the Medicare program and eventually private insurance.   At the same time, we also see that the AlterG NEO launch is stimulating incremental customer interest and growth, which we believe will fuel the anticipated recovery in AlterG revenue growth.”

 

Third Quarter 2024 Financial Results

 

Revenue was $6.1 million in the third quarter of 2024, compared to $4.4 million during the third quarter of 2023, up $1.7 million, or 39%. Revenue from the sale of Lifeward historical products and services including ReWalk exoskeletons, MyoCycles, and ReStore exo-suits was $2.5 million, up $1.0 million, or 173% compared to the prior year. This performance was primarily driven by an increase in ReWalk system sales from the expansion of access through Medicare coverage and stronger sales performance in Germany.  Revenue from the sale of AlterG products and services was $3.6 million, a $0.7 million increase from the third quarter of 2023, which had a partial quarter contribution from AlterG following the closing of the acquisition on August 11, 2023.

 

Total operating expenses in the third quarter of 2024 were $5.4 million, compared to $8.8 million in the third quarter of 2023.  On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $6.7 million in the third quarter of 2024, compared to $6.9 million in the third quarter of 2023, a $0.2 million decrease.  This decline is primarily due to reduced R&D expense from the completion of a development program.

 

Operating loss in the third quarter of 2024 was $3.2 million, compared to $7.9 million in the third quarter of 2023. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted operating loss was $4.1 million in the third quarter of 2024, compared to a loss of $4.9 million in the third quarter of 2023.

 

Net loss was $3.1 million, or $0.35 per share, for the third quarter of 2024, compared to a net loss of $7.5 million, or $0.88 per share, in the third quarter of 2023. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $4.0 million, or $0.45 per share, in the third quarter of 2024, compared to $4.5 million, or $0.52 per share, during the third quarter of 2023.

 

Liquidity

 

Financial Guidance

 

Factoring in the third quarter performance, Lifeward revises its 2024 full year revenue expectations to the range of $25 million to $26 million in 2024.  Based on the current recovery in trends thus far in the fourth quarter, Lifeward expects its sequential growth to resume in the fourth quarter to generate the highest quarterly revenue of the year.

 

Conference Call

 

Lifeward management will host its conference call as follows:

 

About Lifeward

 

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 the Company'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 the Company’s control. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements include, among others: the Company’s ability to realize the anticipated benefits of the acquisition of AlterG, including the possibility that the expected benefits of the acquisition will not be realized within the expected time period or at all; the effect of the AlterG acquisition on the ability of the Company to retain customers and key personnel and to maintain relationships with suppliers, distributors and other key business relations; potential litigation in connection with the AlterG acquisition; uncertainties associated with future clinical trials and the clinical development process, the product development process and FDA regulatory submission review and approval process; the Company'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; the Company's ability to maintain and grow its reputation and the market acceptance of its products; the Company's ability to achieve reimbursement from third-party payors, including CMS, for its products; the Company's limited operating history and its ability to leverage its sales, marketing and training infrastructure; the Company's expectations as to its clinical research program and clinical results; the Company's expectations regarding future growth, including its ability to increase sales in its existing geographic markets and expand to new markets; the Company's ability to obtain certain components of its products from third-party suppliers and its continued access to its product manufacturers; the Company’s ability to navigate any difficulties associated with moving production of its AlterG Anti-Gravity Systems to a contract manufacturer; the Company's ability to improve its products and develop new products; the Company'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 the Company's ability to market and sell its products; the Company's ability to gain and maintain regulatory approvals; the Company'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 Company's ability to use effectively the proceeds of its offerings of securities; and other factors discussed under the heading "Risk Factors" in the Company’s annual report on Form 10-K, as amended, for the year ended December 31, 2023 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 the Company’s actual results to differ from the statements contained herein may emerge from time to time, and it is not possible for the Company to predict all of them. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

 

Lifeward Ltd. And subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

		September 30,				December 31,
		2024				2023
		(Unudited)				(Audited)
Assets
Current assets
Cash and cash equivalents		$	10,653			$	28,083
Trade receivables, net of credit losses of $193 and $328, respectively			5,843				3,120
Prepaid expenses and other current assets			1,818				2,366
Inventories			7,300				5,653
Total current assets			25,614				39,222
Restricted cash and other long term assets			436				784
Operating lease right-of-use assets			945				1,861
Property and equipment, net			1,217				1,262
Intangible Assets			10,020				12,525
Goodwill			7,538				7,538
Total assets		$	45,770			$	63,192
Liabilities and equity
Current liabilities
Trade payables			4,992				5,069
Current maturities of operating leases			936				1,296
Other current liabilities			3,729				4,854
Earnout			-				576
Total current liabilities			9,657				11,795
Non-current operating leases			45				607
Earnout			792				2,716
Other long-term liabilities			1,383				1,564
Shareholders’ equity			33,893				46,510
Total liabilities and equity		$	45,770			$	63,192

Lifeward Ltd. And subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

		Nine Months Ended
		September 30,
		2024				2023
Net cash used in operating activities		$	(17,749	)		$	(16,183	)
Net cash used in investing activities			-				(18,070	)
Net cash used in financing activities			-				(992	)
Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash			(29	)			(24	)
Decrease in cash, cash equivalents, and restricted cash			(17,778	)			(35,269	)
Cash, cash equivalents, and restricted cash at beginning of period			28,792				68,555
Cash, cash equivalents, and restricted cash at end of period		$	11,014			$	33,286

Lifeward Ltd. And subsidiaries

(Unaudited)

(In thousand)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Revenues based on customer’s location:
United States			3,458				2,497				11,054				4,298
Europe			2,419				1,466				5,896				2,201
Asia - Pacific			150				94				544				123
Rest of the world			101				346				624				348
Total Revenues		$	6,128			$	4,403			$	18,118			$	6,970