ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”)
today announced its financial results for the three months ended
March 31, 2020.
Highlights of and subsequent to the first quarter of
2020 include:
- Total revenue for the first quarter of 2020 was $0.8 million,
compared to $1.6 million in the prior year quarter;
- Finalized agreements with key German payors for the supply of
ReWalk Personal 6.0 to qualified patients;
- Amended our research collaboration agreement with Harvard to
focus on tele-health solutions and extend the term through March
2023;
- Entering upper and lower extremity products, offering hand,
leg, arm and balance systems with MediTouch
- Adding functional electrical stimulation cycle for home and
rehab therapy with Myolyn; and
- CMS code hearing for ReWalk Personal scheduled for June 1,
2020.
“The first quarter of 2020 was challenging as we
had the COVID-19 pandemic affecting our ability to meet, train and
deliver our products to customers. We have reacted to the new
environment and have modified our spending and cash usage to make
sure we have sufficient cash to execute our plan for the remaining
part of the year and beyond. We are excited with the insurance
contracts achieved in Germany, our new product lines added in the
United States where we see clear synergy with our current products
and our CMS application progress,” stated Larry Jasinski, Chief
Executive Officer of ReWalk.
First Quarter 2020 Financial Results
Total revenue was $0.8 million for the first quarter of 2020,
compared to $1.6 million during the prior year quarter. We had
several ReWalk Personal 6.0 devices that were not delivered due to
COVID-19 restrictions.
Gross margin was 49% during the first quarter of
2020, compared to 59% in the first quarter of 2019. The decrease is
primarily due to the lower number of units placed during the
quarter.
Total operating expenses in the first quarter of
2020 were $4 million, compared to $4.5 million in the prior year
period.
Net loss was $3.8 million for the first quarter
of 2020, compared to a net loss of $4.0 million in the first
quarter of 2019.
Non-GAAP net loss for the first quarter of 2020
and 2019 remained flat and was $3.6 million. Reconciliation of net
loss to non-GAAP net loss is included at the end of this press
release.
Liquidity
As of March 31, 2020, ReWalk had $16.6 million in cash on its
balance sheet and $5.7 million in short- term debt.
Conference Call
ReWalk management will host its first quarter 2020 conference
call as follows:
Date |
Thursday, May 28, 2020 |
Time |
8:30 AM EST |
Telephone |
U.S: |
(844) 423-9889 |
|
International: |
(716) 247-5804 |
|
Israel: |
18 09 31 53 62 |
|
Germany: |
08 00 18 15 287 |
Access code |
5454358 |
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/fm2cohrh or through the
'Investors' section' on www.rewalk.com.
About ReWalk Robotics Ltd.
ReWalk Robotics Ltd. develops, manufactures and
markets wearable robotic exoskeletons for individuals with lower
limb disabilities as a result of spinal cord injury or
stroke. ReWalk’s mission is to fundamentally change the
quality of life for individuals with lower limb disability through
the creation and development of market leading robotic
technologies. Founded in 2001, ReWalk has headquarters in the U.S.,
Israel and Germany. For more information on the ReWalk systems,
please visit www.rewalk.com.
ReWalk® is a registered trademark of ReWalk Robotics Ltd. in
Israel and the United States.
ReStore® is a registered trademark of ReWalk Robotics Ltd. in
Europe and an allowed trademark in the United States.
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; the outcome of ongoing
shareholder class action litigation relating to its initial public
offering; 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
U.S. Generally Accepted Accounting Principles (GAAP), ReWalk
believes that the use of non-GAAP accounting measures, including
non-GAAP net loss, is helpful to its investors. These measures,
which the Company refers to as non-GAAP financial measures, are not
prepared in accordance with GAAP.
For the three months ended March 31, 2020 and
2019, non-GAAP net loss is calculated as GAAP net loss excluding
(i) non-cash share-based compensation expense, (ii) depreciation
and (iii) non-cash financial expenses.
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 U.S. GAAP, and should not be considered
as alternatives to operating loss or net loss or any other
performance measures derived in accordance with GAAP. Non-GAAP
financial measures may not provide information that is directly
comparable to that provided by other companies in ReWalk’s
industry, as other companies in the industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. In addition, there are limitations in
using non-GAAP financial measures because the non-GAAP financial
measures are not prepared in accordance with GAAP, may be different
from non-GAAP financial measures used by other companies and
exclude expenses that may have a material impact on the Company’s
reported financial results. Further, share-based compensation
expense has been, and will continue to be for the foreseeable
future, a significant recurring expense in the Company’s business
and an important part of the compensation provided to its
employees.
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: Ori GonChief Financial Officer ReWalk
Robotics Ltd. T: +972-4-9590123
E: investorrelations@rewalk.com
ReWalk
Robotics Ltd. And subsidiaries |
|
Condensed
Consolidated Statements of Operations |
|
(unaudited) |
|
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
760 |
|
$ |
1,581 |
|
Cost of
revenues |
|
387 |
|
|
655 |
|
Gross
profit |
|
373 |
|
|
926 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Research and development, net |
|
985 |
|
|
1,414 |
|
Sales and marketing |
|
1,681 |
|
|
1,587 |
|
General and administrative |
|
1,309 |
|
|
1,500 |
|
Total
operating expenses |
|
3,975 |
|
|
4,501 |
|
Operating
loss |
|
(3,602) |
|
|
(3,575) |
|
Financial
expenses, net |
|
246 |
|
|
418 |
|
Loss before
income taxes |
|
(3,848) |
|
|
(3,993) |
|
Taxes on
income (tax benefit) |
|
(8) |
|
|
7 |
|
Net
loss |
$ |
(3,840) |
|
$ |
(4,000) |
|
Net loss per
ordinary share, basic and diluted |
$ |
(0.37) |
|
$ |
(1.25) |
|
Weighted
average number of shares used in computing net loss per ordinary
share, basic and diluted |
|
10,374,116 |
|
|
3,211,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP net loss |
|
|
|
|
|
|
Net
loss |
$ |
(3,840) |
|
$ |
(4,000) |
|
Non-cash
share based compensation expense |
|
199 |
|
|
319 |
|
Depreciation
of property and equipment, net |
|
75 |
|
|
94 |
|
Non-GAAP net
loss |
$ |
(3,566) |
|
$ |
(3,587) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
|
Condensed
Consolidated Balance Sheets |
|
(unaudited) |
|
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
16,602 |
|
$ |
16,253 |
|
Trade receivable, net |
|
726 |
|
|
794 |
|
Prepaid expenses and other current assets |
|
1,294 |
|
|
903 |
|
Inventories |
|
3,340 |
|
|
3,123 |
|
Total
current assets |
|
21,962 |
|
|
21,073 |
|
Restricted
cash and other long term assets |
|
1,049 |
|
|
1,061 |
|
Operating
lease right-of-use assets |
|
1,721 |
|
|
1,737 |
|
Property and
equipment, net |
|
485 |
|
|
501 |
|
Total
assets |
$ |
25,217 |
|
$ |
24,372 |
|
|
|
|
|
|
|
|
Liabilities
and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Current maturities of long term loan |
$ |
5,699 |
|
$ |
5,438 |
|
Current maturities of operating leases |
|
658 |
|
|
637 |
|
Trade payables |
|
2,789 |
|
|
2,698 |
|
Other current liabilities |
|
1,205 |
|
|
1,395 |
|
Total
current liabilities |
|
10,351 |
|
|
10,168 |
|
|
|
|
|
|
|
|
Long term
loan, net of current maturities |
|
- |
|
|
1,527 |
|
Non-current
operating leases |
|
1,235 |
|
|
1,315 |
|
Other
long-term liabilities |
|
548 |
|
|
582 |
|
Shareholders’ equity |
|
13,083 |
|
|
10,780 |
|
Total
liabilities and equity |
$ |
25,217 |
|
$ |
24,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
|
Condensed
Consolidated Statements of Cash Flows |
|
(unaudited) |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Net cash
used in operating activities |
$ |
(4,341) |
|
$ |
(4,253) |
|
Net cash
used in investing activities |
|
(9) |
|
|
- |
|
Net cash
provided by financing activities |
|
4,690 |
|
|
3,580 |
|
Increase
(decrease) in cash, cash equivalents, and restricted cash |
|
340 |
|
|
(673) |
|
Cash, cash
equivalents, and restricted cash at beginning of period |
|
16,992 |
|
|
10,347 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
17,332 |
|
$ |
9,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
|
(unaudited) |
|
(In
thousands, except units placed) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
(Unaudited) |
|
Revenue: |
|
|
|
|
|
|
United
States |
$ |
216 |
|
$ |
497 |
|
Europe |
|
542 |
|
|
1,079 |
|
Asia
Pacific |
|
2 |
|
|
5 |
|
Total
Revenue |
$ |
760 |
|
$ |
1,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
Personal
units revenue |
$ |
714 |
|
$ |
1,546 |
|
Rehabilitation units revenue |
|
46 |
|
|
35 |
|
Total
Revenue |
$ |
760 |
|
$ |
1,581 |
|
|
|
|
|
|
|
|
ReWalk Robotics (NASDAQ:RWLK)
Historical Stock Chart
From Mar 2024 to Apr 2024
ReWalk Robotics (NASDAQ:RWLK)
Historical Stock Chart
From Apr 2023 to Apr 2024