ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”)
today announced its financial results for the three and nine months
ended September 30, 2020.
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 Larry Jasinski, Chief Executive
Officer. “The revenue for the quarter was impacted by the limited
market access to train and process insurance submissions due to the
current environment. We anticipate that our results will remain
choppy until COVID-19 restrictions lessen.”
Third Quarter
2020 Financial
Results
Total revenue was $0.7 million for the third
quarter of 2020, compared to $1.2 million during the prior year
quarter. The decrease was mainly due to a lower number of units
sold in Germany and the U.S.
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 $3.5 million, compared to $3.7 million in the prior year
quarter. The decrease was mainly due to lower R&D spend as we
completed the development of our ReStore® device.
Net loss was $3.3 million for the third quarter
of 2020, compared to a net loss of $3.4 million in the prior year
quarter.
Non-GAAP net loss was $3.0 million for the third
of 2020 compared to $3.1 million during the prior year quarter.
Reconciliation of net loss to non-GAAP net loss is included at the
end of this press release.
Liquidity
As of September 30, 2020, ReWalk had $18.1 million in cash on
its balance sheet and $3.4 million in short- and long-term
debt.
Conference Call
ReWalk management will host its third quarter 2020 conference
call as follows:
Date |
Tuesday, November 10,
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 |
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/ou3s2sujor through the
'Investors—Webcasts & Presentations' 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; 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 and nine months ended September
30, 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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk Robotics Ltd. And subsidiaries |
|
Condensed Consolidated Balance Sheets |
|
(unaudited) |
|
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
|
December
31, |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk Robotics Ltd. And subsidiaries |
|
Condensed Consolidated Statements of Cash
Flows |
|
(unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk Robotics Ltd. And subsidiaries |
|
(unaudited) |
|
(In thousands, except units placed) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Israel |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2 |
|
|
United States |
|
325 |
|
|
|
569 |
|
|
|
1,172 |
|
|
|
1,492 |
|
|
Europe |
|
413 |
|
|
|
665 |
|
|
|
1,990 |
|
|
|
2,162 |
|
|
Asia Pacific |
|
2 |
|
|
|
- |
|
|
|
6 |
|
|
|
36 |
|
|
Latin America |
|
6 |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
Africa |
|
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 |
|
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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