Filing summary
Reporting period and business: This is ReWalk Robotics Ltd.’s unaudited Form 10-Q for the quarter ended March 31, 2023. The company develops and sells mobility and rehabilitation medical devices, including robotic exoskeletons for people with spinal cord injuries and products for stroke rehabilitation. The filing identifies the registrant as ReWalk Robotics Ltd.; the request metadata names Lifeward Ltd.
Financial performance
Amounts below are in U.S. dollars; financial statement amounts are in thousands unless otherwise noted.
| Metric | Q1 2023 | Q1 2022 | Change |
|---|---|---|---|
| Revenue | $1.230 million | $876 thousand | Up 40% |
| Gross profit / margin | $571 thousand / 46.4% | $265 thousand / 30.3% | Margin up about 16 percentage points |
| Operating expenses | $4.946 million | $4.553 million | Up 9% |
| Operating loss | $4.375 million | $4.288 million | Loss increased |
| Net loss | $4.321 million | $4.350 million | Slightly lower |
| Net loss per share | $0.07 | $0.07 | Unchanged |
| Operating cash used | $5.233 million | $5.708 million | Use decreased $475 thousand |
- Revenue growth primarily reflected higher U.S. ReWalk Personal 6.0 sales, partly offset by lower European sales. U.S. revenue was $877 thousand versus $220 thousand; Europe revenue was $324 thousand versus $647 thousand.
- Management attributed gross-margin improvement to higher unit volume and a more favorable average selling price and sales mix. R&D expense fell 17% to $752 thousand; sales and marketing rose 14% to $2.484 million, and G&A rose 17% to $1.710 million.
- Cash and cash equivalents were $61.883 million at March 31, down from $67.896 million at year-end. Cash, cash equivalents and restricted cash totaled $62.540 million. Cash used in financing was $771 thousand, mainly for share repurchases; investing cash flow was zero.
- Total assets were $68.978 million and total liabilities were $5.459 million. The filing reports no conventional borrowings on the balance sheet; liabilities principally include operating leases and deferred revenue. Lease liabilities totaled $1.281 million.
Material developments, outlook and risks
- In March 2023, the FDA granted 510(k) clearance for ReWalk Personal 6.0 use on stairs and curbs. Management said this was the first personal exoskeleton cleared by the FDA for that indication.
- The company terminated its MediTouch distribution agreement effective January 31, 2023, citing unsatisfactory sales. Development investment in ReBoot was temporarily paused in 2023 pending further assessment of clinical and commercial potential. R&D priorities include existing product improvements and support for an FDA submission for the next-generation ReWalk 7.0.
- No specific revenue or earnings guidance was provided. Management expects future growth to depend on sales expansion, reimbursement coverage and commercializing products, and expects future net losses. It stated that available funds should support operations for more than 12 months after the financial statements’ issuance, but said additional capital may be needed before profitability or positive operating cash flow is achieved.
- Reimbursement remains a key uncertainty: broad U.S. commercial coverage is not established, and the company is seeking a nationwide Medicare benefit-category determination. Until then, Medicare coverage may be adjudicated case by case. Management also cited lingering short-term effects from the COVID-19 pandemic on customer engagement and demand.
- Nasdaq had granted an additional compliance period through October 9, 2023 to regain the $1 minimum bid-price requirement. Failure to regain compliance could lead to delisting proceedings.
- Customer concentration is notable: two customers represented 23% and 10% of Q1 revenue; at March 31, two customers represented 28% and 24% of receivables. The company also reported $2.064 million in non-cancelable purchase obligations and a $1.6 million contingent IIA royalty obligation, payable based on applicable product sales.
- The company repurchased 730,350 shares during Q1 for approximately $771 thousand; cumulative repurchases under the program were 3.7 million shares at a total cost of $3.3 million. Potential shares from warrants and equity awards were excluded from diluted loss per share as anti-dilutive.
Investor verification priorities
- Confirm the registrant identity and whether the Lifeward Ltd. metadata refers to a later company name or a different filing; this report is filed under ReWalk Robotics Ltd.
- Track U.S. sales following the stairs-and-curbs clearance, European sales, and gross-margin sustainability as product mix changes.
- Verify progress on Medicare and other reimbursement decisions, and whether coverage produces a meaningful increase in sales.
- Monitor cash burn, financing needs, repurchases, and potential warrant-related dilution; management’s stated runway exceeds 12 months but does not assure future funding or profitability.
- Monitor Nasdaq bid-price compliance, customer concentration, purchase commitments, IIA royalties and any material legal developments.
- The MD&A states operating cash use decreased by “$475 million,” but the cash-flow figures show a decrease of $475 thousand; verify this apparent unit typo against the filed statements.