Business context and reporting period
This is ReWalk Robotics Ltd.’s unaudited Form 10-Q for the three months ended March 31, 2022. The company develops and commercializes robotic exoskeletons and related rehabilitation products, including ReWalk, ReStore, MyoCycle and MediTouch. The filing identifies the registrant as ReWalk Robotics Ltd.; the request metadata names Lifeward Ltd., so verify the issuer identity and any subsequent name change.
Key financial metrics
Amounts below are in U.S. dollars; financial statement amounts are in millions unless noted.
| Metric | Q1 2022 | Q1 2021 / comparison |
|---|---|---|
| Revenue | $0.876 | $1.316; down 33% |
| Gross profit / margin | $0.265 / 30% | $0.707 / 54% |
| Operating expenses | $4.553 | $3.728 |
| Operating loss | $(4.288) | $(3.021) |
| Net loss | $(4.350) | $(3.062) |
| Basic and diluted loss per share | $(0.07) | $(0.08) |
| Net cash used in operations | $(5.708) | $(3.173) |
| Cash and cash equivalents at quarter-end | $82.632 | $88.337 at Dec. 31, 2021 |
| Total assets / liabilities | $89.998 / $4.812 | $94.750 / $5.367 at Dec. 31, 2021 |
Revenue fell mainly because fewer ReWalk Personal 6.0 units were sold in the United States and Germany. Gross margin declined due to lower unit volumes and a less favorable sales mix, including lower average selling prices. Personal-unit revenue was $0.770 million versus $1.308 million; rehabilitation-unit revenue increased to $0.106 million from $0.008 million.
Material changes and liquidity
- Research and development expense rose 14% to $0.907 million, primarily from consulting and subcontractor costs. Sales and marketing expense rose 31% to $2.184 million, reflecting personnel, travel and trade-show activity. General and administrative expense increased 16% to $1.462 million, mainly due to personnel and professional services.
- Operating cash outflow increased 80% to $5.708 million, attributed primarily to higher prepaid insurance, inventory purchases and business development costs. Investing cash outflow was $0.003 million; there were no financing cash flows in Q1 2022, compared with $50.236 million of financing inflows in Q1 2021.
- Cash and cash equivalents were $82.6 million at March 31, 2022. Management said cash was sufficient to fund operations for more than 12 months after issuance of the interim statements. The company reported no conventional borrowings in the presented balance sheet; liabilities included operating lease obligations. Operating lease liabilities totaled $0.968 million, and non-cancelable purchase obligations were approximately $1.549 million.
- Share count increased from 62.480 million at year-end to 62.509 million at March 31. A further 19.421 million warrants were outstanding and exercisable, presenting potential dilution. The filing reports an accumulated deficit of $198.5 million.
Outlook, risks and unusual items
Management expects continued net losses and negative operating cash flow in the near term. Longer-term profitability depends on successful commercialization and revenue growth; the company may need additional capital if it does not reach profitability or positive cash flow. Management expects to focus on reimbursement and CMS coverage for ReWalk Personal, commercialization of ReStore and distributed products, and product development. It stated that gross profit could improve with higher sales volume, but lower expected margins for ReStore and distributed products and higher component costs could weigh on margins. No specific revenue or earnings guidance was provided.
- COVID-19 continued to affect customer access, demonstrations, training, clinical activity and demand; supply-chain delays, component shortages and higher parts costs were also cited.
- The company depends on Sanmina Corporation as its sole manufacturer. Its U.S. reimbursement pathway remains developing; a CMS HCPCS meeting agenda included benefit-category determination under new rules.
- Medical-device regulatory compliance is a material risk, including FDA requirements and the EU Medical Devices Regulation. The filing cites possible enforcement, recalls, penalties or loss of market access if requirements are not met.
- The Harvard research collaboration expired March 31, 2022. The separate exclusive license remains in effect; contingent royalties and commercialization milestone payments may remain relevant.
- The company disclosed $1.6 million of contingent IIA royalty liability, payable based on applicable product sales, and $0.707 million of restricted cash pledged as security. It reported no material litigation beyond matters described in the filing and no off-balance-sheet arrangements.
- Disclosure controls were assessed as effective, with no material changes in internal control over financial reporting during the quarter.
Important facts for investors to verify
- Confirm the registrant’s identity and relationship to Lifeward Ltd., given the mismatch between the request metadata and the filing’s stated name.
- Track subsequent revenue, unit placements and geographic performance, particularly U.S. and German ReWalk Personal sales and rehabilitation-product adoption.
- Monitor CMS and third-party reimbursement decisions, and whether they translate into broader coverage and sales.
- Assess cash burn against the stated runway, financing needs, and the potential dilution from outstanding warrants and future equity issuance.
- Review supply-chain exposure, sole-manufacturer dependence, COVID-related operating effects and evolving medical-device regulatory requirements.