ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”)
today announced its financial results for the three and
twelve-months ended December 31, 2020.
Highlights of and subsequent to the fourth
quarter and FY 2020
include:
- Q4 2020 revenue was $1.2 million and FY 2020 revenue was $4.4
million, compared to $1.2 million in Q4 2019 and $4.9 million in FY
2019.
- Going concern qualification removed as our cash at the end of
the year was $20.3 million and an additional $13.2 million received
through warrants exercise to date in 2021.
- Continued CMS progress made with issuance of HCPCS Level II
Code for ReWalk Exoskeleton enabling an upcoming application for
coverage
- Expended German reimbursement contracts with additional
insurers
- FY 2020 operating expenses were $14.2 million compared to $16.8
million in FY 2019
“We are encouraged with our overall results in
FY 2020. Although we have faced and continue to face the effects of
Covid-19 in several of our key markets, during this last year we
progressed our CMS initiative as we created a new code for
exoskeleton and, if our planned coverage application is successful,
it will allow a significant number of the U.S. spinal cord
injury population access to our device. Our German insurance
contracts continued to expand as more payors are joining them and
with our strengthened cash position we can maximize our company's
potential,” stated Larry Jasinski, Chief Executive Officer of
ReWalk.
Fourth Quarter and Full Year
2020 Financial Results
Total revenue was $1.2 million for the fourth
quarter of 2020, compared to $1.2 million during the prior year
quarter. Annual revenue was $4.4 million in 2020 compared to $4.9
million in 2019. The decrease year over year was mainly due to a
lower number of units sold in Germany and the U.S. as we
encountered disruptions in our sales cycle due to Covid-19.
Gross margin was 33% during the fourth quarter
of 2020, compared to 61% in the fourth quarter of 2019 and our full
year 2020 gross margin was 50% compared to 56% in 2019. The
decrease was primarily attributable to lower number of units sold
as well as higher inventory write-off of our previous designs
partially offset by a higher average selling price.
Total operating expenses in the fourth quarter
of 2020 were $3.2 million, compared to $3.9 million in the prior
year period. Total operating expenses for the full year 2020 were
$14.2 million, compared to $16.8 million in 2019. The reduction
year over year was mainly in our research and development spend as
we completed our ReStore design in 2019. Our fourth quarter
reduction was impacted by a one-time event of $0.4 million due to
forgiveness of our PPP loan.
Net loss was $2.9 million for the fourth quarter
of 2020, compared to a net loss of $3.6 million in the fourth
quarter of 2019. Net loss was $13.0 million in 2020, compared to a
net loss of $15.6 million in 2019.
Non-GAAP net loss for the fourth quarter of 2020
was $2.7 million, compared to a non-GAAP net loss of $3.2 million
in the fourth quarter of 2019. Non-GAAP net loss was $11.9 million
in 2020, compared to a Non-GAAP net loss of $14.0 million in 2019.
A reconciliation of net loss to non-GAAP net loss is included at
the end of this press release.
Liquidity
As of December 31, 2020, ReWalk had $20.3
million in cash on its balance sheet and received an additional
$13.2 million in 2021 from warrant exercises. The Company repaid
its debt entirely as of December 31, 2020.
Conference Call
ReWalk management will host its fourth quarter 2020 conference
call as follows:
Date |
Thursday,
February 18, 2021 |
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 |
8763375 |
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/qqevtg5m 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 Unites States.
ReStore® is a registered trademark of ReWalk Robotics Ltd. in
the United States, Europe and the United Kingdom.
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: the adverse effect that the
COVID-19 pandemic has had and may continue to have on the
Company’s 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 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; ReWalk's ability
to establish a pathway to commercialize its products in China; 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; the market
and other conditions; 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 twelve months ended December
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 subsidaries |
Consolidated
Statements of Operations |
U.S. dollars
in thousands (except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Twelve
Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
Revenue |
$ |
1,218 |
|
|
$ |
1,181 |
|
|
$ |
4,393 |
|
|
$ |
4,873 |
|
Cost of
revenues |
|
816 |
|
|
|
465 |
|
|
|
2,204 |
|
|
|
2,147 |
|
Gross
profit |
|
402 |
|
|
|
716 |
|
|
|
2,189 |
|
|
|
2,726 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development, net |
|
764 |
|
|
|
1,056 |
|
|
|
3,459 |
|
|
|
5,348 |
|
Sales and marketing |
|
1,213 |
|
|
|
1,596 |
|
|
|
5,754 |
|
|
|
6,167 |
|
General and administrative |
|
1,206 |
|
|
|
1,271 |
|
|
|
4,980 |
|
|
|
5,259 |
|
Total
operating expenses |
|
3,183 |
|
|
|
3,923 |
|
|
|
14,193 |
|
|
|
16,774 |
|
Operating
loss |
|
(2,781 |
) |
|
|
(3,207 |
) |
|
|
(12,004 |
) |
|
|
(14,048 |
) |
Financial
expenses, net |
|
198 |
|
|
|
365 |
|
|
|
921 |
|
|
|
1,496 |
|
Loss before
income taxes |
|
(2,979 |
) |
|
|
(3,572 |
) |
|
|
(12,925 |
) |
|
|
(15,544 |
) |
Taxes on
income (tax benefit) |
|
(34 |
) |
|
|
3 |
|
|
|
51 |
|
|
|
7 |
|
Net
loss |
$ |
(2,945 |
) |
|
$ |
(3,575 |
) |
|
$ |
(12,976 |
) |
|
$ |
(15,551 |
) |
Net loss per
ordinary share, basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.82 |
) |
|
$ |
(2.70 |
) |
Weighted
average number of shares used in computing net loss per ordinary
share basic |
|
20,625,520 |
|
|
|
7,307,711 |
|
|
|
15,764,980 |
|
|
|
5,763,317 |
|
Weighted
average number of shares used in computing net loss per ordinary
share diluted |
|
20,660,743 |
|
|
|
7,307,711 |
|
|
|
15,764,980 |
|
|
|
5,763,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP net loss |
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(2,945 |
) |
|
$ |
(3,575 |
) |
|
$ |
(12,976 |
) |
|
$ |
(15,551 |
) |
Non-cash
share based compensation expense |
|
205 |
|
|
|
239 |
|
|
|
749 |
|
|
|
1,108 |
|
Depreciation |
|
70 |
|
|
|
79 |
|
|
|
285 |
|
|
|
321 |
|
Non-cash
financial expenses |
|
(59 |
) |
|
|
80 |
|
|
|
- |
|
|
|
80 |
|
Non-GAAP net
loss |
$ |
(2,729 |
) |
|
$ |
(3,177 |
) |
|
$ |
(11,942 |
) |
|
$ |
(14,042 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
Consolidated
Balance Sheets |
U.S. dollars
in thousands (except share and per share data) |
(Audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
|
December
31, |
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
20,350 |
|
|
$ |
16,253 |
|
|
|
|
|
|
|
Trade receivable, net |
|
684 |
|
|
|
794 |
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
672 |
|
|
|
903 |
|
|
|
|
|
|
|
Inventories |
|
3,542 |
|
|
|
3,123 |
|
|
|
|
|
|
|
Total
current assets |
|
25,248 |
|
|
|
21,073 |
|
|
|
|
|
|
|
Restricted cash and other long term assets |
|
1,033 |
|
|
|
1,061 |
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
1,349 |
|
|
|
1,737 |
|
|
|
|
|
|
|
Property and equipment, net |
|
437 |
|
|
|
501 |
|
|
|
|
|
|
|
Total
assets |
|
2,819 |
|
|
|
3,299 |
|
|
|
|
|
|
|
Total
assets |
$ |
28,067 |
|
|
$ |
24,372 |
|
|
|
|
|
|
|
Liabilities
and equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long term loan |
$ |
- |
|
|
$ |
5,438 |
|
|
|
|
|
|
|
Current maturities of operating leases |
|
660 |
|
|
|
637 |
|
|
|
|
|
|
|
Trade payables |
|
2,268 |
|
|
|
2,698 |
|
|
|
|
|
|
|
Other current liabilities |
|
1,740 |
|
|
|
1,395 |
|
|
|
|
|
|
|
Total
current liabilities |
|
4,668 |
|
|
|
10,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term loan, net of current maturities |
|
- |
|
|
|
1,527 |
|
|
|
|
|
|
|
Non-current operating leases liability |
|
923 |
|
|
|
1,315 |
|
|
|
|
|
|
|
Other long-term liabilities |
|
702 |
|
|
|
582 |
|
|
|
|
|
|
|
Total
long-term liabilities |
|
1,625 |
|
|
|
3,424 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
21,774 |
|
|
|
10,780 |
|
|
|
|
|
|
|
Total
liabilities and equity |
$ |
28,067 |
|
|
$ |
24,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
Consolidated
Statements of Cash Flows |
U.S. dollars
in thousands |
(Audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended |
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in operating activities |
$ |
(12,589 |
) |
|
$ |
(14,815 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
(73 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities |
|
16,724 |
|
|
|
21,482 |
|
|
|
|
|
|
|
Increase in
cash, cash equivalents, and restricted cash |
|
4,062 |
|
|
|
6,645 |
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash at beginning of period |
|
16,992 |
|
|
|
10,347 |
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
21,054 |
|
|
$ |
16,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk
Robotics Ltd. And subsidiaries |
Revenue by
Region and Product |
U.S. dollars
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
December 31, |
|
December
31, |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
(Unaudited) |
|
(Audited) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Israel |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2 |
|
United
States |
|
574 |
|
|
|
511 |
|
|
|
1,746 |
|
|
|
2,003 |
|
Europe |
|
641 |
|
|
|
670 |
|
|
|
2,631 |
|
|
|
2,832 |
|
Asia
Pacific |
|
2 |
|
|
|
- |
|
|
|
8 |
|
|
|
36 |
|
Latin
America |
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Africa |
|
1 |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
Total
Revenue |
$ |
1,218 |
|
|
$ |
1,181 |
|
|
$ |
4,393 |
|
|
$ |
4,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Personal
units revenue |
$ |
1,141 |
|
|
$ |
1,150 |
|
|
$ |
4,220 |
|
|
$ |
4,674 |
|
Rehabilitation units revenue |
|
77 |
|
|
|
31 |
|
|
|
173 |
|
|
|
199 |
|
Total
Revenue |
$ |
1,218 |
|
|
$ |
1,181 |
|
|
$ |
4,393 |
|
|
$ |
4,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ReWalk Robotics (NASDAQ:RWLK)
Historical Stock Chart
From Apr 2024 to May 2024
ReWalk Robotics (NASDAQ:RWLK)
Historical Stock Chart
From May 2023 to May 2024