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| Statement |
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| The increase in legacy ReWalk revenue was a result of continuing sales momentum in the United States and sequential improvement in Germany |
| But we do see expansion in Europe, specifically within the ReWalk side and on the AltarG side they have a very good distribution network that we believe we’ll be able to build on as well |
| The larger organization and Team plus VA plus CMS are all favorable to allow growth |
| Equally important, we will be better positioned to fulfill the mission of our founder, which was to empower a large segment of the spinal cord engineering community with the ability to stand eye-to-eye and walk down the street with all of us |
| From a technical perspective, our breakthrough designated FDA clearance allows us to supply Medicare beneficiaries and injured veterans with a product that allows the greatest utilization in daily life as they can now navigate stairs and curbs when they're out walking |
| And it is a very economic and very good operational system for the small private clinic |
| But it certainly increases our revenue |
| and VA, sales to the VA for the exoskeletons, as well as continued strong performance by the MyoCycle product line |
| In total, Exoskeleton revenue was up 70% in Q3 '23 versus Q3 '22, while our distributed product line, the MyoCycle FES training cycles had another strong quarter with revenue up over 50% from Q3 '22 |
| So in terms of the new business, as you said, the first quarter that you have under your belt, it has been profitable, which is good news |
| First, we are really thrilled with how this is progressing and how it’s come together |
| We are optimistic about the future and the knowledge that ReWalk exoskeletons will endure for those who need them based on the foresight and policies of CMS and the VA |
| AlterG was profitable in the quarter and contributed to the improvement in the non-GAAP operating loss performance |
| We're also excited about the support we are seeing with our new VA centers and the initiatives by Congress and the Senate to broaden awareness and consideration of walking once again |
| We continue to be committed to driving improved fundamentals and financial performance of ReWalk to regain compliance with this rule |
| So the cash burn rate in Q4 should improve considerably from Q3 '23 levels |
| AlterG also provided a slight benefit to the consolidated gross margins for the portion of the quarter that we owned it |
| The 1st is a new ReWalk exoskeleton design that has many improved features and adds cloud connectivity, all of which will aid utilization and make the system easier to use |
| This expanded team provides us with the infrastructure for the furthest reach and highest quality of support for the industry |
| We simply had a fantastic Q3 and early Q4 after years of building investment |
| And we’ve improved the cloud connectivity, which frankly we want to use to help drive utilization, because data will be available and we can help users understand use and we can encourage them to use it even more with these metrics |
| Q3 sales of $4.4 million represents a nearly 400% increase over Q3 2022 that is comprised of a 65% increase in ReWalk revenue and the balance is the addition of AlterG for the last six plus weeks of the quarter |
| When we saw the number 94,000 or 600 or so, you expressed that you were quite pleased |
| The AlterG business ended the quarter with orders for 83 systems in backlog, which represents a healthy start to Q4 '23 |
| The VA is really good in how they manage veterans, but they need support |
| So they’re very good connection points |
| We also see a lot of operational efficiency |
| So in terms of the growth on the ReWalk side, it was really across the board in terms of, there was, like I said, sequential improvement in Germany and Europe |
| The support in parallel for the STAND Act by the Paralyzed Veterans of America and the Disabled Veterans Community is fantastic advocacy for this community |
| This increase in gross margin on a non-GAAP basis was primarily a result of higher volumes of ReWalk and MyoCycle units sold leveraging our fixed production costs and an increase in our average selling price due to a change in sales mix |
| Statement |
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| Combined with our revenue growth, we see decreases in certain investment areas as key priorities change |
| They’ve been slow to get their clinics going at the highest levels from a personnel point of view, over the course of the year, personnel shortages and things of that type |
| Is there any reason why your comments aren't pointing us to that direction? Larry Jasinski We clearly expect our burn rate to go down quarter-over-quarter-over-quarter |
| Legacy ReWalk non-GAAP G&A in Q3 '23 was down slightly versus the spending level in Q3 '22 or about 2% |
| It didn't translate as well as we would have hoped on the execution side |
| This decrease of 5.3 percentage points in gross margin was a result of purchase accounting adjustments from the AlterG transaction |
| For the legacy ReWalk business, which excludes the contribution of AlterG R&D was $0.9 million, a decline of $0.1 million or 14% primarily due to lower spending on subcontractors and consultants on the ReWalk 7 projects since we are in the final stages towards FDA submission |
| Second question is, when it comes to the cash burn, it seems for the first time I’ve heard real aspirational comments that suggest that cash burn is coming down dramatically |
| Our GAAP operating loss for the third quarter was $7.9 million compared to an operating loss of $5.4 million in the third quarter of 2022 |
| So you’re going to see a significant reduction in efforts on government spend |
| As 2024 is a financial execution year, our burn rate must decrease substantially |
| Unidentified Analyst It seems that if that’s the case, we’ll never really get a chance to see what that on a transparent basis |
| We're not far away from getting a good number |
| As you may know, back in October we were notified by NASDAQ that our second 180-day compliance period had expired and that we were still in noncompliance with NASDAQ listing rule 5550(a) to maintain a minimum bid price of $1.00 per share |
| And it seems that that continues to be the case |
| What is the profitability of AlterG separate from ReWalk? I don’t know that there would be a reason not to separate them to different products, but I think that also ends up creating questions about where the cash? Where the earnings are coming from? It seems to me the two products are still discreet enough |
| You’re suggesting already that you made some money even in that period that you reported that AlterG is profitable |
| It'll never be fast enough, but it will grow |
| Since our last financial call, a number of very important events have occurred that we believe have the potential to dramatically change our revenue trajectory and will put ReWalk on a path to profitability |
| I mean should one assume that at some point a run rate on cash burn in 2024, maybe a quarter, one quarter, two on our run rate will be down to that two, $2.5 million |
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