Full Press Release Details
REWALK ROBOTICS LTD.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. DOLLARS IN THOUSANDS
| Page | ||
| Consolidated Balance Sheets | F-2 | |
| Consolidated Statements of Operations | F-4 | |
| Statements of Changes in Shareholders' Equity | F-5 | |
| Consolidated Statements of Cash Flows | F-6 | |
| Notes to Consolidated Financial Statements | F-7 - F-15 |
- - - - - - - - - - - - - - - - - - -
REWALK ROBOTICS LTD. AND SUBSIDIARIES
U.S. dollars in thousands
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 31,172 | $ | 41,829 | ||||
| Short term deposit | - | 1,667 | ||||||
| Trade receivable, net of allowance for doubtful accounts of $36 as of June 30, 2015 (unaudited) and December 31, 2014 | 1,517 | 1,955 | ||||||
| Prepaid expenses and other current assets | 1,410 | 756 | ||||||
| Inventories | 3,522 | 777 | ||||||
| Total current assets | 37,621 | 46,984 | ||||||
| LONG-TERM ASSETS | ||||||||
| Prepaid expenses | 501 | 267 | ||||||
| Property and equipment, net | 1,001 | 414 | ||||||
| Total long-term assets | 1,502 | 681 | ||||||
| Total assets | $ | 39,123 | $ | 47,665 |
The accompanying notes are an integral
part of the consolidated financial statements.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
U.S. dollars in thousands (except share
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 3,445 | $ | 1,390 | ||||
| Employees and payroll accruals | 1,228 | 872 | ||||||
| Deferred revenues and customers advances | 151 | 77 | ||||||
| Other liabilities | 376 | 769 | ||||||
| Other liabilities related to settlement of BIRD foundation grants | - | 466 | ||||||
| Total current liabilities | 5,200 | 3,574 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Deferred revenues | 197 | 172 | ||||||
| Other long-term liabilities | 102 | 66 | ||||||
| Total long-term liabilities | 299 | 238 | ||||||
| Total liabilities | 5,499 | 3,812 | ||||||
| COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
| Shareholders' equity: | ||||||||
| Share capital | ||||||||
| Ordinary share of NIS 0.01 par value-Authorized: 250,000,000 shares as of June 30, 2015 (unaudited) and December 31, 2014; Issued and outstanding: 12,145,616 (unaudited) and 11,978,554 shares as of June 30, 2015 (unaudited) and December 31, 2014 respectively | 32 | 32 | ||||||
| Additional paid-in capital | 93,680 | 92,395 | ||||||
| Accumulated deficit | (60,088 | ) | (48,574 | ) | ||||
| Total shareholders' equity | 33,624 | 43,853 | ||||||
| Total liabilities and shareholders' equity | $ | 39,123 | $ | 47,665 |
The accompanying notes are an integral
part of the consolidated financial statements.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share
| Six months ended June 30, | ||||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
| Revenues | $ | 1,245 | $ | 945 | ||||
| Cost of revenues | 1,152 | 1,368 | ||||||
| Gross profit (loss) | 93 | (423 | ) | |||||
| Operating expenses: | ||||||||
| Research and development | 2,987 | 2,158 | ||||||
| Sales and marketing, net | 5,514 | 2,891 | ||||||
| General and administrative | 2,956 | 1,382 | ||||||
| Total operating expenses | 11,457 | 6,431 | ||||||
| Operating loss | (11,364 | ) | (6,854 | ) | ||||
| Financial expenses, net | (119 | ) | (2,855 | ) | ||||
| Loss before income taxes | (11,483 | ) | (9,709 | ) | ||||
| Income taxes | 31 | 32 | ||||||
| Net loss | $ | (11,514 | ) | $ | (9,741 | ) | ||
| Convertible preferred share dividend | - | (1,395 | ) | |||||
| Net loss attributable to ordinary shares | (11,514 | ) | (11,136 | ) | ||||
| Net loss per ordinary share, basic and diluted | $ | (0.95 | ) | $ | (59.42 | ) | ||
| Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 12,066,950 | 187,390 |
The accompanying notes are an integral
part of the consolidated financial statements.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
U.S. dollars in thousands (except share
| Convertible Preferred Shares | Ordinary Share | Additional paid-in | Accumulated | Total shareholders' | ||||||||||||||||||||||||
| Number | Amount | Number | Amount | capital | deficit | equity | ||||||||||||||||||||||
| Balance as of January 1, 2014 | 327,403 | * | 185,688 | * | 32,537 | (26,906 | ) | 5,631 | ||||||||||||||||||||
| Exercise of warrants into Series C Convertible preferred shares | 17,705 | * | - | - | 3,825 | - | 3,825 | |||||||||||||||||||||
| Exercise of warrants into Series D Convertible preferred shares | 263 | * | - | - | 57 | - | 57 | |||||||||||||||||||||
| Issuance of series D convertible preferred shares | 4,131 | * | - | - | 1,114 | - | 1,114 | |||||||||||||||||||||
| Issuance of Series E convertible preferred shares, net of issuance expense in an amount of $212 | 75,695 | * | - | - | 7,895 | - | 7,895 | |||||||||||||||||||||
| Conversion of convertible preferred shares into ordinary shares | (425,197 | ) | * | 7,838,640 | 22 | (22 | ) | - | - | |||||||||||||||||||
| Recalssification of liability warrants to equity warrants | - | - | - | - | 5,555 | - | 5,555 | |||||||||||||||||||||
| Issuance of ordinary Shares in IPO, net of issuance expenses in an amount of $5,138 | - | - | 3,450,000 | 9 | 36,254 | - | 36,263 | |||||||||||||||||||||
| Exercise of warrants into ordinary shares | - | - | 157,618 | - | - | - | - | |||||||||||||||||||||
| Share-based compensation to employees and non employees | - | - | - | - | 5,179 | - | 5,179 | |||||||||||||||||||||
| Issuance of ordinary share upon exercise of stock options by employees | - | - | 346,608 | 1 | 1 | - | 2 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (21,668 | ) | (21,668 | ) | |||||||||||||||||||
| Balance as of December 31, 2014 | - | - | 11,978,554 | 32 | 92,395 | (48,574 | ) | 43,853 | ||||||||||||||||||||
| Share-based compensation to employees and non employees | - | - | - | - | 1,171 | - | 1,171 | |||||||||||||||||||||
| Issuance of ordinary shares upon exercise of stock options by employees and non-employee consultants | - | - | 117,378 | * | 114 | - | 114 | |||||||||||||||||||||
| Exercise of warrants into ordinary shares | - | - | 49,684 | - | - | - | - | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (11,514 | ) | (11,514 | ) | |||||||||||||||||||
| Balance as of June 30, 2015 (unaudited) | - | - | 12,145,616 | 32 | 93,680 | (60,088 | ) | 33,624 |
* Represents an amount lower than $1.
The accompanying notes are an integral
part of the consolidated financial statements.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| Six months ended June 30, | ||||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (11,514 | ) | $ | (9,741 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 124 | 51 | ||||||
| Share-based compensation | 1,171 | 382 | ||||||
| Deferred taxes | (27 | ) | 26 | |||||
| Revaluation of fair value of warrants to purchase convertible preferred shares | - | 792 | ||||||
| Issuance of warrants to venture lending | - | 835 | ||||||
| Financial expenses resulted from issuance of Series D preferred shares to related party | - | 1,114 | ||||||
| Changes in assets and liabilities: | ||||||||
| Trade receivables | 438 | (69 | ) | |||||
| Prepaid expenses and other current and long-term assets | (813 | ) | (1,394 | ) | ||||
| Inventories | (3,105 | ) | 418 | |||||
| Trade payables | 2,055 | (91 | ) | |||||
| Employees and payroll accruals | 356 | 143 | ||||||
| Deferred revenues and advances from customers | 57 | (51 | ) | |||||
| Other liabilities | (781 | ) | 273 | |||||
| Net cash used in operating activities | (12,039 | ) | (7,312 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Change in short-term deposits | 1,667 | (12 | ) | |||||
| Purchase of property and equipment | (351 | ) | (89 | ) | ||||
| Net cash provided by (used in) investing activities | 1,316 | (101 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Issuance of ordinary shares upon exercise of stock options by employees | 66 | 2 | ||||||
| Issuance costs | - | (545 | ) | |||||
| Net cash provided by (used in) financing activities | 66 | (543 | ) | |||||
| Decrease in cash and cash equivalents | (10,657 | ) | (7,956 | ) | ||||
| Cash and cash equivalents at beginning of period | 41,829 | 8,860 | ||||||
| Cash and cash equivalents at end of period | $ | 31,172 | $ | 904 | ||||
| Supplemental disclosures of non-cash flow information | ||||||||
| Warrants to purchase Series D convertible preferred shares issued to venture lending | $ | - | $ | 835 | ||||
| Series D convertible preferred shares issued to related party | $ | - | $ | 1,114 | ||||
| Issuance costs | $ | - | $ | 519 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for income taxes | $ | 196 | $ | - |
The accompanying notes are an integral
part of the consolidated financial statements.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
TO CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share
ReWalk Personal and ReWalk Rehabilitation.
ReWalk Personal is designed for everyday use by individuals at home and in their communities. ReWalk Rehabilitation is designed
for the clinical rehabilitation environment.
2:- UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles and
standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include
all the information and footnotes required by generally accepted accounting principles in the United States for complete financial
statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation of the Company's consolidated financial position as of June 30, 2015, consolidated results of operations and
consolidated cash flows for the period of six months ended June 30, 2015 and 2014, have been included. The results for the six
months period ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December
REWALK ROBOTICS LTD. AND SUBSIDIARIES
TO CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share
3:- SIGNIFICANT ACCOUNTING POLICIES
In May 2014, the Financial
Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. ASU
2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Insurance
contracts do not fall within the scope of this ASU. The effective date of ASU 2014-09 is for annual reporting periods beginning
after December 15, 2017. In July 2015, the FASB decided to defer by one year the effective date of this ASU. The
ASU has not yet been adopted and the Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on its
consolidated financial statements.
On August 2014, the FASB issued
ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about
an Entity's Ability to Continue as a Going Concern." The ASU is intended to define management's responsibility
to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide
related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016,
with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its ongoing
financial reporting.
On July 2015, the FASB issued
ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory, which changes the measurement principle for inventory
from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the "estimated
selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation."
ASU 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal
profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis.
The provisions of ASU 2015-11 are effective for public entities with fiscal years beginning after December 15, 2016, and interim
periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact to its consolidated
financial position, consolidated results of operations, and consolidated cash flows of the adoption of ASU 2015-11.
REWALK ROBOTICS LTD. AND SUBSIDIARIES
TO CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share
3:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents
and trade receivables. The Company's cash and cash equivalents are deposited in major banks in Israel, the United States
and Germany. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions.
The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure
to each financial institution.
trade receivables are geographically diversified and derived primarily from sales to customers in various countries, mainly in
the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing
credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its distributors based
upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible
and having exhausted all collection efforts. As of June 30, 2015 (unaudited) and December 31, 2014 the trade receivables are
presented net of $36 allowance for doubtful accounts.
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Unaudited | ||||||||
| Raw materials | $ | 667 | $ | 41 | ||||
| Finished products | 2,885 | 736 | ||||||
| $ | 3,522 | $ | 777 |
5:- COMMITMENTS AND CONTINGENCIES
Company has contractual obligations to purchase goods from its manufacturer. Purchase obligations do not include contracts that
may be canceled without penalty. As of June 30, 2015 (unaudited), outstanding purchase orders has incurred approximately $1,515
(unaudited) of manufacturing costs.
Company operates from leased facilities in Israel, the Unites States and Germany. These leases expire between 2015 and 2025.
minimum lease commitments of the Company and its subsidiaries under various non-cancelable operating lease agreements in respect
of premises, that are in effect as of June 30, 2015 (unaudited), are as follows:
| 2015 | $ | 99 | ||
| 2016 | 229 | |||
| 2017 | 229 | |||
| 2018 | 229 | |||
| 2019 and thereafter | 1,601 | |||
| Total | $ | 2,387 |