Full Press Release Details
ReWalk Robotics Reports Fourth Quarter
and Year-End 2015 Financial Results
--Record 23 Personal Units Placed During
the Fourth Quarter--
ILIT, ISRAEL / MARLBOROUGH, MA, February 25, 2016 - ReWalk Robotics Ltd. (Nasdaq:RWLK) ("ReWalk" or
"the Company") today announced its financial results for the three- and twelve-month periods ended December 31, 2015.
Highlights of and subsequent to the fourth quarter include:
was an important year for ReWalk, as we worked to establish a solid foundation for long-term sustainable growth. Our transition
from a self-pay driven-model to a more robust reimbursement strategy is beginning to deliver results. Multiple ReWalkers were able
to secure coverage and two denials were successfully reversed on appeal in the U.S. and Germany as a result of our investment in
strategic reimbursement. We generated 801 qualified leads during the year and have 128 pending claims. As these continue to grow,
we are confident that our efforts will result in additional positive coverage decisions," stated
Larry Jasinski, Chief Executive Officer.
"Our solid reimbursement progress, combined with the inclusion
of ReWalk systems in the VA's ground-breaking multi-year national study of 160 veterans with spinal cord injury, and the
VA's recently issued national standard operating policy that facilitates evaluation, training and procurement of ReWalk systems,
provides ReWalk with a long runway for growth. We are excited by the multiple opportunities to improve the health and quality of
life of potentially thousands of individuals who qualify for ReWalk Personal systems. As we enter 2016, we are confident that the
right building blocks are in place for long-term growth," concluded Jasinski.
Fourth Quarter 2015 Financial
Total revenue was $1.3 million for
the fourth quarter of 2015, compared with $1.5 million in the fourth quarter of 2014, and up sequentially from $1.2 million in
the third quarter of 2015. Twenty-five ReWalk systems were placed during the fourth quarter, compared with 31 ReWalk systems placed
in the prior year period, and 23 placed in the third quarter of 2015.
Gross profit in the fourth quarter
was $34,000, compared to a gross loss of $529,000 for the fourth quarter of 2014. In 2014, we recorded a one-time charge of $466,000
for the early settlement at a discount of our BIRD Foundation grant. Our positive margin in 2015 reflects the benefits of having
fully transitioned our manufacturing to Sanmina, partially offset by costs associated with the conversion to the Personal 6.0.
Total operating expenses in the fourth
quarter of 2015 were $7.5 million, versus $4.8 million in the fourth quarter of 2014. Operating expenses in the fourth quarter
reflect investment in research and development programs and clinical activities as well as investment in our commercial and reimbursement
organizations and our broad efforts on insurance reimbursement.
Net loss was $7.5 million for the fourth
quarter of 2015 versus a net loss of $5.5 million in the prior year quarter. Non-GAAP net loss for the fourth quarter was $6.8
million compared with a non-GAAP net loss of $4.6 million in the fourth quarter of 2014.
A reconciliation of net loss to non-GAAP
net loss is included at the end of this press release.
Year-End 2015 Financial Results
Total revenue was $3.7 million for
the year ended December 31, 2015, compared to $4.0 million in 2014. In 2015, 73 ReWalk systems were placed compared to 74 ReWalk
systems placed during 2014. In 2015, 53 were personal units compared to 43 in the prior year period.
Gross profit was $214,000 for 2015,
compared to a gross loss of $621,000 for 2014. In 2014, we recorded a one-time charge of $466,000 for the early settlement at a
discount of our BIRD Foundation grant. Our positive margin in 2015 reflects the benefits of having fully transitioned our manufacturing
to Sanmina, partially offset by costs associated with the conversion to the Personal 6.0.
operating expenses in 2015 were $25.4 million versus $19.3 million in the prior year. The increase reflects the Company's
increased investment in sales and marketing, reimbursement and research and development resources as well as the increased cost
of being a publicly-traded company. Research and development expenses in 2014 were impacted by a non-cash share based compensation
charge of $4.1 million related to ReWalk's IPO.
Net loss for the year ended December
31, 2015 was $25.4 million compared with a net loss of $21.7 million for the full year 2014. Non-GAAP net loss was $23.1 million
for the year compared with a non-GAAP net loss of $14.7 million last year.
A reconciliation of net loss to non-GAAP
net loss is included at the end of this press release.
On January 4th, 2016, ReWalk
entered into a credit facility with Kreos Capital under which Kreos extended a line of credit for up to $20 million, of which ReWalk
has currently drawn down $12 million. As of December 31, 2015, ReWalk had $17.9 million in cash in its balance sheet prior to the
draw down from Kreos.
ReWalk management will host its fourth
quarter conference call as follows:
| Date | Thursday, February 25, 2016 | |
| Time | 8:30 AM EST | |
| Telephone | U.S: | (844) 423-9889 |
| International: | (716) 247-5804 | |
| Israel: | 18 09 31 53 62 | |
| Access code | 42553436 | |
| Webcast (live and archive) | www.rewalk.com under the "Investors" section. |
A telephone replay will be available
shortly after the completion of the call for two weeks at (855) 859-2056 (U.S.) or (404) 537-3406 (International). The passcode
for the replay is 42553436.
About ReWalk Robotics Ltd.
Robotics Ltd. develops, manufactures and markets wearable robotic exoskeletons for individuals with spinal cord injury. Our
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 US, Israel and Germany. For
more information on the ReWalk systems, please visit http://www.rewalk.com.
Forward-Looking Statements
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, in some cases, may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "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: ReWalk's expectations
regarding future growth, including its ability to increase sales in its existing geographic markets and to expand to new
markets; ReWalk's ability to maintain and grow its reputation and the market acceptance of our products; ReWalk's
ability to achieve reimbursement from third-party payors for our products; ReWalk's expectations as to its clinical
research program and clinical results; ReWalk's ability to improve its products and develop new
products; ReWalk's ability to maintain adequate protection of its intellectual property and to avoid violation of the
intellectual property rights of others; ReWalk's ability to gain and maintain regulatory approvals; ReWalk's
ability to maintain relationships with existing customers and develop relationships with new customers; and other factors
discussed under the heading "Risk Factors" in
ReWalk's Annual Report on Form 20-F for the year ended December 31, 2014 filed with the U.S. Securities and Exchange
Commission on February 27, 2015 and other documents subsequently filed with or furnished to the U.S. Securities and Exchange
Commission. 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
is a registered trademark of ReWalk Robotics Ltd. in Israel.
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, 2015 and
2014, non-GAAP net loss is calculated as GAAP net loss excluding (i) non-cash share-based compensation expense and (ii) expense