ReWalk(RWLK) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2024, were $6.707 million, a significant increase from$1.337 million for the same period in 2023, representing a growth of approximately 401%[22] - Gross profit for the three months ended June 30, 2024, was $2.757 million, compared to$576 thousand for the same period in 2023, indicating a gross margin improvement[22] - Operating loss for the three months ended June 30, 2024, was $(4.443) million, slightly improved from$(5.158) million in the same period of 2023[22] - Net loss for the six months ended June 30, 2024, was $(10.580) million, compared to$(8.963) million for the same period in 2023, reflecting ongoing challenges in profitability[22] - For the six months ended June 30, 2024, total revenues were $11,990,000, up from$2,567,000 in the same period of 2023, indicating a 367% increase[62] - The Company reported product revenue of $5,128,000 for the three months ended June 30, 2024, compared to$989,000 for the same period in 2023, a 418% increase[62] - Total revenues for the six months ended June 30, 2024, were $11.99 million, a significant increase from$2.57 million for the same period in 2023, representing a growth of approximately 366%[137] - Revenue from the United States for the three months ended June 30, 2024, was $3.85 million, compared to$0.92 million for the same period in 2023, indicating a growth of approximately 318%[137] - As of June 30, 2024, total revenues from Europe were $2.31 million, compared to$0.41 million for the same period in 2023, reflecting a growth of approximately 463%[137] Cash and Assets - The company reported cash and cash equivalents of $15.131 million as of June 30, 2024, down from$28.083 million as of December 31, 2023[14] - The company has cash and cash equivalents totaling $5,233,000 as of June 30, 2024, compared to$5,075,000 as of December 31, 2023[56] - Total current assets decreased to $29.639 million as of June 30, 2024, down from$39.222 million as of December 31, 2023, primarily due to a reduction in cash and cash equivalents[14] - The company reported total inventories of $7,193 thousand as of June 30, 2024, up from$5,653 thousand on December 31, 2023, a 27.2% increase[83] - Trade receivables increased to $5,269 thousand as of June 30, 2024, from$3,120 thousand on December 31, 2023, representing a 68.9% increase[72] Liabilities and Financial Stability - Total liabilities decreased to $14.296 million as of June 30, 2024, from$16.682 million as of December 31, 2023, indicating improved financial stability[18] - The earnout liability decreased from $3,292,000 as of December 31, 2023, to$2,800,000 as of June 30, 2024, reflecting a reduction of 15%[60] - The company has established relationships with clinics and rehabilitation centers, professional sports teams, and organizations in the spinal cord injury community for product distribution[40] Research and Development - Research and development expenses for the three months ended June 30, 2024, were $1.205 million, up from$816 thousand in the same period of 2023, reflecting increased investment in product development[22] - The company continues to focus on expanding its market presence and enhancing product offerings, with ongoing efforts in clinical research and development[10] - The Company expects to incur future net losses and its transition to profitability depends on successful product development and commercialization, establishing distribution contracts, or acquiring additional product lines[42] Shareholder Information - The weighted average number of shares used in computing net loss per ordinary share for the three months ended June 30, 2024, was 8,608,937, reflecting a reverse share split effective March 15, 2024[22] - The balance of ordinary shares as of June 30, 2024, was 8,630,902, with total shareholders' equity at $36,687[29] - The Company approved a one-for-seven reverse share split, reducing the number of issued and outstanding ordinary shares from approximately 60.1 million to approximately 8.6 million[108] - The total authorized number of ordinary shares was adjusted to 25 million post-split shares[108] Acquisitions - The company acquired AlterG, Inc. for approximately$19 million, enhancing its product offerings in physical rehabilitation[38] - Total consideration for the acquisition of AlterG, Inc. amounted to $22,100 thousand, including cash and earnout payments[85] - Goodwill related to the acquisition of AlterG, Inc. is recorded at$7.5 million, which has an indefinite life[92] Compensation and Expenses - Share-based compensation to employees and non-employees increased to $757,000 for the six months ended June 30, 2024, compared to$622,000 for the same period in 2023[32] - The Company recognized total share-based compensation expenses of $757,000 for the six months ended June 30, 2024, up from$622,000 in the same period of 2023, reflecting an increase of about 22%[131] - Lease expense for the three months ended June 30, 2024, was $325 thousand, compared to$196 thousand for the same period in 2023, a 65.8% increase[98] Legal and Market Risks - The company is currently involved in litigation initiated by Creative Value Capital Limited Partnership regarding board member elections, with a hearing scheduled for August 26, 2024[139][140] - The company has not experienced any material changes to its market risk during the second quarter of 2024[194]