ReWalk(RWLK) - 2023 Q4 - Annual Results

Revenue Performance - Record annual revenue for 2023 was $13.9 million, an increase of 151$5.5 million in 2022[2] - Total revenue for Q4 2023 was $6.9 million, up 216$2.2 million in Q4 2022[5] - Revenue from the former AlterG business contributed $4.7 million in Q4 2023, while revenue from the former ReWalk business was$2.2 million, flat year-over-year[5] - Lifeward anticipates revenue for Q1 2024 to be between $5.0 million and$5.5 million, with growth expected in subsequent quarters[10] - Revenue for the quarter ended December 31, 2023, was $6,884 million, a significant increase from$2,179 million for the same period in 2022, representing a 215% growth[21] - Revenue from the United States for the three months ended December 2023 was $3,338,000, compared to$1,110,000 in the same period of 2022, representing a growth of 200.5%[30] Gross Margin and Profitability - Gross margin for Q4 2023 was 35.5%, compared to 30.9% in Q4 2022; adjusted gross margin was 47.0% in Q4 2023, down from 52.8% in Q4 2022[6] - Gross profit for the quarter was $2,443 million, compared to$673 million in the prior year, reflecting a gross margin improvement from 30.9% to 35.5%[21] - Non-GAAP net loss for the quarter was $(3,296) million, an improvement from$(4,345) million in the prior year, with a non-GAAP net loss per share of $(0.05) compared to$(0.07)[22] Operating Expenses and Losses - Total operating expenses in Q4 2023 were $8.6 million, with$3.2 million attributed to AlterG; excluding AlterG, operating expenses were $5.4 million, down 4$(6,137) million, which is 89.1% of revenue, compared to $(5,005) million or 229.6$8,580 million, up from $5,678 million in the same quarter last year, driven by increased sales and marketing expenses[21] Net Loss and Cash Flow - Net loss for Q4 2023 was$5.6 million, or $(0.13) per share, compared to a net loss of$5.3 million, or $(0.09) per share, in Q4 2022[8] - Net loss for the quarter was$(5,639) million, slightly higher than $(5,313) million in the previous year, with a basic net loss per share of$(0.13) compared to $(0.09)[22] - Net cash used in operating activities for the twelve months ended December 2023 was$(20,667,000), compared to $(17,891,000) for the same period in 2022[28] Future Expectations and Integration - Lifeward expects 2024 revenue to be between$28 million and $32 million, with non-GAAP gross margin expanding to the high 40$3 million in annual net savings starting in 2024[2] Regulatory Changes - The Centers for Medicare & Medicaid Services finalized the 2024 Home Health Rule, including exoskeletons in the Medicare brace benefit category, effective January 1, 2024[2] Assets and Liabilities - Cash and cash equivalents decreased to $28,083,000 in December 2023 from$67,896,000 in December 2022, reflecting a decline of 58.7%[26] - Total assets decreased to $63,192,000 in December 2023 from$74,236,000 in December 2022, a reduction of 14.9%[26] - Current liabilities increased to $11,795,000 in December 2023 from$4,782,000 in December 2022, indicating a rise of 146.5%[26] - The company reported a total of $12,525,000 in intangible assets as of December 2023, with goodwill amounting to$7,538,000[26] Research and Development - Research and development expenses for the quarter were $1,318 million, accounting for 19.1$1,103 million or 50.6% of revenue in the same quarter last year[23] Financial Income and Amortization - The company reported financial income of $420 million for the quarter, compared to$69 million in the same quarter last year[21] - The company incurred $846 million in amortization of intangible assets during the quarter, which represented 12.3$4,846,000, representing 70.4% of revenue, compared to $4,088,000 in September 2023[24] - Non-GAAP sales and marketing expenses were$4,023,000 for December 2023, accounting for 58.4% of revenue, up from $3,766,000 in September 2023[24]