Financial Data and Key Metrics - Q1 2024 revenue was 5.3million,a3401.2 million [3][15] - Revenue from ReWalk systems was 2.2millioninQ12024,up1.3 million from Q1 2023, driven by Medicare approvals [15] - Revenue from AlterG was 2.8millioninQ12024,belowexpectationsduetointegrationandtrainingimpacts[44]−GAAPgrossprofitwas1.4 million (26.4% of revenue) in Q1 2024, compared to 0.6million(46.41.8 million (33.7% of revenue) in Q1 2024, compared to 46.2% in Q1 2023 [51] - GAAP operating loss was 6.5millioninQ12024,comparedto4.3 million in Q1 2023 [25] - Non-GAAP operating loss was 5.5millioninQ12024,comparedto3.9 million in Q1 2023 [25] - Cash and equivalents at the end of Q1 2024 were 20.7million,withnodebt[54]BusinessLineDataandKeyMetrics−ReWalksystems:32activerentalsinthepipeline,up8fromlastquarter,with24inGermany,6inVAhospitals,and2withself−payindividuals[21]−AlterGsystems:68unitsinbacklogattheendofQ12024,up22unitsfromQ42023[50]−Medicareclaims:14approvedinQ12024,with35submittedand21pending[3]−Otherrevenue(primarilyMyoCycles):0.3 million in Q1 2024, up 0.1millionfromQ12023[16]MarketDataandKeyMetrics−Medicarebeneficiaries:Thecompanyplanstodeliver60to75moresystemstoqualifiedMedicarepatientsin2024[3]−Germany:54ReWalkcasesinprocessattheendofQ12024[50]−U.S.:37ReWalkcasesinprocessattheendofQ12024,manyforMedicarebeneficiaries[50]CompanyStrategyandIndustryCompetition−Thecompanyaimstoachieve28 million to 32millioninsalesfor2024,withafocusonMedicaremarketpenetrationandAlterGgrowth[29][41]−AnewAlterGanti−gravitymodelisplannedforlaunchinmid−2024,targetingsmallerclinics[31]−Thecompanyisworkingonaseventh−generationReWalkdesign,pendingFDAclearance[31]−Thegoalistoreachbreakevenoperationsby2026,withannualrevenueof50 million to 55million[58]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Thecompanyexpectsquarterlyrevenuetobuildthrough2024,drivenbyMedicarecontributionsandAlterGsales[55]−Managementanticipatesareductioninoperatinglossquarter−over−quarter,drivenbyrevenuegrowthandorganizationalefficiency[13][58]−Thecompanyisfocusedonscalingoperationstoprocess100systemsin2024,200in2025,and400in2026[57]OtherImportantInformation−Thecompanyreservedapproximately700,000 of revenue in Q1 2024 pending Medicare and supplemental insurance claim approvals, affecting gross margin by 8 percentage points [49] - If all prior Medicare claims are approved, an additional $300,000 of revenue could be recognized in future quarters [47] - The company expects to recover a portion of Q1 overages as sales volume ramps up and gross margins improve [26] Q&A Session Summary Question: How much of the 35 Medicare units were recognized in Q1 2024? - Answer: Revenue was recognized for one unit in Q1 2024, with the remaining 34 units to be recognized in future quarters as claims are approved [70][71] Question: Is the process for Medicare reimbursement fully in place? - Answer: The company has made significant progress but continues to educate healthcare providers and streamline the process [63] Question: Can you comment on the flow of interest in Q2 2024? - Answer: The company has seen a significant increase in leads and is working to educate physicians and clinics about Medicare reimbursement [72][73]
