Recent Highlights and Accomplishments for Lifeward

 

 

 

 

 

 

 

 

“This past year, we made significant strides in sales driven by the major milestone of achieving Medicare coverage of the ReWalk exoskeleton and we expect private insurance to follow,” said Larry Jasinski, Chief Executive Officer. “We continue to build a robust pipeline of ReWalk cases, which we believe will drive sustained growth in the coming quarters.  We are focused on achieving balanced growth while strategically working towards profitability. We are fully committed to implementing cost-efficient measures that not only enhance our operational effectiveness but also drive sustainable success. We are confident that these efforts will empower us to build a stronger foundation for the future of Lifeward.”

 

Revenue was $7.5 million in the fourth quarter of 2024, compared to $6.9 million during the fourth quarter of 2023, up $0.6 million, or 10%. Revenue related to the sale of ReWalk exoskeletons, MyoCycles, and ReStore Exo-Suits was $2.0 million, down $0.1 million, or 6% compared to the prior year. This performance was primarily driven by a shortfall in ReWalk system sales due to scheduling challenges and delays for initial training sessions at local clinics.  Revenue from the sale of AlterG products and services was $5.5 million, a $0.8 million, or 17%, increase from the fourth quarter of 2023.  The growth in AlterG resulted from strong demand from international customers.

Total operating expenses in the fourth quarter of 2024 were $17.1 million, compared to $8.6 million in the fourth quarter of 2023, with the impairment charge explained below as the primary cause of the variance.  On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $6.7 million in the fourth quarter of 2024, compared to $7.0 million in the fourth quarter of 2023.  This decline is primarily due to reduced marketing, general and administrative expenses resulting from prior expense reduction actions.

 

Operating loss in the fourth quarter of 2024 was $15.2 million, compared to $6.1 million in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the non-GAAP reconciliation table below, adjusted operating loss was $3.3 million in the fourth quarter of 2024, compared to a loss of $3.8 million in the fourth quarter of 2023.

 

Net loss was $15.3 million, or $1.73 per share, for the fourth quarter of 2024, compared to a net loss of $5.6 million, or $0.66 per share, in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $3.3 million, or $0.38 per share, in the fourth quarter of 2024, compared to $3.3 million, or $0.38 per share, during the fourth quarter of 2023.

 

As of December 31, 2024, Lifeward had $6.7 million in unrestricted cash and cash equivalents on its balance sheet with no debt. During the fourth quarter of 2024, cash used in operations was $4.0 million. On January 8, 2025, Lifeward completed a registered direct offering of common shares which raised gross proceeds of approximately $5.0 million to add to its cash position.

 

2025 Financial Guidance

 

For 2025, Lifeward expects full year revenue in the range of $28 million to $30 million, with adjusted gross margins between 47% and 49%.  As a result of the recent actions by the Company to streamline its operations, Lifeward expects non-GAAP operating expenses of between $22 million to $23 million, which results in a non-GAAP operating loss of $7 million to $9 million.  

On a quarterly basis, Lifeward expects revenue in the first quarter of 2025 to be the lowest of the year due to seasonal trends, followed by sequential revenue growth through the rest of 2025. The full benefits of operating expense reductions are expected to phase in throughout the second half of 2025.  As a result of the progress of these factors, Lifeward anticipates a quarterly adjusted operating loss of approximately $1 million by the fourth quarter of 2025.

 

Lifeward does not provide GAAP reconciliation of its non-GAAP financial guidance because the Company is unable to predict with reasonable certainty and without unreasonable effort items that would be included in such a reconciliation, including, but not limited to, stock-based compensation expense, acquisition-related expense, and earnout expense. The timing and amounts of these items are uncertain and could be material to Lifeward’s results computed in accordance with GAAP.

Conference Call

 

Lifeward management will host its conference call as follows:

About Lifeward

Forward-Looking Statements

In 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 the Company's future performance and other statements that are not statements of historical fact 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," "should," "would," "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 the Company’s control. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements include, among others: uncertainties associated with future clinical trials and the clinical development process, the product development process and FDA regulatory submission review and approval process; the Company's ability to have sufficient funds to meet certain future capital requirements, which could impair the Company's efforts to develop and commercialize existing and new products; the Company's ability to maintain and grow its reputation and the market acceptance of its products; the Company's ability to achieve reimbursement from third-party payors, including CMS, for its products; the Company's limited operating history and its ability to leverage its sales, marketing and training infrastructure; the Company's expectations as to its clinical research program and clinical results; the Company's expectations regarding future growth, including its ability to increase sales in its existing geographic markets and expand to new markets; the Company’s ability to continue to operate as a going concern; the Company's ability to obtain certain components of its products from third-party suppliers and its continued access to its product manufacturers; the Company’s ability to navigate any difficulties associated with moving production of its AlterG Anti-Gravity Systems to a contract manufacturer; the Company's ability to improve its products and develop new products; the Company's compliance with medical device reporting regulations to report adverse events involving the Company's products, which could result in voluntary corrective actions or enforcement actions such as mandatory recalls, and the potential impact of such adverse events on the Company's ability to market and sell its products; the Company's ability to gain and maintain regulatory approvals; the Company's ability to maintain adequate protection of its intellectual property and to avoid violation of the intellectual property rights of others; the risk of a cybersecurity attack or breach of the Company's IT systems significantly disrupting its business operations; the Company's ability to use effectively the proceeds of its offerings of securities; and other factors discussed under the heading "Risk Factors" in the Company’s annual report on Form 10-K, as amended, for the year ended December 31, 2024 filed with the SEC and other documents subsequently filed with or furnished to the SEC. Any forward-looking statement made in this press release speaks only as of the date hereof. Factors or events that could cause the Company’s actual results to differ from the statements contained herein may emerge from time to time, and it is not possible for the Company to predict all of them. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

		Quarter Ended																Year Ended
		December 31,								December 31,								December 31,								December 31,
		2024								2023								2024								2023
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP operating loss		$	(15,228	)			(201.8	)%		$	(6,137	)			(89.1	)%		$	(29,347	)			(114.4	)%		$	(23,612	)			(170.4	)%
Purchase accounting impact on inventory			-				-				-				-				-				-				607				4.4	%
Amortization of intangible assets			842				11.2	%			844				12.3	%			3,347				13.0	%			1,608				11.6	%
M&A transaction			-				-				166				2.4	%			(467	)			(1.8	)%			2,524				18.2	%
Integration/Rebranding costs			-				-				253				3.7	%			236				0.9	%			253				1.8	%
Restructuring			1,260				16.7	%			670				9.7	%			1,260				4.9	%			670				4.8	%
Remeasurement of earnout liability			(184	)			(2.4	)%			(355	)			(5.2	)%			(2,684	)			(10.5	)%			(315	)			(2.3	)%
Inventory Write down			-				-				390				5.7	%			-				-				390				2.8	%
Impairment			9,794				129.8	%			-				-				9,794				38.2	%			-				-
Stock-based compensation expenses			234				3.1	%			373				5.4	%			1,281				5.0	%			1,328				9.6	%
Non-GAAP operating loss		$	(3,282	)			(43.4	)%		$	(3,796	)			(55.1	)%		$	(16,580	)			(64.7	)%		$	(16,547	)			(119.5	)%

		Quarter Ended																Year Ended
		December 31,								December 31,								December 31,								December 31,
		2024								2023								2024								2023
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP gross profit		$	1,844				24.4	%		$	2,443				35.5	%		$	8,216				32.0	%		$	4,453				32.1	%
Adjustments:
Purchase accounting impact on inventory			-				-				-				-				-				-				607				4.4	%
Write down			-				-				390				5.7	%			-				-				390				2.8	%
Amortization of intangible assets			387				5.1	%			388				5.6	%			1,540				6.0	%			900				6.5	%
Restructuring			1,195				15.8	%			-				-				1,195				4.7	%			-				-
Stock-based compensation expenses			4				0.1	%			4				0.1	%			16				0.1	%			9				0.1	%
Non-GAAP gross profit		$	3,430				45.4	%		$	3,225				46.9	%		$	10,967				42.8	%		$	6,359				45.9	%

		Quarter Ended																Year Ended
		December 31,								December 31,								December 31,								December 31,
		2024								2023								2024								2023
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP research & development		$	1,131				15.0	%		$	1,318				19.1	%		$	4,625				18.0	%		$	4,148				29.9	%
Adjustments:
Restructuring			-				-				(176	)			(2.6	)%			-				-				(176	)			(1.3	)%
Stock-based compensation expenses			(38	)			(0.5	)%			(45	)			(0.7	)%			(168	)			(0.7	)%			(157	)			(1.1	)%
Non-GAAP research & development		$	1,093				14.5	%		$	1,097				15.8	%		$	4,457				17.3	%		$	3,815				27.5	%

		Quarter Ended																Year Ended
		December 31,								December 31,								December 31,								December 31,
		2024								2023								2024								2023
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP sales & marketing		$	4,376				58.0	%		$	4,846				70.4	%		$	17,949				69.9	%		$	13,922				100.5	%
Adjustments:
Amortization of intangible assets			(388	)			(5.1	)%			(389	)			(5.7	)%			(1,542	)			(6.0	)%			(604	)			(4.4	)%
Integration/Rebranding costs			-				-				(253	)			(3.7	)%			(193	)			(0.8	)%			(253	)			(1.8	)%
Restructuring			-				-				(70	)			(1.0	)%			-				-				(70	)			(0.5	)%
Stock-based compensation expenses			(92	)			(1.2	)%			(111	)			(1.6	)%			(401	)			(1.6	)%			(381	)			(2.8	)%
Non-GAAP sales & marketing		$	3,896				51.7	%		$	4,023				58.4	%		$	15,813				61.5	%		$	12,614				91.0	%

		Quarter Ended																Year Ended
		December 31,								December 31,								December 31,								December 31,
		2024								2023								2024								2023
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP general & administrative		$	1,771				23.5	%		$	2,416				35.1	%		$	5,195				20.2	%		$	9,995				72.1	%
Adjustments:
M&A transaction			-				-				(166	)			(2.4	)%			467				1.8	%			(2,524	)			(18.2	)%
Amortization of intangible assets			(67	)			(0.9	)%			(67	)			(1.0	)%			(265	)			(1.0	)%			(104	)			(0.8	)%
Integration/Rebranding costs			-				-				-				-				(43	)			(0.2	)%			-				-
Restructuring			(65	)			(0.9	)%			(424	)			(6.2	)%			(65	)			(0.3	)%			(424	)			(3.1	)%
Remeasurement of earnout liability			184				2.4	%			355				5.2	%			2,684				10.5	%			315				2.3	%
Stock-based compensation expenses			(100	)			(1.3	)%			(213	)			(3.1	)%			(696	)			(2.7	)%			(781	)			(5.6	)%
Non-GAAP general & administrative		$	1,723				22.8	%		$	1,901				27.6	%		$	7,277				28.3	%		$	6,477				46.7	%