Israel | Not applicable | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. | ||
3 Hatnufa Street, Floor 6, Yokneam Ilit, Israel | 2069203 | ||
(Address of principal executive offices) | (Zip Code) | ||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Ordinary shares, par value NIS 0.25 | RWLK | Nasdaq Capital Market |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☒ |
Emerging growth company ☐ |
Page No. | ||
2 | ||
3 | ||
3 | ||
3 | ||
5 | ||
6 | ||
7 | ||
8 | ||
24 | ||
40 | ||
March 31, | December 31, | |||||||||||||||
March 31, | December 31, | 2021 | 2020 | |||||||||||||
2020 | 2019 | (unaudited) | ||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 16,602 | $ | 16,253 | $ | 67,411 | $ | 20,350 | ||||||||
Trade receivable, net | 726 | 794 | 498 | 684 | ||||||||||||
Prepaid expenses and other current assets | 1,294 | 903 | 517 | 672 | ||||||||||||
Inventories | 3,340 | 3,123 | 3,493 | 3,542 | ||||||||||||
Total current assets | 21,962 | 21,073 | 71,919 | 25,248 | ||||||||||||
LONG-TERM ASSETS | ||||||||||||||||
Restricted cash and other long term assets | 1,049 | 1,061 | ||||||||||||||
Restricted cash and other long-term assets | 1,021 | 1,033 | ||||||||||||||
Operating lease right-of-use assets | 1,721 | 1,737 | 1,229 | 1,349 | ||||||||||||
Property and equipment, net | 485 | 501 | 392 | 437 | ||||||||||||
Total long-term assets | 3,255 | 3,299 | 2,642 | 2,819 | ||||||||||||
Total assets | $ | 25,217 | $ | 24,372 | $ | 74,561 | $ | 28,067 |
March 31, | December 31, | |||||||||||||||
March 31, | December 31, | 2021 | 2020 | |||||||||||||
2020 | 2019 | (unaudited) | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long term loan | $ | 5,699 | $ | 5,438 | ||||||||||||
Current maturities of operating leases | 658 | 637 | 633 | 660 | ||||||||||||
Trade payables | 2,789 | 2,698 | 1,981 | 2,268 | ||||||||||||
Employees and payroll accruals | 527 | 670 | 577 | 867 | ||||||||||||
Deferred revenues | 283 | 323 | 388 | 441 | ||||||||||||
Other current liabilities | 395 | 402 | 443 | 432 | ||||||||||||
Total current liabilities | 10,351 | 10,168 | 4,022 | 4,668 | ||||||||||||
LONG-TERM LIABILITIES | ||||||||||||||||
Long term loan, net of current maturities | — | 1,527 | ||||||||||||||
Deferred revenues | 497 | 521 | 706 | 667 | ||||||||||||
Non-current operating leases | 1,235 | 1,315 | 782 | 923 | ||||||||||||
Other long-term liabilities | 51 | 61 | 32 | 35 | ||||||||||||
Total long-term liabilities | 1,783 | 3,424 | 1,520 | 1,625 | ||||||||||||
Total liabilities | 12,134 | 13,592 | 5,542 | 6,293 | ||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||||||||||
Shareholders’ equity: | ||||||||||||||||
Share capital | ||||||||||||||||
Ordinary share of NIS 0.25 par value-Authorized: 60,000,000 shares at March 31, 2020 and December 31, 2019; Issued and outstanding: 12,930,155 and 7,319,560 shares at March 31, 2020 and December 31, 2019, respectively | 903 | 504 | ||||||||||||||
Ordinary share of NIS 0.25 par value-Authorized: 60,000,000 shares at March 31, 2021 and December 31, 2020; Issued and outstanding: 46,092,577 and 25,332,225 shares at March 31, 2021 and December 31, 2020, respectively | 3,385 | 1,827 | ||||||||||||||
Additional paid-in capital | 184,489 | 178,745 | 250,141 | 201,392 | ||||||||||||
Accumulated deficit | (172,309 | ) | (168,469 | ) | (184,507 | ) | (181,445 | ) | ||||||||
Total shareholders’ equity | 13,083 | 10,780 | 69,019 | 21,774 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 25,217 | $ | 24,372 | $ | 74,561 | $ | 28,067 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Revenues | $ | 760 | $ | 1,581 | $ | 1,316 | $ | 760 | ||||||||
Cost of revenues | 387 | 655 | 609 | 387 | ||||||||||||
Gross profit | 373 | 926 | 707 | 373 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 985 | 1,414 | 795 | 985 | ||||||||||||
Sales and marketing | 1,681 | 1,587 | 1,671 | 1,681 | ||||||||||||
General and administrative | 1,309 | 1,500 | 1,262 | 1,309 | ||||||||||||
Total operating expenses | 3,975 | 4,501 | 3,728 | 3,975 | ||||||||||||
Operating loss | (3,602 | ) | (3,575 | ) | (3,021 | ) | (3,602 | ) | ||||||||
Financial expenses, net | 246 | 418 | ||||||||||||||
Financial expenses (income), net | (4 | ) | 246 | |||||||||||||
Loss before income taxes | (3,848 | ) | (3,993 | ) | (3,017 | ) | (3,848 | ) | ||||||||
Taxes on income (tax benefit) | (8 | ) | 7 | 45 | (8 | ) | ||||||||||
Net loss | $ | (3,840 | ) | $ | (4,000 | ) | $ | (3,062 | ) | $ | (3,840 | ) | ||||
Net loss per ordinary share, basic and diluted | $ | (0.37 | ) | $ | (1.25 | ) | $ | (0.08 | ) | $ | (0.37 | ) | ||||
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 10,374,116 | 3,211,386 | 36,187,789 | 10,374,116 |
Ordinary Share | Additional | Total | Ordinary Share | Additional paid-in capital | Total shareholders’ equity (deficiency) | |||||||||||||||||||||||||||||||||||
Number | Amount | paid-in capital | Accumulated deficit | shareholders’ equity (deficiency) | ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 (1) | 2,813,087 | 193 | 154,670 | (152,918 | ) | 1,945 | ||||||||||||||||||||||||||||||||||
Share-based compensation to employees and non-employees | — | — | 319 | — | 319 | |||||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | 2,206 | * | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in “best efforts” offering, net of issuance expenses in the amount of $686 (2) | 760,000 | 52 | 3,632 | — | 3,684 | |||||||||||||||||||||||||||||||||||
Exercise of pre-funded warrants and warrants (2) | 119,881 | 8 | 99 | — | 107 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (4,000 | ) | (4,000 | ) | |||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 3,695,174 | 253 | 158,720 | (156,918 | ) | 2,055 | ||||||||||||||||||||||||||||||||||
Number | Amount | Additional paid-in capital | Accumulated deficit | Total shareholders’ equity (deficiency) | ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 7,319,560 | 504 | 178,745 | (168,469 | ) | 10,780 | 7,319,560 | 504 | (168,469 | ) | ||||||||||||||||||||||||||||||
Share-based compensation to employees and non-employees | — | — | 199 | — | 199 | — | — | 199 | — | 199 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees | 10,595 | * | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in “best efforts” offering, net of issuance expenses in the amount of $1,056 (2) | 4,053,172 | 290 | 3,720 | — | 4,010 | |||||||||||||||||||||||||||||||||||
Exercise of pre-funded warrants (2) | 1,546,828 | 109 | 1,825 | — | 1,934 | |||||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and restricted stock units (“RSUs”) by employees and non-employees | 10,595 | * | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in “best efforts” offering, net of issuance expenses in the amount of $1,056 (1) | 4,053,172 | 290 | 3,720 | — | 4,010 | |||||||||||||||||||||||||||||||||||
Exercise of pre-funded warrants (1) | 1,546,828 | 109 | 1,825 | — | 1,934 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (3,840 | ) | (3,840 | ) | — | — | — | (3,840 | ) | (3,840 | ) | ||||||||||||||||||||||||||
Balance as of March 31, 2020 | 12,930,155 | 903 | 184,489 | (172,309 | ) | 13,083 | 12,930,155 | 903 | 184,489 | (172,309 | ) | 13,083 | ||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 25,332,225 | 1,827 | 201,392 | (181,445 | ) | 21,774 | ||||||||||||||||||||||||||||||||||
Share-based compensation to employees and non-employees | — | — | 168 | — | 168 | |||||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees | 24,096 | 2 | (2 | ) | — | — | ||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in a private placement, net of issuance expenses in the amount of $ 3,679 (1) | 10,921,502 | 832 | 35,489 | — | 36,321 | |||||||||||||||||||||||||||||||||||
Exercises of warrants (2) | 9,814,754 | 724 | 13,094 | — | 13,818 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (3,062 | ) | (3,062 | ) | |||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 46,092,577 | 3,385 | 250,141 | (184,507 | ) | 69,019 |
Represents an amount lower than $1. |
(1) |
(2) | See Note |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Cash flows used in operating activities: | ||||||||||||||||
Net loss | $ | (3,840 | ) | $ | (4,000 | ) | $ | (3,062 | ) | $ | (3,840 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation | 75 | 94 | 70 | 75 | ||||||||||||
Share-based compensation to employees and non-employees | 199 | 319 | 168 | 199 | ||||||||||||
Deferred taxes | (4 | ) | (36 | ) | — | (4 | ) | |||||||||
Changes in assets and liabilities: | ||||||||||||||||
Trade receivables, net | 68 | (334 | ) | 186 | 68 | |||||||||||
Prepaid expenses, operating lease right-of-use assets and other assets | (448 | ) | (240 | ) | 264 | (448 | ) | |||||||||
Inventories | (267 | ) | (238 | ) | 49 | (267 | ) | |||||||||
Trade payables | 79 | 238 | (384 | ) | 79 | |||||||||||
Employees and payroll accruals | (143 | ) | (56 | ) | (290 | ) | (143 | ) | ||||||||
Deferred revenues and advances from customers | (64 | ) | (25 | ) | ||||||||||||
Other liabilities | 4 | 25 | ||||||||||||||
Deferred revenues | (14 | ) | (64 | ) | ||||||||||||
Operating lease liabilities and other liabilities | (160 | ) | 4 | |||||||||||||
Net cash used in operating activities | (4,341 | ) | (4,253 | ) | (3,173 | ) | (4,341 | ) | ||||||||
Cash flows used in investing activities: | ||||||||||||||||
Purchase of property and equipment | (9 | ) | — | (9 | ) | (9 | ) | |||||||||
Net cash used in investing activities | (9 | ) | — | (9 | ) | (9 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayment of long term loan | (1,266 | ) | (401 | ) | — | (1,266 | ) | |||||||||
Issuance of ordinary shares in a “best efforts” offering, net of issuance expenses paid in the amount of $496 (1) | — | 3,874 | ||||||||||||||
Issuance of ordinary shares in a “best efforts” offerings, net of issuance expenses paid in the amount of $ 1,044 (1) | 4,022 | — | — | 4,022 | ||||||||||||
Issuance of ordinary shares in a private placement, net of issuance expenses paid in the amount of $ 3,582 (1) | 36,418 | — | ||||||||||||||
Exercise of pre-funded warrants and warrants | 1,934 | 107 | 13,818 | 1,934 | ||||||||||||
Net cash provided by financing activities | 4,690 | 3,580 | 50,236 | 4,690 | ||||||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 340 | (673 | ) | |||||||||||||
Increase in cash, cash equivalents, and restricted cash | 47,054 | 340 | ||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 16,992 | 10,347 | 21,054 | 16,992 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 17,332 | $ | 9,674 | $ | 68,108 | $ | 17,332 | ||||||||
Supplemental disclosures of non-cash flow information | ||||||||||||||||
“Best efforts” offering issuance cost not yet paid (1) | $ | — | $ | 12 | ||||||||||||
Classification of inventory to property and equipment, net | $ | 50 | $ | — | $ | — | $ | 50 | ||||||||
“Best efforts” offering issuance cost not yet paid (1) | $ | 12 | $ | 189 | ||||||||||||
Initial recognition of operating lease right-of-use assets | $ | — | $ | 2,099 | ||||||||||||
Initial recognition of operating lease liabilities | $ | — | $ | (2,249 | ) | |||||||||||
Expenses related to offerings not yet paid (1) | $ | 97 | $ | — | ||||||||||||
Classification of other current assets to property and equipment, net | $ | 16 | $ | — | ||||||||||||
Supplemental cash flow information: | ||||||||||||||||
Cash and cash equivalents | $ | 16,602 | $ | 8,862 | $ | 67,411 | $ | 16,602 | ||||||||
Restricted cash included in other long term assets | 730 | 812 | ||||||||||||||
Restricted cash included in other long-term assets | 697 | 730 | ||||||||||||||
Total Cash, cash equivalents, and restricted cash | $ | 17,332 | $ | 9,674 | $ | 68,108 | $ | 17,332 |
(1) | See Note 7.e. to the condensed consolidated financial statements. |
(2) | See Note 7.c. to the condensed consolidated financial statements. |
a. | ReWalk Robotics Ltd. (“RRL”, and together with its subsidiaries, the “Company”) was incorporated under the laws of the State of Israel on June 20, 2001 and commenced operations on the same date. |
b. | RRL has two wholly-owned subsidiaries: (i) ReWalk Robotics Inc. (“RRI”) incorporated under the laws of Delaware on February 15, 2012 and (ii) ReWalk Robotics GMBH. (“RRG”) incorporated under the laws of Germany on January 14, 2013. |
c. | The worldwide spread of |
d. |
a. | Revenue Recognition |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Units placed | $ | 633 | $ | 1,474 | $ | 1,142 | $ | 633 | ||||||||
Spare parts and warranties | 127 | 107 | 174 | 127 | ||||||||||||
Total Revenues | $ | 760 | $ | 1,581 | $ | 1,316 | $ | 760 |
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Trade receivable, net (1) | $ | 726 | $ | 794 | $ | 498 | $ | 684 | ||||||||
Deferred revenues (1) (2) | $ | 780 | $ | 844 | $ | 1,094 | $ | 1,108 |
(1) | Balance presented net of unrecognized revenues that were not yet collected. |
(2) |
b. | New Accounting Pronouncements |
i. |
ii. | Financial Instruments |
c. | Concentrations of Credit Risks: |
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Customer A | 23 | % | * | ) | 24 | % | * | ) | ||||||||
Customer B | 15 | % | 13 | % | 23 | % | * | ) | ||||||||
Customer C | 14 | % | 12 | % | 18 | % | * | ) | ||||||||
Customer D | 13 | % | * | ) | 18 | % | 11 | % | ||||||||
Customer E | 12 | % | * | ) | 13 | % | 12 | % | ||||||||
Customer F | * | ) | 14 | % | * | ) | 15 | % | ||||||||
Customer G | * | ) | 13 | % | * | ) | 15 | % | ||||||||
Customer H | * | ) | 12 | % | * | ) | 15 | % | ||||||||
Customer I | * | ) | 12 | % | * | ) | 14 | % | ||||||||
Customer J | * | ) | 12 | % |
d. | Warranty provision The Company provided a two-year standard warranty for its products. As of 2018, our service policy for new devices sold includes five-year warranties. The Company determined that the first two years of warranty is an assurance-type warranty and records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. |
US Dollars in thousands | ||||
Balance at December 31, 2020 | $ | 140 | ||
Provision | 52 | |||
Usage | (68 | ) | ||
Balance at March 31, 2021 | $ | 124 |
Basic and diluted net loss per ordinary share: Basic net loss per ordinary share is computed based on the weighted average number of ordinary shares outstanding during each year. The total number of ordinary shares related to the outstanding warrants aggregated to 10,550,625, was excluded from the calculations of diluted loss per ordinary share since it would have an anti-dilutive effect. |
US Dollars in thousands | ||||
Balance at December 31, 2019 | $ | 227 | ||
Provision | 24 | |||
Usage | (51 | ) | ||
Balance at March 31, 2020 | $ | 200 |
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Finished products | $ | 2,548 | $ | 2,394 | $ | 2,777 | $ | 2,764 | ||||||||
Raw materials | 792 | 729 | 716 | 778 | ||||||||||||
�� | $ | 3,340 | $ | 3,123 | ||||||||||||
$ | 3,493 | $ | 3,542 |
a. | Purchase commitments: |
b. | Operating lease commitment: |
(i) | The Company operates from leased facilities in Israel, the United States and Germany. These leases expire between |
(ii) | RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates in between |
2020 | $ | 708 | ||||||
2021 | 693 | $ | 513 | |||||
2022 | 624 | 662 | ||||||
2023 | 306 | 481 | ||||||
Total lease payments | 2,331 | 1,656 | ||||||
Less: imputed interest | (438 | ) | (241 | ) | ||||
Present value of future lease payments | 1,893 | 1,415 | ||||||
Less: current maturities of operating leases | (658 | ) | (633 | ) | ||||
Non-current operating leases | $ | 1,235 | $ | 782 | ||||
Weighted-average remaining lease term (in years) | 3.36 | 2.47 | ||||||
Weighted-average discount rate | 12.6 | % | 12.6 | % |
Lease expense under the Company’s operating leases was $186 and $183 |
c. | Royalties: |
d. | Liens: |
e. | Legal Claims: |
Three Months Ended March 31, | ||||
2019 | ||||
Expected volatility | 57.5 | % | ||
Risk-free rate | 2.22 | % | ||
Dividend yield | — | % | ||
Expected term (in years) | 6.11 | |||
Share price | $ | 5.37 |
Number | Average exercise price | Average remaining contractual life (in years) | Aggregate intrinsic value (in thousands) | |||||||||||||
Options outstanding at the beginning of the period | 74,713 | $ | 41.60 | 6.34 | $ | 135 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (320 | ) | 26.875 | |||||||||||||
Options outstanding at the end of the period | 74,393 | $ | 41.67 | 5.98 | $ | 21 | ||||||||||
Options exercisable at the end of the period | 49,609 | $ | 51.87 | 4.81 | $ | — |
Number | Average exercise price | Average remaining contractual life (in years) | Aggregate intrinsic value (in thousands) | |||||||||||||
Options outstanding at the beginning of the period | 69,606 | $ | 37.90 | 5.59 | $ | — | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Forfeited | (1,860 | ) | 26.83 | — | — | |||||||||||
Options outstanding at the end of the period | 67,746 | $ | 38.20 | 5.04 | $ | — | ||||||||||
Options exercisable at the end of the period | 54,779 | $ | 43.17 | 4.47 | $ | — |
Number of shares underlying outstanding RSUs | Weighted average grant date fair value | Number of shares underlying outstanding RSUs | Weighted average grant date fair value | |||||||||||||
Unvested RSUs at the beginning of the period | 62,378 | $ | 44.61 | 1,251,311 | $ | 3.20 | ||||||||||
Granted | - | - | 13,000 | 1.32 | ||||||||||||
Vested | (10,595 | ) | 7.06 | (24,096 | ) | 1.60 | ||||||||||
Forfeited | (3,805 | ) | 10.25 | (75,764 | ) | 1.60 | ||||||||||
Unvested RSUs at the end of the period | 47,978 | $ | 55.80 | 1,164,451 | $ | 3.90 |
Range of exercise price | Options and RSUs outstanding as of March 31, 2020 | Weighted average remaining contractual life (years) (1) | Options outstanding and exercisable as of March 31, 2020 | Weighted average remaining contractual life (years) (1) | Options and RSUs outstanding as of March 31, 2021 | Weighted average remaining contractual life (years) (1) | Options outstanding and exercisable as of March 31, 2021 | Weighted average remaining contractual life (years) (1) | ||||||||
RSUs only | 47,978 | — | — | — | 1,164,451 | — | — | — | ||||||||
$5.37 | 12,425 | 8.99 | 3,106 | 8.99 | 12,425 | 7.99 | 6,212 | 7.99 | ||||||||
$20.42 - $33.75 | 36,531 | 5.97 | 23,377 | 4.79 | 34,620 | 4.71 | 28,235 | 4.18 | ||||||||
$37.14 - $38.75 | 10,194 | 3.71 | 10,194 | 3.71 | 9,992 | 2.54 | 9,992 | 2.54 | ||||||||
$50 - $52.50 | 11,395 | 5.34 | 9,084 | 4.87 | 8,043 | 5.21 | 7,674 | 5.16 | ||||||||
$182.5 - $524 | 3,848 | 4.32 | 3,848 | 4.32 | 2,666 | 4.45 | 2,666 | 4.45 | ||||||||
122,371 | 5.98 | 49,609 | 4.81 | 1,232,197 | 5.04 | 54,779 | 4.47 |
(1) | Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
b. Share-based awards to non-employee consultants: |
Warrants to purchase ordinary shares: |
Issuance date | Warrants outstanding | Exercise price per warrant | Warrants outstanding and exercisable | Contractual term | Warrants outstanding | Exercise price per warrant | Warrants outstanding and exercisable | Contractual term | ||||||||||||||||||
(number) | (number) | (number) | (number) | |||||||||||||||||||||||
December 31, 2015 (1) | 4,771 | $ | 7.5 | 4,771 | See footnote (1) | 4,771 | $ | 7.500 | 4,771 | See footnote (1) | ||||||||||||||||
November 1, 2016 (2) | 97,496 | $ | 118.75 | 97,496 | November 1, 2021 | 97,496 | $ | 118.750 | 97,496 | November 1, 2021 | ||||||||||||||||
December 28, 2016 (3) | 1,908 | $ | 7.5 | 1,908 | See footnote (1) | 1,908 | $ | 7.500 | 1,908 | See footnote (1) | ||||||||||||||||
November 20, 2018 (4) | 126,839 | $ | 7.5 | 126,839 | November 20, 2023 | 126,839 | $ | 7.500 | 126,839 | November 20, 2023 | ||||||||||||||||
November 20, 2018 (5) | 106,680 | $ | 9.375 | 106,680 | November 15, 2023 | 106,680 | $ | 9.375 | 106,680 | November 15, 2023 | ||||||||||||||||
February 25, 2019 (6) | 45,600 | $ | 7.1875 | 45,600 | February 21, 2024 | 45,600 | $ | 7.187 | 45,600 | February 21, 2024 | ||||||||||||||||
April 5, 2019 (7) | 408,457 | $ | 5.140 | 408,457 | October 7, 2024 | 408,457 | $ | 5.140 | 408,457 | October 7, 2024 | ||||||||||||||||
April 5, 2019 (8) | 49,015 | $ | 6.503 | 49,015 | April 3, 2024 | 49,015 | $ | 6.503 | 49,015 | April 3, 2024 | ||||||||||||||||
June 5, 2019 and June 6, 2019 (9) | 1,464,665 | $ | 7.500 | 1,464,665 | June 5, 2024 | 1,464,665 | $ | 7.500 | 1,464,665 | June 5, 2024 | ||||||||||||||||
June 5, 2019 (10) | 87,880 | $ | 9.375 | 87,880 | June 5, 2024 | 87,880 | $ | 9.375 | 87,880 | June 5, 2024 | ||||||||||||||||
June 12, 2019 (11) | 416,667 | $ | 6.000 | 416,667 | December 12, 2024 | 416,667 | $ | 6.000 | 416,667 | December 12, 2024 | ||||||||||||||||
June 10, 2019 (12) | 50,000 | $ | 7.500 | 50,000 | June 10, 2024 | 50,000 | $ | 7.500 | 50,000 | June 10, 2024 | ||||||||||||||||
February 10, 2020 (13) | 5,600,000 | $ | 1.25 | 5,600,000 | February 10, 2025 | 28,400 | $ | 1.250 | 28,400 | February 10, 2025 | ||||||||||||||||
February 10, 2020 (14) | 336,000 | $ | 1.5625 | 336,000 | February 10, 2025 | 105,840 | $ | 1.5625 | 105,840 | February 10, 2025 | ||||||||||||||||
July 6, 2020 (15) | 448,698 | $ | 1.76 | 448,698 | July 2, 2025 | |||||||||||||||||||||
July 6, 2020 (16) | 296,297 | $ | 2.2781 | 296,297 | July 2, 2025 | |||||||||||||||||||||
December 3, 2020 (17) | 586,760 | $ | 1.34 | 586,760 | June 8, 2026 | |||||||||||||||||||||
December 3, 2020 (18) | 108,806 | $ | 1.7922 | 108,806 | June 8, 2026 | |||||||||||||||||||||
February 26, 2021 (19) | 5,460,751 | $ | 3.6 | 5,460,751 | August 26, 2026 | |||||||||||||||||||||
February 26, 2021 (20) | 655,290 | $ | 4.5781 | 655,290 | August 26, 2026 | |||||||||||||||||||||
8,795,978 | 8,795,978 | 10,550,820 | 10,550,820 |
(1) | Represents warrants for ordinary shares issuable upon an exercise price of |
(2) | Represents warrants issued as part of |
(3) | Represents common warrants that were issued as part of the |
(4) | Represents common warrants that were issued as part of |
(5) | Represents common warrants that were issued to the underwriters as compensation for their role in |
(6) | Represents warrants that were issued to the exclusive placement agent |
(7) | Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s registered direct offering of ordinary shares in April 2019. |
(8) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s April 2019 registered direct offering. |
(9) | Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019 and June 6, 2019, respectively. |
(10) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 warrant exercise agreement and concurrent private placement of warrants. |
(11) | Represents warrants that were issued to certain institutional |
(12) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 registered direct offering and concurrent private placement of warrants. |
(13) | Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s best efforts offering of ordinary shares in February 2020. |
(14) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2020 best efforts |
(15) | Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in July 2020. During the three months ended March 31, 2021 2,020,441 warrants were exercised for total consideration of $3,555,976. |
(16) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s July 2020 registered direct offering. |
(17) | Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in December 2020. During the three months ended March 31, 2021 3,598,072 warrants were exercised for total consideration of $4,821,416. |
(18) | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s December 2020 private placement. During the three months ended March 31, 2021 225,981 warrants were exercised for total consideration of $405,003. |
(19) | Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in February 2021. |
(20) | Represents warrants that were issued to the placement agent as compensation |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Cost of revenues | $ | 2 | $ | 4 | $ | 2 | $ | 2 | ||||||||
Research and development, net | 42 | 61 | (2 | ) | 42 | |||||||||||
Sales and marketing | 29 | 72 | 45 | 29 | ||||||||||||
General and administrative | 126 | 182 | 123 | 126 | ||||||||||||
Total | $ | 199 | $ | 319 | $ | 168 | $ | 199 |
e. Equity raise: |
Three Months Ended March 31, | ||||||||
2020 | 2019 | �� | ||||||
Foreign currency transactions and other | $ | (73 | ) | $ | 3 | |||
Financial expenses related to loan agreement with Kreos | 310 | 404 | ||||||
Bank commissions | 9 | 11 | ||||||
$ | 246 | $ | 418 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Foreign currency transactions and other | $ | (14 | ) | $ | (73 | ) | ||
Financial expenses related to loan agreement with Kreos | — | 310 | ||||||
Bank commissions | 10 | 9 | ||||||
$ | (4 | ) | $ | 246 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Revenues based on customer’s location : | ||||||||||||||||
Israel | $ | — | $ | — | — | — | ||||||||||
United States | 216 | 497 | $ | 476 | $ | 216 | ||||||||||
Europe | 542 | 1,079 | 837 | 542 | ||||||||||||
Asia-Pacific | 2 | 5 | 2 | 2 | ||||||||||||
Africa | 1 | — | ||||||||||||||
Total revenues | $ | 760 | $ | 1,581 | $ | 1,316 | $ | 760 |
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Long-lived assets by geographic region (*): | ||||||||||||||||
Israel | $ | 175 | $ | 179 | $ | 145 | $ | 145 | ||||||||
United States | 232 | 244 | 217 | 249 | ||||||||||||
Germany | 78 | 78 | 30 | 43 | ||||||||||||
$ | 485 | $ | 501 | $ | 392 | $ | 437 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Major customer data as a percentage of total revenues: | ||||||||
Customer A | 22.4 | % | * | ) | ||||
Customer B | 14.1 | % | * | ) | ||||
Customer C | 12.9 | % | * | ) | ||||
Customer D | 12.3 | % | * | ) | ||||
Customer E | 11.3 | % | * | ) | ||||
Customer F | * | ) | 12.9 | % |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Major customer data as a percentage of total revenues: | ||||||||
Customer A | 15 | % | * | ) | ||||
Customer B | 10 | % | — | |||||
Customer C | 10 | % | — | |||||
Customer D | — | 22 | % | |||||
Customer E | — | 14 | % | |||||
Customer F | — | 13 | % | |||||
Customer G | — | 12 | % | |||||
Customer H | — | 11 | % |
• | the adverse effect that the COVID-19 pandemic has had and may continue to have on our business and results of operations; |
• | our ability to have sufficient funds to meet certain future capital requirements, which could impair our efforts to develop and commercialize existing and new products; |
• | our ability to maintain compliance with the continued listing requirements of the Nasdaq Capital Market and the risk that our ordinary shares will be delisted if we cannot do so; |
• | our expectations regarding future growth, including our ability to increase sales in our existing geographic markets and expand to new markets; |
• | our ability to maintain and grow our reputation and the market acceptance of our products; |
• | our ability to achieve reimbursement from third-party payors for our products; |
• | our limited operating history and our ability to leverage our sales, marketing and training infrastructure; |
• | our expectations as to our clinical research program and clinical results; |
• | our ability to obtain certain components of our products from third-party suppliers and our continued access to our product manufacturers; |
• | our ability to improve our products and develop new products; |
• | our compliance with medical device reporting regulations to report adverse events involving our products, which could result in voluntary corrective actions or enforcement actions such as mandatory recalls, and the potential impact of such adverse events on ReWalk’s ability to market and sell its products; |
• | our ability to gain and maintain regulatory approvals; |
• | our expectations as to the results of the FDA, potential regulatory developments with respect to our mandatory 522 postmarket surveillance study; |
• | the risk of a cybersecurity attack or breach of our IT systems significantly disrupting our business operations; |
• | our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others; |
• | our ability to establish a pathway to commercialize our products in China; |
• | the impact of substantial sales of our shares by certain shareholders on the market price of our ordinary shares; |
• | our ability to use effectively the proceeds of our offerings of securities; |
• | the risk of substantial dilution resulting from the periodic issuances of our ordinary shares; |
• | the impact of the market price of our ordinary shares on the determination of whether we are a passive foreign investment company; |
• | market and other conditions; and |
• | other factors discussed in “Part I. Item 1A. Risk Factors.” |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
Statements of Operations Data: | 2020 | 2019 | ||||||||||||||
2021 | 2020 | |||||||||||||||
Revenues | $ | 760 | $ | 1,581 | $ | 1,316 | $ | 760 | ||||||||
Cost of revenues | 387 | 655 | 609 | 387 | ||||||||||||
Gross profit | 373 | 926 | 707 | 373 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 985 | 1,414 | 795 | 985 | ||||||||||||
Sales and marketing | 1,681 | 1,587 | 1,671 | 1,681 | ||||||||||||
General and administrative | 1,309 | 1,500 | 1,262 | 1,309 | ||||||||||||
Total operating expenses | 3,975 | 4,501 | 3,728 | 3,975 | ||||||||||||
Operating loss | (3,602 | ) | (3,575 | ) | (3,021 | ) | (3,602 | ) | ||||||||
Financial expenses, net | 246 | 418 | ||||||||||||||
Financial expenses (income), net | (4 | ) | 246 | |||||||||||||
Loss before income taxes | (3,848 | ) | (3,993 | ) | (3,017 | ) | (3,848 | ) | ||||||||
Income taxes (tax benefit) | (8 | ) | 7 | |||||||||||||
Taxes on income (tax benefit) | 45 | (8 | ) | |||||||||||||
Net loss | $ | (3,840 | ) | $ | (4,000 | ) | $ | (3,062 | ) | $ | (3,840 | ) | ||||
Net loss per ordinary share, basic and diluted | $ | (0.37 | ) | $ | (1.25 | ) | $ | (0.08 | ) | $ | (0.37 | ) | ||||
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 10,374,116 | 3,211,386 | 36,187,789 | 10,374,116 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(in thousands, except unit amounts) | (in thousands, except unit amounts) | |||||||||||||||
Personal unit revenues | $ | 714 | $ | 1,546 | $ | 1,308 | $ | 714 | ||||||||
Rehabilitation unit revenues | 46 | 35 | 8 | 46 | ||||||||||||
Revenues | $ | 760 | $ | 1,581 | $ | 1,316 | $ | 760 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Gross profit | $ | 373 | $ | 926 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Gross profit | $ | 707 | $ | 373 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Research and development expenses, net | $ | 985 | $ | 1,414 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Research and development expenses, net | $ | 795 | $ | 985 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Sales and marketing expenses | $ | 1,681 | $ | 1,587 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Sales and marketing expenses | $ | 1,671 | $ | 1,681 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
General and administrative | $ | 1,309 | $ | 1,500 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
General and administrative | $ | 1,262 | $ | 1,309 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Financial expenses, net | $ | 246 | $ | 418 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Financial expenses (income), net | $ | (4 | ) | $ | 246 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Income taxes (tax benefit) | $ | (8 | ) | $ | 7 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Income taxes (tax benefit) | $ | 45 | $ | (8 | ) |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Net cash used in operating activities | $ | (4,341 | ) | $ | (4,253 | ) | $ | (3,173 | ) | $ | (4,341 | ) | ||||
Net cash used in investing activities | (9 | ) | — | (9 | ) | (9 | ) | |||||||||
Net cash provided by financing activities | 4,690 | 3,580 | 50,236 | 4,690 | ||||||||||||
Net cash flow | $ | 340 | $ | (673 | ) | $ | 47,054 | $ | 340 |
Payments due by period (in dollars, in thousands) | ||||||||||||
Contractual obligations | Total | Less than 1 year | 1-3 years | |||||||||
Purchase obligations (1) | $ | 1,150 | $ | 1,150 | $ | — | ||||||
Collaboration Agreement and License Agreement obligations (2) | 2,144 | 1,344 | 800 | |||||||||
Operating lease obligations (3) | 1,656 | 681 | 975 | |||||||||
Total | $ | 4,950 | $ | 3,175 | $ | 1,775 |
Payments due by period (in dollars, in thousands) | ||||||||||||||||||||
Contractual obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Purchase obligations (1) | $ | 1,163 | $ | 1,163 | $ | — | $ | — | $ | — | ||||||||||
Collaboration Agreement and License Agreement obligations (2) | 2,461 | 973 | 1,488 | — | — | |||||||||||||||
Operating lease obligations (3) | 2,331 | 708 | 1,317 | 306 | — | |||||||||||||||
Long-term debt obligations (4) | 6,300 | 6,300 | — | — | — | |||||||||||||||
Total | $ | 12,255 | $ | 9,144 | $ | 2,805 | $ | 306 | $ | — |
(1) | The Company depends on one contract manufacturer, Sanmina, for both the ReStore products and the SCI Products. We place our manufacturing orders with Sanmina pursuant to purchase orders or by providing forecasts for future requirements. Additionally, we have purchase obligations to our raw material vendors related to the ReStore production, which began in the second quarter of 2019 following regulatory clearance. |
(2) | Our Collaboration Agreement with Harvard was originally signed for a period of six years and, as of March 31, 2021, has a remaining term of approximately 1.91 years. Under the Collaboration Agreement, we are required to pay in quarterly installments the funding of our joint research collaboration with Harvard, subject to a minimum funding commitment under applicable circumstances. Our License Agreement with Harvard consists of patent reimbursement expenses payments and of a license upfront fee payment. There are also several milestone payments contingent upon the achievement of certain product development and commercialization milestones and royalty payments on net sales from certain patents licensed to Harvard. These product development milestones have been met as of March 31, 2021. There are commercialization milestones which depend on us reaching certain sales amounts some or all of which may not occur. |
(3) | Our operating leases consist of leases for our facilities in the United States and Israel and motor vehicles. |
Exhibit Number | Description | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
* | Furnished herewith. |
^ | Portions of this exhibit (indicated by asterisks) have been omitted under rules of the |
# | The schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. |
ReWalk Robotics Ltd. | ||
Date: May | By: | /s/ Larry Jasinski |
Larry Jasinski | ||
Chief Executive Officer (Principal Executive Officer) | ||
Date: May | By: | /s/ Ori Gon |
Ori Gon | ||
Chief Financial Officer | ||
(Principal Financial and Principal Accounting Officer) |