RWLK - Earnings call 3 2023 | ReWalk Robotics Ltd.

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Operator

Hello, and welcome to the Q3 2023 ReWalk Robotics Limited Earnings Conference Call. [Operator Instructions] Please note, today's event is being recorded. I'd now like to turn the conference over to Michael Lawless. Please go ahead, sir.

Michael Lawless

Thank you, Keith. to Third welcome Call. XXXX and morning, ReWalk Quarter Robotics' Earnings Good Mike Financial Chief ReWalk I'm Robotics' Officer. Lawless, with And me Chief on Larry is Jasinski, today's our Officer. Executive call for press Earlier XX, September detailing this issued and a morning, financial months ReWalk XXXX. results the ended X X release and of press the can through this be rewalk.com. release The Relations website section at call accessed Investor of a webcast the ReWalk

expectation, I'd statements that performance started, statements get the like forecast, belief, made express Act. the of today's we everyone and any the Securities to within intent Before that may or Litigation call on conference a events forward-looking regarding Reform projection, anticipation remind meaning Private be future considered future company's

of in guarantees involve statements. those performance. Exchange today uncertainties, may including These Securities press with statements our forward-looking and are and not of projected in available statements forward-looking based as on risks noted are and Such the forward-looking and information differ the those future ReWalk's release Commission. materially filings from results management to Actual ReWalk

call accessible today's shortly the of will the website. the the ReWalk to forward-looking a A obligation as of will law. company's completion whether available information, release. Investor dial-in information required update in of after in The available from the as press any specifically be be new webcast except statements, developments archived result intent future Relations replay these by or disclaims otherwise or section

made who recent with ReWalk's filings the discussed, turn call that, related may Since so most Jasinski. on this please XXXX. update of to most subsequent listening press and November For releases webcast, SEC And recorded topics have for call or Larry over date, those the to and archived I'll the may announcements that the held benefit be information. to replay CEO, was reference the XX, the the company's

Lawrence Jasinski

the decisions access Since with Medicare have and day change of the our have potential acquisition Thank that our our to life-changing we to you, Center call, growing will trajectory are have Medicaid profitability. events These to and ReWalk important all. path products, profitable believe beneficiaries path technology the FDA occurred Services, number amounts our put of Veterans revenue breakthrough a our on our system very financial ensure to to Administration Good to Medicare a last to advancements clearance progress Mike. on entity, a material of strategic CMS, and the animal introduction system. make truly for dramatically by

the it will successful better with community of represent QX, street a of through of size we through Let moment me fulfill infrastructure is large of we the for down with and founder, by eye these Equally our the continue decisions. From of the to AlterG us. to to perspective, XX in our ability to policy profitable, watershed all in the empower financial anticipate importance eye Together, a the profitability which and significant integration QX. talk was of building and company. The the will important, having the AlterG August spinal stand walk was end government on segment from each order. in financial a of its succeed both be these positioned to mission carting

exoskeleton Ultra us the largest U.S. and As we for X, provides organization with the team This industry. the combine XXXX, field January and reach quality the of organizations industry. we have support the ReWalk infrastructure furthest the will G sales for expanded highest on in

to November pricing payments assignment start in for sum proposal XXXX. by more provide X, center achieved Then as preliminary QX On data and the pricing Hectic for at XXXX. of systems current to market XXXX, multiple a Medicare to received system, a the procedure Services we coding CMS, with closely and X, Medicaid in request health an finalize care working we on January category a reimbursement, November basis XXXX. For common a a with begin to lump was benefit published code

aggressively in being Medicare submitted enroll XXXX patients about continue this similar During XXXX. number cases a XX submitting and we in process, to QX

With the supply reestablishing cord the fully to focused with in progress centers core post pathways Veterans COVID we on active spinal centers Administration, X. XXXX we X injury as strong from

the determined of is Elliot, patient but the centers control, process training as important and life personal She medically each U.S. metrics document SCI of selection X how the also a It America, proposed Paralyzed legislation requires be a while Devices STAM years support contracted their by This an veteran clinics for of system Veterans waiting to was of has VA to cord Some institutions service. bill and On by qualified for their the This are use after example. exoskeleton choice was Brownly access ReWalk endorsed conducting House veterans to which also led in that randomized in ReWalk Dingle, their American offered that who the are the injury participated trauma localized as Act. the the in or in if training. allows clinical It Veterans program, marine Day Burden, veterans. PVA during supply the centers part was local reporting CBS disabled annual exoskeleton. and VA's spinal spinal funding new advocating trial adds evaluating interviewed of allowing veteran. This Boast Representatives. potential they and representatives behalf by of the by Brittany walking then how she lost their about trial. She the Washington, through spoke on in home the the Act of close VA's with for changed direct of weekend, disabled

parallel, planned us in In we a walking. and product and they new launch a they're stairs From our life technical breakthrough in FDA daily X with XXXX. beneficiaries Medicare greatest have as products can clearance allows now allows when perspective, designated injured veterans that the to utilization curves navigate out supply for

ReWalk easier adds has features aid that is improved and will design many first connectivity, use. a make exoskeleton cloud of to all The the which and utilization new system

offer new the model G a for clinic a an will penetration that into Ultra segment is greater independent other The market. of untapped model

Before we metrics measurements the want discuss give for we few ahead. and QX, operating and both will to financial business financial discussions the the in move that period I a quarter to detail for

a access both over strategic covering a financial reimbursement combined is U.S. to sales XXXX represents essential and in country, the AlterG I'd addition are more VA is QX product in of like and team. quarter. the set ReWalk now XXX% nearly entire over occurring weeks balance QX will for XXXX the increase increase include direction, but sales patient and a decrease of a team as training to in growth of detail. meaningful a and the ReWalk the the CMS for And XX% field lines. team, is last comprised policy Alder Mike stage be integration evaluation all with team group, along substantially to $X.X the call individuals, revenue and in are service a expected our million QX investment of and the turn a that team ReWalk now meaningful X-plus support, future and back for the Mike? expense, per now to expenses approximately success. The XX clinical for clinical including which field QX

Michael Lawless

Thanks, Larry.

transaction operational to comment reflect investors' of the our in integration GAAP ReWalk, non-GAAP compensation 'XX of ReWalk. In on I'm the I performance The QX review release. the purchase results adjustments, expense. transaction and both quarter, stock also the I GAAP from of non-GAAP on going underlying accounting results expenses reconciliation integration accounting which Before GAAP first that which excludes to a to of QX the costs understanding want GAAP and of costs of earnings today's visibility the and obscure provided acquisition results in the the to facilitate AlterG, adjustments, results both order operational is discuss to basis, the can purchase expenses,

Okay.

XXXX the biggest through the expectations. ReWalk the XX our acquisition factor third the quarter acquisition in XXXX, million was First, to quarter in $X.X in revenue of date up quarter million with $X.X growth on the $X.X AlterG's the line revenue. quarter. the contributed of the revenue which from AlterG, revenue of which in reported $X.X compared The was our million. internal Robotics of of third million, third end August was generated of the performance of the revenue in

over ReWalk the QX $X.X revenue XX% Germany. cycles strong million the in revenue improvement QX of total, legacy X legacy QX while MyoCycle product another $X.X a 'XX. was sequential our in 'XX In XX%. The versus the trading momentum 'XX, compared For lines, ReWalk revenue $X.X and in to revenue 'XX XX% quarter with result up sales was U.S. up up was continuing for had in exoskeleton million distributed increase or 'XX, line, million product QX FES from -- QX states

in the metrics XX from insurance the broken active X and markets up current current for XX workers' pipeline line, ReWalk rentals. consists pipeline Germany Veterans to U.S. Turning compensation down our VA the by includes cases, by Germany. covered The of and is and which insurance last individuals in with Administration the in private rentals within of product quarter, X which

typically carries which business which for As in the The with Germany revenue the is that healthy a of with process quarter. represents units of September balance represents that with in AlterG the XX U.S. XX a ship ended of backlog, through to in the the the our cases 'XX. business in orders in ReWalk start The overall QX quarters upcoming the XX, of a systems subsequent are orders XX AlterG and number portion within backlog, quarter sold generated XX

we submit include Medicare the is VA described to as Medicare As ReWalk new begin to already our and contractors, that which we I claims processed from not for convert to eligible traditional of revenue systems will submitted pipeline by would figures workers' ones, for Medicare comp that pipeline revenue continue cases. will cases the they a and to the be reminder, paid be well that reimbursement. Once do as have additive

the closing 'XX, of of sales to our $X.X XX.X% This of profit. in step-up was AlterG 'XX. $X.X gross QX accounting transaction. revenue of additional to gross margin of QX GAAP result that 'XX. the QX inventory QX AlterG or revenue during In million profit cost was was points of or Moving existing at recognized of in million of X.X for million later In decrease value XX.X% of purchase acquisition gross 'XX, the percentage adjustments sold compared we from of $X.X the the a

for In the addition, allocated we price incurred created were of across amortization million the was purchase sheet. AlterG AlterG's that balance when $X.X from intangible assets

stock for QX revenue QX or of the gross 'XX, profit was accounting these XX.X XX.X% 'XX. of comp points million expense, non-GAAP and purchase up X from Excluding adjustments impact percentage $X.X

a a primarily of change of ReWalk leveraging owned was increase in production fixed our to higher selling average mix. basis result gross on and margins This units margin AlterG for slight our it. sales sold, also an of a provided non-GAAP that costs price to and a quarter consolidated benefit the gross portion the MyoCycle volumes in increase we in the due

were QX expenses $X.X or million $X.X compared in XX% operating in QX GAAP million $X.X to up 'XX, million 'XX.

the functions, 'XX, R&D the QX in of contributed million expense 'XX or increase. compared in million $X.X Within as to was which QX due million acquisition of $X.X million an to GAAP AlterG the increase XX% $X.X $X.X to

final the was GAAP as towards and million or in the business, XX%. the $X.X primarily due on 'XX R&D $X.X on million spending which $X.X $X.X up or to AlterG, marketing lower are was a ReWalk XX% contribution and prior projects decline we FDA to excludes in since in expense million $X.X QX ReWalk compared million subcontractors legacy the quarter, stages of selling consultants the of X submission. For million,

$X.X GAAP acquisition selling selling 'XX amortization expense $X.X from Ultra in million quarter. largest and marketing of marketing was million, the factor G, single AlterG. $X.X a expense expense contribution in XX%. intangibles and non-GAAP The to or $X.X the increase million was million up the the added of On of included QX of basis, which

or $X.X in QX was 'XX, selling business, this selling $X.X increase marketing expense excludes primarily in higher a the costs. QX legacy million On M&A-related included XX%. CMS amortization QX in compared associated was due 'XX related QX with general or ReWalk G&A increase $X $X.X well million of million as contribution intangible up of of expense acquisition or spending million or to X%. AlterG of was AlterG million, during $X.X million non-GAAP as activity ReWalk 'XX was $XX,XXX transaction and and $X.X assets which fees 'XX, in legacy marketing G&A up of as The in XX%. show contributed million $X.X expense QX the basis, reimbursement an was as GAAP expenses. GAAP, million non-GAAP of from the slightly in expense higher non-GAAP increase. about 'XX versus level in $X.X this heightened trade efforts X%. AlterG, and ReWalk, down the For expense million Legacy QX we area administrative consulting had and $X.X to G&A

contributed 'XX QX no the in loss as for third quarter operating excludes loss of the with operating $X.X compared non-GAAP to improvement discussed 'XX. quarter $X.X quarter profitable quarter and an QX compared in million $X.X the operating GAAP the $X.X Our I've to which was loss in in was debt. the in million to non-GAAP cash loss, previously, million and $X.X in and was the equivalents million performance. We XXXX. The AlterG cash million operating the items of third ended

the QX in million M&A-related $X.X the in investment policy due usage recent paid was meaningful than VA quarters $X for support. cash operating expenses cash onetime in which CMS to and higher approximately is Our and million

cost We to our expenditures be to significantly in revenue M&A-related in to lower and our relation structure. higher incremental quarter 'XX the expect the for prior be expenses than QX

'XX in burn QX from considerably cash rate the improve levels. So should QX

of increase going burn For sequential will full a our eliminate eventually a to legacy we contribution revenue On cash and be 'XX, a priority and our in basis, from financial top ReWalk expect AlterG. quarter's significantly reduce forward QX rate. revenue

and capital-efficient prioritize G our Ultra is core to in our to investment to underway, to and the top in line our additional minimize resources completed our only a With spending support goal grow integration the objectives. acquisition way

an listing requirements update I the provide NASDAQ. to for on of Lastly, want status our

since As period you NASDAQ NASDAQ request this. We a requested XXXXA were XXXX, Rule with this granted subsequently in regain an before to may compliance responded notification October, hearing maintain being for review an us for and of that notified until also NASDAQ response share. to resulted we had and price that review bid per know, a expedited back back in XXX-day XX, minimum to expedited by were XXXXA. noncompliance our received the $X extension a Rule we that a Hearings expired with still Listing the January Panel qualified second We compliance we with in

to role. the to for of driving continue further with improved fundamentals I'd that, We to and back committed performance call compliance With be financial this Larry ReWalk like to regain turn to remarks.

Lawrence Jasinski

I'd CMS direction. activities, claims Mike. XXXX. lump [indiscernible] a benefit we the little implement XX our beginning now and efforts financial using sum XXXX, implementation Thank to on to you, new more have category provide VA assigned and submitted our Medicare, submissions like In detail newly January momentarily operating about paused with payment with claims CMS

revenue not We payments our in are timing yet forecast until these established. are including the and deliveries

pricing on we may date exclusion with specific benefit In of an of the so Historically, of technology. this price their published or effective our claim can be a the current XX in to and the criteria patients educate participate requested is late will parallel, upcoming houses technology. at meeting determine January claims will the their April by updated April focus on price in published present be XXXX. submitted early with HCPC immediate to consideration commercial potentially X, the claims XXth accurate on the and this CMS they November meeting a CMS which Medicare Our will pricing physicians product XXXX. price data, taken reflects the is providing is on final XXXX on device February These review begin and this the models. The welcome data which they XXXX current in inclusion since based formula. they based list and reflect we complete, in to once noted data preliminary

and have with plans technology. We and increase community achievements awareness access of collaborate aggressive to payers to to spinal cord the commercial the these

no We the years will access core understand directly all has the community pathway. to spinal also after they reality work with with ensure a become that available

mix utilize engaged will as telephonic as Zoom and provide support, or information planned, the community media with effort, targeted of publicity We payers. to approaches online well

of performance that also the elements: are who taken when parallel spinal external support regions. enabling evaluations, of in are they Stand Act a and exoskeleton for and and Two, care evaluations numbers progress our networks, life. The time, it awareness and approvals. through walking by includes broaden in by the the is a or injury of integrated and appropriate for clinical veterans of exoskeleton centers And in one, provide procurement has Congress of VA the sales seeing those in X evaluation, key cord manufacturers part in although to Our the will has to has it VA. everyday stakeholders provides America, initiatives Paralyzed their of element measurable products, key device is in stand-back veterans law three, Veterans practice become and other at fantastic terms remains published veterans service training exoskeleton the this in Congress of Senate research of once on the devices codified are educational annual updates existing the moving be exoskeleton our VA support devices. And new for overall and Congress the advocacy seek also usage community changes with VA guidelines about leading spinal on the metrics individual leadership finally, within and the walking the to training considering for efforts again. the market. We're consideration four, through large we the disabled VA way leader excited with presence the some centers community. injuries, cord The

the XXXX an assist direction look XXXX. XXXX to technology. I needed were infrastructure would technology. as to for and XXXX provide we to and with to organization and needed advance with training to policy, field like to enlarged our our now of VAs as use acquisition innovative advance the to address our operational our build investment these government and into is our role years Our organically rest support

As the execution tremendous successes a phase on we close based of and to are that XXXX, new XXXX. operating on is we and building XXXX changing

For XXXX, measurement. efficiency paramount and revenue operating becomes must grow, investment decrease, must a

will provide until level on and first XXXX final XX have the more the for on we growth and of the timing information we specific on to XX Then gain experience cases hold expectations to payment CMS off We will providing payment. more detail. detail

we As Combined growth, we decrease our key burn in execution investment as decreases and revenue further begin after see to XXXX see synergy QX had investment look We substantially. a call. We in investment. building defining with of the year, years these and change. in I earnings financial rate forward policy, decreases government QX our the entity. our priorities is must and QX in a of operations combined certain areas early see to simply fantastic

will to the optimistic them for are execution. work the We to and the about knowledge Please. everyone, endure just based the like needed new and of who your up this realliance We as phase and years foresight Thank on have all you, forum for It's of prudent that the today, to for elements poly in hard growth questions. open [Audio up during and have financially VA. those the future development. to Gap] to and and need now time us CMS be we'd these we as

Operator

from And Banca question Math comes the H.C. from Instructions] [Operator Wainright. first

Swayampakula Ramakanth

said so first in phase -- see do your from to the it. has also is entering that new of how Reebok on profitable, a you news. little you as you with your as the AlterG's hands? progressing business, which and comment quarter that terms -- call good you execution bit because AlterG but Can in belt, how cross-selling also, up ReWalk start And it have you about been Let's is the

Lawrence Jasinski

Again, I think and for that of me parts there's for Mike.

our beginning to thrilled ground are First, the of And how acquisition really the this for in of how progressing favorite hit well running and this with is results we how terms come it's measurement integrate. we for and revenue is together.

just parallel proper We to QX have structural very going organization that hitting to United component And as have X the everybody we're the centers injury into of focus trained, XXX setup than numbers for but is is on ultras January this States a in whose of work on QX. combined dramatically broader X. do taken organization sales exoskeleton a And a stand-alone this extensive up go reach on is lot the was in them. program of this will the in we've to place to synergistic and what all it's it entities. And wind have having period the outlined for

for geographic So now very the on get And product action benefit basis. they new the XXXX, smaller connection launch can as as they a more organization will are AlterG's they have in larger points. good territories the in clinics a they -- better to

us on of So the to product on is of is on the financial clinics us, end to January, believe broader be is further the you that from line. effect that and to right your both VA AlterG's CMS operating structure question, to part work what other the of structure answer the Or benefit with side this? ReWalk first we to reach the taking anything us does RK? and the able want of companies, as get these Did and new

Swayampakula Ramakanth

well that But we a remarks, some you your prepared new before to on come finance new as there, model. to commercialize? a give stores planning comments new what minute. in I'll are a models AlterG these in you in Can good. model get planning the is about highlights you to ReWalk start This made is as also

Lawrence Jasinski

in bringing haven't market as we're goals Yes, internally, the different slightly completely sense. there's in advertising But big we a both. to to what

fits that is why team private that AlterG, smaller For this call believe make have that with a that's can of clinics, audience. really the will a to we those designed and larger needs And clinics. we broader to model now a on specifically device It's we play newer well. a

level. private operational the segment economic really a clinic. a So a offering good and for it's an And high very system they very they're pursued small additional product that at is for and it haven't line

first late intention. that's begin AlterG the launch that of our the and year model, the So half in first is we'll --

we product on with On the have them to making of ReWalk that a we're improvements focusing side, a use. easier number

it's can in So improved structure is of And use speeds, offer easier to community. battery terms we've life. product is multiple radically differently the product a powered which and it but a not different that in It makes cloud which, to frankly, these we the metrics. use will help utilization connectivity, and we understand we more to encourage drive even want to and help can can with available, be use them it use, users data because

So products are at the a one market little driven bit different. other segment. One new a utilization, is

Swayampakula Ramakanth

question one So you for side. more operational

So the growth do to potentially as we think good in you enter also 'XX? into in U.S., will growth Europe that contribute

Lawrence Jasinski

Europe. do growth expect We Yes. in

States the think to growth. be growth United majority the going of size and the because the the the of rate VA I CMS of segment of in our is

from of I type. a highest little Europe, at they reopening have But their They've well. build the year, of the on things be levels get very and the we it side. on the specifically think point going view driven ReWalk we'll good by side, growth to personnel over network been expansion be AltraG in the shortages them we in a able distribution a And to personnel bit Europe believe that as just course within that do see a will clinics more. slow of little

Swayampakula Ramakanth

on questions financial quick of couple A side. the

to so for that it are right in $X.X AlterG comparing $X.X sales? quarter. in You What million the So and Reebok sales against drove we also say the sequentially, this And million that quarter business what there. came stop grown? I'll stated for how has much at real growth

Michael Lawless

Good Sure. questions.

was I balance. case The cash misread in that is think balance million on I call I misspoke to First, correct about cash want cash I clarify, balance. the I $XX.X as the describing the

strong of Germany board Europe. was, the the improvement by of the for I growth VA really terms -- would I growth -- was as the as performance like sequential in on across would U.S I sales really VA the but well and say the exoskeletons the side, to MyoCycle was driven said, it continued product the that terms in -- and the So of by ReWalk in majority there line.

Swayampakula Ramakanth

the then sales? on And AlterG

Michael Lawless

Yes.

say, levelized second tends It or capital So half I tends general equipment not a with be would to of of more it's sales is be don't towards necessarily, -- tends towards the -- the to of a through quarter. the lot AlterG a second the sales, of products year. half, they the level business lot in it

of assume can't you that sort leveled the just throughout -- $X.X take the and that just So million was quarter.

So we've being past, a $XX described the the as business. about million in business

make determination by you stage, it So like can how but annualized coy, a a at on being guidance basis. the -- do this sort little I'm what you so we're would bit an of described think focused business based giving can a on of you the we've

results before start external like our it to then we'd that the think it's I scale we of of of the you quarter cycle quarterly internal forecasts to that line gist new still get provide one to and go for own more realizing the business guidance But and because kind of for through the us. full business.

Operator

comes from S question Martin the FMR And Pollock Holdings. next with

Martin Pollack

Yes. company business. real become to we're finally see an with operational Wonderful

with. start to questions X Just

next about at -- Or will will X both least by see that reporting operating will fourth we the beginning into question, will That we please. expect companies? quarter? At year, the ReWalk. the gene first segment When some get did the talked see be reporting? Ultra this say line that we You've the for segment you point, entities, should truly

Michael Lawless

question. Good

case structure. auditors. are not cross-pollination lines. certain that running requirements team a lot when We with a be of just think are businesses I determination justified. of separate run we're separate segment around business really silos. going X is reporting in entities supporting commercial to is accounting our product of And to our that plan This our making the entire right now all There's as So of cost is the There X business.

I certainly, know these And determination still we'll point, segments. They don't of reporting do -- business consolidated not we going line. that are in the is. fact, yet is an need final separate the one be more running will, this segment are at to provide we're if in need So we what update intention to our to that. provide into where terms But research because

Martin Pollack

if I never there a are up where It not see questions a really But the cash the me the separate the the to I them X that from still the different get profitability ends that basis, AlterG what seems to coming earnings separate think It products of that's reason -- where don't discrete be are would to chance that, trends -- products. is case, also that's from. about what a we'll transparent seems know ReWalk. on to enough. creating

more What So very that I for think as I profitable. you on made that know mean, that breakdown it'd down revenue to in what some be expecting you filters even to be already that provide type as matter reported would a came it segment not in EBIT line, that. the is you're the just need you that but you period suggesting think money of to because reporting, AlterG even the of for line, is the of if of to I level very, wise that profitability really we it discussion there? opposed

down the it when first coming that that comes heard seems, aspirational cash is burn suggests time, real it to -- is for comment Second I've burn the question cash dramatically.

XXXX amplify kind million -- is get make is of mean? Can I is handle give a $X rate that quarter? -- it Or really but forecast, revenues, need $X.X per decline just additional not what you'll You that in we but holding to still you're expecting cash out significant saying the cash burn. Are and when higher more financing is us you Or decline significant it us said going sufficient 'XX? a use never bit this -- you or little into significantly, a we're notion expecting if seems clue that? we're appreciate give some is perspective of into it burn million? hand on Certainly, it you what go cash not a because to next the decline through a cash that. enough good But know year. that I year then and and does QX will into can on it be is really full to number

Lawrence Jasinski

comments Larry. Okay. give this, I'll some on

been to really be collections, First, our on reduce infrastructure, the advisers, things it and going be we've for, be paid legal, it as charged succeed they investment majority the data off of it that those succeeded. relative we with The has build-in other large, year. investment that to don't be to very the go it CMS not activities into any longer endpoint will were to need require but getting we are next

through, again, significant you're little will in government a reduction believe activities a We've on policy. going there reduction as about significant be a our the new to we act So on of some government And there spend. in VA. this as terms efforts goes bit see talked of well

We efficiency. also lot operational of see a

we to we believe to growth sales profitability? product are point, rep XXXX in do sales We we do CMS, some have out. The synergistic And to the get no the this effect in new with VA, AlterG, with be X the those. going in has to multiple our cash one to to as this. one They is year. We we absolutely, answer And AlterG product didn't to have As have going is the is line. travel. same out, That with well pointed hospital cash lines to we it look selling way significant with forces with sufficient territories, force. of do your lines. that do. The broken the longer another less It's a its product see more of efficiency

at Relative we execute rate, have But like our one, burn specific and but that our of all of the half The plans. numbers visible going -- occur, I'll of amount finish will revenue in to direction we'd as they make rates year-over-year. scale can. that's least is We to some burn actual reductions the at up. in we looking to at level. We're it hard a believe

Some of have what We know to expenses to do our and going we're down. it. going are do, we

Martin Pollack

certain acquisition there of not of them making that to growth clearly, costs the at Larry, lot And point. extent, will be both it like I a to also expenses, quarters, this integrating think to all case, now continues longer -- incur. no pointing and you you have in the companies, seems be you're real said the that what that but revenue previous you So depends out because expenses that, to have on putting costs the some

why of some So million, I there us comments run I the your it Is XX%. any run X. And half burner, we'll be the don't on should cash could pointing want words are reason or down be one X, rate point, saying the to could rate, $X.X direction? that down rate mean, be to by million. burn $X quarter if in you're that put time mouth, XXXX, in your XX%, our maybe maybe to mitigated quarter but run at that assume

Lawrence Jasinski

quarter-over-quarter clearly expect burn rate go We to down quarter. our over

paid We like haven't I'm quantify the dates quantified I'd to getting by exact CMS. it.

to we're see that quarter the I top expect -- report line year the burn going that's can't give could of going to why apparent And specific us. not but to that's But in become we reductions rate more we line. some in every to guidance, that's bottom offset So being ahead.

Martin Pollack

first does are the point growth. to be depend well, is these than you've will different said, where alone Because that will very what us it lower a really incurred. said to seem the on Okay. comments expenses time revenue that you've That it the past lot in for

some these as significant will but be costs there implied more -- You've will this to are seems you. be hearing comments lower, I'm that be really

regard the anybody what some that's know have that out to One Well, that to I that new. and the know red happen. about bill literally -- does more don't that notion But activity been you like the could months a beginning so. of talk found that X that number from through, would with time this new "Oh, would more of or whether there end cycle the takes assuming is generate of it place thought, there when The the for higher this up ability much when to CMS, cases I I VA question be being is. And approved? never accelerated of being for you've for I with independent brand goes itself, bill even a selling to exponentially being sales first sales Obviously, point. curious was proposed something new VA legislation, the this VA, at disks is what could the sales VA this build VA. and very the

Lawrence Jasinski

being implemented which in the largest States. way core the injury The population the bill it. States this Medicare, next will it's the XX%. if alone, best The to CMS followed United the veterans, just X%. look United And single for Medicaid and you Medicare at block is is is change Well, roughly is of spinal in XX%

can how So for opens into as it biggest this hoped side. a side. if VA been they've well us up the in have the to behavior wonderful we integrated properly didn't door away, translate VA as execution get X but on markets. The access the only complement into that got frankly, processes, some -- big R&D would on change It in we've way year. COVID this we seen our

key it this Marine the and the I through house and I them. veterans, of with but bill we're I X. in that brought think, is, on think build As we shows with serious Congress operating but particular, others a along it and and really see had indicated, our really active sounds by X Congress bill. We'll -- we we're general the supporting process They're care Bergman, on about And in cosponsored veterans we'll taking and this great, that. the build the taken we is walking the that. U.S. we'll supporting certainly getting to it, Senate believe has this provide matures paralyzed to quite now percentages, and who for hill done. We the that they that have commitment, through That's revenue. what things the whole centers for don't of people going U.S. increases that -- And the

Martin Pollack

let's the that, strategy allocating Has to does recognizing the place moment some through change that takes assuming patients. also could number happens, how open towards bill that regard huge straight that a potential say, resources of cases? VA in those new your this immediately goes of Just any with the change up

Lawrence Jasinski

in to day-to-day was more think good manage the veterans, growth and through acquisition how support. product to done a will really they gradually, They through whole basis design them. veterans they system, the will for good get that I of a from give part need support making support and supply could is It we've end these The need on it VA structurally least have inorganic open need both presence sure do good field what training. They but elements well. but in cases, implement of and we have a at that and it organic the

go to our fast they on it but the do industry organization, on why more will that to organization together. any all help never VA sales is combination sales larger call enough to require growth, it are and allow the as team be And that's the all plus implement goals. the will The that with of able of With also VAs with that needed and design CMS. We from and and support same large factors be organization grow. CMS larger favorable these to plus them

Martin Pollack

putting number, XX,XXX you when we significantly expectation or expressed retreated were to were Larry, the per least saw into your you when your you price at we essentially the CMS, Last so unit, I if that certainly, announced the quite $XXX,XXX stock stock into may, then or cost XXX with that question, pleased. -- or request

that be as for stair-climbing What recognizing would is is you that kind for turning 'XX of a said higher expect Dave additional implementation. that. consideration there number corners. The You grow would could for number are some would number exactly also be the that do you. Is the the that indicated what will one that for sharp one that $XX,XXX pleased? MS imagine you number I now a that to will the from, looking no the to than is you it's as you make reasonable think you'll going say like baseline the in But that provide sounds possibility is be to hope that getting funding obviously, well would expect? approval for

Lawrence Jasinski

right the a Well, that's pricing Marty, point use for consideration from market very forward to is CMS said, our want current And a government I'm formula. pleased and way that view. came as do policy of to part it about of what we

I So want number specific I put I to don't a often. don't it. policy, do government actually dose big which very to

it a or XX% We and with the number. XX% for Medicare we being in the of will specifically invoices consider XX% work formula covered give model. They We with Medicaid put being will the matters. them go of back the and and being population it, current will that the

up but them So policy to we're able came working. for data. grow we're be to going lot right is and maybe it's making taken largest in to lot the a with But asked investment investment. the give they entities us, And government whatever it's of they to data We're give time make number business. right slowly, now going move done and our but of X a and at progress the the We're that and government time forward.

Martin Pollack

market data, clearly When it's than XX,XXX. you you're or price higher market said indicating

market? to -- us mean, of are You're that there is numbers What thinking would Did implying is some of kind that what you that what Or market you that is what you -- more what a reasonable. price? I data is say way you're kind number? is about? the for gauge

Lawrence Jasinski

or long. to And getting to of a present have to before could on Historically, far them going it believe from to they a We're let number... choose before January, have to answers a The get good it's They But not our number, number, person not. put going that's pending a I they every who's XX. number given CMS' February. works out take I've for lot there. And our be away do and going claims. those November paralyzed. the number We for We one that be to is to that got also, late not be pay too process roughly deliberations will business. not number early

Martin Pollack

suggesting, climbing go for suggested is a both is I that okay? of as the number well whatever the FDA But XXXX, is, new number the as approval quarters. to the improvements. Clearly, being to a to good recognizing the initial they're step-up would release number that is you're you say the that That the right? seems Stair be that XX,XXX willing turning case think beyond back what -- That way XXXX the

what be that you what the right? say would XX,XXX you plus I seems that's X So think assume, to

Lawrence Jasinski

XXXX number, documents. about. they we're which very was that $XXX,XXX published public clearly, a Well, they base a It that number clear the is were used in presenting was

if is from of price that will -- will you a that's $XXX,XXX. in -- complex material which that CMS give it's list a the consider with. They we have can them, could it pursue we all number provide our they that. available I their you our I have work And that That because today. formula, it the will is is website, give should us put formula all can and on data We fairly a

Martin Pollack

for Okay. of light new clearly, Listen, hope the I is right all at all the things being to in getting the ReWalk, -- to direction day the closer are best. it a I seems tunnel. the do years. really finally this that want moving after end these We're

Operator

turn And comments. my calls this for closing session. like question-and-answer to floor concludes any I the would to the

Lawrence Jasinski

committed. company this burn we're of our financial revenue to we And and phase and breakeven I'd that's and that's as like XXXX. it's of of the And prudent about to are that's participating. attention want to everybody growth new -- its call, we on on be go talked to position where the thank a able us have. I our And where is. cash to company I into where pay a to execution. it's First, get pointing And managing us reporting being phase close going ourselves for a to time as emphasize moving to our start in phase we what I to get different we're rate to in into reduce

So and because get to I I look those. these calls talk with about future can forward best the we do to I'll things,

shows today, if that, time your with everyone, thank reach you, So further for and please questions. have you

Operator

presentation, may has The and conference today's you. concluded. Thank now you your lines. disconnect Thank you now attending for

ReWalk Robotics (LFWD) 14 Nov 232023 Q3 Earnings call transcript