ReWalk(LFWD) - 2023 Q2 - Quarterly Report

General Information and Forward-Looking Statements This section introduces ReWalk Robotics Ltd., defines report terms, outlines information sources, and highlights risks and uncertainties affecting future performance and the AlterG acquisition - Company website: www.rewalk.com. SEC filings are available for download, free of charge, on the company's website and the SEC's website (http://www.sec.gov)[11](index=11&type=chunk) - Forward-looking statements cover expectations regarding future growth, market acceptance, reimbursement from third-party payors (including CMS), Nasdaq compliance, the announced acquisition of AlterG, the impact of the COVID-19 pandemic, capital requirements, R&D, intellectual property protection, market conditions, and other factors discussed in the 'Risk Factors' section of the 2022 annual report on Form 10-K[12][13][16] Part I - Financial Information Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for ReWalk Robotics Ltd. and its subsidiaries, including balance sheets, statements of operations, changes in shareholders' equity, and cash flows, along with accompanying notes Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of the company's assets, liabilities, and shareholders' equity at June 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $58,184 | $67,896 | $(9,712) | | Total current assets | $63,842 | $72,510 | $(8,668) | | Total assets | $65,811 | $74,236 | $(8,425) | | Total current liabilities | $5,442 | $4,782 | $660 | | Total liabilities | $6,837 | $6,071 | $766 | | Total shareholders' equity | $58,974 | $68,165 | $(9,191) | Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show the company's revenues, costs, and net loss for the three and six months ended June 30, 2023, compared to the same periods in 2022 Condensed Consolidated Statements of Operations (in thousands) | Metric | Q2 2023 | Q2 2022 | YoY Change (Q2) | 6M 2023 | 6M 2022 | YoY Change (6M) | | :-------------------------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Revenues | $1,337 | $1,570 | $(233) | $2,567 | $2,446 | $121 | | Cost of revenues | $761 | $824 | $(63) | $1,420 | $1,435 | $(15) | | Gross profit | $576 | $746 | $(170) | $1,147 | $1,011 | $136 | | Operating expenses | $5,734 | $5,122 | $612 | $10,680 | $9,675 | $1,005 | | Operating loss | $(5,158) | $(4,376) | $(782) | $(9,533) | $(8,664) | $(869) | | Financial (expenses) income, net | $558 | $(44) | $602 | $636 | $(68) | $704 | | Net loss | $(4,642) | $(4,446) | $(196) | $(8,963) | $(8,796) | $(167) | | Net loss per ordinary share, basic and diluted | $(0.08) | $(0.07) | $(0.01) | $(0.15) | $(0.14) | $(0.01) | Condensed Statements of Changes in Shareholders' Equity The condensed statements of changes in shareholders' equity detail movements in share capital, additional paid-in capital, treasury shares, and accumulated deficit for the six months ended June 30, 2023, and 2022 Condensed Statements of Changes in Shareholders' Equity (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Share capital | $4,435 | $4,489 | $(54) | | Additional paid-in capital | $280,455 | $279,857 | $598 | | Treasury Shares | $(3,203) | $(2,431) | $(772) | | Accumulated deficit | $(222,713) | $(213,750) | $(8,963) | | Total shareholders' equity | $58,974 | $68,165 | $(9,191) | - Net loss for the six months ended June 30, 2023, was $(8,963) thousand[25] - Share-based compensation for the six months ended June 30, 2023, was $622 thousand[25] - Treasury shares at cost increased by $(772) thousand for the six months ended June 30, 2023[25] Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows illustrate the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2023, and 2022 Cash Flow Summary (in thousands) | Metric | 6M 2023 | 6M 2022 | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Net cash used in operating activities | $(8,739) | $(9,377) | $638 | | Net cash used in investing activities | $0 | $(18) | $18 | | Net cash used in financing activities | $(986) | $0 | $(986) | | Decrease in cash, cash equivalents, and restricted cash | $(9,720) | $(9,559) | $(161) | | Cash, cash equivalents, and restricted cash at end of period | $58,835 | $79,491 | $(20,656) | - Net cash used in operating activities decreased by $638 thousand, primarily due to decreased insurance prepaid expenses and decreased inventory purchases, partially offset by acquisition costs[141][142] - Net cash used in financing activities increased by $986 thousand due to the repurchase of ordinary shares under the repurchase program[141][142] Notes to Condensed Consolidated Financial Statements This comprehensive section provides detailed disclosures and explanations for the figures presented in the condensed consolidated financial statements Note 1: General This note provides general information about ReWalk Robotics Ltd., including its incorporation details, wholly-owned subsidiaries, and core business as a medical device company - ReWalk Robotics Ltd. (RRL) was incorporated in Israel on June 20, 2001, with wholly-owned subsidiaries ReWalk Robotics, Inc. (RRI) in Delaware and ReWalk Robotics GMBH (RRG) in Germany[30] - The Company designs, develops, and commercializes innovative technologies for mobility and wellness in rehabilitation and daily life for individuals with neurological conditions, including SCI Products (ReWalk Personal and ReWalk Rehabilitation Exoskeleton devices) and the ReStore Exo-Suit[28][30] - The Company is also the exclusive distributor of MYOLYN MyoCycle FES Pro/Home cycles in the U.S. The distribution agreement for MediTouch Tutor movement biofeedback systems was terminated as of January 31, 2023, due to unsatisfactory sales[28][30](index=30&type=