ReWalk(US:RWLK)2025-08-14 13:43Financial Performance - Total revenues for the three months ended June 30, 2025, were $5,724,000, a decrease of 14.7% compared to $6,707,000 for the same period in 2024[22] - Gross profit for the six months ended June 30, 2025, was $4,633,000, representing an increase of 11.6% from $4,152,000 in the prior year[22] - Operating loss for the three months ended June 30, 2025, was $6,563,000, compared to a loss of $4,443,000 for the same period in 2024, indicating a 47.7% increase in losses[22] - The company reported a net loss of $6,562,000 for the three months ended June 30, 2025, compared to a net loss of $4,304,000 for the same period in 2024, reflecting a 52.5% increase in net losses[22] - The company reported a consolidated net loss of $11.4 million for the six months ended June 30, 2025, compared to a net loss of $10.6 million for the same period in 2024[32] - Revenues for Q2 2025 were $5.724 million, a decrease of $1.0 million or 14.7% compared to Q2 2024, primarily due to one-time Medicare-related revenue recognized in Q2 2024[136] - Revenues for the first half of 2025 were $10.758 million, down $1.2 million or 10.3% from $11.990 million in the same period of 2024, attributed to elevated Medicare-related revenue in early 2024[137] Assets and Liabilities - Total current assets decreased to $20,710,000 as of June 30, 2025, down from $21,294,000 as of December 31, 2024, a decline of 2.7%[17] - Total assets decreased to $26,777,000 as of June 30, 2025, compared to $30,487,000 as of December 31, 2024, a reduction of 12.2%[17] - Total liabilities remained relatively stable at $11,667,000 as of June 30, 2025, compared to $11,638,000 as of December 31, 2024[19] - Shareholders' equity decreased to $15,110,000 as of June 30, 2025, down from $18,849,000 as of December 31, 2024, a decline of 20.1%[21] Cash Flow and Financing - Cash and cash equivalents totaled $5.1 million as of June 30, 2025, down from $15.1 million at the end of the previous year[32] - The negative operating cash flow for the six months ended June 30, 2025, was $9.4 million, an improvement from $13.3 million in the same period of 2024[32] - The company completed several financing activities, raising a total of $7.8 million through the issuance of ordinary shares[32] - Net cash provided by financing activities increased by $7.8 million for the six months ended June 30, 2025, primarily due to proceeds from the January 2025 offering, ATM program, and June 2025 offering[177][180] Product and Market Development - The company is focusing on expanding its product offerings, including the ReStore Exo-Suit device for rehabilitation[29] - The company acquired AlterG, Inc. on August 11, 2023, which is now a wholly owned subsidiary and has been rebranded as LCAI[30] - The company achieved FDA clearance for the ReWalk 7 in April 2025, with over 20 units installed and positive customer feedback[134] - The partnership with CorLife has facilitated the processing of workers' compensation claims, resulting in the first paid claim[134] - The company has established distribution agreements to expand its market reach, particularly in the U.S. rehabilitation clinics[29] Challenges and Risks - The company anticipates continued operating losses and negative cash flows, raising doubts about its ability to continue as a going concern beyond the fourth quarter of 2025[32] - The company faces challenges in recruiting experienced teams and establishing agreements with suppliers for components, which may affect production[195] - There is no assurance that the company will successfully manufacture products that meet specifications and regulatory requirements, which could adversely impact financial performance[196] - The process of moving manufacturing in-house is expected to be time-consuming and costly, with potential disruptions to operations[197] - The company is at risk of delisting from Nasdaq if it does not regain compliance with Rule 5550(a), which could significantly decrease the value of its ordinary shares[193] Shareholder Information - The weighted average number of shares used in computing net loss per ordinary share for the three months ended June 30, 2025, was 11,229,427, compared to 8,608,937 for the same period in 2024[22] - The reverse share split approved by shareholders reduced the number of issued and outstanding ordinary shares from approximately 60.1 million to approximately 8.6 million[92] - The company has a total of 8,528,801 warrants outstanding and exercisable as of June 30, 2025[102] Expenses - Research and development expenses for the three months ended June 30, 2025, were $2.5 million, a decrease of 36.3% compared to the same period in 2024[143] - Sales and marketing expenses for the three months ended June 30, 2025, were $3.8 million, a decrease of 14.0% compared to the same period in 2024[146] - General and administrative expenses for the three months ended June 30, 2025, were $1.7 million, an increase of 9.2% compared to the same period in 2024[149] Goodwill and Impairments - The company recorded a goodwill impairment of $2.8 million as of June 30, 2025, reducing the goodwill balance to $4.755 million[80] - The company recorded a goodwill impairment charge of $2.8 million during the three and six months ended June 30, 2025, due to a decline in share price[151]