ReWalk(RWLK) - 2021 Q2 - Quarterly Report

Financial Performance - Total revenue in Q2 2021 was $1.4 million, marking the fourth consecutive quarter of growth[126] - Revenues for the three months ended June 30, 2021, were $1,436 thousand, a decrease of $232 thousand or 14% compared to $1,668 thousand for the same period in 2020[134] - Revenues for the six months ended June 30, 2021, increased by $324 thousand or 13% to $2,752 thousand compared to $2,428 thousand for the same period in 2020[134] - Gross profit for the three months ended June 30, 2021, was $727 thousand, representing 51% of revenue, down from 61% in the same period of 2020[136] - The company incurred a consolidated net loss of $6.2 million for the six months ended June 30, 2021, with an accumulated deficit of $187.6 million[147] Expenses - Total operating expenses in Q2 2021 were $3.9 million[126] - Research and development expenses decreased by $144 thousand or 15% for the three months ended June 30, 2021, totaling $810 thousand compared to $954 thousand in 2020[138] - Sales and marketing expenses increased by $260 thousand or 19% for the three months ended June 30, 2021, totaling $1,613 thousand compared to $1,353 thousand in 2020[139] - General and administrative expenses increased by $178 thousand or 14% for the three months ended June 30, 2021, totaling $1,445 thousand compared to $1,267 thousand in 2020[140] - Financial expenses, net, decreased by $244 thousand for the three months ended June 30, 2021, totaling $(9) thousand compared to $235 thousand in 2020[142] Cash Position - Cash position as of Q2 2021 was strong at $64.2 million[126] - Cash and cash equivalents as of June 30, 2021, were $64.2 million, with a negative operating cash flow of $6.3 million for the six months ended June 30, 2021[147] - Net cash used in operating activities decreased by $1.2 million or 16% from $7.5 million in June 2020 to $6.3 million in June 2021 due to improved working capital[178] - Net cash provided by financing activities increased by $44.9 million from $5.3 million in June 2020 to $50.2 million in June 2021, primarily due to higher proceeds from a February 2021 offering[178] Product Development and Market Strategy - The company has developed and commercialized the ReStore device for rehabilitation, which began in June 2019[120] - 24 ReWalk Personal 6.0 units were placed as part of a VA policy for veterans with spinal cord injuries[122] - The company expects future growth to be driven by sales of the ReWalk Personal device and aims to improve gross profit through increased sales volumes[135] - The company is pursuing various paths for reimbursement and support fundraising efforts by institutions and clinics[122] - The company views China as a key market for products designed for stroke patients and continues to evaluate potential relationships for market penetration[176] Impact of COVID-19 - The COVID-19 pandemic has significantly disrupted sales and operations, impacting the ability to engage with customers and conduct trials[128] - The company has implemented remote working procedures and cost reduction efforts during the pandemic[129] Financing and Capital Raising - The company raised $20.0 million from a loan agreement with Kreos, with a repayment period extended from 24 to 36 months due to capital issuance[150] - The company completed a public offering on November 20, 2018, raising $13.1 million from the sale of 728,019 units at $7.5 per unit[158] - The company issued 5,600,000 common units at $1.25 per unit in a public offering on February 10, 2020, with additional warrants issued[164] - On February 19, 2021, the company sold 10,921,502 ordinary shares at $3.6625 per share, raising significant capital[167] - The company received confirmation of loan forgiveness for a $392 thousand Paycheck Protection Program loan on November 6, 2020[156] - The company has registered up to $100 million of ordinary shares and warrants under Form S-3, which expires on May 23, 2022[156] - The company has raised a total of $14.5 million from the sale of 302,092 ordinary shares under the ATM Offering Program before its suspension on February 20, 2019[171] - The company has incurred total expenses of approximately $1.2 million in connection with the ATM Offering Program, including commissions[171] - The company temporarily suspended the ATM Offering Program to facilitate a public offering in February 2019[171] - The company intends to continue using at-the-market offerings opportunistically to raise additional funds, subject to certain restrictions[172] Collaboration and Obligations - The company has total contractual obligations of $4.6 million as of June 30, 2021, with $3.0 million due within one year[180] - The company has a remaining term of approximately 1.66 years under its Collaboration Agreement with Harvard, which requires quarterly funding commitments[181] - The company has the potential for future acquisitions, although no current agreements are in place[149]