Core Insights - Lifeward is transitioning from technology validation to commercial growth with the appointment of Mark Grant as CEO, effective June 2, 2025, marking a critical phase for the company [1][2] - The rehabilitation technology industry is experiencing a strategic return, with Lifeward's ReWalk system gaining Medicare coverage and commercial insurance support, indicating a growing demand and willingness to pay [5][9] Company Developments - Mark Grant has over 30 years of experience in the medical technology field, focusing on commercialization and channel development, previously holding executive roles at Medtronic and IMRA Surgical [3][4] - Under Grant's leadership, Lifeward aims to significantly reduce non-GAAP operating losses in 2025 through revenue growth and cost optimization, with projected revenue growth from $25.7 million in 2024 to a range of $28 million to $30 million in 2025 [11][12] Product Portfolio - Lifeward's core products include ReWalk, AlterG, MyoCycle, and ReStore, addressing neurological rehabilitation, orthopedic recovery, and home training, covering the entire rehabilitation pathway from hospital to community [10][13] - The ReWalk system has received FDA approval and Medicare coverage, with a new generation, ReWalk 7, set to launch in 2025, showcasing significant sales growth and international market expansion [16][18] Market Positioning - The rehabilitation technology market is witnessing a second value discovery phase, with Lifeward positioned to capitalize on this trend due to its established product structure and initial market mechanisms [12] - Lifeward's products are designed for various medical conditions, including spinal cord injuries, brain injuries, strokes, and orthopedic/sports medicine, enhancing customer lifetime value and repeat purchase potential [10][9]

Financial Data and Key Metrics Changes - Lifeward reported record revenue of $7.5 million in Q4 2024, compared to $6.9 million in Q4 2023, marking an increase of approximately 8.7% [17] - For the full year 2024, revenue reached $25.7 million, an 85% increase from the previous year, representing the highest annual revenue performance in the company's history [17] - GAAP gross margin for Q4 2024 was 24.4%, down from 35.5% in Q4 2023, primarily due to restructuring charges [23] - Non-GAAP adjusted gross margin was 45.4% in Q4 2024, slightly below the 46.9% in Q4 2023 [24] - GAAP operating loss for Q4 2024 was $15.2 million, compared to a loss of $6.7 million in the prior year [26] - Non-GAAP adjusted operating loss improved to $3.3 million in Q4 2024 from $3.8 million in Q4 2023 [27] Business Line Data and Key Metrics Changes - Revenue from traditional products and services, including ReWalk's exoskeletons and Myocycles, was $2.0 million in Q4 2024, while AlterG products generated $5.5 million, the highest quarterly revenue since acquisition [18] - ReWalk sales were below expectations due to delays in Medicare cases, but a growing volume of qualified leads is anticipated to improve predictability in future performance [18][20] - AlterG systems ended Q4 2024 with a backlog of 25 orders, indicating a seasonal decline but an expected 20% revenue growth in Q1 2025 compared to Q1 2024 [22] Market Data and Key Metrics Changes - The company has over 110 qualified candidates for future ReWalk claim submissions in the U.S. and 44 cases in Germany [20] - Active rentals for ReWalk systems consist of 27 cases, with 24 in Germany and 3 in the U.S. [21] - The workers' compensation market represents about 6% of all spinal cord injuries, a segment previously limited for the company but now accessible through the CorLife partnership [52] Company Strategy and Development Direction - Lifeward aims to maintain reasonable growth while reducing quarterly operating losses, targeting a loss at or below $1 million in Q4 2025 [11] - The company is focusing on higher-margin opportunities and operational efficiencies, including a sustainable growth plan to reduce costs [13][29] - Lifeward plans to expand its market access through partnerships, including a new agreement with CorLife for workers' compensation and an expanded distribution agreement with MYOLYN [38][39] Management's Comments on Operating Environment and Future Outlook - Management views 2024 as a year of meaningful achievements, establishing long-term access to technologies and launching a pathway toward profitability [9] - The company anticipates full-year revenue for 2025 in the range of $28 million to $30 million, with adjusted gross margins between 47% to 49% [30] - Management expressed confidence in the sustainable growth plan, which aims to balance top-line growth with spending discipline [91] Other Important Information - The company ended 2024 with $6.7 million in cash and equivalents and no debt, raising an additional $5 million in January 2025 [27][28] - Lifeward received a going concern qualification from auditors, prompting actions to address balance sheet adequacy [28] Q&A Session Summary Question: How does the company see the growth of each component in the 2025 guidance? - Management indicated that the guidance reflects growth across all three major product lines: ReWalk, AlterG, and MyoCycles, with MyoCycles expected to show the biggest percentage growth due to an expanded distribution agreement [47][49] Question: What impact will the CorLife partnership have on the workers' compensation segment? - The CorLife partnership is expected to provide a larger conduit into the workers' compensation market, allowing for efficient processing and quicker payment cycles [51][52] Question: Will the next-generation ReWalk be introduced this year? - Management confirmed that the next-generation ReWalk is expected to be on the market by mid-2025, pending FDA clearance [54] Question: How are recent announcements factored into revenue guidance? - Management stated that recent partnerships have been factored into the revenue guidance conservatively, with expectations for growth in both CorLife and MYOLYN agreements [57][58] Question: What are the common reasons for patient attrition in ReWalk? - Patient attrition was attributed to seasonal factors and deferrals rather than losses, with management noting that these are common in the patient population [66][67] Question: What are the learnings from Medicare reimbursements? - The reimbursement cycle with Medicare has been longer than expected, but management anticipates it will shorten as they gain more experience [72][74] Question: Is the focus on workers' compensation a reaction to federal government policies? - Management clarified that the focus on workers' compensation is driven by opportunity rather than a reaction to government policies [77]