Financial Data and Key Metrics - Q1 2024 revenue was $5.3 million, a 340% increase compared to Q1 2023 revenue of $1.2 million [3][15] - Revenue from ReWalk systems was $2.2 million in Q1 2024, up $1.3 million from Q1 2023, driven by Medicare approvals [15] - Revenue from AlterG was $2.8 million in Q1 2024, below expectations due to integration and training impacts [44] - GAAP gross profit was $1.4 million (26.4% of revenue) in Q1 2024, compared to $0.6 million (46.4% of revenue) in Q1 2023 [22] - Non-GAAP gross profit was $1.8 million (33.7% of revenue) in Q1 2024, compared to 46.2% in Q1 2023 [51] - GAAP operating loss was $6.5 million in Q1 2024, compared to $4.3 million in Q1 2023 [25] - Non-GAAP operating loss was $5.5 million in Q1 2024, compared to $3.9 million in Q1 2023 [25] - Cash and equivalents at the end of Q1 2024 were $20.7 million, with no debt [54] Business Line Data and Key Metrics - ReWalk systems: 32 active rentals in the pipeline, up 8 from last quarter, with 24 in Germany, 6 in VA hospitals, and 2 with self-pay individuals [21] - AlterG systems: 68 units in backlog at the end of Q1 2024, up 22 units from Q4 2023 [50] - Medicare claims: 14 approved in Q1 2024, with 35 submitted and 21 pending [3] - Other revenue (primarily MyoCycles): $0.3 million in Q1 2024, up $0.1 million from Q1 2023 [16] Market Data and Key Metrics - Medicare beneficiaries: The company plans to deliver 60 to 75 more systems to qualified Medicare patients in 2024 [3] - Germany: 54 ReWalk cases in process at the end of Q1 2024 [50] - U.S.: 37 ReWalk cases in process at the end of Q1 2024, many for Medicare beneficiaries [50] Company Strategy and Industry Competition - The company aims to achieve $28 million to $32 million in sales for 2024, with a focus on Medicare market penetration and AlterG growth [29][41] - A new AlterG anti-gravity model is planned for launch in mid-2024, targeting smaller clinics [31] - The company is working on a seventh-generation ReWalk design, pending FDA clearance [31] - The goal is to reach breakeven operations by 2026, with annual revenue of $50 million to $55 million [58] Management Commentary on Operating Environment and Future Outlook - The company expects quarterly revenue to build through 2024, driven by Medicare contributions and AlterG sales [55] - Management anticipates a reduction in operating loss quarter-over-quarter, driven by revenue growth and organizational efficiency [13][58] - The company is focused on scaling operations to process 100 systems in 2024, 200 in 2025, and 400 in 2026 [57] Other Important Information - The company reserved approximately $700,000 of revenue in Q1 2024 pending Medicare and supplemental insurance claim approvals, affecting gross margin by 8 percentage points [49] - If all prior Medicare claims are approved, an additional $300,000 of revenue could be recognized in future quarters [47] - The company expects to recover a portion of Q1 overages as sales volume ramps up and gross margins improve [26] Q&A Session Summary Question: How much of the 35 Medicare units were recognized in Q1 2024? - Answer: Revenue was recognized for one unit in Q1 2024, with the remaining 34 units to be recognized in future quarters as claims are approved [70][71] Question: Is the process for Medicare reimbursement fully in place? - Answer: The company has made significant progress but continues to educate healthcare providers and streamline the process [63] Question: Can you comment on the flow of interest in Q2 2024? - Answer: The company has seen a significant increase in leads and is working to educate physicians and clinics about Medicare reimbursement [72][73]
ReWalk(LFWD) - 2024 Q1 - Earnings Call Transcript