ReWalk(US:LFWD)2020-05-28 17:48Financial Data and Key Metrics Changes - The company's Q1 2020 revenue was $760,000, significantly impacted by the COVID-19 pandemic, with a gross margin of 49% compared to 59% in the prior year quarter [21][24]. - The net loss for Q1 2020 was $3.8 million, slightly improved from a net loss of $4 million in Q1 2019 [27]. - Operating expenses decreased by $500,000 or 11% compared to the prior year quarter, remaining flat compared to the previous quarter [24]. Business Line Data and Key Metrics Changes - Revenue from Personal 6.0 products totaled $714,000, while the Rehab ReStore device generated $46,000 [21]. - The company had 13 active SCI rentals and seven ReStore trials at the end of the quarter, representing a rental pipeline of $1.5 million in revenue [22]. Market Data and Key Metrics Changes - The total number of SCI pending insurance cases was 115 at the end of the quarter, with 98 in Germany and 17 in the U.S., a decrease from 145 at the end of 2018 [23]. - The company executed contracts with major German insurers covering over 20 million Germans, which is expected to enhance market access [15][31]. Company Strategy and Development Direction - The company is focusing on expanding telehealth capabilities and home therapy solutions in response to COVID-19, modifying agreements with Harvard's Biodesign laboratory [8][17]. - New distribution agreements for two product categories are set to begin in Q3 2020, aimed at enhancing revenue and clinic relationships [19][20]. Management's Comments on Operating Environment and Future Outlook - Management noted that the COVID-19 pandemic significantly affected business operations, particularly in sales processes requiring in-person contact [10]. - The company anticipates that insurance contracts in Germany will positively impact revenue as clinics reopen and users gain access for evaluations and training [12]. Other Important Information - The company has taken steps to ensure financial stability during the crisis, including workforce reductions and careful inventory management [14][25]. - A public hearing for the CMS application regarding a new HCPCS code is scheduled for June 1, which is crucial for reimbursement processes [9][35]. Q&A Session Summary Question: What does CMS need to do before providing reimbursement amounts? - The first step is issuing a temporary code, with a public hearing to discuss recommendations and comments from the company and clinicians [47][48]. Question: Have there been any product deliveries under the German insurance contracts post-COVID-19? - Yes, nearly all units placed from Q1 are under these contracts, with some patients receiving their units shortly after contract establishment [51][52]. Question: What is the status of the VA trial and any data publications? - The VA completed enrollment of 161 patients, with follow-up on approximately 125, but the timeline for data publication may be affected by COVID-19 [53][54]. Question: What synergies are expected from the new MediTouch products? - Both new product lines are expected to enhance clinic and home sales, targeting the same patient demographics as existing products [55][56].