ReWalk Robotics Reports Fourth Quarter and Year End 2021 Financial Results

ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”) today announced its financial results for the three and twelve-months ended December 31, 2021.

Highlights of and subsequent to the fourth quarter and FY 2021 include:

• Annual revenue of $6.0 million in 2021 represents 36% year over year growth;
• Fourth quarter 2021 revenues were $1.2 million, up by 2% compared to previous year quarter;
• Strong cash position with $88.3 million as of December 31, 2021;
• New DMEPOS rules issued in December 2021 will advance consideration of the ReWalk benefit category and pricing, and
• German court case on ReWalk Personal 6.0 direct compensation decision expected later this year

“2021 was a foundational year for the company as we made meaningful progress with our efforts to expand access through broad coverage in the United States and Germany. These payment activities combined with new technical developments and the easing of the pandemic restrictions are pivotal elements for our company and this industry in achieving sustainable growth after many years of investment,” stated Larry Jasinski, Chief Executive Officer of ReWalk.

Fourth Quarter and Full Year 2021 Financial Results

Total revenue was $1.2 million for the fourth quarter of 2021, compared to $1.2 million during the prior year quarter. Annual revenue was $6.0 million in 2021 compared to $4.4 million in 2020. The increase in FY 2021 revenues was driven primarily by higher number of rehabilitation units sold in the Unites States including a multiple unit order to a medical academic center as well as an increase in personal unit revenues in Germany as we have seen reduced COVID-19 restrictions during most of the year.

Gross margin was 26% during the fourth quarter of 2021, compared to 33% in the fourth quarter of 2020 and our full year 2021 gross margin was 49% compared to 50% in 2020. Our gross margin for FY 2021 declined because of a higher inventory write-off of ReStore parts due to lower than expected sales during the pandemic and increased service expenses, partially offset by a higher number of Personal 6.0 units sold and an increase in our average selling price due to a change in sales mix.

Total operating expenses in the fourth quarter of 2021 were $4.2 million, compared to $3.2 million in the prior year period. The increase in the fourth quarter was due to our Paycheck Protection Program forgiveness booked last quarter, increased SG&A professional as well as employee and employee related expenses. Total operating expenses for the full year 2021 were $15.6 million, compared to $14.2 million in 2020. The increase is due to higher SG&A employee and employee related expenses as well as increased professional services offset with reduced R&D employee and employee related expenses.

Net loss was $3.9 million for the fourth quarter of 2021, compared to a net loss of $2.9 million in the fourth quarter of 2020. Net loss was $12.7 million in 2021, compared to a net loss of $13.0 million in 2020.

Non-GAAP net loss for the fourth quarter of 2021 was $3.6 million, compared to a non-GAAP net loss of $2.7 million in the fourth quarter of 2020. Non-GAAP net loss was $11.6 million in 2021, compared to a Non-GAAP net loss of $11.9 million in 2020. A reconciliation of net loss to non-GAAP net loss is included at the end of this press release.

Liquidity

As of December 31, 2021, ReWalk had $88.3 million in cash on its balance sheet.