ReWalk Robotics, Yokneam Ilit, Israel, and Marlborough, Massachusetts, recently announced its financial results for the fourth quarter (4Q) and full-year (FY) 2014 periods ended December 31, 2014. Highlights of and subsequent to the fourth quarter of 2014 include:
- Total revenue increased 283 percent to $1.5 million compared to $400,000 for 4Q 2013 resulting from the placement of 31 ReWalk systems; total revenue for year-end 2014 increased to $4 million compared to $1.6 million in 2013.
- Gross loss for 4Q 2014 was $500,000 compared to a gross loss of $100,000 in 4Q 2013. This was largely due to a one-time expense relating to the early repayment, at a discount, of a royalty-bearing grant to the BIRD Foundation of $500,000, which will improve gross margins in 2015. Margins were also impacted by lower average selling prices outside of the United States related to specific efforts to seed training centers in select markets.
- Total operating expenses in 4Q 2014 were $4.8 million, compared with $2.6 million in 4Q 2013, and reflects the company’s increased investment in sales, marketing, and research and development resources and the increased cost of being a publicly traded company.
- Net loss was $5.5 million for 4Q 2014 compared to $3.5 million in the prior year quarter.
- Total revenues were $4 million for the year ended December 31, 2014, up 149 percent compared with $1.6 million during the year ended December 31, 2013, due to higher placements of ReWalk systems during the 2014 period. In 2014, 74 ReWalk systems were placed compared with 25 ReWalk systems placed during 2013.
- Gross loss was $600,000 for FY 2014, compared to a gross loss of $400,000 for the prior year, reflecting the aforementioned repayment of the Bird Foundation grant partially offset by the positive impact of transitioning manufacturing activities of the ReWalk systems to Sanmina, San Jose, California.
- Total operating expenses in fiscal 2014 were $19.3 million, compared to $8.3 million in the prior year period. The increase reflects the company’s increased investment in sales, marketing, and research and development resources as well as the increased cost of being a publicly-traded company.
- Net loss for FY 2014 was $21.7 million compared to $12.2 million during FY 2013.
- As of December 31, 2014, ReWalk had $43.5 million in cash and cash equivalents and short-term deposits versus a total of $47.7 million at the end of the third quarter of 2014. During the 12 months ended December 31, 2014, the company raised $36.3 million net from its initial public offering, $12.8 million from an equity investment round, and $1.1 million from the exercise of warrants to purchase convertible preferred shares.
ReWalk CEO Larry Jasinski said, “2014 was a landmark year for ReWalk highlighted by two significant events. We gained FDA [U.S. Food and Drug Administration] clearance for our ReWalk System as the only powered exoskeleton that can be legally marketed in the United States…. Additionally, we significantly strengthened the company’s balance sheet through our successful initial public offering, increasing our financial flexibility.”
