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If the billionaires of the world, i.e. Musk, Gates, Zuckerberg, gave them a billion dollars I would agree. But to live off retail investors to fund a losing proposition is unconscionable. The SEC should block this form of raising money.
Wall Street posted that article. Not me. Sad to see such shitfest selling on this amazing product. If you know of anyone suffering with paralysis, you know importance of this company and its products...
Been posting this $2B market for 10 years of which RWLK garners $2M a year.
Neurorehabilitation Devices Market Size to Garner USD 2,274.1 Million Revenue by 2025 at Substantial CAGR of 16.4%, Asserts Market Research Future (MRFR)
11:18 am ET February 23, 2021 (Globe Newswire)
Neurorehabilitation Devices Market Overview:
According to Market Redsearch Future (MRFR), the Neurorehabilitation Devices Market was valued USD 793.0 Million in 2018 and is estimated to cross USD 2,274.1 Million till 2025, with a double digit CAGR of 16.4% in the forecast period.
The neurorehabilitation devices entail the use of technology in the field of physiotherapy as most neurological rehabilitation devices target to enable learning or relearning of motor skills regardless of the cause of impairment.
The increased occurrence of neurological illnesses that impede motor movement or other voluntary actions is estimated to gain traction in the future with overwhelming evidencediscovery of genetic predisposition and environmental stress factors that trigger these conditions.The increased need for neurorehabilitation devices due to these rising number of neurological disorder cases, the emergence of robotic rehabilitation, a surge in the geriatric population, and the effectiveness of the gaming systems in neurorehabilitation are likely to benefit the neurorehabilitation devices market.Stringentsupervisory policies and growingskilled professionals' necessities are anticipated to burden neurorehabilitation devices' market growth during the forecast period.
Neurorehabilitation Devices Demand To Sharply Rise
The market is projected to see profitable growth due to neurological disorder cases such as Parkinson's, epilepsy, multiple sclerosis, Alzheimer's, stroke, and essential tremors being detected increasingly.COVID-induced lockdowns impacted many patients with neurological ailments as they had no access to their therapists and hence could not undertake their sessions, leading to loss of progress. This factor has led researchers at the VTC Smart Rehab Lab toadvancean inexpensive breakthroughtechnology. It approaches to link stroke survivors to physical therapy at home via tele-rehabilitation. The procedure will include a fused knowledge basis of machine learning and human interfacing to evaluate patient performance in training and daily activities at home while simultaneously delivering feedback to the patient and reviewing progress to the remote therapist. This major innovation can be magnified to various therapy needs leading to the lab being bestowed with USD 1.1 million by the National Science Foundation to keep onadvancing its Semi-Automated Rehabilitation At Home (SARAH) project.
And not a penny ROI since 2011. They must be proud.
ReWalk Robotics Ltd (RWLK)
3.86 ? 0.26 (7.22%)
Volume: 3,526,029 @02/19/21 7:59:26 PM EST
Bid Ask Day's Range
3.86 3.87 3.81 - 4.45
RWLK Detailed Quote
ReWalk Robotics Announces $40.0 Million Private Placement Priced At-the-Market
https://finance.yahoo.com/news/rewalk-robotics-announces-40-0-220200176.html
MARLBOROUGH, Mass. and BERLIN and YOKNEAM ILIT, Israel, Feb. 19, 2021 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”) today announced that it has entered into securities purchase agreements with certain institutional and other accredited investors to raise $40.0 million through the issuance of 10,921,502 ordinary shares and warrants to purchase up to 5,460,751 ordinary shares, at a purchase price of $3.6625 per share and associated warrant, in a private placement priced “at-the-market” under Nasdaq rules. The warrants will have a term of five and one-half years, be exercisable immediately following the issuance date and have an exercise price of $3.60 per ordinary share.
H.C. Wainwright & Co., LLC acted as the sole placement agent for the offering.
The Company intends to use the net proceeds for: (i) sales, marketing and reimbursement expenses related to market development activities of its ReStore and Personal 6.0 devices, broadening third-party payor and CMS coverage for its ReWalk Personal device, and commercializing its new product lines added through distribution agreements; (ii) research and development of its lightweight exo-suit technology for potential home personal health utilization for multiple indications and future generation designs for its spinal cord injury device; (iii) routine product updates; and (iv) general corporate purposes, including working capital needs. The closing of the private placement is expected to occur on or about February 23, 2021, subject to satisfaction of customary closing conditions.
The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
Under an agreement with the investors, the Company is required to file an initial registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of the ordinary shares to be issued to the investors (including the shares underlying the warrants) no later than 20 days after today and to use best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 90 days after today in the event of a “full review” by the SEC.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
I-Man et al - new here 1st post. I bought some shares first on recent big up day managed to buy some @ 2.65 and down to 2.22 or so. I read (past tense) and read the Q the same as you and added a bit at 3.87 got greedy and tried at 3.55 no dice. Totally agree about exaggerated and speedy downs and ups being the result of manipulation it ain’t gonna get fixed luck favors the prepared buy the dips. GLTA
What's not to love here?? Small retail shakeout hitting "stop orders"...
ReWalk Robotics Reports Fourth Quarter and Year End 2020 Financial Results
— Annual revenue of $4.4 million in 2020 and $1.2 million for the fourth quarter of 2020 —
— Continued CMS progress made with issuance of HCPCS Level II Code for ReWalk Exoskeleton enabling an upcoming application for coverage —
— Debt repayment and strengthened cash position allowed going concern qualification removal —
— Expended German reimbursement contracts with additional insurers —
Highlights of and subsequent to the fourth quarter and FY 2020 include:
•
Q4 2020 revenue was $1.2 million and FY 2020 revenue was $4.4 million, compared to $1.2 million in Q4 2019 and $4.9 million in FY 2019.
•
Going concern qualification removed as our cash at the end of the year was $20.3 million and an additional $13.2 million received through warrants exercise to date in 2021.
•
Continued CMS progress made with issuance of HCPCS Level II Code for ReWalk Exoskeleton enabling an upcoming application for coverage
•
Expended German reimbursement contracts with additional insurers
•
FY 2020 operating expenses were $14.2 million compared to $16.8 million in FY 2019
“We are encouraged with our overall results in FY 2020. Although we have faced and continue to face the effects of Covid-19 in several of our key markets, during this last year we progressed our CMS initiative as we created a new code for exoskeleton and, if our planned coverage application is successful, it will allow a significant number of the U.S. spinal cord injury population access to our device. Our German insurance contracts continued to expand as more payors are joining them and with our strengthened cash position we can maximize our company's potential,” stated Larry Jasinski, Chief Executive Officer of ReWalk.
What more to demonstrate than the last 4+ years of positive developments globally here???
Already in Europe have major insurers on tap. In USA have couple majors already working out this as well. Everything in place from FDA to distribution and manufacturing...???
It's a simple post earnings sell off event. Holding through earnings on any stock is gambling. Report was disappointing in that they still haven't demonstrated they can profitably sell and gave little to no guidance in that regard, hence the sp.
This is NOT a bad earnings at all ! READ folks. WTF going on out there ???
Highlights of and subsequent to the fourth quarter and FY 2020 include:
•
Q4 2020 revenue was $1.2 million and FY 2020 revenue was $4.4 million, compared to $1.2 million in Q4 2019 and $4.9 million in FY 2019.
•
Going concern qualification removed as our cash at the end of the year was $20.3 million and an additional $13.2 million received through warrants exercise to date in 2021.
•
Continued CMS progress made with issuance of HCPCS Level II Code for ReWalk Exoskeleton enabling an upcoming application for coverage
•
Expended German reimbursement contracts with additional insurers
•
FY 2020 operating expenses were $14.2 million compared to $16.8 million in FY 2019
It probably a Poison Pill designed to keep out take over attempts.
Earnings as anticipated with Covid infused delays crapp going on still..
What I find interesting is today's Congressional meet with CEO's or Redditt, Robinhood and GameStop over what is becoming more revealing to the general public, the bad shortselling schemes on Wall Street most had no idea about- yet the BIG hedge funds are crying they lost $$$ cause small retail investors tricked them, and if Congress has any fairness left in them, need to see and understand how UNFAIR entire US Equities markets are for all- and STOP naked shortselling schemes and such hurting many US corps for many years.
And same here regarding RWLK and last weeks out of nowhere volume "triggers" being hit upside, then downside, then back again, makes MANY globally questioning unfair manipulations going on here as well as PPS should have been left alone, not controlled as it plainly was ! And yet so many oils, Techs, gamestop even and more are allowed to roil to unbelievable exponential heights yet NEVER a circuit breaker tripping ???
Today early IMHO, if you are not invested in this company, buy at the lows, because they are and have been doing all the right things going forward ... Institutional Ownership ahs been increasing here the last couple weeks as well according to SEC ...
ReWalk Robotics Reports Fourth Quarter and Year End 2020 Financial Results
https://finance.yahoo.com/news/rewalk-robotics-reports-fourth-quarter-120000843.html
Thu February 18, 2021 7:00 AM|GlobeNewswire|About: RWLK
— Annual revenue of $4.4 million in 2020 and $1.2 million for the fourth quarter of 2020 —
— Continued CMS progress made with issuance of HCPCS Level II Code for ReWalk Exoskeleton enabling an upcoming application for coverage —
— Debt repayment and strengthened cash position allowed going concern qualification removal —
— Expended German reimbursement contracts with additional insurers —
MARLBOROUGH, Mass. and BERLIN, Germany and YOKNEAM ILIT, Israel, Feb. 18, 2021 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (RWLK) (“ReWalk” or the “Company”) today announced its financial results for the three and twelve-months ended December 31, 2020.
Highlights of and subsequent to the fourth quarter and FY 2020 include:
Q4 2020 revenue was $1.2 million and FY 2020 revenue was $4.4 million, compared to $1.2 million in Q4 2019 and $4.9 million in FY 2019.
Going concern qualification removed as our cash at the end of the year was $20.3 million and an additional $13.2 million received through warrants exercise to date in 2021.
Continued CMS progress made with issuance of HCPCS Level II Code for ReWalk Exoskeleton enabling an upcoming application for coverage
Expended German reimbursement contracts with additional insurers
FY 2020 operating expenses were $14.2 million compared to $16.8 million in FY 2019
“We are encouraged with our overall results in FY 2020. Although we have faced and continue to face the effects of Covid-19 in several of our key markets, during this last year we progressed our CMS initiative as we created a new code for exoskeleton and, if our planned coverage application is successful, it will allow a significant number of the U.S. spinal cord injury population access to our device. Our German insurance contracts continued to expand as more payors are joining them and with our strengthened cash position we can maximize our company's potential,” stated Larry Jasinski, Chief Executive Officer of ReWalk.
Fourth Quarter and Full Year 2020 Financial Results
Total revenue was $1.2 million for the fourth quarter of 2020, compared to $1.2 million during the prior year quarter. Annual revenue was $4.4 million in 2020 compared to $4.9 million in 2019. The decrease year over year was mainly due to a lower number of units sold in Germany and the U.S. as we encountered disruptions in our sales cycle due to Covid-19.
Gross margin was 33% during the fourth quarter of 2020, compared to 61% in the fourth quarter of 2019 and our full year 2020 gross margin was 50% compared to 56% in 2019. The decrease was primarily attributable to lower number of units sold as well as higher inventory write-off of our previous designs partially offset by a higher average selling price.
Total operating expenses in the fourth quarter of 2020 were $3.2 million, compared to $3.9 million in the prior year period. Total operating expenses for the full year 2020 were $14.2 million, compared to $16.8 million in 2019. The reduction year over year was mainly in our research and development spend as we completed our ReStore design in 2019. Our fourth quarter reduction was impacted by a one-time event of $0.4 million due to forgiveness of our PPP loan.
Net loss was $2.9 million for the fourth quarter of 2020, compared to a net loss of $3.6 million in the fourth quarter of 2019. Net loss was $13.0 million in 2020, compared to a net loss of $15.6 million in 2019.
Non-GAAP net loss for the fourth quarter of 2020 was $2.7 million, compared to a non-GAAP net loss of $3.2 million in the fourth quarter of 2019. Non-GAAP net loss was $11.9 million in 2020, compared to a Non-GAAP net loss of $14.0 million in 2019. A reconciliation of net loss to non-GAAP net loss is included at the end of this press release.
Liquidity
As of December 31, 2020, ReWalk had $20.3 million in cash on its balance sheet and received an additional $13.2 million in 2021 from warrant exercises. The Company repaid its debt entirely as of December 31, 2020.
Conference Call
ReWalk management will host its fourth quarter 2020 conference call as follows:
Date Thursday, February 18, 2021
Time 8:30 AM EST
Telephone U.S: (844) 423-9889
International: (716) 247-5804
Israel: 18 09 31 53 62
Germany: 08 00 18 15 287
Access code 8763375
Webcast (live, listen-only and archive) www.rewalk.com under the “Investors” section.
The archived webcast will be available via the following URL https://edge.media-server.com/mmc/p/qqevtg5m or through the 'Investors' section' on www.rewalk.com.
Donald I stated that as well when that happened. You have techs & oils and others moving massive amounts and no circuit breakers, but this gets hit repeatedly with them?
What gives?
ReWalk Robotics Ltd. [RWLK] Revenue clocked in at $4.40 million, up 226.52% YTD: What’s Next?
https://dbtnews.com/2021/02/16/rewalk-robotics-ltd-rwlk-revenue-clocked-in-at-4-40-million-up-226-52-ytd-whats-next/
Been holding this Pump & Dump since before the Reverse Split. Hope Hyundai can drive it over $500. I will be green then. Typically it rises before the report and tanks after.
According to TD Ameritrade there looks like some kind of lock on the stock going up.
2/12/2021
10:59 am ET
*ReWalk Shares Resumed Trading, Halted On Circuit Breaker To Downside, Resume Trading Again And Move Lower
Benzinga
10:13 am ET
*ReWalk Robotics Shares Halted On Circuit Breaker To Upside; Up 9.26%
Benzinga
Armistice Capital and one other Institutional filed with SEC a day ago as >5% Investors of the common stock now...
Day's Range 4.57 - 5.50
Volume 5,826,133
Avg. Volume 2,641,993
Impressive!
ReWalk Robotics to Report Fourth Quarter 2020 Financial Results on February 18, 2021
February 15 2021 - 12:44PM
GlobeNewswire Inc.
ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”) today announced that the Company will release its fourth quarter 2020 financial results on Thursday, February 18, 2021, before the U.S. financial markets open.
Larry Jasinski, Chief Executive Officer, and Ori Gon, Chief Financial Officer, will host a conference call to discuss the results as follows:
Time 8:30 A.M EST
Toll free (U.S.) (844) 423-9889
International (U.S) (716) 247-5804
Germany 08 00 18 15 287
Israel 18 09 31 53 62
Access Code 8763375
https://edge.media-server.com/mmc/p/qqevtg5m
Webcast (live and replay) under the ‘Investors’ section'.
The archived webcast will be available via the following link
https://edge.media-server.com/mmc/p/qqevtg5m or through the 'Investors' section' on www.rewalk.com.
As an old chartist fellow, after what I saw today, looks to be going over $10.00 this coming week and beyond. GO back to 3 year charts to see where it once used to be...
Amazing! But what pisses me off when I heard of this today, is they halted it up then down, then back up !!?? How the hell can so many stocks in tech industries, spaces industries and even oil make massive movements and never a circuit breaker tripping ???
Even on that GameStop thingy a couple weeks ago. Prices just bolted and never any circuit breaker triggered???
It don't seem right...
ReWalk Robotics gains as Hyundai working on car that turns into "walking machine"
Feb. 12, 2021 11:25 AM ETReWalk Robotics Ltd. (RWLK)By: Josh Fineman, SA News Editor2 Comments
ReWalk Robotics (NASDAQ:RWLK) soared 20% as a CNBC report hit that said Hyundai Motor Group (OTCPK:HYMLF) is working on a concept car that can be turned into a "four-legged walking machine."
The vehicle, known as TIGER, is being designed to operate without a crew and in "extreme, remote locations."
Hyundia's development of Tiger comes after the automaker in December said it was acquiring a controlling stake in Boston Dynamics from Softbank in a deal valued at $1.1b.
ReWalk Robotics develops, manufactures, and markets wearable robotic exoskeletons for individuals with lower limb disabilities as a result of spinal cord injury or stroke.
Recall Dec. 10, ReWalk Robotics rallies on contract with German private health insurance company.
New 52 week high yesterday. If this breaks above $10.00 and bases from there, will be going back to $20.00 levels where it was trading seen on 3 year charts now...
Day's Range 3.1800 - 3.8700
52 Week Range 0.4100 - 3.8700
Volume 3,669,284
Avg. Volume 2,268,675
WOW!!!
Morning Seeker, Just had email sent to me with overseas article out on another service stating this company will be in $Billions market cap within few years trading in $50-60.00+ levels then......
Wearable Robotic Exoskeleton Market to Hit USD 5,700.9 million by 2027; Increasing Demand for Higher Efficiency in the Manufacturing Sector to Boost the Market: Fortune Business Insights(TM)
6:04 am ET February 1, 2021 (Globe Newswire)
The global wearable robotic exoskeleton market size is projected to reach USD 5,700.9 million by 2027, exhibiting a CAGR of 42.6% during the forecast period. Rising utilization of robotic exoskeletons by healthcare facilities around the world is a prominent factor driving this market, shares Fortune Business Insights(TM) in its report, titled "Wearable Robotic Exoskeleton Market Size, Share & COVID-19 Impact Analysis, By Technology Type (Powered and Passive), By Application (Healthcare, Industrial, Defense & Aerospace and Others) and Regional Forecast, 2020-2027".
In the healthcare industry, wearable robotic exoskeletons are structures designed to aid people suffering from disabilities such as paralysis move their limbs and restore some form of normalcy in their lives. The vast potential of these structures is pushing health facilities worldwide to adopt and utilize them in effective ways. For example, Ekso Bionics' Ekso NR is being used by 300 hospitals across the US. The exoskeleton has been engineered to train the muscles and brains of stroke and spinal cord injury patients and enable them to walk and move again without assistance. In Russia in March 2019, doctors in a Southern Russian hospital used ExoChair, an exoskeleton designed to support the pelvic region and lower limbs, to perform a 12-hour-long urological surgery. The widening adoption of robotic exoskeletons in hospitals is, thus, broadening the horizons of this market.
I expect to see $RWLK in the $10 range within the year!!
This time they have their Medicare codes for insurance purposes and have paid down a substantial amount of debt. Easily moving higher towards 5.50
Went back on 3 years of charts and $10.00 area seems very solid resistance to strive for...
May try to establish new 52 week high at that area in a day or two stellar $8.00 movement as so many others have shown, held down for years... Will see in coming days...
Took a position and believe lots more here. Medicare code# helps tremendously as well as paying down debt.
Will get excited once it passes $8.25 area...
2.86+0.86 (+43.00%)
As of 12:04PM EST. Market open.
Day's Range 2.0299 - 2.90
52 Week Range 0.4100 - 2.90
Volume 9,526,658
Avg. Volume 1,333,288
Impressive!!!
Day's Range 1.8656 - 2.4900
52 Week Range 0.4100 - 2.4900
Volume 5,321,989
Avg. Volume1,414,079
Impressive!
ReWalk Robotics Repays Outstanding Balance on Kreos Credit Line
8:00 am ET January 6, 2021 (Globe Newswire)
Credit line originally established in 2015 is now fully paid off
ReWalk Robotics Ltd. (Nasdaq:RWLK) ("ReWalk" or the "Company") today announced that it has repaid in full the outstanding balance on its credit line from Kreos Capital V (Expert Fund) Limited ("Kreos"). The final payment was made on December 29, 2020 and discharged all of the Company's obligations to Kreos.
ReWalk and Kreos entered into an agreement to establish the line of credit at the end of 2015, and ReWalk drew down an initial tranche of $12 million at the beginning of 2016. Further drawdown provided the company an additional $8M of funds for a total loan amount of $20M.
ReWalk Robotics Ltd. RWLK is a medical device company that designs, develops, and commercializes robotic exoskeletons for individuals with mobility impairments or other medical conditions. The company that belongs to the Zacks Medical - Instruments industry has an expected earnings growth rate of 62.2% for the next quarter. The Zacks Consensus Estimate for the company’s next-quarter earnings has been revised 6.7% upward over the past 60 days. ReWalk Robotics holds a Zacks Rank #2.
https://finance.yahoo.com/news/robots-rule-2021-5-stocks-141702817.html
Did they not already have (2) major healthcare providers accept this??? I thought last year this was already in pace...??? I know the major European Insurers did ..
nice movement in this today!.......all they need is someone like blue-cross, or another major provider to approve this device
exciting tech for stroke victims or people with spinal cord injuries
$2.50 price target........i suspect that will get "BUMPED UP" soon
$$$$$$$$$$$$$$$ REWALK ROBITICS $$$$$$$$$$$$$$$$$$$....gla
1.7665+0.3165 (+21.8276%)
As of 12:49PM EST. Market open.
Volume 3,538,333
Avg. Volume 1,227,742
Indeed so, and RWLK is inching
up. I am in no hurry, our day
will come big time imo.
Again, another positive here for this company ...
ReWalk Robotics: A Turbulent Journey In The Right Direction
Dec. 22, 2020 9:59 AM ET | About: ReWalk Robotics Ltd. (RWLK)
Larry Saunders
Summary
ReWalk shares have recently moved up in spite of new equity issuance.
The third quarter saw reduced revenues due to Covid-19 but still managed to use less cash in operations, which is trending strongly towards a break-even point in 2023.
As some risks recede, the question of fair valuation and evaluating growth prospects become more important to address.
ReWalk Robotics (RWLK), the Israeli company developing robotic exoskeletons and other technology used in helping those recovering from certain types of injuries be able to walk again, has been a fascination of mine for several years. While the company is not exactly a start-up, much less a hot IPO, in several respects it remains young in a field that is largely in its infancy as a commercially viable product. Whether or not the whole industry of robotic-assisted recovery ever develops into a mature market is far from certain. Observing both the business and technological progress at ReWalk Robotics is a little bit like having a window into the whole nascent segment.
ReWalk wasn't born yesterday - the company has been around since 2001, had its initial product approved by the FDA in mid 2014, and became a publicly-traded company later that same year. While its technology has certainly delivered incredible value to hundreds, perhaps thousands of lives, its acceptance among insurance carriers have been slow to develop, clearly holding back the opportunity to create value for shareholders in the last 6 years. For such a thinly-traded nano cap in the context of broader markets at all-time highs, I do not want to read too much into recent trends on its valuation, but I think it is time to start considering valuation assumptions more carefully.
ReWalk has moved up noticeably over the last month and managed to hold well above $1.25, in spite of expanding its share count by 5.6 million new commons (about 30% more), with additional warrants priced at $1.34. In fact, both ReWalk and its peer Ekso Bionics (EKSO) have seen a strong return since November heading into year end, outperforming a basket of micro cap names in the DFA US Micro Cap fund (MUTF:DFSCX).
ChartData by YCharts
Whether or not this is the beginning of a new direction for ReWalk is an intriguing question, as longtime shareholders have seen value destruction on a spectacular scale, and have every right to be skeptical.
Just Crossing the Starting Line
Some of the best stories about the beneficiaries from ReWalk's exoskeleton involve people using the individual ReWalk 6.0 suit to complete marathons. I am aware of handful of these, dating back to the London marathon in 2012, and another in 2018, while an American veteran completed the New York City race last year. Behind each of these examples is a tremendous story of grit, determination and the potential for technology to truly help people lead lives that would otherwise be unavailable to them.
ReWalk Marathon
Source
I've been an on again/off again runner for the last 15 years, having completed perhaps 25 half-marathons, but never attempted a full marathon, and I will attest that even in a half marathon, for me crossing the finish line is always a feeling of both relief and accomplishment. In larger races, however, with thousands of runners, the organizers plan it so that runners are grouped in sections behind the starting line, based on expected finishing times (the elite runners go in front, slow runners at the back, etc.), so for someone like me, it can take a while just to move up to the starting line.
I think this is something of an appropriate metaphor for ReWalk as a viable business. All the past steps were merely preparation for getting to the starting line - the success in proving out the technology, the investments in getting the FDA and European approvals, developing the ReStore soft suit as a second product line for stroke patients, getting German health insurers to start covering the original ReWalk hard suit, and now inching closer to a breakthrough for getting American insurers to do the same, it is like the actual event is just now getting started.
I am not the first to apply the marathon metaphor to the industry, as reported by the website Exoskeleton Report in its summary of the industry convention in 2017, and recalled by the same site in its reporting on ReWalk's victory in getting the billing codes assigned by the Centers for Medicare and Medicaid earlier this year. Back in 2017 Parker-Hannifin's (NYSE:PH) executive Achilleas Dorotheou (whose company has developed the competing product, Indego) was clearly stating the industry as a whole would be years still in development, and it seems his predicted timeline is bearing out.
For context with regards to ReWalk, the reimbursement picture for ReWalk's individual use devise (such as used in the marathons) has really turned quite positive in Germany. One week after announcing the equity raise earlier this month, the company also started its contract (which was actually announced on the 3rd quarter call) for coverage with a private German insurer, the first such agreement, and supplements multiple agreements already in hand with German statutory insurers (this link supplies a handy overview in English of the German health insurance landscape). As that coverage continues to expand, over the long-term, obviously more claims will be filed and paid in Germany, which I believe is the baseline for normalizing revenue that has been unpredictable over the last few years. ReWalk management has worked diligently to expand margins, and the cash burn picture has improved quarter by quarter.
In fact, even with revenue taking a tumble to only $0.75 million in the 3rd quarter, cash loss from operations improved by another $0.60 million to $2.6 million. I wrote in my last update in August 2020 that:
If cash burn declines to $2.5 million per quarter and just stays there without further improvement, that still leaves more than 20 months of runway
ReWalk basically hit that figure in Q3, and with the additional $8 million in cash from the new shares issued, that runway will be longer, even in a steady state, but should continue to improve as the world moves past the Covid-19 pandemic. While I am leery of projecting too much into the future based on the historical trend, there appears to be a reasonable chance that cash from operations would be approaching break even by mid 2023, which would correlate with management's hopes of having American insurers on board more broadly by mid 2022, and perhaps greater contributions from the ReStore suit that is marketed and sold to rehabilitation centers.
Cash flow from operations projection
Source: author's spreadsheet; the r-squared for the data from Q1 2016 through Q3 2020 is ~0.765; data sourced from ReWalk Robotics quarterly reports
As of the end of Q3 2020, ReWalk had already done reasonably well at managing its overall cash position. Making some assumptions for where things will stand at year end in broad strokes; I will be looking for net cash of around $20 million ($18.1 million at close of Q3, less $3.4 million debt, less cash used in operations of $2.5 million during Q4, and plus cash from financing of $8.0 million). With around $20 million, the company could sustain a quarterly cash burn of $2.5 million for 2 more years, and much longer if the cash generated from the business continues to improve. Ori Gon, ReWalk's CFO, stated on the 3rd quarter call in response to a question that:
on the cash burn side, we - it will be reduced at the end of Q1 [2021]... you see this quarter landing at about $2.6 million in operating cash burn. So that's also a very positive improvement if you compare to previous quarters and a year before that. So we've done a very significant effort there and with the growth that we hope would come in the future, we can even take it lower.
While this latest round of dilution may not be last, I think there clear signs pointing to ReWalk becoming a viable business, on the basis of being able to get to a point in which its operations can produce positive cash contribution.
Is Establishing A Fair Valuation Feasible?
Had 2020 been a more normal year without the Covid-19 tragedy, starting to come up with a reasonable valuation framework for ReWalk might have been easier. I say that because the second quarter featured one data point that I thought was particularly important, namely that every ReWalk individual use suit sold that quarter in Germany was paid for by insurance, and I was hoping to see more of the same in the following quarter. However, Q3 was more severely disrupted, with minimal sales activity, and as a result, I expect to see Q4 hit fairly substantial numbers due to delayed sales, along with the number of pending insurance claims that were open in Germany (84) and the United States (12). I anticipate the majority of German claims to eventually pay, but would not count on any of the American claims without knowing if any of them were within the Veterans Affairs agreement.
Additionally, ReWalk is broadening its sales base from being so purely reliant on favorable insurance decisions. Primarily, the ReStore soft suit developed for stroke patients had to largely be put on hold while many rehab centers hit pause during Covid, but ReWalk is also now distributing MyoCycle and MediTouch products, which incorporates a tele-medicine aspect. While these are all positive steps - expectation of a strong 4th quarter, restarting sales of ReStore, and getting into a rhythm with MyoCycle and Meditouch - it is enough moving parts without historical reference points making sales projections more difficult to establish.
With those uncertainties understood, we can consider what the market might be implying about expectations for the future. With negative earnings and cash flow and limited competitors, the metrics that can be reviewed are not that deep. The Seeking Alpha valuation page for ReWalk shows a forward price to sales ratio of 7.67, which at $1.45 a share works out to forward sales expectation of $4.68 million. The starting question becomes whether or not this is a fair estimate for 2021 sales.
Through 3 quarters of 2020, total sales have been $3.2 million, and my expectation is that Q4 will at least match, if not exceed Q2's total of $1.6 million, bringing 2020 full-year total to ~ $4.8 million or more. At a forward expectation on sale of 7.67, there is certainly zero growth for 2021 built in, so perhaps Seeking Alpha's valuation metric here is estimating out only to the next quarter. Turning to Reuters for comparison, the figures on the surface at first glance work out a little differently, with P/S of 5.71, which might make you think it would mean sales of $6.3 million, implying a nice bump. However, Reuters has not yet adjusted ReWalk's market cap and share count for the newly issued shares [at least as of this writing on Sunday afternoon 12/20/20], whereas Seeking Alpha has made the adjustment. Based on the old figures, Reuter's reported P/S of 5.71 works out to sales of $4.9 million, so in line across both sources.
My contention is that those sales projections are far too conservative. With 84 insurance cases pending in Germany as of the end of 3rd quarter, I could imagine easily 15 to 20 positive decisions in Q4, with an unknown new number of claims submitted. Even if the replacement rate of new claims was less than the claims approved, I think 15 positive German decisions per quarter through 2021 is within reach, meaning 60 units for the year. On the basis of the existing German cases pending, this would only assume about a 70% success rate spread over 12 months, which does not seem overly optimistic. This result alone, at a selling price of $89k per unit, is annual revenue of $5.34 million. While not a blockbuster beat on sales forecast at $4.9 million, it assumes absolutely nothing in American sales for the units, much less the relaunch of sales for ReStore, Myocycle or Meditouch.
Whatever the ratio, figuring out if it is appropriately valued would be most helpful in the context of comparison to peers. Unfortunately, publicly-traded peers are somewhat hard to come by, and they tend to be imperfect comparisons in terms of business models and maturity. Aside from Ekso Bionics, there is the Japanese company Cyberdyne (CYQBY) (CYQBF) that trade on the pink sheets, Canadian firm Bionik Laboratories (OTCQB:BNKL) that is even more nano cap than ReWalk; formerly public Rex Bionics was de-listed back in 2017. Other competing products tend to be relatively small projects within much larger business, such as Parker-Hannifin's Indego suit. Essentially Ekso Bionics is left as the best point of comparison, and Seeking Alpha shows it with forward P/S of 4.92. Applying a similar P/S of 5.0 to ReWalk would point to revenue of ~$7.2 million, which could be a stretch for 2021, but not wildly out of line.
To look at it another way, if keeping the same P/S of 7.67, and looking for a more modest $6.0 million in 2021 revenue (and I think $5 million from German claims alone is perfectly reasonable to hope for), then based on the current share count of 24.76 million shares, the company is undervalued by ~20%, as the implied value to shares would be roughly $1.85. If either the ReStore or another product line truly starts adding meaningful sales, or if American insurance enters into contracts similar to the German ones for the personal use device, or both, then I think shares would absolutely shoot up two or three fold.
Conclusion
I want to make certain I am as clear as I can be - ReWalk is highly risky venture, but the risks today are somewhat less than the risks were one year ago. The biggest issue with ReWalk Robotics as an investment story, in my view, has simply been the slowness of a business model relying on lining up insurance payments; the process has dragged on years longer than was originally envisioned, and remains unsettled. The issuance of the HCPC code for billing American insurance is an important step, but whether or not the American insurers will ever agree to start coverage like has now happened in Germany is clearly the major question. However, I do not think there is any further question that ReWalk is capable of surviving. This is not to suggest with 100% certainty that it will, or that it will enrich its owners, but only that it can get enough traction with approved claims in Germany alone to be a company with $6 to $7 million in regular annual revenue, a 50% gross margin, and simply be a viable small business, at least for a time.
Since the ambitions are greater than that, the risks are necessarily greater too. As I expect some stability of approved German claims to under gird operations while efforts are made to crack the American market, I do not think the valuation is unduly stretched. Since it has been stuck treading water for so long, new investors have not missed the growth phase; new investors have to answer the question of whether or not they think the growth will materialize. Even if shares might be undervalued by 20% or so currently, I would not advise that such a limited upside potential is worth the risks in this name. The attractive opportunity here, if there is one, is for out-sized gains in 12 to 24 months with reduced downside risks of the company absolutely folding.
For disclosure, I am long ReWalk, and have been averaging down in small batches over the last 15 months. Between its move up and my averaging down, I have gone from being down more than 90% at its 52-week lows, to being down "merely" 75%, with roughly half of a full position. Due to its risk profile, I have no specific plans to necessarily build a full position, but I anticipate continuing to add slowly into 2021.
Disclosure: I am/we are long RWLK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Yes still another positive in long line of such accomplishments for this company...
Where is share price at now??
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