ReWalk Robotics Ltd (RWLK)

[abira]

You are right, Q2 numbers do not look good. On company's defense, they had stated that they are expecting first two Qs be bad but they are expecting an increase in sales for Q3 and Q4 (1Q earnings call) and guidance $9-11M sales (http://ir.rewalk.com/news-releases/news-release-details/rewalk-robotics-reports-fourth-quarter-and-year-end-2017) should still be valid. The main reason for this was that it would take some time for the policy change in Germany to have an impact. Similarly, it takes some time to benefit from the change in SOP for the VA.

The finances of RWLK look bleak but there is a path forward. If the JV happens, the company will get $10M (2nd tranche) with a $1.25 pps. If they can get clearance for the ReStore product and have the manufacturing set up in China, there is another $5M coming from Timwell. And if these things happen, they have reasonable minimum cash guarantees from the JV: "$1.25 million for the first year after formation; $4 million for the second year after formation; $8 million for the third year after formation; an amount increased annually by 15% of the preceding year’s amount for the fourth, fifth and sixth years after formation; an amount increased annually by 10% of the preceding year’s amount for the seventh, eighth and ninth years after formation; and an amount increased between 5% and 8% of the preceding year’s amount for the tenth year after formation onward. " (http://ir.rewalk.com/static-files/623306b7-2cee-4528-9faa-468479dc1243)

Now, these are a lot of IFs but if RWLK can survive through this, they have a future. But this is a very risky road.

I was able to sell some of my shares before the big fall on Monday but my decision to wait for Monday turned out to be very costly. I now hold a bag of RWLK shares :(