Replies to post #415 on ReWalk Robotics Ltd (RWLK)

[abira]

I was at a meeting and I couldn't listen. I can't get a playback either (the link doesn't have the actual call for some reason - https://edge.media-server.com/m6/p/m2o4m2vt )

[abira]

Per Jasinski, they are still talking with Timwell but if they can't reach an agreement quickly, they have alternative pathways in China. As I said before, I don't think they will be able to come to an agreement with Timwell. Whether they actually have alternative solid pathways in China is to be seen.

Other notes:
First the factual ones:
- They finished enrolling patients for the Restore study
- They have applied for CE clearance in Europe for Restore (November 1st)
- They are going to apply for FDA clearance in the next few months
- They got their first Rewalk 6.0 sale via VA Choice program
- Expecting $2 to $3 million in sales for Q4 2018
- They have applied for a broad coverage with a Top 5 insurer in US. Expecting a decision in Q4 2018
- They have delivered their 500th Rewalk system in Q3 2018.

Jasinski's other statements (which needs to be taken with a grain of salt):
- Rewalk is not experimental company anymore (referencing to recommendations by Triumph)
- Expecting increased coverage for Rewalk from this point on
- Start selling Restore mid 2019 or Q3 2019 in Europe and US
- Restore uses existing reimbursement codes, it is significantly lighter, and it is significantly cheap. So market penetration should be faster than Rewalk 6.0.

Goals for 2019:
- Demonstrate sales growth in Germany and US for Rewalk 6.0
- Establish a US commercial policy for Rewalk
- Complete CE and FDA clearances for Restore and launch Restore
- Secure a distribution partner in China

Expectations are positive but unless they can secure financing, they cannot sustain operations. Their numbers don't look good but I want to see how Restore plays out. So I am going to wait a few more quarters. But there is a moderate chance that I will lose most of my investment in Rewalk.

[abira]

Alinea101's comments on Seeking Alpha nicely summarizes the current issues with the Rewalk company.

The issues with Rewalk:
1) The fight for reimbursement is expensive (case by case is not sustainable)
2) Cash burn is high $5,500,000 each quarter to sell only 20 rewalk systems
3) Rewalk spends $5.5M to generate $1.6M in revenue each quarter (NOT GOOD at all)
4) No growth YoY
5) New product 15-21 months away & NOT FDA approved
6) Increasing Authorized Share Count by $56,000,000
7) Timwell $20,000,000 Investment CANCELED
8) No large institutions buying & no insider buying
9) CEO should step down or retire (stock price since IPO $25 to $0.68 under Larry Jasinski)
10) Sales are forecasted to decline in the next 2-3 quarters by analysts
11) Rewalk Robotics also received a notice of DELISTING last week. If past stock behavior is indicative of future behavior, RWLK very well may get delisted to OTC.

Q3 2018 cash burn was less than $5.5 million and I don't think they are expecting a decline in sales in the next 2-3 quarters but the rest are valid points.