Lifeward Ltd (LFWD) 2023 Q3 法說會逐字稿

Hello, and welcome to Q2, Q3 2023 ReWalk Robotics Limited earnings conference call. (Operator instructions)

您好，歡迎參加 ReWalk Robotics Limited 2023 年第二季、第三季財報電話會議。 （操作員說明）

And I now turn the conference over to Michael Lawless. Please go ahead, sir.

我現在將會議交給邁克爾·勞利斯。請繼續，先生。

Thank you, Keith. Good morning, and welcome to ReWalk Robotics third quarter 2023 earnings call. I'm Michael Lawless, ReWalk Robotics Chief Financial Officer and with me on today's call is Larry Jasinski, our Chief Executive Officer.

謝謝你，基斯。早安，歡迎參加 ReWalk Robotics 2023 年第三季財報電話會議。我是 ReWalk Robotics 財務長 Michael Lawless，參加今天電話會議的是我們的執行長 Larry Jasinski。

Earlier this morning, ReWalk issued a press release detailing financial results to the three and nine months ended September 30, 2023. The press release and a webcast of this call can be accessed through the Investor Relations section of the ReWalk website at rewalk.com.

今天早上早些時候，ReWalk 發布了一份新聞稿，詳細介紹了截至2023 年9 月30 日的三個月和九個月的財務業績。網站rewalk.com 的投資者關係部分造訪。

Before we get started, I'd like to remind everyone that any statements made on today's conference call that express a belief, expectation, projection, forecast, anticipation or intent regarding future events and the company's future performance may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act.

在我們開始之前，我想提醒大家，在今天的電話會議上發表的任何表達對未來事件和公司未來業績的信念、期望、預測、預測、預期或意圖的陳述都可能被視為前瞻性陳述。 《私人證券訴訟改革法》的涵義。

These forward-looking statements are based on information available to ReWalk management as of today and involve risks and uncertainties, including those noted in our press release, and ReWalk's filings with the Securities and Exchange Commission. Such forward-looking statements are not guarantees of future performance.

這些前瞻性陳述是基於 ReWalk 管理層截至目前為止掌握的信息，涉及風險和不確定性，包括我們的新聞稿以及 ReWalk 向美國證券交易委員會提交的文件中指出的風險和不確定性。此類前瞻性陳述並非對未來績效的保證。

Actual results may differ materially from those projected in the forward-looking statements. ReWalk specifically disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future developments or otherwise except as required by law. A replay will be available shortly after the completion of the call accessible from the dial-in information in today's press release.

實際結果可能與前瞻性陳述中的預測有重大差異。 ReWalk 特別聲明不承擔任何更新這些前瞻性聲明的意圖或義務，無論是由於新資訊、未來發展或其他原因，除非法律要求。通話結束後不久將提供重播，可透過今天新聞稿中的撥入訊息進行存取。

The archived webcast will be available in the Investor Relations section of the Company's website. For the benefit of those who may be listening to the replay or the archived webcast, this call was held and recorded on the November 14, 2023. Since that date, ReWalk may have made subsequent announcements related to the topics discussed, so please reference the company's most recent press releases and SEC filings for the most up-to-date information.

存檔的網路廣播將在公司網站的投資者關係部分提供。為了那些可能正在收聽重播或存檔網路廣播的人的利益，本次電話會議於 2023 年11 月14 日舉行並進行了錄音。公告，因此請參閱公司最新的新聞稿和 SEC 文件以獲取最新資訊。

And with that, I'll turn the call over to ReWalk CEO, Larry Jasinski.

接下來，我會將電話轉給 ReWalk 執行長 Larry Jasinski。

Thank you, Mike. Good day to all. Since our last financial call, a number of very important events have occurred that we believe have the potential to dramatically change our revenue trajectory and will put ReWalk on a path to profitability.

謝謝你，麥克。祝大家美好的一天。自上次財務電話會議以來，發生了許多非常重要的事件，我們相信這些事件有可能極大地改變我們的收入軌跡，並使 ReWalk 走上盈利之路。

These events are the Strategic Acquisition of a Growing Profitable Entity; Material Decisions by the Centre for Medicare and Medicaid Services CMS on our path to ensure Medical Medicare beneficiaries have access to our life-changing products; progress with the Veterans Administration to make our systems available and FDA clearance introduction of truly breakthrough technology advancements to our system.

這些事件是對不斷增長的獲利實體的策略性收購；醫療保險和醫療補助服務中心 CMS 在確保醫療醫療保險受益人能夠獲得我們改變生活的產品方面做出的重大決定；與退伍軍人管理局合作，使我們的系統可用，並獲得 FDA 批准，為我們的系統引入真正突破性的技術進步。

Let me talk through each of these in order. Together these represent a watershed moment for the company. Equally important, we will be better positioned to fulfil the mission of our founder, which was to empower a large segment of the Spinal Cord Injury community with the ability to stand eye to eye and walk down the street with all of us.

讓我按順序逐一討論。這些共同代表了公司的分水嶺時刻。同樣重要的是，我們將能夠更好地履行創始人的使命，即讓大部分脊髓損傷社區能夠與我們所有人面對面地走在街上。

The importance of our successful integration of AlterG is significant and having both the financial size and infrastructure to succeed by building on the government policy decisions. From a financial perspective, from August 11, through the end of Q3, AlterG was profitable and we anticipate it will continue its profitability in Q4.

我們成功整合 AlterG 的重要性非常重大，並且擁有在政府政策決策的基礎上取得成功的財務規模和基礎設施。從財務角度來看，從 8 月 11 日起，到第三季末，AlterG 實現盈利，我們預計第四季將繼續獲利。

As we combine the ReWalk and AlterG sales organizations on January 1, 2024, we will have the largest US field organization in the exoskeleton industry. This expanded team provides us with the infrastructure for the furthest reach and highest quality of support for the industry. The reimbursement working closely with multiple systems at the Centre for Medicare and Medicaid Services and CMS, we received a health care common procedure coding system hick picks code in 2020.

當我們於 2024 年 1 月 1 日合併 ReWalk 和 AlterG 銷售組織時，我們將擁有美國外骨骼產業最大的現場組織。這個擴大的團隊為我們提供了基礎設施，為產業提供最廣泛的支援和最高品質的支援。報銷與醫療保險和醫療補助服務中心以及 CMS 的多個系統密切合作，我們於 2020 年收到了醫療保健通用程序編碼系統希克精選代碼。

Then on November 2, 2023, we achieved an assignment to a benefit category for lump sum payments to begin in January 2024. On November 6, a preliminary pricing proposal was published with a request to provide more data as a basis to finalize current market pricing by the start of Q2'2024. During this process, we continue to aggressively enrol Medicare patients submitting about 20 cases in 2023 and a similar number being submitted in Q1'2024.

然後在2023 年11 月2 日，我們完成了從2024 年1 月開始一次性付款的福利類別的分配。基礎到 2024 年第二季開始。在此過程中，我們將繼續積極招募 Medicare 患者，並在 2023 年提交約 20 例病例，並在 2024 年第一季提交類似數量的病例。

With the Veterans Administration, we focused in 2023 on reestablishing strong supply pathways post COVID with the core spinal cord injury centres as we progress from three fully active centres to nine. Some VA centres are conducting direct patient selection and control, but then allowing contracted local training institutions or clinics close to home of the veteran. This is through the Choice program, which allows funding for localized training.

與退伍軍人管理局一起，我們在 2023 年的重點是在新冠疫情後與核心脊髓損傷中心重建強大的供應途徑，因為我們從三個完全活躍的中心發展到九個。一些退伍軍人事務部中心正在直接進行患者選擇和控制，但隨後允許在退伍軍人家附近簽約的當地培訓機構或診所。這是透過選擇計劃實現的，該計劃允許為本地化培訓提供資金。

On Veterans Day weekend, CBS interviewed Britney Elliott, a marine who participated in the VA's randomized trial of the ReWalk exoskeleton. She spoke about how the ReWalk changed her life and how she lost four years of walking while waiting for a personal system after the VA's clinical trial. She was in Washington advocating on behalf of the STAND Act as the spinal trauma access to new devices act.

退伍軍人節週末，哥倫比亞廣播公司採訪了參加退伍軍人管理局 ReWalk 外骨骼隨機試驗的海軍陸戰隊員布蘭妮·埃利奧特 (Britney Elliott)。她談到了 ReWalk 如何改變了她的生活，以及她在 VA 臨床試驗後等待個人系統的過程中如何失去了四年的行走能力。她在華盛頓代表 STAND 法案倡導脊椎創傷使用新設備法案。

This important bill has bipartisan support and was led by representatives Bergman, Dingle, Boast and Brownlee in U.S. House of Representatives. It was also endorsed by the Paralyzed Veterans of America PBA and by Disabled American Veterans. This proposed legislation requires that each spinal cord injury veteran be offered the potential supply of an exoskeleton if they are medically qualified as determined during their annual exam. It also adds reporting metrics for SCS centres to document their process and evaluating the disabled veterans that use their service.

這項重要法案得到了兩黨的支持，由美國眾議院眾議員伯格曼、丁格爾、博斯特和布朗利領導。它還得到了美國癱瘓退伍軍人協會 (PBA) 和美國殘疾退伍軍人協會的認可。這項擬議的立法要求，如果每位脊髓損傷退伍軍人在年度考試中確定其體檢合格，則可以獲得外骨骼的潛在供應。它還增加了 SCS 中心的報告指標，以記錄其流程並評估使用其服務的殘疾退伍軍人。

From a technical perspective, our breakthrough designated FDA clearance allows us to supply Medicare beneficiaries and injured veterans with a product that allows the greatest utilization in daily life as they can now navigate stairs and curbs when they're out walking.

從技術角度來看，我們突破性的FDA 指定許可使我們能夠為Medicare 受益人和受傷退伍軍人提供一種在日常生活中得到最大利用的產品，因為他們現在可以在外出行走時通過樓梯和路邊。

In parallel, we have two new products planned to launch in 2024. The first is a new ReWalk exoskeleton design that has many improved features and adds cloud connectivity, all of which will aid utilization and make the system easier to use.

同時，我們計劃在2024 年推出兩款新產品。更易於使用。

The other is a new AlterG model that will offer a model for greater penetration into an untapped segment of the independent clinic market.

另一個是新的 AlterG 模型，它將為更大程度地滲透到獨立診所市場的未開發部分提供一個模型。

Before we move to the financial metrics for Q3, I wanted to give a few business measurements that we will discuss in both the financial and operating detailed discussions for the quarter and period ahead.

在我們討論第三季的財務指標之前，我想提供一些業務衡量指標，我們將在未來季度和期間的財務和營運詳細討論中討論這些指標。

Q3 sales of $4.4 million represents a nearly 400% increase over Q3'2022 that is comprised of a 65% increase in ReWalk revenue and the balance is the addition of AlterG for the last six plus weeks of the quarter. Q3 and Q4 expenses include meaning to investment in CMS and VA policy support, along with the integration expense, which are all expected to substantially decrease in 2024, but are essential now to set the stage for future patient access and for ReWalk success.

第三季銷售額為 440 萬美元，比 2022 年第三季成長了近 400%，其中 ReWalk 營收成長了 65%，其餘部分是該季最後六週多新增的 AlterG。第三季和第四季的費用包括對 CMS 和 VA 政策支援的投資以及整合費用，預計這些費用將在 2024 年大幅下降，但現在對於為未來的患者訪問和 ReWalk 的成功奠定基礎至關重要。

The combined US field team will be approximately 50 individuals, including a clinical evaluation group, a sales team covering the entire country, a clinical training team, a reimbursement team and a field service team. And as per our strategic direction, meaningful growth is now occurring in both the ReWalk and AlterG product lines.

合併後的美國現場團隊將約有50人，包括臨床評估小組、涵蓋全國的銷售團隊、臨床訓練團隊、報銷團隊和現場服務團隊。根據我們的策略方向，ReWalk 和 AlterG 產品線現在正在發生有意義的成長。

I'd now like to turn the call back over to Mike for more financial detail. Mike ?

我現在想將電話轉回給麥克以了解更多財務詳細資訊。麥克？

Thanks, Larry. Before I review the results of the quarter, I want to first comment that our Q3'23 GAAP results reflect purchase accounting adjustments, transaction expenses and integration costs from the acquisition of AlterG, which can obscure investors visibility to the underlying operational performance of ReWalk. In order to facilitate understanding of both the GAAP and the operational results of ReWalk, I'm going to discuss Q3 on both the GAAP and also on a non-GAAP basis, which excludes the purchase accounting adjustments, transaction expenses, integration costs and stock compensation expense. The reconciliation of the non-GAAP to GAAP results it's provided in today's earnings release.

謝謝，拉里。在回顧本季業績之前，我想先評論一下，我們的23 年第3 季GAAP 業績反映了收購AlterG 的購買會計調整、交易費用和整合成本，這可能會掩蓋投資者對ReWalk 基本營運業績的了解。為了便於理解 GAAP 和 ReWalk 的營運業績，我將在 GAAP 和非 GAAP 基礎上討論第三季度，其中不包括採購會計調整、交易費用、整合成本和庫存補償費用。今天的收益報告中提供了非公認會計原則與公認會計原則結果的調節。

First, the revenue. ReWalk Robotics' reported revenue of $4.4 million in the third quarter of 2023 compared to $0.9 million in the third quarter of 2022, up $3.5 million. The biggest factor in our growth in the third quarter was the acquisition of AlterG, which contributed revenue of $2.9 million, which was the revenue generated from the date of the acquisition on August 11 through the end of the quarter.

首先，收入。 ReWalk Robotics 公佈的 2023 年第三季營收為 440 萬美元，比 2022 年第三季的 90 萬美元增加了 350 萬美元。我們第三季成長的最大因素是收購了AlterG，它貢獻了290萬美元的收入，這是從8月11日收購之日到本季末產生的收入。

AlterG's revenue performance was in line with our internal expectations. For the legacy ReWalk product lines Q3'23 revenue was $1.5 million compared to $0.9 million for Q3'22, up six -- $0.6 million or 65%. The increase in legacy ReWalk revenue was a result of continuing sales momentum in the United States and sequential improvement in Germany. In total, exoskeleton revenue was up 70% in Q3'23 versus Q3'22, while our distributed product line, the MyoCycle SES training cycles had another strong quarter with revenue up over 50% from Q3'22.

AlterG 的營收表現符合我們的內部預期。對於傳統的 ReWalk 產品線，23 年第 3 季的營收為 150 萬美元，而 22 年第 3 季的營收為 90 萬美元，成長了六倍，即 60 萬美元，即 65%。傳統 ReWalk 收入的成長是由於美國銷售勢頭持續強勁以及德國連續改善的結果。總的來說，23 年第3 季的外骨骼收入比2022 年第3 季成長了70%，而我們的分散式產品線MyoCycle SES 訓練週期又一個強勁的季度，營收比22 年第3 季成長了50% 以上。

Turning to our pipeline metrics within the current markets for the ReWalk product line, which includes individuals covered by the Veterans Administration in workers' compensation insurance in the U.S. and by private insurance in Germany, the current pipeline of active rentals consists of 26 cases, up four from last quarter, which is broken down with 21 in Germany and five VA rentals.

談到 ReWalk 產品線當前市場中的管道指標，其中包括美國退伍軍人管理局工人賠償保險和德國私人保險承保的個人，當前活躍租賃管道包括 26 個案例，最多較上季度增加4 輛，其中德國21輛，維吉尼亞州租賃5 輛。

As of September 30, our overall number of relocations in process is 68 with 58 in Germany and 10 in the US. The AlterG business ended the quarter with orders 43 systems in backlog, which represents a healthy start to Q -- through Q4'23. The AlterG business typically carries a backlog which represents a portion of the units that are sold in the upcoming quarters with the balance of the revenue generated through subsequent orders that shipped within the quarter.

截至 9 月 30 日，我們正在進行的搬遷總數為 68 人，其中 58 人在德國，10 人在美國。 AlterG 業務在本季結束時積壓了 43 個系統訂單，這代表著 Q 季度（截至 2023 年第 4 季）的良好開端。 AlterG 業務通常有積壓訂單，這代表了未來幾季銷售的產品的一部分，以及透過該季度內發貨的後續訂單產生的收入餘額。

As a reminder, the pipeline figures for ReWalk systems I described do not include cases that would be eligible for Medicare reimbursement. Once Medicare claims that we have already submitted as well as new ones, which we will continue to submit, begin to be processed and paid by the Medicare contractors. They will convert to revenue that is additive to the revenue from our traditional pipeline of VA and Workers' Comp cases.

提醒一下，我描述的 ReWalk 系統的管道資料不包括有資格獲得醫療保險報銷的病例。一旦 Medicare 聲稱我們已經提交了以及我們將繼續提交的新申請，即開始由 Medicare 承包商進行處理和支付。它們將轉化為收入，作為我們傳統的 VA 和工人補償案件管道的收入的補充。

Moving to gross profit in Q3'23, our GAAP gross profit was $0.9 million or 19.6% of revenue compared to $0.2 million or 24.9% of revenue in Q3'22. This decrease of 5.3-percentage-points in gross margin was a result of purchase accounting adjustments from the AlterG transaction. In Q3'23, we recognized additional cost of sales of $0.6 million for the step-up of the value of existing inventory of AlterG at the closing of the acquisition that was later sold during Q3'23.

轉向 23 年第 3 季的毛利，我們的 GAAP 毛利為 90 萬美元，佔營收的 19.6%，而 2022 年第 3 季的毛利為 20 萬美元，佔營收的 24.9%。毛利率下降 5.3 個百分點是 AlterG 交易的採購會計調整的結果。在 2023 年第 3 季度，我們確認了 60 萬美元的額外銷售成本，因為收購結束時 AlterG 現有庫存的價值增加，該庫存隨後在 23 年第 3 季出售。

In addition, we incurred $0.5 million from the amortization of intangible assets that were created when the purchase price for AlterG was allocated across AlterG's balance sheet. Excluding the impact of these two purchase accounting adjustments and stock comp expense, non-GAAP gross profit was $2.0 million or 45.1% of revenue for Q3'23, up 19.7-percentage-points from Q3'22. This increase in gross margin on a non-GAAP basis was primarily a result of higher volumes of ReWalk motorcycle units sold, leveraging our fixed production costs and an increase in our average selling price due to a change in sales mix. AlterG also provided a slight benefit to the consolidated gross margins for the portion of the quarter that we owned.

此外，我們也因無形資產攤銷產生了 50 萬美元，這些無形資產是在將 AlterG 的購買價格分配到 AlterG 的資產負債表時產生的。排除這兩項採購會計調整和股票補償費用的影響，2023 年第 3 季的非 GAAP 毛利為 200 萬美元，佔收入的 45.1%，比 22 年第 3 季增長 19.7 個百分點。以非公認會計準則計算的毛利率成長主要是由於 ReWalk 摩托車銷量增加，利用了我們的固定生產成本以及由於銷售組合變化而導致的平均售價上漲。 AlterG 也為我們擁有的該季度部分的綜合毛利率帶來了輕微的好處。

GAAP operating expenses were $8.8 million in Q3'23, up $3.1 million or 56% compared to $5.7 million in Q3' 22. Within the functions, GAAP R&D expense was $1.3 million in Q3'23 as compared to $1.1 million in Q3' 22, an increase of $0.2 million or 18% due to the acquisition of AlterG which contributed $0.3 million to the increase.

2023 年第3 季的GAAP 營運費用為880 萬美元，與22 年第3 季的570 萬美元相比，增加了310 萬美元，即56%。費用為130 萬美元，而22 年第3 季的GAAP 研發費用為110 萬美元，由於收購 AlterG，增加了 20 萬美元，即 18%，AlterG 為增加貢獻了 30 萬美元。

For the legacy ReWalk business, which excludes the contribution of AlterG, R&D was $0.9 million, a decline of $0.1 million or 14%, primarily due to lower spending on subcontractors and consultants on the ReWalk seven projects since we are in the final stages towards FDA submission.

對於傳統的ReWalk 業務（不包括AlterG 的貢獻），研發費用為90 萬美元，下降了10 萬美元或14%，這主要是由於我們正處於FDA 批准的最後階段，因此ReWalk 七個項目的分包商和顧問支出減少提交。

GAAP selling and marketing expense was $4.1 million in Q3'23 as compared to $2.6 million in the prior quarter, up $1.5 million or 58%. GAAP selling and marketing expense in Q3'23 included $0.2 million of amortization of intangibles from the acquisition of AlterG. On a non-GAAP basis, selling and marketing expense was $3.8 million, up $1.2 million or 50%. The largest single factor in the increase was the contribution of AlterG which added $0.7 million expense to the quarter.

23 年第三季的 GAAP 銷售和行銷費用為 410 萬美元，而上一季為 260 萬美元，增加了 150 萬美元，即 58%。 2023 年第 3 季的 GAAP 銷售和行銷費用包括因收購 AlterG 而產生的 20 萬美元無形資產攤銷。以非 GAAP 計算，銷售和行銷費用為 380 萬美元，增加 120 萬美元，即 50%。成長的最大單一因素是 AlterG 的貢獻，它為本季增加了 70 萬美元的費用。

For the legacy ReWalk business, which excludes the contribution of AlterG, Non-GAAP selling and marketing expense was $3.1 million in Q3'23, an increase of $0.6 million or 23%. The increase in legacy ReWalk selling and marketing expense was primarily due to higher consulting fees associated with CMS reimbursement related activity as we had heightened efforts in this area during Q3 as well as higher tradeshow expenses.

對於傳統的 ReWalk 業務（不包括 AlterG 的貢獻），2023 年第 3 季的非 GAAP 銷售和行銷費用為 310 萬美元，增加了 60 萬美元，即 23%。傳統 ReWalk 銷售和行銷費用的增加主要是由於與 CMS 報銷相關活動相關的諮詢費用增加，因為我們在第三季度加大了在這一領域的努力，以及貿易展覽費用的增加。

GAAP general and administrative expense was $3.5 million in Q3'23 as compared to zero-point excuse me, as compared to $2 million in Q3'22, up $1.5 million or 73%. GAAP G&A expense included $37,000 of amortization of intangible assets from the acquisition of AlterG and $1.3 million of M&A related transaction costs. On a non-GAAP basis, G&A expense was $1.9 million up $0.1 million or 8%. AlterG contributed $0.2 million to this increase. Legacy ReWalk non-GAAP G&A in Q3'2023 was down slightly versus the spending level in Q3'22 or about 2%.

2023 年第 3 季的 GAAP 一般和管理費用為 350 萬美元，請問是零點，而 2022 年第 3 季的 200 萬美元為 200 萬美元，增加了 150 萬美元，即 73%。 GAAP G&A 費用包括 37,000 美元的收購 AlterG 無形資產攤銷以及 130 萬美元的併購相關交易成本。以非 GAAP 計算，一般管理費用為 190 萬美元，增加 10 萬美元，即 8%。 AlterG 為本次成長貢獻了 20 萬美元。 Legacy ReWalk 2023 年第 3 季的非 GAAP G&A 與 2022 年第 3 季的支出水準相比略有下降，即約 2%。

Our GAAP operating loss for the third quarter was $7.9 million compared to an operating loss of $5.4 million in the third quarter of 2022. The non-GAAP operating loss, which excludes the items I've discussed previously, was $4.9 million in Q3'23 as compared to $5.1 million in Q3'22. AlterG was profitable in the quarter and contributed to the improvement in the non-GAAP operating loss performance. We ended the quarter with $3.2 million in cash and cash equivalents and no debt. Our operating cash usage in Q3 was $7.4 million, which is higher than recent quarters due to approximately $2 million in cash paid for the one-time M&A related expenses and meaningful investment in CMS and VA policy support.

我們第三季的GAAP 營運虧損為790 萬美元，而2022 年第三季的營運虧損為540 萬美元。美元相較之下，2022 年第三季為 510 萬美元。 AlterG 在本季度實現盈利，並為非 GAAP 營運虧損業績的改善做出了貢獻。本季結束時，我們擁有 320 萬美元的現金和現金等價物，沒有債務。我們第三季的營運現金使用量為 740 萬美元，高於最近幾個季度，這是由於一次性併購相關費用以及對 CMS 和 VA 政策支持的有意義投資支付了約 200 萬美元現金。

We expect the incremental M&A related expenses expenditures to be significantly lower in Q4'23 than the prior quarter and for our revenue to be higher in relation to our cost structure. So, the cash burn rate in Q4 should improve considerably from Q3'23 levels. For Q2'24, we expect a sequential increase in legacy ReWalk revenue and a full quarter's contribution of revenue from AlterG.

我們預計 23 年第 4 季增​​量併購相關費用支出將顯著低於上一季度，且我們的收入相對於我們的成本結構將更高。因此，第四季的現金消耗率應較 23 年第三季的水準大幅改善。對於 24 年第二季度，我們預計傳統 ReWalk 營收將持續成長，而 AlterG 整個季度的營收貢獻也將持續成長。

On a going forward basis, our top financial priority will be to reduce significantly and eventually eliminate our cash burn rate with the AlterG acquisition completed and the integration underway, our goal is to grow our top line and in a capital-efficient way to minimize investment in additional resources and to prioritize our spending to only support our core objectives.

展望未來，我們的首要財務重點將是隨著AlterG 收購的完成和正在進行的整合，顯著降低並最終消除我們的現金消耗率，我們的目標是增加我們的收入，並以資本效率高的方式最大限度地減少投資投入額外資源，並優先考慮我們的支出，僅支持我們的核心目標。

Lastly, I want to provide an update on the status of our listing requirements for Nasdaq . As you may know, back in October, we were notified by Nasdaq that our second 180-day compliance period had expired and that we were still in noncompliance with Nasdaq listing Rule 5550(a) to maintain a minimum bid price of $1 per share. We responded this notification with a request for a hearing before the Nasdaq hearings panel and also subsequently requested an expedited review since we qualified for this. We received back response that the expedited review resulted in us being granted an extension until January 31, 2024, to regain compliance with Rule 5550(a). We continue to be committed to driving improved fundamentals and financial performance of ReWalk to regain compliance with this rule.

最後，我想提供有關納斯達克上市要求狀態的最新資訊。如您所知，早在10 月份，我們就接到納斯達克的通知，我們的第二個180 天合規期已經到期，並且我們仍然沒有遵守納斯達克上市規則5550(a)維持每股1 美元的最低買入價。我們對此通知做出了回應，請求在納斯達克聽證會小組舉行聽證會，並隨後請求加快審查，因為我們符合資格。我們收到回覆稱，快速審查使我們獲準延期至 2024 年 1 月 31 日，以重新遵守第 5550(a) 條規則。我們將繼續致力於推動 ReWalk 基本面和財務表現的改善，以重新遵守這項規則。

With that, I'd like to turn the call back to Larry for further remarks.

說到這裡，我想將電話轉回拉里以徵求進一步意見。

Thank you, Mike. And I to provide a little more detail on our CMS activities, VA implementation efforts and our financial operating direction. In 2023 with CMS Medicare, we have submitted about 20 Medicare claims and paused new submissions momentarily to implement claims using the newly assigned benefit category with lump sum payment beginning January 2024. We are not yet including these deliveries in our revenue forecast until the timing and payments are established.

謝謝你，麥克。我將提供有關我們的 CMS 活動、VA 實施工作和我們的財務營運方向的更多詳細資訊。 2023 年，我們透過CMS Medicare 提交了約20 項Medicare 索賠，並暫時暫停了新的提交，以使用新分配的福利類別實施索賠，並從2024 年1 月開始一次性付款。我們的收入預測，直到時間和付款已確定。

Our immediate focus is participated in the upcoming expects November 29 meeting and providing the requested data, which reflects our current 2023 commercial updated technology. CMS published the preliminary price based on a 2020 claims, and they noted they'd welcome data on current pricing and product models. The data we will present at this meeting on the 29 is based on the submitted claims to Medicare since April 2023.

我們目前的重點是參加即將舉行的 11 月 29 日會議並提供所需的數據，這反映了我們目前的 2023 年商業更新技術。 CMS 根據 2020 年索賠公佈了初步價格，他們表示歡迎有關當前定價和產品型號的數據。我們將在 29 日的這次會議上提供的數據是基於自 2023 年 4 月以來向 Medicare 提交的索賠。

These claims reflect the accurate list price of the device to be taken in consideration by CMS in their pricing formula. Historically, once this review process is complete, a final price will be published in late January or early February with an effective date of April 1, 2024. In parallel, we will begin to educate physicians on the specific inclusion and exclusion criteria so they can determine which of their patients may potentially benefit with this technology.

這些聲明反映了 CMS 在其定價公式中考慮的設備的準確標價。從歷史上看，一旦審查過程完成，最終價格將在 1 月底或 2 月初公佈，生效日期為 2024 年 4 月 1 日。確定哪些患者可能受益於這項技術。

We have aggressive plans to collaborate with commercial payers and the spinal cord community to increase awareness of these achievements and access to the technology. We will also work with the spinal cord community directly to ensure they understand that access has become a reality after all the years with no available pathway. We will utilize a mix of online effort, media publicity and telephonic or Zoom support provide information community as well as planned, targeted approaches with engage payers.

我們制定了積極的計劃，與商業付款人和脊髓界合作，以提高人們對這些成就的認識和對技術的利用。我們還將直接與脊髓界合作，確保他們了解，在多年來沒有可用途徑的情況下，獲取已成為現實。我們將利用線上努力、媒體宣傳和電話或 Zoom 支援的組合，提供資訊社群以及與參與付款人有計劃的、有針對性的方法。

Our large sales presence we'll be also a key part of our educational efforts in the market. We're also excited about the support we are seeing with our new VA centres and the initiatives by Congress and the Senate to broaden awareness and consideration of walking once again. The support in parallel for the STAND Act by the Paralyzed Veterans of America and the disabled veterans community is fantastic advocacy for this community.

我們龐大的銷售網絡也將成為我們在市場上的教育工作的關鍵部分。我們也對新的退伍軍人事務部中心的支持以及國會和參議院為擴大人們對步行的認識和考慮而採取的舉措感到興奮。美國癱瘓退伍軍人組織和殘疾退伍軍人社區同時支持 STAND 法案，這對這個社區來說是極好的倡導。

VA remains the leader in research on spinal cord injuries and although it has taken some time with the individual spinal cord injury centres to provide products, they are leading the way in enabling walking in everyday life. The STAND Act that is moving through Congress has four key elements. One Annual Exoskeleton Evaluations are codified in law for those veterans who seek their care through the VA.

VA 仍然是脊髓損傷研究的領導者，儘管各個脊髓損傷中心花了一些時間才提供產品，但他們在日常生活中步行方面處於領先地位。國會正在審議的 STAND 法案有四個關鍵要素。對於那些透過退伍軍人管理局尋求護理的退伍軍人，每年一次的外骨骼評估已被寫入法律。

Two the VA provide Congress updates on progress in terms of numbers of evaluations, training and device approvals.

二是退伍軍人管理局向國會提供評估、訓練和設備批准數量的最新進展。

And three, it includes exoskeleton manufacturers and other external stakeholders when considering changes to the clinical practice guidelines published at VA govern the evaluation, training and procurement of exoskeleton devices.

第三，在考慮對 VA 發布的管理外骨骼設備評估、培訓和採購的臨床實踐指南進行更改時，它包括外骨骼製造商和其他外部利益相關者。

And finally four appropriate usage of exoskeleton devices becomes a measurable element of the overall performance metrics for leadership within existing veterans integrated service networks or VA regions. Our role is to use our enlarged field organization to provide the training support needed to assist these VA's as needed with our innovative technology.

最後，外骨骼設備的四個適當使用成為現有退伍軍人綜合服務網絡或退伍軍人事務部地區領導力整體績效指標的可衡量要素。我們的作用是利用我們擴大的現場組織提供所需的培訓支持，以根據需要利用我們的創新技術協助這些 VA。

I would now like to address our operational direction for the rest of 2023 and as we look into 2024, 2022 and 2023 were investment years to advance government policy to build our infrastructure organically and with an acquisition to advance our technology. As we close 2023, we are changing to a new operating phase that is based on execution and building on the tremendous successes of 2022 and 2023.

我現在想談談我們 2023 年剩餘時間的營運方向，展望 2024 年，2022 年和 2023 年是推進政府政策的投資年，以有機地建設我們的基礎設施，並透過收購來推進我們的技術。 2023 年即將結束，我們正在進入一個新的營運階段，該階段以執行為基礎，並以 2022 年和 2023 年的巨大成功為基礎。

For 2024, revenue must grow, investment must decrease and operating efficiency becomes a paramount measurement. We will hold off on providing 2020 for specific growth expectations until we gain more detail on the CMS final payment level and on the timing of the first 20 to 40 cases for payment then we will have information and experience to provide more detail.

2024年，收入必須成長，投資必須減少，營運效率成為最重要的衡量標準。我們將推遲提供 2020 年的具體增長預期，直到我們獲得有關 CMS 最終付款水平以及前 20 至 40 個付款案例的時間的更多詳細信息，然後我們將擁有信息和經驗來提供更多詳細信息。

As 2024 as a financial institution year, our burn rate must decrease substantially. Combined with our revenue growth, we see decreases in certain investment areas as key priorities change. We see decreases in government and investment and government policy, and we begin to see synergy in the operations of the combined entity. I look forward to defining these further in our Q4 earnings call.

2024年作為金融機構年，我們的燒錢率必須大幅下降。結合我們的收入成長，我們發現隨著關鍵優先事項的變化，某些投資領域會減少。我們看到政府、投資和政府政策的減少，我們開始看到合併後實體運作中​​的協同效應。我期待在我們的第四季財報電話會議中進一步定義這些內容。

We simply had a fantastic Q3 and early Q4 after years of building investment, we are optimistic about the future and the knowledge that relocates intelligence will endure for those who need them based on the foresight and policies of CMS and the VA. We now have all the needed elements for growth and execution. It's up to us to be financially prudent and to work just as hard in this new phase as we have during these years of development.

經過多年的建設投資，我們在第三季和第四季初取得了出色的成績，我們對未來持樂觀態度，根據CMS 和VA 的遠見和政策，重新定位情報的知識將為那些需要它們的人帶來持久的影響。我們現在擁有成長和執行所需的所有要素。我們有責任在財務上保持審慎，並在這個新階段像這些年的發展一樣努力工作。

Thank you, everyone, for your time today, and we'd like to open up the floor to questions, please.

謝謝大家今天抽出寶貴的時間，我們願意歡迎大家提問。

Thank you. (Operator instructions)

謝謝。 （操作員說明）

At this time we will begin the question-and-answer session.

這時我們將開始問答環節。

Swayampakula Ramakanth , H.C. Wainwright.

斯瓦安帕庫拉‧拉瑪坎特 (Swayampakula Ramakanth)溫賴特。

Thank you. Good morning, Larry, and Mike. Let's start off with AlterG. So, in terms of that of the new business as you said, that from the first quarter that you have under your belt, it has been profitable, which is good news. Can you comment a little bit about how AlterG is progressing in your hands? And also, how do you see cross-selling from AlterG to ReWalk because ReWalk is also entering and the execution phase as you call it.

謝謝。早安，拉里和麥克。讓我們從 AlterG 開始。所以，就你所說的新業務而言，從第一季開始，它就實現了盈利，這是一個好消息。您能評論一下 AlterG 在您手中的進展嗎？另外，您如何看待從 AlterG 到 ReWalk 的交叉銷售，因為 ReWalk 也進入了您所說的執行階段。

Okay, I think there's parts of that for me and for Mike. First we are really thrilled with how this is progressing and how it's come together in our favourite measurement of this is how well we hit the ground running the day after the acquisition for revenue results and for beginning to integrate. We have taken this period to focus on hitting the numbers for Q3 and Q4 and in parallel to do a lot of work on the proper structural setup for this combined organization that will go into place on January first.

好吧，我想這對我和麥克都有好處。首先，我們對這方面的進展感到非常興奮，我們最喜歡的衡量標準是我們在收購後第二天的收入結果和開始整合的進展。我們利用這段時間專注於實現第三季度和第四季度的目標，同時為這個將於 1 月 1 日實施的合併組織進行適當的結構設置方面做了大量工作。

And we've outlined a very extensive program to have everybody trained, but where we're going to wind up, having is a sales organization whose reach is just dramatically broader than it was as two stand-alone entities and the synergistic component of this is all of the 600 spinal cord injury centres in the United States have AlterG in them. So they are very good connection points and the larger organization for AlterG's benefit as they will now have more territories in the -- as they launch a new product in 2024, they can get to the smaller clinics, a better geographic basis.

我們已經制定了一個非常廣泛的計劃，讓每個人都接受培訓，但我們最終將擁有一個銷售組織，其影響範圍比兩個獨立實體以及該組織的協同組成部分要廣泛得多。損傷中心全部都有AlterG。因此，它們是非常好的連接點和更大的組織，對AlterG 來說是有利的，因為他們現在將擁有更多的領土——隨著他們在2024 年推出新產品，他們可以進入更小的診所，獲得更好的地理基礎。

So the operating structure that is taking effect as of the 1 of January is what we believe is the right structure to benefit both companies us to work on CMS and BA from the ReWalk end and us the other part of us to be able to get to these clinics with the new product and broader reach on our AlterG's line.

因此，我們認為自 1 月 1 日起生效的營運結構是正確的結構，對我們在 ReWalk 端從事 CMS 和 BA 工作的公司以及我們其他部分能夠受益的公司都有利。的新產品和更廣泛的覆蓋範圍。

Did you want anything further on the financial side of this, or did that answer your question, okay ?

您是否想要進一步了解財務方面的信息，或者這是否回答了您的問題，好嗎？

No, this is good. I'll come to the finance in a minute. But before we get there, in your prepared remarks, you also made comments on a new AlterG model and as well as a new ReWalk model. Can you give some highlights about what is new in these two models that you are planning to start commercialize?

不，這很好。我一會兒就來談談財務。但在此之前，您在準備好的演講中也對新的 AlterG 模型和新的 ReWalk 模型發表了評論。您能否重點介紹一下您計劃開始商業化的這兩種模型的新功能？

Yes, we haven't completely advertised what we're bringing to the market in a big sense but internally, there's a slightly different goals in both. For AlterG, we have a model that will play to a broader and newer audience. It's a device that is designed really specifically to meet the needs of smaller private clinics and now with a larger team that we can call those clinics, that's why we believe this fits well.

是的，我們還沒有完全宣傳我們要向市場推出的產品，但在內部，兩者的目標略有不同。對於 AlterG，我們有一個可以面向更廣泛和更新的受眾的模型。這是一款專門為滿足小型私人診所的需求而設計的設備，現在我們可以將這些診所稱為更大的團隊，這就是為什麼我們相信它非常適合。

So it's an additional product line in their offering for a segment that they really haven't pursued at a high level. And it is a very economic and very good operational system for the small private clinic. So that's the AlterG model and we'll begin that launch in the first late first half of the year is our intention. On the ReWalk side, we have a product with a number of improvements that we're focusing on, making them easier to use. So it's not a radically different product, but as a product that has -- is powered differently in terms of battery structure and life, it can offer a multiple speeds which makes it easier to use in the community and we've improved the cloud connectivity, which frankly we want to use to help drive utilization because data will be available and we can help users understand use and we can encourage them to use it even more with these metrics.

因此，這是他們為一個他們真正沒有追求高水準的細分市場提供的附加產品線。對於小型私人診所來說，這是一個非常經濟、營運性非常好的系統。這就是 AlterG 車型，我們打算在今年上半年末開始推出。在 ReWalk 方面，我們的產品有許多我們關注的改進，使它們更易於使用。因此，它不是一個完全不同的產品，但作為一個在電池結構和壽命方面具有不同供電方式的產品，它可以提供多種速度，使其更容易在社區中使用，並且我們改進了雲端連接，坦率地說，我們希望用它來幫助提高利用率，因為數據將可用，我們可以幫助用戶了解使用情況，並且我們可以鼓勵他們透過這些指標更多地使用它。

So products are a little bit different one driven at utilization, the other one is a new market segment.

因此，產品有點不同，一種是利用利用率驅動的，另一種是新的細分市場。

So one more question for you on the operational side. So, as we enter into the potentially good growth rate in the U.S, the three walk, do you think Europe will also contribute to that growth in 24 ?

那麼還有一個關於操作方面的問題想問你。那麼，當我們進入美國潛在的良好成長率時，三者同行，您認為歐洲也會在 24 世紀為這種成長做出貢獻嗎？

Yes, we do expect growth in Europe. I think the rate of growth in the United States because of the CMS size of the segment and the VA is going to be the majority of our growth. I think growth in Europe will be driven a little bit by them just reopening a little more. They've been slow to get their clinics going at the highest levels from a personnel point of view over the course of the year, personnel shortages, and things of that type. But we do see expansion in Europe, specifically within the ReWalk side, and on the AlterG side, they have a very good distribution network that we believe we'll be able to build on as well.

是的，我們確實預期歐洲會出現成長。我認為，由於該細分市場的 CMS 規模和 VA，美國的成長率將成為我們成長的主要部分。我認為歐洲的成長將受到他們稍微重新開放一點的推動。在這一年裡，從人員的角度來看，他們的診所在最高水準上運作緩慢，人員短缺，以及類似的事情。但我們確實看到了歐洲的擴張，特別是在 ReWalk 方面和 AlterG 方面，他們擁有非常好的分銷網絡，我們相信我們也能夠在此基礎上繼續發展。

Thank you. Couple of quick questions on the financial side. So, ReWalk sales came in at $1.5 million for the quarter. What drove that growth within the ReWalk business and also for AlterG sales, you stated $2.9 million this quarter. So, what are we comparing that against to say sequentially how much has it grown? And I'll stop right there.

謝謝。關於財務方面的幾個簡單問題。因此，ReWalk 該季度的銷售額為 150 萬美元。是什麼推動了 ReWalk 業務以及 AlterG 銷售額的成長，您表示本季銷售額為 290 萬美元。那麼，我們將其與連續成長了多少進行比較呢？我就停在那裡。

Sure. Good questions. First, I want to clarify, I think I misspoke on the call about the cash balance. The correct cash balance of $32.6 million in case I miss -- misread that as we I was describing the cash, the cash balance.

當然。好問題。首先，我想澄清一下，我認為我在電話中關於現金餘額的問題說錯了。正確的現金餘額是 3260 萬美元，以防萬一我錯過了——誤讀了，因為我描述的是現金，現金餘額。

So in terms of the growth on the ReWalk side, it was really across the board in terms of -- there was like I said, sequential improvement in Germany and Europe. I would. But I would say that the majority of the growth was really driven by the US and on the VA sales to the VA for the exoskeletons as well as continued strong performance by the MyoCycle product line.

因此，就 ReWalk 方面的成長而言，它確實是全面的——就像我說的那樣，德國和歐洲的連續改善。我會的。但我想說，大部分成長實際上是由美國和 VA 對外骨骼的銷售以及 MyoCycle 產品線持續強勁的表現所推動的。

Thank you. And then on the AlterG sales?

謝謝。那麼 AlterG 的銷量呢？

Yes. So, the AlterG sales, I would say they don't necessarily -- it's not in a levelized level of sales through the quarter. It is -- it tends to be as with a lot of capital equipment products, tends or a lot of business in general tends to be towards the second half more towards the second half of the year. So, you can't sort of just take that the $2.9 million and just don't know assume that it's at that level throughout the quarter. So, we've described in the past the business as being about a $20 million business.

是的。因此，我想說 AlterG 的銷售額不一定——它不是整個季度的平均銷售額水平。與許多資本設備產品一樣，許多業務總體上傾向於下半年。因此，您不能僅接受 290 萬美元，而只是不知道整個季度都處於該水平。因此，我們過去將該業務描述為價值約 2000 萬美元的業務。

So you can sort of -- we're purposely giving guidance at this stage. So, I'm being a little bit coy, but you can make a determination of what you think the business would do based on how we've described it on an annualized basis. I think we'd like to own it for one more quarter and kind of go through the full quarterly cycle of our internal forecasts and then realizing the results before we start to provide external guidance for that business line because it's still new to us but done, but you get digested the scale of that business.

所以你可以——我們在這個階段有意提供指導。所以，我有點害羞，但你可以根據我們對年化基礎上的描述來確定你認為公司會做什麼。我認為我們希望再持有它一個季度，並在我們開始為該業務線提供外部指導之前完成內部預測的整個季度週期，然後實現結果，因為它對我們來說仍然是新的，但已經完成了，但你會消化該業務的規模。

Thank you. Thanks for taking my questions.

謝謝。感謝您回答我的問題。

Thank you.

謝謝。

Martin Pollock , FMR holdings.

馬丁·波洛克，FMR 控股公司。

Yes. Wonderful to see we are finally become an operational company with real business. Just two questions to start with. You've talked about the two entities now AlterG and ReWalk. When will we see some segment reporting that will truly get into the at least the operating line for both companies ? At this point, should we expect that by Q4 or just say, beginning next year, we will see segment reporting.

是的。很高興看到我們終於成為一家擁有真正業務的營運公司。首先要問兩個問題。您已經談到了現在的兩個實體 AlterG 和 ReWalk。我們什麼時候才能看到一些能夠真正進入至少兩家公司營運範圍的分部報告？在這一點上，我們是否應該期望到第四季度或只是說，從明年開始，我們將看到分部報告。

That will be the first question, please.

這是第一個問題。

Hey, Martin, how are you? Good question. So, I think right now, we're making that determination with our auditors. Are there certain accounting requirements around when segment reporting is justified. We plan to run the businesses as one business. This is not a case of two separate business entities that are just running us in separate silos.

嘿，馬丁，你好嗎？好問題。所以，我認為現在我們正在與審計師一起做出決定。當分部報告合理時，是否有某些會計要求？我們計劃將這些業務作為一項業務來運作。這並不是兩個獨立的商業實體在不同的孤島中運作我們的情況。

There's going to be a lot of cross pollination of our cost structure, and our entire commercial team is really supporting all of the product lines.

我們的成本結構將會有許多異花授粉，我們的整個商業團隊正在真正支援所有的產品線。

So at this point, I don't know yet if we will, in fact need to provide segment reporting, because our intention is that we're not running these as separate segments. They are going to be one consolidated business line, but we still need to do more research into that and certainly we'll provide an update in terms of where the final determination is.

因此，目前我還不知道我們實際上是否需要提供細分報告，因為我們的目的是我們不會將這些作為單獨的細分市場運行。它們將成為一個合併的業務線，但我們仍然需要對此進行更多研究，當然我們會提供有關最終決定的最新資訊。

It seems that if that's the case, we'll never really get a chance to see what that on a transparent basis? What is the profitability of AlterG separate from WeWalk ? I don't know that that's there will be a reason not to separate them the different products, but I think that also ends up creating questions about where the cash, where the earnings are coming from. It seems to me the two products are still discrete enough. So, I really think you'd be very, very wise for you to provide more of that type reporting, not just on the revenue line but as it filters down to the EBIT line, you're suggesting already that you made some money. And even in that period that you reported that AlterG is profitable, what is the level of profitability that -- I mean or what would you be expecting for that? even if it came in matter of discussion as opposed to the segment breakdown because I think we need to know that.

看來如果真是這樣的話，我們就永遠沒有機會真正有機會在透明的基礎上看到那是什麼？ AlterG 獨立於 WeWalk 的獲利能力是多少？我不知道是否有理由不將它們分開作為不同的產品，但我認為這最終也會產生關於現金、收入從何而來的問題。在我看來這兩款產品還是夠離散的。所以，我真的認為你提供更多此類報告是非常非常明智的，不僅是在收入方面，而且當它滲透到息稅前利潤方面時，你已經表明你已經賺了一些錢。即使在您報告 AlterG 盈利的那個時期，盈利水平是多少——我的意思是或者您對此有何期望？即使它是討論問題而不是細分問題，因為我認為我們需要知道這一點。

Second question is when it comes to the cash burn, it seems for the first time of goodwill aspirational comment that suggests the cash burn is coming down dramatically. You said significantly but when you say we're expecting higher revenues, we're expecting a significant decline in cash. You saw cash burn. Are we still holding on to the notion that you'll never need additional financing and then the cash on hand will be sufficient to go through 2024 and 25.

第二個問題是，當涉及現金消耗時，這似乎是第一次出現善意的願望性評論，表明現金消耗正在急劇下降。你說得很重要，但當你說我們預期收入會更高時，我們預期現金會大幅下降。你看到現金被燒毀。我們是否仍然堅持這樣的觀念：您永遠不需要額外的融資，然後手邊的現金將足以度過 2024 年和 25 年。

But give us a little bit more perspective on that cash burn going into Q4 and then into next year? Certainly, I know you're not ready to make a full year forecast, but what does significant decline mean? Can you amplify that? Because this is just -- it seems not enough to really get a good handle. Is it a burn rate of $2.5 million per quarter or is it $4 million or is it, what number is that? I'd appreciate if you give us some kind of clue into that.

但請讓我們對第四季和明年的現金消耗有更多的了解？當然，我知道您還沒有準備好做出全年預測，但是顯著下降意味著什麼？能放大一下嗎？因為這似乎不足以真正掌握好手把。每季的燒錢率是 250 萬美元還是 400 萬美元，還是多少？如果您能給我們一些線索，我將不勝感激。

Okay, I'll give some comments on this, this is Larry. First on the things that are really going to reduce our investment to succeed with CMS has been very large, be it legal, be it other advisors, be it data collections, be it build and infrastructure. We've succeeded. The investment paid off relative to getting to the endpoint that they were charged for. But we don't need and will not require a majority of those activities any longer as we go into next year.

好的，我會對此發表一些評論，這是拉里。首先，要在 CMS 上取得成功，真正需要減少我們投資的事情非常大，無論是合法的、其他顧問的、資料收集的、建構的和基礎設施的。我們成功了。相對於到達他們被收費的終點而言，投資得到了回報。但隨著明年的到來，我們不再需要也不再需要其中大部分的活動。

So you're going to see a significant reduction in efforts on government spend. We've talked a little bit about the VA and we believe as this new act goes through again, there will be a significant reduction on some of our activities there as well in terms of government policy. We also see a lot of operational efficiency, as we pointed out our sales forces are going to be one sales force. It's no longer broken out the sale. Same rep is go into the hospital selling multiple product lines, and that is -- has its efficiency to it in a significant way with more territories and less travel.

所以你會看到政府支出的努力大幅減少。我們已經討論了一些關於退伍軍人管理局的問題，我們相信，隨著這項新法案的再次通過，我們在那裡的一些活動以及政府政策方面都會大幅減少。我們也看到了很多營運效率，正如我們指出的那樣，我們的銷售團隊將成為一支銷售團隊。它不再打破銷售。同一名代表進入醫院銷售多種產品線，也就是說，透過更多的區域和更少的旅行，可以顯著提高效率。

And to your point, do we believe we have sufficient cash to get to profitability? The answer is absolutely we do. We see growth with CMS with the VA with new product lines with AlterG. We have won this year. We look to do another one in 2025 as well in the AlterG product line. They didn't have the cash to do those. That has some of the synergistic effect of this. We have to execute, but we believe that we can relative to the amount of burn rate. That's a hard one.

就您而言，我們是否相信我們有足夠的現金來實現盈利？答案是我們絕對願意。我們看到了 CMS 和 VA 以及 AlterG 的新產品線的成長。今年我們贏了。我們希望在 2025 年在 AlterG 產品線中再做一次。他們沒有現金可以做這些事。這具有一定的協同效應。我們必須執行，但我們相信我們可以相對於燃燒率。這很難。

We'd like to finish our all of our specific plans, but I'll scale that at least at some level we're looking at reductions in burn rates in the direction of half year over year. The actual numbers will make visible as they occur. Revenue is going up. Some of our expenses are going down. We know what we have to do and we're going to do it.

我們希望完成所有具體計劃，但我將至少在某種程度上擴大規模，我們正在考慮逐年減少燒錢率。實際數字將在出現時可見。收入正在上升。我們的一些開支正在下降。我們知道我們必須做什麼並且我們會去做。

Larry, Clearly, I think in previous quarters you both have said you and Mike that to some extent, a lot depends on the revenue growth at this point in time. And it seems that that continues to be the case. But now you're also pointing out to certain expenses, real expenses that will not be there because of all the costs of integrating companies putting them to making the acquisition and what costs you no longer have to incur.

拉里，顯然，我認為在前幾個季度，你們和麥克都說過，在某種程度上，很大程度上取決於此時的收入成長。情況似乎仍然如此。但現在你也指出了某些費用，真正的費用不會存在，因為整合公司以進行收購的所有成本以及你不再需要承擔的費用。

So I don't want to put words in your mouth, but if you're saying by the time half of the burn rate could be it could be mitigated or maybe burn rate could be down 40%, 50% and it should one assume that at some point the run rate on cash burn in 2024 maybe a quarter one, quarter two and our run rate will be down to that to $2.5 million. Is there any reason why your comments are good pointing us to that direction?

所以我不想把話放在你嘴裡，但如果你說到一半的燒錢率可能會減輕，或者燒錢率可能會下降 40%、50%，那麼人們應該假設到2024 年某個時候，現金消耗的運行率可能會在第一季、第二季度，我們的運行率將降至250 萬美元。您的評論有什麼理由可以為我們指出這個方向嗎？

We clearly expect our burn rate to go down quarter over quarter over quarter. We haven't quantified it. I'd like to quantify the exact dates I'm getting paid by CMS, so I could see the top line that's going to offset some of that bottom line, and that's going to become apparent to us. But that's why we're not being we can't give more specific guidance, but we expect to report reductions in burn rate every quarter in the year ahead.

我們顯然預計我們的燒錢率將逐季下降。我們還沒有量化它。我想量化我從 CMS 獲得報酬的確切日期，這樣我就可以看到頂線將抵消部分底線，這對我們來說將變得顯而易見。但這就是為什麼我們不能提供更具體的指導，但我們預計未來一年每季都會報告燒錢率的下降。

Okay. Because it does seem that these comments are for the first time and it's a really point us to the lower expenses that will be incurred. That alone is a very different than what you've said in the past where you've said, well, a lot will depend on revenue growth you've implied there will be some costs will be lower, but this seems to be -- these comments are really more significant as I am hearing you.

好的。因為這些評論似乎確實是第一次，這確實讓我們意識到將產生的費用較低。僅此一點就與您過去所說的非常不同，您過去說過，很大程度上取決於收入增長，您暗示會有一些成本會降低，但這似乎是——當我聽到您的聲音時，這些評論確實更重要。

One more question with regard to this legislation, the new bill that's been proposed for the VA, I found it curious that for anybody that read just for the first time would have thought of this as something brand new for you than selling to the VA from the very beginning and there was never a notion of this what accelerated ability to generate even more activity out of VA, what that is.

關於這項立法的另一個問題，即為退伍軍人管理局提出的新法案，我覺得奇怪的是，對於任何第一次閱讀的人來說，都會認為這對你來說是全新的東西，而不是從一開始，我們就沒有意識到什麼是加速 VA 產生更多活動的能力，那是什麼。

I would like to know whether when you're talking about the VA itself, independent of CMS, assuming this bill goes through I don't know when that does happen, the number of cases that could literally end up being new sales at some point. Obviously, there is a sales cycle that takes place six months or so, but could the VA sales be exponentially much higher, would the bill of being approved ?

我想知道，當您談論 VA 本身（獨立於 CMS）時，假設該法案獲得通過（我不知道什麼時候會發生），那麼在某個時候實際上可能最終成為新銷售的案例數量。顯然，有一個大約六個月的銷售週期，但是 VA 的銷售額是否會成倍增長，法案會獲得批准嗎？

Well the bill being implemented and followed will change it. The best way to look at this is you don't CMS for Medicare and Medicaid is 56% of the spinal cord injury population in United States and if you just Medicare alone is 31%. The next largest single block in the United States is the veterans, which is roughly 9%. So, this opens up the door for us. If we get it properly into book integrated into the VA processes access to our two biggest markets. The VA, I can only complement how wonderful they've been on the R&D side. It didn't translate as well as we would have hoped on the execution side. COVID got in the away, frankly, in a big way,.

正在實施和遵循的法案將改變它。看待這個問題的最佳方式是，如果不考慮 Medicare 和 Medicaid 的 CMS，美國脊髓損傷人口的比例為 56%，如果僅考慮 Medicare，則這一比例為 31%。美國第二大的單一群體是退伍軍人，約佔 9%。所以，這為我們打開了大門。如果我們將其正確地納入 VA 流程中，就可以進入我們兩個最大的市場。 VA，我只能補充他們在研發方面的出色表現。它在執行上的翻譯效果並不如我們所希望的那樣。坦白說，新冠疫情在很大程度上造成了影響。

But we've seen that change in some behaviour. This year as I indicated, we had three really active operating centres for the whole U.S. that were really getting things done. We now have nine that's by percentages. It sounds great. Now let�s see what that rehearsals. But it certainly increases our revenue and this bill that the Congress has taken through the house and go into the Senate shows the commitment, I think, of key people in Congress to taking care of veterans and we believe we'll build on that. We'll provide the process for it, but general Bergman, in particular, along with the others that cosponsor of this bill and they brought a U.S. marine who's paralyzed and walking to the Hill with them. They're quite serious about supporting this and supporting veterans, and we think we'll build on that.

但我們已經看到一些行為改變了。正如我所指出的，今年我們在整個美國擁有三個非常活躍的營運中心，它們確實在完成工作。我們現在有九個，按百分比計算。聽起來很棒。現在讓我們看看排練什麼。但這肯定會增加我們的收入，我認為，國會在眾議院通過並進入參議院的這項法案表明了國會關鍵人物對照顧退伍軍人的承諾，我們相信我們將在此基礎上再接再厲。我們將提供其流程，但特別是伯格曼將軍，以及該法案的其他共同提案者，他們帶來了一名癱瘓的美國海軍陸戰隊員，並與他們一起走到了山上。他們非常認真地支持這一點並支持退伍軍人，我們認為我們將在此基礎上再接再厲。

Just assuming that, let's say the bill goes through the moment that happens, how does that change your strategy with regard to allocating some of those resources also straight towards the VA potential patients ?Does any change that takes place immediately recognizing this could open up a huge number of new cases ?

假設法案在發生的那一刻就通過了，這會如何改變你的策略，將其中一些資源也直接分配給退伍軍人管理局的潛在患者？一個新增病例數龐大？

It will open more cases and I think it will gradually. But look, what we've done structurally and part of the whole design of both organic and inorganic growth through acquisition was to have a field preference that could implement well. The VA is really good and how they manage veterans, but they need support. They need good support for training. They need good support on a day-to-day basis and making sure these veterans get through the system at least from a product supply end and the elements that we have to give them with the larger sales organization, the design of that is to be able to call on more VAs and help them.

它將打開更多案件，我認為會逐漸進行。但是看，我們在結構上所做的以及透過收購進行有機和無機成長的整體設計的一部分是擁有可以很好實施的領域偏好。退伍軍人管理局確實很好，他們管理退伍軍人的方式也很好，但他們需要支持。他們需要良好的培訓支援。他們需要日常的良好支持，並確保這些退伍軍人至少從產品供應端通過系統，以及我們必須為他們提供更大的銷售組織的元素，其設計是能夠致電更多的 VA 並幫助他們。

And with any support that they require from industry and also do the same with CMS. We needed that large organization to implement on our sales goals. And that's why the combination of all these factors go together. The larger organization and team plus CMS are all favourable to allow growth. It'll never be fast enough, but it will grow.

他們需要來自行業的任何支持，並且對 CMS 也做同樣的事情。我們需要那個大型組織來實現我們的銷售目標。這就是為什麼所有這些因素結合在一起的原因。更大的組織和團隊加上 CMS 都有利於成長。它永遠不會足夠快，但它會增長。

Yeah last question, if I may, Larry. Certainly, when you announced the price per unit, $186,000, that you were essentially putting into your expectation, or at least your request with CMS stock took off stock then retreated significantly. When we saw the number 94,000 or so 600 or so you expressed that you're quite pleased. You also indicated that the possibility now is it will be a baseline to grow from what the hope that you'll be getting some consideration for the stair climbing approval as well as turning sharp corners. The number sounds like it's going to be higher than that 24.

是的，最後一個問題，如果可以的話，拉里。當然，當您宣布每單位價格 186,000 美元時，您基本上已將其納入您的預期，或者至少您對 CMS 股票的要求先是庫存減少，然後大幅回落。當我們看到94,000左右這個數字時，600左右，你表示你很高興。您還表示，現在的可能性是，這將是一個增長的基線，希望您能得到一些關於爬樓梯批准以及轉彎急轉彎的考慮。這個數字聽起來會比 24 還要高。

Obviously, in the implementation, is there a number you think so one could expect that the you know that CMS will provide additional funding for recognizing that they've said exactly that what is the number that you'd say is one that would make you pleased. I would imagine that you had looking for $50,000 to that for you. But what kind of numbers is reasonable to expect ?

顯然，在實施過程中，是否有一個您認為可以預期的數字，您知道 CMS 將提供額外的資金，以認識到他們已經準確地說過，您所說的數字是可以讓您很高興。我想你會為你尋找 50,000 美元。但什麼樣的數字才是合理的預期呢？

Well, Martin, what I'm very pleased about is that CMS came forward and said we want to use current market pricing as part of our consideration for our formula. And that's the right way to do it from a government policy point of view. So, I actually endorse big government policy, which I don't do very often. I don't want to put a specific number to it. We will go back and give them the invoices of the current model. They will put it in a formula or consider it and we will work with that number.

嗯，馬丁，令我非常高興的是 CMS 出面表示我們希望使用當前的市場定價作為我們配方考慮的一部分。從政府政策的角度來看，這是正確的做法。所以，我實際上支持政府的重大政策，但我並不經常這樣做。我不想給出具體數字。我們會回去給他們當前型號的發票​​。他們會將其放入公式中或考慮它，我們將使用該數字。

We being covered for 56% of the population and 31% specifically be in the Medicare with the 25% being Medicaid matters. So, we're going to be able to grow at whatever number they give us, but they came and asked for the right data. We're going to get the right data and maybe slowly, but government policy is working. We're making progress in the two largest government entities that make up our business and it's taken a lot of time and a lot of investment, but we're done with the investment and now it's time to move forward.

我們涵蓋了 56% 的人口，其中 31% 屬於醫療保險，25% 屬於醫療補助。因此，我們將能夠以他們給我們的任何數字成長，但他們來要求正確的數據。我們將獲得正確的數據，雖然速度可能會很慢，但政府政策正在發揮作用。我們在構成我們業務的兩個最大的政府實體方面正在取得進展，這花費了大量的時間和大量的投資，但我們已經完成了投資，現在是時候繼續前進了。

When you said market price of market data, you're clearly indicating it's higher than the 94,000. You're implying some number that you would say that is more reasonable. What is that number? I mean, is there a way for us to gauge what kind of market data you're thinking about, what is that kind of price? Whether you at least? What is the market ?

當你說市場數據的市場價格時，你明確表明它高於94,000。您暗示了一些您認為更合理的數字。那個數字是多少？我的意思是，我們有沒有辦法衡量您正在考慮什麼樣的市場數據，什麼樣的價格？至少你是嗎？市場是什麼？

The number is going to be CMS's number not our number and it will be for every person who's paralyzed. We believe it's going to be a number that works for our business, but I've got to let them do their process before I put a number out there, and that's not going to take too long. We are -- we've got to present on November 29. Historically, they have given answers to those deliberations roughly late January, early February. And also, they have a lot of pending claims. They could choose to pay one before that or not.

該號碼將是 CMS 的號碼，而不是我們的號碼，而該號碼適用於每個癱瘓者。我們相信這將是一個適合我們業務的數字，但在我把數字放在那裡之前，我必須讓他們完成他們的流程，而且這不會花太長時間。我們必須在 11 月 29 日進行陳述。而且，他們還有很多未決的索賠。他們可以選擇在此之前支付或不支付。

We're not far away from getting a good number.

我們離得到一個好的數字已經不遠了。

That good number is the number that you would say is a step-up from the 94,600, right. That seems to be what you're suggesting, whatever that number is. Okay, but that is the way I think their initial release suggested that they're willing to go back to the 2020, beyond the 2020, recognizing their new improvements. Clearly, the FDA approval for both stair climbing in the case, as well as turning corners. So, you would say that the 94,600 plus. I think that's what seems to be what one should assume. Right?

你會說這個數字是 94,600 的進步，對吧。這似乎就是你所建議的，無論這個數字是多少。好吧，但這就是我認為他們最初發布的方式表明他們願意回到 2020 年，在 2020 年之後，認識到他們的新改進。顯然，FDA 批准了這種情況下的爬樓梯以及轉彎。所以，你會說94,600+。我認為這似乎是人們應該假設的。正確的？

Well, clearly, we're presenting a 2023 number, which is they used a base number that they were very clear about it was 125,000 that was published in the public documents. We have a list price of 100, 86,000. They will consider that from our material we provide them and they will put it in their formula, which is a fairly complex formula that is available on the CMS website.

嗯，顯然，我們提供的是 2023 年的數字，他們使用了一個基數，他們非常清楚，公共文件中發布的基數是 125,000。我們的標價是 100、86,000。他們會考慮我們提供給他們的材料，並將其放入他們的公式中，這是一個相當複雜的公式，可以在 CMS 網站上找到。

So if you could pursue that, that it should give us a number that we can work with. That is our -- that's all the data I can give you because it's all I have today.

因此，如果你能做到這一點，它應該會給我們一個可以合作的數字。這就是我們的——這就是我能給你的所有數據，因為這是我今天所擁有的全部數據。

Okay. Thank you very much. I do want to -- it seems things are really moving in the right direction after all these years. We're finally getting closer to saying that light at the end of the tunnel. I hope that clearly this is a new day for ReWalk.

好的。非常感謝。我確實想——這麼多年過去了，事情似乎確實朝著正確的方向發展。我們終於快要看到隧道盡頭的曙光了。我希望這顯然是 ReWalk 的新一天。

All of best.

一切都最好。

Thank you very much, we appreciate that.

非常感謝，我們對此表示感謝。

Thank you. And this concludes the question-and-answer session. I would like to turn the floor to Mike Lawless for any closing comments.

謝謝。問答環節到此結束。我想請邁克·勞利斯 (Mike Lawless) 發表結束評論。

First, I'd like to thank everybody for participating, and as I close the call, I talked about us moving into a new phase of execution, and that's what we're going to be able to start reporting on as we go into 2024 and it's time to pay attention to us in a different phase of our where our company is, and it's a phase of revenue growth and being prudent in managing our financial position to get this Company to reduce its burn rate and to get to breakeven on the cash we have.

首先，我要感謝大家的參與，在結束通話時，我談到了我們進入了一個新的執行階段，這就是我們在進入 2024 年時將能夠開始報告的內容現在是時候在我們公司所處的不同階段關注我們了，這是收入成長的階段，並謹慎管理我們的財務狀況，以使該公司降低燒錢率並實現收支平衡我們有現金。

I want to emphasize that's where we are appointing ourselves and that's where we're committed. So, I look forward to future calls because I get to talk about these things and I'll do the best we can with those. So, with that, thank you everyone for your time today, and please reach out to be up further questions.

我想強調，這就是我們任命自己的地方，也是我們承諾的地方。所以，我期待著未來的電話，因為我可以談論這些事情，我會盡我們所能。因此，感謝大家今天抽出寶貴的時間，並請聯絡我們提出更多問題。

Thank you. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演示，您現在可以掛斷電話了。