Lifeward Ltd (LFWD) 2024 Q2 法說會逐字稿

Good day, and welcome to the Second Quarter 2024 Lifeward, Inc. Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 2024 年第二季 Lifeward, Inc. 收益電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Mike Lawless, Chief Financial Officer. Please go ahead.

現在，我想將會議交給財務長 Mike Lawless。請繼續。

Thank you, Megan. Good morning, and welcome to Lifeward Second Quarter 2024 Earnings Call. I'm Mike Lawless, Lifeward's Chief Financial Officer, and with me on today's call is Larry Jasinski, our Chief Executive Officer; and Almog Adar, our Vice President of Finance.

謝謝你，梅根。早安，歡迎參加 Lifeward 2024 年第二季財報電話會議。我是 Lifeward 的財務長 Mike Lawless，與我一起參加今天電話會議的是我們的執行長 Larry Jasinski；以及我們的財務副總裁 Almog Adar。

Earlier this morning, Lifeward issued a press release detailing financial results for the three and six months ended June 30, 2024. The press release and a webcast of this call can be accessed through the Investor Relations section of Lifeward website at golifeward.com.

今天早些時候，Lifeward 發布了一份新聞稿，詳細介紹了截至 2024 年 6 月 30 日的三個月和六個月的財務表現。您可以透過 Lifeward 網站 golifeward.com 上的投資者關係部分存取新聞稿和本次電話會議的網路直播。

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. These forward-looking statements are based on information available to Lifeward management as of today and involve risks and uncertainties, including those noted in our press release and our filings with the SEC. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. Lifeward 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.

在我們開始之前，我想提醒大家，今天的電話會議上所作的任何表達對未來事件和公司未來業績的信念、期望、預測、預報、預期或意圖的陳述，均可被視為《私人證券訴訟改革法案》所定義的前瞻性陳述。這些前瞻性陳述是基於 Lifeward 管理層截至今天所掌握的信息，涉及風險和不確定性，包括我們的新聞稿和向美國證券交易委員會提交的文件中所述的風險和不確定性。此類前瞻性陳述並不能保證未來的表現。實際結果可能與前瞻性陳述中的預測有重大差異。Lifeward 明確否認更新這些前瞻性聲明的任何意圖或義務，無論是由於新資訊、未來發展或其他原因，除非法律另有規定。

A replay will be available shortly after the completion of the call accessible from the dial-in information in today's press release. The archived webcast will be available in the Investor Relations section of our website. For the benefit of those who may be listening to the replay or the archived webcast, this call was held and recorded on August 15, 2024. Since that date, Lifeward 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.

通話結束後不久即可提供重播，您可透過今天新聞稿中的撥入訊息進行存取。存檔的網路廣播將在我們網站的投資者關係部分提供。為了讓那些可能正在收聽重播或存檔網路直播的人方便，本次通話於 2024 年 8 月 15 日舉行並錄音。自該日期起，Lifeward 可能已就所討論的主題發布了後續公告，因此請參考該公司最新的新聞稿和 SEC 文件以獲取最新的資訊。

With that, I'll turn the call over to Lifeward's CEO, Larry Jasinski.

說完這些，我將把電話轉給 Lifeward 的執行長 Larry Jasinski。

Thank you, Mike. Welcome, everybody, and I appreciate you joining us today. Q2 was entirely a proof of execution quarter. After years of strategic efforts to gain coverage and access to build an infrastructure and scale to operate and essentially leading our company and our industry through a door that enables us to create an enduring operating entity, we are succeeding.

謝謝你，麥克。歡迎大家，感謝您今天的加入我們。Q2 完全是一個執行證明季度。經過多年的戰略努力，我們獲得了覆蓋面和准入權，建立了基礎設施並擴大了運營規模，並從本質上引領我們的公司和行業通過一扇大門，使我們能夠創建一個持久的運營實體，我們成功了。

Revenue has grown to $6.7 million in Q2, an increase of 402% over Q2 2023. We achieved record revenue with 20 ReWalk placements in the quarter. We have now received over $600,000 of our Medicare receivables as the payment system has started flowing. In the first half of 2024, we sold more ReWalk systems than we have in any other prior full year. Our operating losses stayed level year-over-year with a much larger commercial footprint in place this year, and multiple waves of cost efficiency will begin to flow into our expense results in the next few quarters to reduce our cash burn.

第二季營收成長至 670 萬美元，比 2023 年第二季成長 402%。本季度，我們透過 20 次 ReWalk 投放實現了創紀錄的收入。隨著支付系統開始正常運轉，我們目前已收到超過60萬美元的醫療保險應收款。2024 年上半年，我們銷售的 ReWalk 系統比之前任何一個全年都要多。由於今年我們的商業足跡大大擴大，因此我們的經營虧損與去年同期相比保持平穩，未來幾個季度，多波成本效率將開始流入我們的費用結果，以減少我們的現金消耗。

Part one, revenue. Revenue was driven by the successful placement of the ReWalk systems and the addition of antigravity technology in Q2. The gate to Lifeward's growth was simple achievement of Medicare approvals. We expect another record quarter for ReWalk in Q3 due to the successful efforts in advocating and establishing a government policy.

第一部分，收入。收入主要得益於第二季 ReWalk 系統的成功安裝和反重力技術的增加。Lifeward 成長的大門只是獲得醫療保險的批准。由於在倡導和建立政府政策方面取得的成功，我們預計 ReWalk 在第三季將再創紀錄。

The antigravity technology grew from improved execution as our newly combined sales team gained their footing over Q2 with a significant increase in deliveries. This segment also had some headwinds with high interest rates and consolidation of clinics, which impacted the pace of AlterG placements. Our new product launched in June is expected to increase our growth as it offers features at a price point that will allow more clinics access to this innovative technology.

隨著我們新合併的銷售團隊在第二季度站穩腳跟，交付量大幅增加，反重力技術從改進的執行中不斷發展。這一領域也面臨高利率和診所合併等一些阻力，影響了 AlterG 的配置速度。我們六月推出的新產品預計將促進我們的成長，因為它提供的功能和價格將使更多診所能夠使用這項創新技術。

Part two, ReWalk record placements and payment, a great first quarter with 20 people gaining access to walking in everyday like once again. The infrastructure we established in working and has the capacity is working and has the capacity to manage our growth targets. Examples of execution that are equally important to our achieved market access is that significant Medicare receivables were paid over the last few weeks. And then some of our most recent submissions have made progress in submission to payment in 45 days. The submissions prior to the final establishment of government policies are lagging but are in the process of getting paid.

第二部分，ReWalk 記錄安排和付款，第一季取得了巨大的成功，有 20 人再次獲得了每天步行的機會。我們在工作中建立的基礎設施有能力管理我們的成長目標。與我們獲得的市場准入同樣重要的執行例子是，過去幾週支付了大量醫療保險應收款。我們最近提交的一些項目在 45 天內提交付款方面取得了進展。政府政策最終確定前的提交工作比較滯後，但正在等待付款。

Part three, operating loss trajectory is going in the right direction. The combination of revenue growth, margin gains in a series of operating efficiencies are a requirement with our push to profitable breakeven operations. The combination of increased unit sales volumes and improved margin with the new neo antigravity and operating changes made in late 2023 during 2024 and that will start in 2025, all our key elements in achieving lower operating costs is still growing the company overall.

第三部分，經營虧損軌跡正在朝著正確的方向發展。收入成長、利潤率提高和一系列營運效率的結合是我們努力實現獲利平衡的必要條件。單位銷售量增加、利潤率提高、新型近地反重力以及 2023 年底、2024 年間以及 2025 年開始的營運變化相結合，都是我們實現降低營運成本的關鍵要素，仍在推動公司整體成長。

In summary, Q2 has proven our strategy has been well supported by our execution following our achievement with Medicare policies as a part of our mission. We reaffirm our revenue guidance of $28 million to $32 million for the year and believe our directional targets for real systems expansion in the coming years will be achieved. We continue to see a path with their models, they get us to cash flow breakeven and adequate working capital with our current cash. The rate of market growth and uptake is both our opportunity and our risk.

總而言之，第二季度已經證明，隨著醫療保險政策成為我們使命的一部分，我們的策略得到了執行的良好支持。我們重申今年 2,800 萬至 3,200 萬美元的收入預期，並相信未來幾年我們實際系統擴展的方向性目標將會實現。我們繼續看到他們的模型的路徑，他們利用我們現有的現金幫助我們實現現金流收支平衡並獲得充足的營運資金。市場成長和吸收的速度既是我們的機遇，也是我們的風險。

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

現在我想將電話轉給麥克，以了解更多財務細節。麥克風？

Thank you, Larry. Before I review the financial results of the quarter, I want to remind everyone that our GAAP results for the three and six months ended June 30, 2024, contain financial elements that can skew investors visibility into the underlying operational performance of Lifeward. In order to facilitate the understanding of both the GAAP results in the operational results of Lifeward.

謝謝你，拉里。在回顧本季的財務結果之前，我想提醒大家，截至 2024 年 6 月 30 日的三個月和六個月的 GAAP 結果包含一些財務因素，可能會影響投資者對 Lifeward 基本營運績效的了解。為了便於理解 Lifeward 的經營業績中的 GAAP 結果。

I'm going to discuss the results of the second quarter on both a standard GAAP basis as well as a non-GAAP basis, which excludes the items listed in the reconciliation tables provided in today's earnings release. I encourage you to reference the GAAP results and the reconciliation tables as I discuss the financials.

我將在標準 GAAP 和非 GAAP 基礎上討論第二季度的業績，其中不包括今天的收益報告中提供的對帳表中列出的項目。我鼓勵您在討論財務狀況時參考 GAAP 結果和對帳表。

Lifeward reported revenue of $6.7 million in the second quarter compared to $1.3 million in the second quarter of 2023, up $5.4 million or approximately 400%. Revenue from the sale of our traditional products and services, including ReWalk exoskeletons and MyoCycle, was $3.1 million in the second quarter of 2024, up $1.8 million or 72% from the second quarter of 2023, driven primarily by an increase in ReWalk system revenue from the expansion of access through Medicare coverage.

Lifeward 報告第二季營收為 670 萬美元，而 2023 年第二季營收為 130 萬美元，成長 540 萬美元，增幅約 400%。2024 年第二季度，我們傳統產品和服務（包括 ReWalk 外骨骼和 MyoCycle）的銷售收入為 310 萬美元，較 2023 年第二季度增加 180 萬美元或 72%，這主要得益於醫療保險覆蓋範圍擴大導致 ReWalk 系統收入增加。

Revenue from AlterG products was $3.6 million in the second quarter, which was a sequential increase of $0.8 million from the first quarter of 2024. We're encouraged with the improvement of AlterG sales as compared to the first quarter, and we expect further sequential improvement of revenue in the third and fourth quarters as our sales effectiveness continues to improve from the integration of our commercial resources. Our pipeline metrics continue to show healthy activity in the second quarter across our two major product lines.

第二季AlterG 產品營收為 360 萬美元，較 2024 年第一季季增 80 萬美元。與第一季相比，AlterG 的銷售額有所改善，這讓我們感到鼓舞，並且隨著我們商業資源整合帶來的銷售效率的不斷提高，我們預計第三季和第四季的收入將進一步連續改善。我們的通路指標顯示，第二季我們兩大主要產品線的活動持續保持健康。

For ReWalk Systems, at the end of the second quarter, our overall number of ReWalk cases in process was 89 with 54 in Germany consisting of 29 pending insurance claims and 25 court cases and 35 in the US, many of which are for Medicare beneficiaries. The current pipeline of active rentals consists of 30 cases which is broken down with 26 in Germany and four in the US in DHA hospitals.

對於 ReWalk Systems 而言，截至第二季末，我們正在處理的 ReWalk 案件總數為 89 起，其中德國 54 起，包括 29 起未決保險索賠和 25 起法庭案件，美國 35 起，其中許多是針對醫療保險受益人的。目前活躍的租賃管道包括 30 例，其中德國 26 例，美國 DHA 醫院 4 例。

For AlterG Systems, we ended the second quarter of 2024 with orders for 63 AlterG systems in backlog. Subsequent to the end of the quarter, we saw a pickup in order activity and our Ultra G backlog currently stands at 104 units, which represents orders that will ship primarily in either the third or the fourth quarter of this year.

對於 AlterG 系統，截至 2024 年第二季度，我們仍有 63 個 AlterG 系統的訂單積壓。本季結束後，我們看到訂單活動有所回升，我們的 Ultra G 積壓訂單目前為 104 台，這些訂單主要將在今年第三季或第四季出貨。

Gross profit. Moving to gross profit in the second quarter of 2024, our GAAP gross profit was $2.8 million or 41.1% of revenue compared to $0.6 million or 43.1% of revenue in the second quarter of 2023. Non-GAAP gross profit was $3.1 million or 46.9% of revenue in the second quarter as compared to $0.6 million or 43.3% of revenue in the second quarter of 2023. The primary factor for that contributed to the improved gross margin in the second quarter of 2024 on a non-GAAP basis was the higher volume of ReWalk product sales, which resulted in greater absorption of operations and overhead costs.

毛利。轉向 2024 年第二季的毛利，我們的 GAAP 毛利為 280 萬美元，佔營收的 41.1%，而 2023 年第二季為 60 萬美元，佔營收的 43.1%。第二季非公認會計準則毛利為 310 萬美元，佔營收的 46.9%，而 2023 年第二季為 60 萬美元，佔營收的 43.3%。2024 年第二季非 GAAP 基礎毛利率提高的主要因素是 ReWalk 產品銷售增加，從而吸收了更多的營運和管理成本。

GAAP operating expenses were $7.2 million in the second quarter of 2024 compared to $5.7 million in the second quarter of 2023. Non-GAAP adjusted operating expenses were $6.9 million in the second quarter compared to $4.5 million in the second quarter of 2023. The increase is primarily attributable to the acquisition of AlterG, which added headcount and outside spending and investment in additional commercial resources to process Medicare claims for ReWalk.

2024 年第二季的 GAAP 營運費用為 720 萬美元，而 2023 年第二季為 570 萬美元。第二季非 GAAP 調整後營業費用為 690 萬美元，而 2023 年第二季為 450 萬美元。成長主要歸因於對 AlterG 的收購，該公司增加了員工數量和外部支出以及對額外商業資源的投資，以處理 ReWalk 的醫療保險索賠。

We continue to take action to achieve expense efficiencies, and we expect further decline in operating expenses in the second half as these actions take effect. Our GAAP operating profit -- excuse me, our GAAP operating loss in the second quarter was $4.4 million compared with an operating loss of $5.2 million in the second quarter of 2023. Non-GAAP operating loss was $3.7 million in the second quarter as compared to $3.9 million in the prior year's period. We expect our quarterly operating loss to narrow further as we move through the second half of the year as our sales volume continues to grow.

我們將繼續採取行動來提高費用效率，隨著這些措施的實施，我們預計下半年的營運費用將進一步下降。我們的 GAAP 營業利潤—對不起，我們第二季的 GAAP 營業虧損為 440 萬美元，而 2023 年第二季的營業虧損為 520 萬美元。第二季非公認會計準則營業虧損為 370 萬美元，去年同期為 390 萬美元。我們預計，隨著銷售量持續成長，下半年我們的季度營業虧損將進一步收窄。

We ended the quarter with $15.1 million in cash and equivalents and no debt. Our cash usage in Q2 was $5.6 million, which was an improvement from the first quarter, but higher than we expected. The two major drivers of the cash burn in the second quarter were an increase in receivables of $1.8 million and an increase in inventory of $1.1 million. I will cover each of these separately.

本季結束時，我們的現金及等價物為 1,510 萬美元，且沒有債務。我們第二季的現金使用量為 560 萬美元，比第一季有所改善，但高於我們的預期。第二季現金消耗的兩個主要原因是應收帳款增加 180 萬美元和庫存增加 110 萬美元。我將分別介紹其內容。

First, with accounts receivable, at the end of the second quarter, we had built up $2.6 million in receivables for Medicare claims that we had submitted in 2023 in the first half of 2024. This represents about half our balance of accounts receivable at the end of the second quarter. Based on our experience, we've learned that the Medicare administrative contractors require significant lead times to set up and begin initial claims payments, especially for entirely new products like the ReWalk.

首先，就應收帳款而言，截至第二季末，我們在 2024 年上半年累積了 260 萬美元的應收帳款，用於支付 2023 年提交的醫療保險索賠。這約占我們第二季末應收帳款餘額的一半。根據我們的經驗，我們了解到醫療保險管理承包商需要相當長的時間來設定和開始初始索賠支付，特別是像 ReWalk 這樣的全新產品。

As a consequence, at the end of the second quarter, we had received a very small amount of payments for Medicare claims. The good news is since the end of the second quarter, the pace of payments from the MACs has accelerated, and we have received over $600,000 against those receivables during the third quarter so far. We expect these catcher payments to continue as the MACs worked through the backlog of claims and that a significant majority of these payments will be received by us by the end of the year.

結果，在第二季末，我們只收到了極少量的醫療保險索賠付款。好消息是，自第二季末以來，MAC 的付款速度加快了，到目前為止，我們在第三季已收到超過 60 萬美元的應收帳款。我們預計，隨著 MAC 處理積壓的賠償，這些追償付款將繼續進行，並且我們將在年底前收到其中絕大部分的付款。

Also important, since the payment mechanism has been established, future Medicare claims should be paid on a more typical 30- to 45-day cycle from the date that the claim is approved. Both of these factors have positive implications for our second half cash flows as the excess receivables are collected.

同樣重要的是，由於支付機制已經建立，未來的醫療保險索賠應從索賠獲得批准之日起按照更典型的 30 至 45 天的周期支付。由於超額應收帳款已被收回，這兩個因素都對我們下半年的現金流量產生了積極影響。

Second, inventory. During the second quarter, inventory increased by $1.1 million due to two factors: First, in light of the continuing conflict in Israel, we are in the process of building an additional 25 ReWalk systems that we will have on hand in the US in case there are any temporary disruptions in our Israel-based supply chain. Second, with the filing of our 510(k) application for the ReWalk 7, we have begun procuring material for the inventory build in advance of the commercial launch, which will follow the FDA clearance.

第二，庫存。第二季度，庫存增加了 110 萬美元，原因有二：首先，鑑於以色列的持續衝突，我們正在建造另外 25 套 ReWalk 系統，以防我們以色列的供應鏈出現任何暫時中斷，我們將在美國儲備這些系統。其次，隨著我們提交 ReWalk 7 的 510(k) 申請，我們已經開始採購用於商業發布之前庫存建設的材料，這將在獲得 FDA 批准後進行。

Over time, inventory levels will normalize as the inventory is sold and we convert this to cash. As Larry discussed earlier, we continue to expect full year 2024 revenue of between $28 million to $32 million. The third and fourth quarter revenue should show sequential growth from the second quarter. With the higher revenue, we expect continued margin expansion with adjusted gross margin reaching approximately 50% by the fourth quarter.

隨著時間的推移，隨著庫存的銷售並將其轉換為現金，庫存水準將恢復正常。正如拉里之前所討論的，我們仍然預計 2024 年全年收入將在 2800 萬美元至 3200 萬美元之間。第三季和第四季的營收應該會較第二季有所成長。隨著營收的增加，我們預計利潤率將繼續擴大，到第四季度調整後的毛利率將達到約 50%。

Operating expenses should continue to decline slightly over the next two quarters. The combination of these factors should reduce our non-GAAP operating loss by almost half by the fourth quarter, which will combine with the collection of that Medicare receivables translated to much lower quarterly cash burn. With that, I'd like to turn the call back to Larry for further remarks.

未來兩個季度，營運費用將繼續小幅下降。這些因素的結合應該會使我們的非公認會計準則營業虧損在第四季度減少近一半，再加上醫療保險應收款的收回，季度現金消耗將大大降低。說到這裡，我想把電話轉回給拉里，請他進一步發表評論。

Thank you, Mike. I'd now like to provide more detail on our market development and financial goals that I have laid out for the year in our Q1 call. Our stated goals were: Number one, execution with sales; number two, organizational implementation of infrastructure to support Medicare claims submission to successfully penetrate this new emerging market; number three, market development in terms of filling the funnel with appropriate potential users of the ReWalk system; number four, managing the reduction in our operating loss Q-over-Q to demonstrate a path to breakeven operations; and number five, launch of the new AlterG product in about midyear and preparation of the launch of the latest generation of the ReWalk post-FDA clearance.

謝謝你，麥克。現在，我想更詳細地介紹一下我在第一季電話會議上提出的今年的市場發展和財務目標。我們既定的目標是：第一，透過銷售來實現；第二，組織實施基礎設施來支持醫療保險索賠提交，以成功打入這個新興市場；第三，市場開發，即為 ReWalk 系統吸引合適的潛在用戶；第四，實現營業虧損環比減少，從而找到一條實現收支平衡的途徑；第五，大約在年中推出新的AlterGRe產品，並準備在FDAGRek

Let me expand on each of these five objectives for the year. First, sales, a record ReWalk quarter and another one the horizon. Demand is building from our digital communication programs. The education occurring in physicians with our field-based team and the spinal cord injury centers that are beginning to implement exoskeleton supply programs based on our support program. We have presented our supplier program to over 50 centers so far in 2024, and our target for the year is to increase our placements to 100 or more systems.

讓我詳細闡述今年的五個目標。首先是銷售額，這是 ReWalk 創下的季度記錄，也是另一個即將到來。我們的數位通訊程序的需求正在不斷增長。我們的現場團隊的醫生和脊髓損傷中心正在接受教育，他們開始根據我們的支持計劃實施外骨骼供應計劃。到 2024 年為止，我們已向 50 多個中心介紹了我們的供應商計劃，我們今年的目標是將我們的部署增加到 100 個或更多的系統。

Second, capacity to implement. The Medicare requirements are extraordinarily complex and require extensive infrastructure with skills to process volume and get paid. We have supported our active spinal cord injury centers in multiple ways. They include a dedicated ReWalk clinical screening group to properly qualify ReWalk users.

第二，執行能力。醫療保險要求極其複雜，需要廣泛的基礎設施以及處理大量數據和獲得報酬的技能。我們透過多種方式支持我們活躍的脊髓損傷中心。他們包括一個專門的 ReWalk 臨床篩檢小組，以確保 ReWalk 使用者的資格。

Next, as patients are qualified, we provide ReWalk trial systems with our direct physical therapists to determine whether a user is fully ready for delivery of personal system. If successful, we then mobilize our reimbursement team to guide the process of completing the comprehensive Medicare submissions. During training in clinic, we provide support as needed. And once the ReWalk goes home with their system, we have a full service warranty and service team for the user.

接下來，如果患者符合條件，我們會向直接物理治療師提供 ReWalk 試用系統，以確定使用者是否已完全準備好接受個人系統。如果成功，我們將動員我們的報銷團隊來指導完成全面的醫療保險提交流程。在臨床培訓期間，我們會根據需要提供支援。一旦 ReWalk 帶著其係統回家，我們將為用戶提供全方位的服務保固和服務團隊。

Third objective, market development. Identifying and educating the correct potential users, expansion of the MD referral base with our feet on the ground, creation of practice guidelines with the metal societies broadening product labeling and establishing payment policies in multiple payer systems are the key pillars of our market development strategy during 2024 and 2025. We understand these requirements and have the team to build a long-term business. We are reporting this activity in summary fashion as we progress. Adoption of life-changing and disruptive technologies takes time and focused development efforts. In simplest terms, we must fill the funnel and will present metrics for the market to measure the progress as they mature.

第三個目標，市場開發。識別和教育正確的潛在用戶、腳踏實地地擴大 MD 轉診基礎、與金屬協會共同製定實踐指南、擴大產品標籤以及在多付款人系統中建立支付政策是我們 2024 年和 2025 年市場發展戰略的關鍵支柱。我們了解這些要求，並擁有建立長期業務的團隊。我們將隨著進展以摘要的方式報告這項活動。採用改變生活的顛覆性技術需要時間和集中的開發努力。簡單來說，我們必須填補漏斗，並為市場提供指標來衡量其成熟過程中的進展。

Fourth, reducing our operating loss. Top line growth for 2024 is trending to expectations. The major thrust on efficiency is occurring from actions we initiated in 2023 and that are in process throughout 2024. We will identify the areas of cost reduction as they occur. We continue to forecast a 2024 loss in the low double-digit millions and operating at breakeven on current cash by 2026. The revenue growth slope and the expense reductions levels provide some risks that we must manage in the process.

第四，減少經營虧損。2024 年營收成長趨勢符合預期。我們在 2023 年發起的行動以及整個 2024 年正在進行的行動對效率產生了重大影響。我們將及時發現可以降低成本的領域。我們持續預測 2024 年的虧損將達到數千萬，到 2026 年將達到現有現金的收支平衡。收入成長斜率和費用削減水準帶來了一些風險，我們必須在過程中進行管理。

And our fifth objective, new product launches. Our new antigravity product was successfully completed with the launch of the new neo antigravity model on June 25 at the National Athletic Trainers Association known as NATA. This design has features and pricing specifically designed to address the needs of smaller clinics. Also in June, we submitted our FDA 510(k) for the seventh generation of the ReWalk design as we had planned. Each of these innovative designs will impact our sales and our operating results. Our leadership of our markets is an advantage of being first and in having the most extensive base of field experience.

我們的第五個目標是推出新產品。我們的新型反重力產品於 6 月 25 日在國家運動訓練師協會（NATA）成功推出，並成功推出了新型 neo 反重力模型。該設計具有專門為滿足小型診所的需求而設計的功能和定價。同樣在 6 月份，我們按照計劃向 F​​DA 提交了第七代 ReWalk 設計的 510(k)。每一種創新設計都會影響我們的銷售和經營績效。我們在市場上的領導地位是我們的優勢，因為我們是第一個擁有最豐富的現場經驗基礎。

Our demonstrated results in these first three months since being placed in the federal fee schedule are very encouraging. While we focus on short-term measurements today, it is now time to open the door to the potential magnitude of payment coverage that has started with Medicare and the long-term vision from building upon it with all payers. It is time to envision a market of 1,000 systems a year with proper market development and investment. The potential benefits of exoskeleton utilization can now be realized on a wide scale to help walking again and should be highly valued.

自從納入聯邦費用表以來，我們在前三個月所取得的成果非常令人鼓舞。雖然我們今天關注的是短期衡量標準，但現在是時候了解從醫療保險開始的潛在支付覆蓋範圍，以及與所有付款人共同建立的長期願景了。現在是時候設想透過適當的市場開發和投資形成每年 1,000 個系統的市場了。外骨骼的利用的潛在好處現已可以廣泛實現，有助於再次行走，應該受到高度重視。

I opened with our belief that we have proven the first steps in execution. We are on the right road, and we have the team in place to execute this. There is every reason to be optimistic about our progress.

我首先表示我們相信我們已經證明了執行的第一步。我們正走在正確的道路上，而且我們擁有一支團隊來執行這一目標。我們完全有理由對我們的進步感到樂觀。

Thank you all for your time today. And operator, I'd like to open it up to questions, please.

感謝大家今天的寶貴時間。接線員，我想開始回答問題。

(Operator Instructions) RK, H.C. Wainwright.

（操作員指令） RK，H.C.溫賴特。

Larry and Mike, congratulations on a very positive quarter. So let's start with the receivables. Mike, you said that after closing the second quarter, you did receive -- or part of the receivables, about $600,000 has been recognized. And based on your conversations or your dealings with the CMS, how long do you think it will take for a normalization in terms of time? And it looks like there's another $2 million worth of receivables left. And do you think most of it would come through in the third and the fourth quarter? Or some of that could spill into into '25?

拉里和麥克，祝賀你們本季取得了非常積極的業績。因此讓我們從應收帳款開始。麥克，您說第二季結束後，您確實收到了——或者說部分應收帳款，大約 60 萬美元已被確認。根據您與 CMS 的對話或交易，您認為從時間上來說需要多長時間才能正常化？看起來還剩下價值 200 萬美元的應收帳款。您認為大部分收益將在第三季和第四季實現嗎？或者其中一些可能會延續到 25 年？

That's a good question. We have limited visibility to that. But our expectation is that there should be the majority that gets paid during the calendar year 2024. So through Q3 and Q4.

這是個好問題。我們對此的了解有限。但我們的預期是，大多數人將在 2024 年獲得報酬。所以經過 Q3 和 Q4。

Okay. And then on the AlterG business, it's nice to see that growth of almost $1 million in the third quarter compared to the previous quarter. How much of that AlterG is pent-up business because of the change of ownership? And how much of it is organic? And how should we think about sustenance of that growth from here onwards?

好的。然後就 AlterG 業務而言，很高興看到第三季與上一季相比成長了近 100 萬美元。AlterG 中有多少業務是因為所有權變更而積壓的？其中有多少是有機的？那麼從現在起我們該如何考慮維持這種成長呢？

It's Larry, I'll answer this one. This is really all organic growth. We have begun to build with the team we had in place. Mike noted what we have seen in our backlog that we've gone from the -- I forgot where we ended last year at, but we've gone more recently from the mid-60s to over 100 in our backlog, and this is from our field team knocking on doors and doing their job.

我是拉里，我來回答這個問題。這其實都是有機成長。我們已開始與現有團隊一起進行建置。麥克指出，我們的積壓工作量已經從——我忘了​​去年結束時是多少，但最近我們的積壓工作量從 60 多份增加到了 100 多份，這都是我們的現場團隊挨家挨戶敲門並完成工作的結果。

Perfect. And my last question is regarding Germany. I would like to understand how business is progressing in Germany since the court case settlement that you received last year. And is that a slow growth business? Or how are the insurers responding to those decisions?

完美的。我的最後一個問題是關於德國的。我想了解自去年你們獲得法庭案件和解以來，德國的業務進展如何。這是一個成長緩慢的業務嗎？或者保險公司對這些決定作何反應？

Germany is having a good year. It's the best way I can measure it, including Barmer, who is in the court case, who has processed a good number of cases. So we're progressing equally well, frankly, in both Germany and United States. The United States are bigger numbers just because of the size of our insurance group and size of our country. But we are seeing growth in both markets that we're quite happy about.

今年是德國的好年。這是我能衡量的最好方式，包括參與此案的巴爾默，他處理過大量案件。因此坦白說，我們在德國和美國都取得了同樣好的進展。美國的數字更大，只是因為我們的保險集團規模和我們國家的規模。但我們看到兩個市場都在成長，對此我們感到非常高興。

(Operator Instructions) Ben Haynor, Lake Street Capital Markets.

（操作員指示） Ben Haynor，Lake Street Capital Markets。

First off for me, just on gross margin, it was quite a bit ahead of where we were looking at. It doesn't sound like there was a lot of accounts receivable from Medicare patients that came through during the quarter where the COGS would have been realized in the previous quarter revenue in this quarter. Was there any kind of one-time-ish impact on anything there? Or is this just straight up improvement in gross margin sequentially?

首先，對我來說，僅從毛利率來看，它就比我們預期的要高出許多。聽起來本季沒有產生很多來自醫療保險患者的應收帳款，而本季的銷貨成本本應透過上一季的收入來實現。那裡的任何事情是否都會受到一次性的影響？或者這只是毛利率連續的直接提高？

No, this is Mike, yes. No, that's a good question. There were no one-time items, nothing unusual in the quarter. I would say that part of that is indicative of the higher volumes we were generating on the AlterG side that we have a factory in California where we manufacture, and we were able to leverage all of those production costs much more effectively with the top line that we generated in the second quarter relative to what we did in the first quarter.

不，是的，這是麥克。不，這是個好問題。本季沒有一次性項目，也沒有什麼異常情況。我想說，部分原因在於我們在加州設有一家工廠來生產 AlterG 產品的產量更高，而且與第一季相比，我們能夠利用第二季創造的營收更有效地利用所有這些生產成本。

Okay. That's helpful. Makes sense. So just generally speaking, we probably should expect gross margin doing -- continue to improve through the balance of the year as some of the Medicare payments begin flowing through and with the neo launch and hopefully, more AlterG revenue?

好的。這很有幫助。有道理。因此，一般來說，隨著部分醫療保險支付的到位以及 Neo 的推出，以及希望帶來的更多 AlterG 收入，我們可能應該預計毛利率會在今年餘下時間繼續提高？

That's correct. Yes. As I mentioned, by Q4, we expect our gross margins to reach 50%.

沒錯。是的。正如我所提到的，到第四季度，我們預計毛利率將達到 50%。

Okay. Okay. Great. And then on the R&D expenses, what should we expect there now that you've submitted the seventh-generation version and launch neo?

好的。好的。偉大的。那麼在研發費用方面，既然你們已經提交了第七代版本並推出了 neo，我們該期待什麼呢？

I think that we expect that -- I would expect them to be roughly flat to maybe slightly down a little bit. I mean there's still ongoing activity that we have taking place, but I would expect that it would be sort of flat to down slightly over the next couple of quarters relative to the Q2 levels.

我想我們預計——我預計它們將大致持平或略有下降。我的意思是我們仍在進行一些活動，但我預計未來幾季相對於第二季的水平會持平或略有下降。

Okay. Got it. That's helpful. And just curious, any more color you can kind of share on the reaction to neo in the early days here?

好的。知道了。這很有幫助。只是好奇，您能分享更多關於早期對 neo 的反應的詳細資訊嗎？

Well, we launched it on June 25. So you got about six weeks. We sold the model right on the floor at the trade show. We took that as a very good reaction. It is resonating as intended, at least in the early results.

嗯，我們在 6 月 25 日發布了它。所以你還有大約六週的時間。我們在貿易展覽會的現場銷售該模型。我們認為這是一個非常好的反應。至少從早期結果來看，它產生了預期的共鳴。

Okay. Fair enough. And then on the seventh generation, can you kind of refresh our memories on what the enhancements are there? And is it more COGS enhancements, as product enhancements, just refresh our memories there, please?

好的。很公平。那麼關於第七代，您能否讓我們回想一下它有哪些增強功能呢？作為產品增強，這是否能進一步提高 COGS 性能，讓我們回憶一下，好嗎？

This is a very user-based improved design. We've got the experience with hundreds of users of what they'd like and not like and wanted to see the device offer. So what we've done is add in features that came from our customers, and I'll give you a few examples. One is having multiple speeds. So if you're walking down a busy street, you've got to go slower because the people in front of you aren't going fast enough, you could slow your ReWalk down.

這是一個非常以使用者為中心的改進設計。我們了解了數百名用戶的想法，知道他們喜歡什麼、不喜歡什麼，以及他們希望設備提供什麼。因此，我們所做的就是加入客戶的功能，我會給你幾個例子。一是具有多種速度。因此，如果你走在一條繁忙的街道上，你必須走得慢一些，因為前面的人走得不夠快，你可以放慢你的 ReWalk 速度。

And we've done other real fundamental things to bring more up-to-date off-the-shelf battery systems that you can use now to power the system as opposed to the custom batteries that we had before. We've added a lot of data components and connectivity to the system through a smart watch, and that is really important, we believe, for the users to communicate for us to know about utilization. So those are just examples of some of the features. Our customers told us what they like, we did it. That's basically what the ReWalk 7 is.

我們還做了其他真正基礎性的工作，以帶來更先進的現成電池系統，您現在可以使用這些電池系統為系統供電，而不是像以前那樣使用客製化電池。我們透過智慧手錶為系統添加了大量數據組件和連接，我們認為，這對於用戶溝通以及我們了解利用率非常重要。這些只是一些功能的範例。我們的客戶告訴我們他們喜歡什麼，我們就做什麼。這基本上就是 ReWalk 7。

This concludes our question-and-answer session. I would now like to turn the conference back over to Larry Jasinski, CEO, for any closing remarks.

我們的問答環節到此結束。現在，我想將會議交還給執行長 Larry Jasinski，請他作最後發言。

Well, first, I appreciate everyone's attendance today, and I'd encourage you to come to us if you have other questions about the business. I closed the scripted part of the session with talking about the magnitude of this market. Now that we see real execution and we've achieved it, and it's growing, thinking about the ultimate size of this market is something that I would encourage all of us to think about because we've talked about it in 10s and 20s. It is not unreasonable given the total addressable market for this to be 1,000 systems a year.

首先，我感謝大家今天的出席，如果您對業務還有其他疑問，我鼓勵您來找我們。我以談論這個市場的規模結束了本次會議的腳本部分。現在我們看到了真正的執行，並且我們已經實現了它，而且它還在成長，思考這個市場的最終規模是我鼓勵大家思考的事情，因為我們已經用10秒和20秒的時間來討論過它了。考慮到每年 1,000 個系統的總目標市場，這並不算不合理。

Now that takes time to build. It's not easily done, but it's a value that the vision of our company with our founder started with: widespread ability for people to walk again. And that's what this industry now has in front of it proven out, I think, by the success we've had in this first 90 days after gaining United States coverage with Medicare. So thank you, everybody, for your time today, and we look forward to speaking to you in the future.

現在這需要時間來建造。這並不容易做到，但這是我們公司和創辦人最初的願景：讓人們重新擁有行走的能力。我認為，這正是我們這個行業目前所面臨的證明，我們在獲得美國醫療保險覆蓋後的前 90 天所取得的成功就是明證。所以，感謝大家今天的寶貴時間，我們期待未來能與你們交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。