Lifeward Ltd.

Good morning and welcome to the fourth quarter and full year 2023 LifeWord earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mike Lawless, CFO of LifeWord. Please go ahead.

Thank you, Drew. Good morning and welcome to LifeWord's fourth quarter 2023 earnings call. I'm Mike Lawless, LifeWord's Chief Financial Officer, and with me on today's call is Larry Jasinski, our Chief Executive Officer. Earlier this morning, LifeWord issued a press release detailing our financial results for the three months and full year ended December 31, 2023. The press release and a webcast of this call can be accessed through the investor relations section of the LifeWord website at golifeword.com. Before we get started, I would 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 or format. These forward-looking statements are based on information available to lifeboard management as of today and involve risks and uncertainties, including those noted in our press release and our filings with the Securities and Exchange Commission. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. LifeWorks 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. 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 an archived webcast, This call was held and recorded on February 27, 2024. Since that date, LifeWord may have made subsequent announcements related to topics discussed. So please reference the company's most recent press releases and SEC filings for the most up-to-date information. And with that, I'll turn the call over to Larry. Go ahead.

Thank you, Mike. Good day to all. 2023 was a very successful year, achieving milestones that have set us up for exciting growth and expansion. Our investment and success in gaining Medicare payment for exoskeletons, acquisition of commercially successful and highly innovative anti-gravity products, the strategic building of a scalable organization with combined talent of the new entity, LifeWorks, and ongoing technology leadership with new products are the key milestones of 2023. We believe 2024 is our year to capitalize on these achievements as we will move forward with our sales strategy. In addition to revenue growth, we are poised to leverage our existing operations to minimize our cost that puts us on a path to profitability in 2026. The key highlights for 2023 and the fourth quarter include a 151% increase in annual revenue to $13.9 million in 2023, a 216% increase in Q4 revenue to $6.9 million from prior year Q4, the rebranding of the company as LifeWord to reflect our vision and mission, Integration of the commercial and operational resources of the former Rewalk and Altergy businesses to unify the teams and leverage the inherent strengths of both organizations, resulting in $3 million in annual net savings to be realized in 2024. A public presentation at the November 29th HCPCS session where we stated our case for higher price reimbursement due to the advancements in technology since our original application in 2019. Importantly, we achieved a Medicare reimbursement structure for the Rewalk Personal Exoskeleton in 2023. We also built internal infrastructure to meet requirements to process Medicare claims. We developed and gained FDA clearance for breakthrough products for stair and curb climbing technology and moved forward with innovative new designs of anti-gravity technology to launch mid-2024 and afterward. Now, as we turn to 2024, final pricing for our breakthrough exoskeletons is expected in the coming weeks and will take effect on April 1st, 2024. In preparation, we have completed roughly 35 submissions to date and plan to submit another 60 to 75 claims over the course of 2024. As clinician support develops, we intend to expand our supporting infrastructure appropriately. Both the pace and success of our submissions for reimbursement will define the rate of growth for exoskeletons in the last three quarters of 2024 and into 2025. For 2024, with our AlterG anti-gravity systems, we are preparing for a mid-year launch of a new system designed specifically for the needs of smaller private practice clinics where we see opportunity for growth. Across late 2020, 2023 and early 2024, we completed reorganizing as a single operating entity with the name LifeWord. How do we describe LifeWord? We're not just selling products, we're driving a movement. LifeWord exists to break barriers, redefine possibilities, and to guide individuals towards horizons they might have deemed unreachable. LifeWord is not just a name, it's a call to action and an invitation to refine what's possible. LifeWord aspires to become the unrivaled global leader in pioneering life-changing solutions. And our mission is to relentlessly drive innovation to change the lives of people with physical limitations or disabilities by improving their daily lives. Our values are best summed up as being driven, optimistic, empathetic, savvy, and results-focused. We will offer solutions in the form of multiple product offerings that match our mission and to operate as a profitable growing entity. How will we change the organization? I can say that we have scaled our capabilities to support our growth and penetration goals. In the field, we now have a single sales organization of 18 direct sales individuals covering the U.S., Canada, and Germany. We've doubled our supporting field clinical staff, have a U.S. network of over 30 field service providers, along with 19 distributors in the EU and 22 distributors for the rest of the world. For internal customer support, we have a dedicated medical director, an internal clinical customer support team to help each inquiring Medicare patient or physician, have an experienced and structured reimbursement processing team and resources to maintain government, medical, and society affairs focus for industry development. We have quality and operations efforts to meet our targeted sales goals. With the combination of the two companies, we have an experienced senior management team in all key areas with a track record of success. Simply stated, we are ready to take on this commercial plan and to achieve our goals. Where will these Technological achievements, government policy successes, and new organization take us. First, they remain consistent with our skills and our mission. As innovative, life-changing products combined with exoskeleton coverage access in our two largest markets. We anticipate sales growth to achieve annual revenue of $28 to $32 million, depending on the pace and case acceptance level we achieve with Medicare. In parallel, we will reduce our operating loss each quarter in 2024 based on revenue growth, increasing gross margin contribution, gains from cost reduction efforts in 2023 and 2024, and synergistic leveraging of our expenses with a broader product offering. We forecast reaching profitability on our current cash in 2026. I'd now like to turn the call over to Mike Lovis for more financial detail. Mike?