Lifeward Ltd.

Good day, and welcome to the LifeWord Inc. 4th Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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, and to withdraw your question, please press star then two. Please note today's event is being recorded. And now I'd like to turn the conference over to Mike Wallace, Chief Financial Officer.

Please go ahead. Thank you, Rocco. Good morning and welcome to LifeWord's fourth quarter 2024 earnings call. I'm Mike Wallace, LifeWord's Chief Financial Officer. And with me on today's call is Larry Jasinski, our Chief Executive Officer, and Almagadar, our Vice President of Finance. Earlier this morning, LifeWord issued a press release detailing financial results for the three months and full year ended December 31, 2024, which, along with this call, discuss certain non-GAAP information. I would ask you to review the full text of our forward-looking statements from this morning's press release. We anticipate making projections during this call, and actual results could differ materially due to several factors, including those outlined in our latest filings with the SEC. 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 webcast For the benefit of those who may be listening to the replay or the archived webcast, this call is held and recorded on March 7th, 2025. Since that date, LifeWord 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. With that, I'll turn the call over to Larry.

Thank you, Mike. Welcome, everyone, and I appreciate you joining the call. I'd like to begin by commenting on my announcement in February regarding my retirement from the company later this year. I have been part of a remarkable, life-saving, changing journey with many incredibly talented people. I am proud of the team and the company I've been a part of for the past 13 years. LifeWord today is a medical technology agent of change that has given people improved health and better lives. I thank every person that has been a part of this journey. I have confidence that Lightwood's board will find an excellent leader to advance Lightwood into the next phase of growth, and I am committed to ensuring a smooth transition. I look back at 2024 as a year of meaningful achievement that defined long-term access to our technologies and launched our pathway towards profitability. The key milestones were establishment of lump sum payment and a benefit category with CMS in Q1, issuance of a CMS price of $91,032 in Q2 for the Rewalk system, gaining a meaningful contract with Barmer in Germany that sets the standard for providing exoskeletons, achieving new coverage in Hungary, beginning an initiative to expand penetration with the United States Workers' Compensation insurers for the REWOC system, initiating a national accounts program for the Alter-G line, discussions on expanding our contract to enable further penetration with the motorcycle, launching a new generation of Alter-G with the Neo product, completing FDA usability studies and the full submission for the REWOC 7, increasing operating efficiency by closing two locations, the reduction of our headcount by 35% to right-size the business for 2025, annual growth in 2024 of 85% with an $11.8 million increase over prior year sales to reach $25.7 million. It's a lengthy list that, when taken synergistically, places the company on sure footing for growth and for significantly reducing loss in 2025. We closed the year with record revenue of $7.5 million in Q4. Our parallel focus for 2025 will be maintaining reasonable growth with equal emphasis on reducing our quarterly operating loss each quarter and achieving a loss at or below $1 million in Q4 2025. The reduction in our operating loss will be driven by targeted growth towards our best margin opportunities and operating efficiencies. Examples include the increase in workers' compensation placements, which have a lower level of processing expense and that pay in a shorter cycle, and the mile cycle, where each rewalk lead we develop can also be considered for a mile cycle, which has an improved margin and where we have gained expanded distribution rights to provide home units. Specific growth targets for the Rewalk are placements with CMS, further market penetration targeting Rewalk with workers' compensation coverage, and with submissions to U.S. commercial insurers. We will also expand penetration of clinic and home sales of the MyoCycle and advancement of altergy placements in national accounts. The efficiencies are in product mix, near-term cost of goods reduction programs, and tightly controlled spend levels to match our goals. Operationally, for 2025, we have built a sustainable growth plan where we examined all aspects of the business and reduced costs to meet our goals. We also have favorable year-over-year factors that have enabled reduced expenses. They include completion of our significant investment to achieve industry coverage with the Center for Medicare and Medicaid Services, or CMS, reduced R&D expenses as we completed major R&D programs with AlterG and Rewalk7, the final consolidation activities post-merger, which results in a full year with reduced headcounts, and more efficient manufacturing programs in the U.S. and Israel. In addition, our expectations for the Alter-G and MyoCycle product offerings are that they will be accretive to our business in 2025 and beyond. Mike will now provide a financial summary, and then we can provide more color on the operational goals I have described. Mike?