Lifeward Ltd.

Good day and welcome to the Q1 2025 LifeWord, Inc. 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. 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, Chief Financial Officer. Please go ahead.

Thank you, Cindy. Good morning and welcome to LifeWords First Quarter 2025 Earnings Call. I'm Mike Lawless, LifeWords Chief Financial Officer, and with me on today's call is Larry Jasinski, our Chief Executive Officer, and Al Magadar, our Vice President of Finance. Earlier this morning, LifeWord issued a press release detailing financial results for the three months ended March 31, 2025, which along with this call discussed certain non-GAAP information. I would ask you to review the text of our forward-lifting statements in 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 website. For the benefit of those who may be listening to the replay or the archived webcast, this call was held and recorded on May 15, 2025. Since that date, LifeWord may have made subsequent announcements related to the topics discussed, so please reference the 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. Thank you, Mike.

Welcome, everyone. Thank you for being with us today. As we've discussed before, Lightboard is laser-focused on defining long-term access to our life-changing technologies and making meaningful progress on our path towards profitability. We continue to make strides on these objectives in the first quarter, so let me break this down into three focused areas, profitable revenue growth, tight expense control and cash management, and a smooth leadership transition. First, Profitable revenue growth. Q1 revenues were $5 million. We have a seasonal business, and we set expectations in Q1 that it will be the slowest of the year. Q1 revenues were down 300,000 year-on-year, but 2024 included a block of catch-up revenues for 2023. In reality, the life of business was up year-on-year. Mike will go into more detail on this in his section. We have made important progress that propel growth in the subsequent quarters in the United States, including the FDA clearance of the Rewalk 7, our next generation exoskeleton, the first approval of a claim for Rewalk 7 by a commercial health insurance company, a partnership with CoreLife to drive profitable progress in the workers' compensation segment for Rewalk, and expansion of our mile cycle distribution rights, which are highly synergistic for our field sales team. Internationally, the RELOC contract with Barmer in Germany is important both in and of itself, as well as a model for working with other insurers in Germany, and we've expanded partnerships with our alternative distributors, including four new business partners. We're excited about the metrics for the coming quarters. Key measurements are we have over 120 qualified RELOC leads in our U.S. pipeline, up over 70% from just two quarters ago. We also have a record number of 36 rewalk rentals underway, primarily in Germany, and these rentals are the leading indicator of future sales. Alter-G is growing with the new meal line and has grown by 19% and 17% in the last two quarters. These measurements give us confidence in the growth we will see in our business going forward. Second category, tight expense control and cash management. We have taken multiple actions to reduce expenses through efficiency with the highest consideration on the return on investment of the use of cash. Key elements include headcount, facilities, cost of goods, consolidation of functions into a single operating entity, and operating initiatives. This equates to a Q1 25% reduction in operating loss, and we expect that reductions will accelerate as savings phase in and revenue grows during Q2, 3, and 4. For cash management, a key factor is obtaining improved predictability from the Medicare administrative contractors, or the MACs. As we have seen more leads moving through our system, we have worked collaboratively with the MACs for definition that will move our submissions more predictably and quickly to all the MACs in parallel. Based on our recent interactions, it is our understanding that the MACs have agreed on a uniform set of claims data and approval criteria, which we believe will enable faster and more consistent claims decisions, which will result in more timely payment. We expect to resolve a significant amount of our past claims and a shorter cycle timeline for approval and payment of future claims. And then third, smooth, leadership transition. On my last conference call, I announced that I would be retiring from LifeWorks mid-year and would be assisting in the transition to a new CEO. The company has built the foundation and has the team required and is in a position to execute. The heart and soul for a sustainable business is in place. Although we will not be discussing additional details on this during the call today, this remains my and the company's intent, and we together are excited about what the future will bring. With that introduction, I'd like to turn it back over to Mike.