Lifeward Ltd.

Good day and welcome to the second quarter 2025 LifeWord conference call. All participants will be in listen-only mode. If you do 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 a touch-tone telephone. To withdraw your question, please press star then two. Please note this event has been recorded. I would now like to turn the conference over to Mr. Almon Adar. Please go ahead.

Thank you, Alicia. Good morning and welcome to LifeWords Second Quarter 2025 Earnings Call. I am Almon Adar, LifeWords Chief Financial Officer, and with me on today's call is Mark Grant, our President and Chief Executive Officer. Earlier this morning, Lifeboard issued a press release detailing financial results for the three and six months ended June 30, 2025. 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 Security Litigation Reform Act. These forward-looking statements are based on information available to Life Forward Management as of today and involve risks and uncertainties, including those noted in our press release and our filing 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 statement. LifeWorks specifically disclaim any intent or obligation to update this forward-looking statement, whether as a result of new information, future development, or otherwise except as required by law. A replay will be available shortly after 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 at golifeword.com. For the benefit of those who may be listening to the replay or the archived webcast, this call was held and recorded on August 14, 2025. Since that date, LifeWord may have made subsequent announcements related to the topic discussed, so please reference to the company's most recent press release and SEC filing for the most up-to-date information. And with that, I will turn the call over to LifeWorks President and CEO, Mark Grant. Thank you, Almag.

Good morning, everyone, and thank you for joining us today. I'm Mark Grant. It's a privilege to speak with you on my first earnings call as LifeWorks President and Chief Commercial Officer. Over the past several weeks, I've met with our teams, customers, and partners, and I've been inspired by the positive energy and deep commitment that runs through this company. Lightbird is built on a foundation of innovation, purpose, and patient-centered delivery, and I intend to build on that strength as we move forward. Our strategy is clear, delivering life-changing solutions efficiently and at scale, guided by an unwavering commitment to the patients at the heart of everything we do. That means accelerating commercial adoption across all of our products, expanding our portfolio of cutting-edge solutions, and holding ourselves accountable through the operational rigor needed to deliver sustainable results for customers and shareholders alike. I also live this mission personally. A little over 20 years ago, I experienced a spinal cord injury that resulted in left leg paralysis and a long, difficult recovery, a journey in which I could have directly benefited from LifeWord's portfolio. That experience, combined with more than two decades of global medical device leadership and commercial execution, operations, and payer engagement, gives me a very unique perspective on both patient needs and the path to delivering our solutions at scale. Frankly, it started even earlier than my injury. Decades spent with my father-in-law, one of the first deans of disability support services in the university system, left an indelible mark with me. He played a pivotal role instituting Section 504 of the Rehabilitation Act of 1973, and in driving the support and execution that led to the American with Disabilities Act of 1990, as well as the 2008 Amendments Act, Title II and Title III of the FDA, and the Fair Housing Act, all which established a well-grounded foundation for me to build upon during my life and my career. As you can see for me, stepping into this role is not just a professional milestone, it's a personal mission. one that combines deep empathy with the drive for continuous innovation and operational discipline. My commitment is to ensure that we stay ahead of the market needs, expand access to our solutions, and deliver tangible, lasting impact. Now let's move on to some recent accomplishments. In Q2 2025, revenue was $5.7 million, also reflecting a record quarter for REWOC Medicare placements. As you remember, in March, we achieved FDA clearance for our Rewalk 7 personal exoskeleton. The latest innovation of Rewalk Pipeline introduces new features streamlined for accessibility and ease of use in everyday environments. Improved battery life, push-button control, seamless stair curb activation, and cloud connectivity. To date, over 20 systems, over 20 Rewalk 7 units have been installed in the U.S. with an overwhelmingly positive feedback from both patients and therapists. We're currently in the final stages of obtaining CE clearance for Rewalk 7 and look forward to a similar response with our subsequent launch in Europe. On the operations side, we completed the transition to in-house manufacturing of the Rewalk personal exoskeleton, delivering cost savings, improved quality control, and greater production flexibility. Additionally, as part of our consolidation efforts, we finalized the closure of our Alter-G manufacturing facility in Fremont, California. In the U.S., we've continued to expand our payer base for the REWOC personal exoskeleton. Our partnership with Core Life, a division of New Motion, has accelerated our lead pipeline and processing timelines for workers' compensation claims. We've also continued to work with the Medicare administrative contractors, the MACs, to achieve clarity on case submission requirements, and we received a recent ruling by an administrative law judge affirming that REWOC personal exoskeleton is a reasonable and necessary for medical beneficiaries. As a result of these and other achievements, we improved our quarterly cash burn to 3.9 million, down from 5.6 million in Q2 2024, also 5.5 million in Q2 2025, driven by operational efficiencies, facility consolidations, and other reduction initiatives. Now let me turn to our growth strategy, which is anchored in three core pillars that will drive sustained performance and long-term value creation. The first pillar is accelerating commercial adoption, We're building on strong momentum from recent Medicare and commercial insurer wins by reducing approval times, expanding coverage, and scaling access globally. This effort is supported by four key levers, payer expansion, channel distribution, digital engagement, and strategic alliances. By pairing innovation market access strategies with process improvements and reimbursement and collections, we aim to speed order to cash cycles, improve DSOs, and convert demand into revenue more efficiently. The second pillar is portfolio diversification. We are leveraging software innovation, robust hardware, and AI integration to expand capabilities to deepen customer engagement. Our innovation focus is matched by discipline execution, ensuring that our solutions are effective, intuitive, and accessible to the broadest patient base while remaining commercially viable at scale. The third is operational excellence. We're focused on driving margin improvement deploying capital with rigor, accelerating cash conversion through greater efficiency and reimbursement and collections. Herein innovation means continuously refining our internal processes for manufacturing to revenue cycle management. These improvements are designed to extend our financial runway, enhance our profitability, ensure that growth translates into predictable, timely revenue. One highlight and a clear glimpse of what's possible is the performance of our GmbH team in Germany. They're operating profitably, building a strong patient community, and using their payer acceleration and market scale to move quickly in rolling out innovative new business models. These models blend accelerated commercial adoption through channel partnerships and distribution growth with disciplined execution and reimbursement, allowing faster order to cash and better DSO. At the same time, the team is expanding AlterG sales through targeted channel strategies and local market innovations. proving the value of our portfolio diversification approach. Operational excellence is evident in their ability to test, refine, and scale solutions rapidly, ensuring that works in Germany can also adapt for other global markets, including the United States. Germany has become our proving ground. Here we push the limits of delivery, integrate customer feedback quickly, and perfect strategies before broader rollouts. This approach reinforces the strength of our three pillars, delivering tangible results today while chartering the course for sustainable, profitable growth tomorrow. Lastly, I know you've already heard from him, but I'm pleased to share earlier this week we appointed Amag Ardar as LifeWord's Chief Financial Officer. Amag is no stranger to LifeWord. Having served more than five years in senior finance roles within the company, Amag's proven track record here at LifeWord gives me full confidence in his ability to strengthen performance improve operating efficiency, and progress toward long-term profitability. I'm looking forward to working closely with them to accelerate execution and unlock more of LifeWorks' growth potential. Amag, welcome to your new role, and over to you.