ReWalk Robotics Ltd.

Thank you for standing by. Welcome to the Q1 2021 Rewalk Robotics Limited earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 on your telephone. If you require any further assistance, please press star 0. I will now like to hand the conference over to your speaker today, Ori Ghan. Please go ahead.

Thank you, Misty. Good morning. And welcome to Rework Robotics' first quarter 2021 earnings call. This is Oregon, Rework's chief financial officer, and with me on today's call is Larry Jasinski, our chief executive officer. This morning, the company issued a press release detailing financial results for the three months ended March 33, 2021. This press release and a webcast of this call can be accessed through the investor relations section of the Rework website at www.rework.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 as defined by the private securities litigation reform act. These forward-looking statements are based on information available to Rework Management as of today and involve risks and uncertainties. Include those noted in this morning's press release and Rework's 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. Rework specifically disclaims any intent or obligation to update this forward-looking statement, except as required by law. A telephone replay of the call will be available shortly after completion of this call. You will find the dial-in information in today's press release. The archive webcast will be available on the company's website. For the benefit of those who may be listening to the replay or archive webcast, this call was held and recorded on May 11, 2021. Since then, Rework may have made announcements related to the topics discussed, so please reference the company's most recent press releases and SEC findings. And with that, I'll turn the call over to Rework's CEO, Larry Jasinski. Larry?

Larry Jasinski Rework CEO Larry Jasinski Rory, thank you very much. Good morning, everyone. I am pleased to report that we had a solid Q1 and are on track for our goals in 2021. Q1 was the beginning of a transition from COVID limitations to more normal operations as our customer base is making progress towards returning to training and into the clinics. Q1 sales were 1.316 million compared to 0.760 million in the prior year quarter and 1.2 million in the trailing quarter. For our core product offering, the Rewalk 6.0, we expect continued progress with our current base of target candidates, which is at 168 qualified individuals at this time. 82 of those are in Germany, where we have the strongest coverage position as we emerge from COVID. 56 are in the U.S., which consists primarily of VA and workman's comp individuals. 30 are in the U.K. and within their litigation system. As U.S. progress occurs with CMS, we will seek to move larger numbers of Medicare and Medicaid individuals into our qualified pipeline. This current base of potential rewalkers, combined with our full direct sales force in these three geographies, and the expected reopening for access to these training centers, provides us with a sufficient base to meet our year-over-year growth goals. For the Restore product offering, the reopening has allowed the expansion of data generation and reentry into target accounts. We have worked with several of our KOLs to develop a symposium for this year's ACRM conference, which examines the role of robotic systems like the Restore Exosuit in achieving the therapeutic goals of high-intensity gait training with patients post-stroke. The reopening will allow reinitiating the clinical studies at Spalding in Boston, the Abilities Lab in Chicago, and at Boston University. Our parallel focus to building data is initiating placements and seeking subsequent contracts with national chains or accounts. We now have seven clinics with four different national groups that are utilizing the Restore device for broader use within their national programs. We are also advancing contract efforts with our Myelin offering and our MediTouch offering with the same chains and others. Our expectations for year-over-year growth relies on ongoing and increasing access to our clinics and customer base, and all current trends in the US, UK, and Germany support our expectation to meet our growth goals. All other financial metrics are also aligned with our planning. Our gross margin landed at 54%. Our operating expenses will be level in almost all efforts beyond sales commission and travel expenses. Our cash position at the end of the quarter was 67.4 million. A combination of growth, margin management, And controlled expenses leaves us with a runway to achieve break-even operations and to consider other opportunities to build our business. At the start of the year, we identified several key milestones to watch in 2021 that will have an impact on our efforts to develop this new and emerging market. Here is a review of each. The first milestone, in the German market, Federal Social Court, which is the highest court for social jurisdiction in Germany, a ruling is expected to decide if an exoskeleton, which is an orthopedic aid that replaces the function of legs, enables independent walking and standing, whether it serves to directly compensate for disability. This case was filed in the local social court in May 2017, and the case was denied. It was appealed to the state social court, which overruled the local court and ruled that a WeWalk must be provided. It was then appealed by the payer to the highest social court in Germany, the federal court, for a final ruling. The court does not provide a specific guideline on timing for a ruling, but our best estimate is mid-2021. A positive ruling would have a significant impact on the landscape by all payers in Germany. Our second milestone, expansion of contracts in Germany. They remain highly active with two of the remaining large chains, but final contracts are more likely to be held until the court decision is issued. Third milestone, in the U.S., the successful HCPCS code issuance is actively being followed with multiple activities around pricing, categorization of the exoskeletons, and regarding coverage policies with contracted planned in coordination with CMS. This timeline has some uncertainty, but we are pleased with the progress that has been incurred. And the fourth milestone. In the UK, the utilization of the Restore system in NHS evaluation centers is scheduled with patients as they return to the clinics on May 17th with a broader opening in June. I'd now like to turn it over for a review of the financial details. Laurie?