ReWalk Robotics Ltd.

Hello, and welcome to the Q3 2023 Rewalk Robotics Limited earnings conference call. All participants will be in listen-only mode. Due to due 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 touch-tone phone. 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 Lawless. Please go ahead, sir.

Thank you, Keith. Good morning, and welcome to Rewalk Robotics' third quarter 2023 earnings call. I'm Mike Lawless, Rewalk Robotics' chief financial officer, and with me on today's call is Larry Jasinski, our chief executive officer. Earlier this morning, Rewalk issued a press release detailing financial results for the three and nine months ended September 30, 2023. The press release and a webcast of this call can be accessed through the investor relations section of the REWALK website at rewalk.com. Before we get started, I'd 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 Reform Act. These forward-looking statements are based on information available to REWALK management as of today. and involve risks and uncertainties, including those noted in our press release and REWOC's 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. REWOC 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 the company's website. For the benefit of those who may be listening to the replay or the archived webcast, this call was held and recorded on November 14, 2023. Since that date, Rewalk 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. And with that, I'll turn the call over to Rewalk's CEO, Larry Jasinski.

Thank you, Mike. Good day to all. Since our last financial call, a number of very important events have occurred that we believe have the potential to dramatically change our revenue trajectory and will put Rewalk on a path to profitability. These events are the strategic acquisition of a growing profitable entity, material decisions by the Center for Medicare and Medicaid Services, CMS, on our path to ensure Medicare beneficiaries have access to our life-changing products, progress with the Veterans Administration to make our systems available, and FDA clearance and introduction of truly breakthrough technology advancements to our system. Let me talk through each of these in order. Together, these represent a watershed moment for the company. Equally important, we will be better positioned to fulfill the mission of our founder, which was to empower a large segment of the spinal cord injury community with the ability to stand eye to eye and walk down the street with all of us. The importance of our successful integration of AlterG is significant in having both the financial size and infrastructure to succeed by building on the government policy decisions. From a financial perspective, from August 11th through the end of Q3, Alter-G was profitable, and we anticipate it will continue its profitability in Q4. As we combine the REWOC and Alter-G sales organizations on January 1st, 2024, we will have the largest U.S. field organization in the exoskeleton industry. This expanded team provides us with the infrastructure for the furthest reach and highest quality of support for the industry. For reimbursement, working closely with multiple systems at the Center for Medicare and Medicaid Services, again, CMS, we received a Healthcare Common Procedure Coding System, HCPCS, code in 2020. Then, on November 2nd, 2023, we achieved an assignment to a benefit category for lump sum payments to begin in January 2024. On November 6th, a preliminary pricing proposal was published with a request to provide more data as a basis to finalize current market pricing by the start of Q2 2024. During this process, we continue to aggressively enroll Medicare patients submitting about 20 cases in 2023 and a similar number being submitted in Q1 2024. With the Veterans Administration, we focused in 2023 on reestablishing strong supply pathways post-COVID with the core spinal cord injury centers as we progress from three fully active centers to nine. Some VA centers are conducting direct patient selection and control, but then allowing contracted local training in institutions or clinics close to home of the veteran. This is through the Choice Program, which allows funding for localized training. On Veterans Day weekend, CBS interviewed Brittany Elliott, a Marine who participated in the VA's randomized trial with the Rewalk exoskeleton. She spoke about how the Rewalk changed her life and how she lost four years of walking while waiting for a personal system after the VA's clinical trial. She was in Washington advocating on behalf of the STAND Act. That's the Spinal Trauma Access to New Devices Act. This important bill has bipartisan support and was led by Representatives Bergman, Dingell, Bost, and Brownlee in the U.S. House of Representatives. It was also endorsed by the Paralyzed Veterans of America, PVA, and by Disabled American Veterans. This proposed legislation requires that each spinal cord injured veteran be offered the potential supply of an exoskeleton if they are medically qualified as determined during their annual exam. It also adds reporting metrics for SCI centers to document their process in evaluating the disabled veterans that use their services. From a technical perspective, our breakthrough designated FDA clearance allows us to supply Medicare beneficiaries and injured veterans with a product that allows the greatest utilization in daily life. As they can now navigate stairs and curbs when they're out walking, In parallel, we have two new products planned for launch in 2024. The first is a new Rewalk exoskeleton design that has many improved features and adds cloud connectivity, all of which will aid utilization and make the system easier to use. The other is a new AlterG model that will offer a model for greater penetration into an untapped segment of the independent clinic market. Before we move to the financial metrics for Q3, I want to give a few business measurements that we will discuss in both the financial and operating detail discussions for the quarter and period ahead. Q3 sales of $4.4 million represents a nearly 400% increase over Q3 2022 that is comprised of a 65% increase in Rewalk revenue, and the balance is the addition of AlterG for the last six-plus weeks of the quarter. Q3 and Q4 expenses include meaningful investment in CMS and VA policy support, along with the integration expense, which are all expected to substantially decrease in 2024, but are essential now to set the stage for future patient access and for Rewalk success. The combined U.S. field team will be approximately 50 individuals, including a clinical evaluation group, a sales team covering the entire country, a clinical training team, a reimbursement team, and a field service team. And as per our strategic direction, meaningful growth is now occurring in both the REWOC and Alder G product lines. I'd now like to turn the call back over to Mike for more financial detail. Mike?