Q4 2023 ReWalk Robotics Ltd Earnings Call
Good morning, and welcome to the fourth quarter and full year 'twenty twenty-three life word earnings conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad. After today's presentation there will.
Operator: Good morning, and welcome to the fourth quarter and full year 2023 LifeWord earnings conference call. All participants will be in listen only mode.
Operator: Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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.
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.
Operator: To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the microphone over to Mike Lawless, CFO of LifeWord. Please go ahead.
I would now like to turn the conference over to Mike Lawless CFO of life word. Please go ahead.
Thank you drew good morning, and welcome to <unk> fourth quarter 2023 earnings call I'm, Mike Wallace liquids, Chief Financial Officer, and with me on today's call is Larry <unk>, Our Chief Executive Officer.
Michael A. Lawless: Thank you, Drew. Good morning, and welcome to LifeWorth's fourth quarter 2023 earnings call. I'm Michael Lawless, LifeWorth's Chief Financial Officer, and on today's call is Larry Jasinski, our Chief Executive Officer. Earlier this morning, Lifeboard issued a press release detailing its financial results for the three months and full year ended December 31, 2023. The press release and a webcast of this call can be accessed through the Investor Relations section of the LifeWords website at www.golifewords.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 securities litigation or format.
Earlier this morning, <unk> issued a press release detailing our financial results for the three months and full year ended December 31, 2023 press release and a webcast of this call can be accessed through the Investor Relations section of the <unk> website at go life works Dot com.
Before we get started I would like to remind everyone that any statements made on today's conference call that express 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.
Michael A. Lawless: These forward-looking statements are based on information available to Lifeboard management as of today and involve risks and uncertainties, including those noted in our press release and our 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 statement. LifeWorks 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.
These forward looking statements are based on information available to life work management as of today and involve risks and uncertainties, including those noted in our press release and our 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.
<unk>, 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 completion of the call accessible from the dial in information in today's press release.
Michael A. Lawless: For the benefit of those who may be listening to the replay or an archived webcast, this call was held and recorded on February 27, 2024. Since that date, Lightboard may have made subsequent announcements related to the topics discussed, so please refer to 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 Larry. Thank you, Mike. Good day to all.
The archived webcast will be available in the Investor Relations section of our website.
But for the benefit of those who maybe listening to the replay or archived webcast. This call was held and recorded on February 27, 2024, since that day life, where it made it 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 Larry.
Thank you Mike.
Good day to all.
Larry Jasinski: 2023 was a very successful year, achieving milestones that have set us up for exciting growth and expansion, our investment and success in gaining Medicare payment for the exoskeleton, and acquisition of a commercially successful and highly innovative anti-gravity product. The Strategic Building of a Scalable Organization with the combined talent of the new entity, LifeWorks, and ongoing technology leadership with new products were the key milestones of 2023. We believe 2024 is our year to capitalize on these achievements as we move forward with our sales strategy.
2023 was a very successful year, achieving milestones that have set us up for exciting growth and expansion.
Our investment and success in gaining Medicare payment for Exoskeletons.
Acquisition of commercially successful and highly innovative anti gravity products.
The strategic building of a scalable organization with the combined talent of the new entity LIBOR.
And ongoing technology leadership with new products are the key milestones in 2023.
We believe 2024 is our year to capitalize on these achievements as we will move forward with our sales strategy.
Larry Jasinski: In addition to revenue growth, we are poised to leverage our existing operations to minimize our costs, which puts us on a path to profitability in 2026. The key highlights for 2023 and the fourth quarter include a 151% increase in annual revenue to $13.9 million in 2023. A 216% increase in Q4 revenue to $6.9 million from prior year Q4. The rebranding of the company as Lifer to reflect our vision and mission. Integration of the commercial and operational resources of the former Rewalk and Altergy businesses to unify the teams and leverage the inherent strengths of both organizations, resulting in $3 million in annual net savings to be realized in 2024. A public presentation at the November 29th HCPCS session where we stated our case for higher price reimbursement due to the advancements in technology since our original application in 2019. Importantly, we achieved a Medicare reimbursement structure for the Rewalk personal exoskeleton in 2023. We also built internal infrastructure to meet requirements to process Medicare, developed and gained FDA clearance for breakthrough products for stair and curb climbing technology, and moved forward with innovative new designs of anti-gravity technology to launch mid-2024 and after. Now, as we turn to 2024,
In addition to revenue growth, we are poised to leverage our existing operations to minimize our cost and puts us on a path to profitability in 2026.
The key highlights for 2023 in the fourth quarter include.
In 151% increase in annual revenue to $13 9 million in 2023.
A 216% increase in Q4 revenue to $6 9 million from prior year Q4.
The rebranding of the company is life or to reflect our vision and mission.
Integration of the commercial and operational resources of the former rework and ultra G businesses to unify the teams and leverage the inherent strengths of both organizations, resulting in 3 million in annual net savings to be realized in 2024.
A public presentation at the November 29 epic session. What are we stated our case for higher price reimbursement due to the advancements in technology since our original application in 2019.
Importantly, we achieved a Medicare reimbursement structure for the reward personal exoskeleton in 2023, we also above internal infrastructure to meet requirements to process Medicare claims.
Developed and gained FDA clearance of breakthrough products were staring curb climbing technology and move forward with innovative new designs of anti gravity technology to launch mid 2024 and afterwards.
Now as we turned in 2024.
Larry Jasinski: Final pricing for our breakthrough exoskeletons is expected in the coming weeks and will take effect on April 1st, 2024. In preparation, we have completed roughly 35 submissions to date and plan to submit another 60 to 75 claims over the course of 2024. As clinician support develops, we intend to expand our supporting infrastructure appropriately. Both the pace and success of our submissions for reimbursement will define the rate of growth for exoskeletons in the last three quarters of 2024 and into 2025. For 2024, with our Ultra-G anti-gravity systems, we are preparing for a mid-year launch of a new system designed specifically for the needs of smaller private practice clinics, where we see opportunity for growth. Across late 2023 and early 2024, we completed reorganizing as a single operating entity under the name Liferay. How do we describe life?
Final pricing for a breakthrough exoskeletons as expected in the coming weeks and will take effect on April 1st 2024.
In preparation we ever created and we have completed roughly 2035 submissions to date and plan to submit another 60 to 75 claims over the course of 2024.
As clinicians support develops we intend to it and our supporting infrastructure appropriately.
Both the pace and success of our submissions for reimbursement will define the rate of growth for Exoskeletons in the last three quarters of 2024 and into 2025.
For 2024, with our anti Ultra G. Anti gravity systems, we are preparing for a midyear launch of a new system designed specifically for the needs of smaller private practice clinics, where we see opportunity for growth.
Across late 2023 in early 2024, we completed reorganizing has a single operating entity with the name Lightboard.
How do we describe life or.
We're not just selling products were driving a movement.
Larry Jasinski: We're not just selling products; we're driving a movement. Life exists to break barriers, redefine possibilities, and guide individuals towards horizons they might have deemed unreachable. Lightbird is not just a name; it's a call to action and an invitation to refine what's possible. Lifert aspires to become the unrivaled global leader in pioneering life-changing solutions. And our mission is to relentlessly drive innovation to change the lives of people with physical limitations or disabilities by improving their daily lives. Our values are best summed up as being driven. Empathetic, savvy, and results-focused.
Lifeboat exists to break barriers redefine possibilities and the guide individuals' towards horizons, they might've deemed unreachable.
Like where does not just the name it's a call to action and an invitation to redefine what's possible.
<unk> aspires to become the unrivaled global leader in pioneering life changing solutions.
And our mission is to relentlessly drive innovation to change the lives of people with physical limitations or disabilities by improving their daily lives.
Our values are best summed up as being driven.
Optimistic.
Pathetic savvy and results focused.
Larry Jasinski: We will offer solutions in the form of multiple product offerings that match our mission and operate as a profitable, growing enterprise. How will we change the organization? I can say that we have scaled our capabilities to support our growth and penetration goals. In the field, we now have a single sales organization of 18 direct sales individuals covering the U.S., Canada, and Germany.
We will offer solutions in the form of multiple product offerings that match our mission.
To operate as a profitable growing entity.
How old are we changed the organization.
I can say that we have scaled our capabilities to support our growth and penetration goals.
In the field, we now have a single sales organization of 18 direct sales individuals' cover in the U S, Canada and Germany.
We've doubled our supporting field clinical staff.
Larry Jasinski: We've doubled our supporting field clinical staff, and we have a U.S. network of over 30 field service providers, along with 19 distributors in the EU and 22 distributors for the rest of the world, for internal customer support. We have a dedicated medical director, an internal clinical customer support team to help each inquiring Medicare patient or physician, and we have an experienced and structured reimbursement processing team and resources to maintain government, medical, and society affairs focus for industry development. We have quality and operations efforts to meet our targeted sales. With the combination of the two companies, we have an experienced senior management team in all key areas with a track record of success. Simply stated, we are ready to take on this commercial plan and achieve our goals. Where will these technological achievements, government policy successes, and new organization take us? First, they remain consistent with our skills and our mission, as innovative, life-changing products combined with exoskeleton coverage access in our two largest markets.
Have a U S network of over 30 field service providers.
Along with 19 distributors in the EU in 'twenty two distributors for the rest of the world.
For internal customer support.
We have a dedicated medical director.
An internal clinical customer support team to help each enquiring Medicare patient opposition.
Have an experience in structured reimbursement processing team and resources to maintain government medical and Society affairs focus for industry development.
Okay.
We have quality and operations efforts to meet our targeted sales goals with the combination of the two companies. We have an experienced senior management team in all key areas with a track record of success.
Simply stated we are ready to take on this commercial plan and to achieve our goals.
Where will these technological achievements government policies successes and new organization take us.
First they remain consistent with our skills and our mission.
As innovative life changing products combined with exoskeleton coverage access in our two largest markets.
Larry Jasinski: We anticipate sales growth to achieve annual revenue of $28 to $32 million, depending on the pace and case acceptance level we achieve with Medicare. In parallel, we will reduce our operating loss each quarter in 2024 based on revenue growth, increasing gross margin contribution, gains from cost reduction efforts in 2023 and 2024, and synergistic leveraging of our expenses with a broader product offering. We forecast reaching probability on our current cash in 2026. I'd now like to turn the call over to Michael Lawless for more financial detail. Michael?
We anticipate sales growth to achieve annual revenue of 28 to 32 million, depending on the pace and tastes acceptance levels, we achieved with Medicare.
In parallel we will reduce our operating loss each quarter in 2024.
On revenue growth, increasing gross margin contribution gain.
Gains from cost reduction efforts in 2023, and 2024 and synergistic leveraging of our expenses with a broader product offering.
We forecast reaching profitability on our current cash in 2026.
I'd now like to turn the call over to Mike Wallace for more financial detail Mike.
Michael A. Lawless: Thanks, Larry. Before I review the financial results, I want to remind everyone that our fourth-quarter GAAP results include various costs and expenses related to the acquisition of Alter-G, which can obscure visibility to the underlying operational performance of LIPOR. In order to facilitate understanding of both the GAAP results and the operational results of LIFORTH, I'm going to discuss our performance in the fourth quarter of 2023 on both a GAAP and a non-GAAP basis, which excludes purchase accounting adjustments, transaction expenses, restructuring charges, rebranding and iteration costs, inventory charges, and stock compensation expenses. The reconciliation of the non-GAAP-to-GAAP results is provided in today All right, moving to revenue. Lightbulb reported revenue of $6.9 million in the fourth quarter of 2023, compared to $2.2 million in the fourth quarter of 2022, up $4.7 million, or over 200%.
Before I review the financial results I want to remind everyone that our fourth quarter. GAAP results include various costs and expenses related to the acquisition of Walter G, which can obscure visibility to the underlying operational performance of late for.
In order to facilitate understanding of both the GAAP results and the operational results of life or I want to discuss our performance in the fourth quarter of 2023 on both a GAAP and non-GAAP basis, which excludes the purchase accounting adjustments transaction expenses restructuring charges rebranding and integration costs inventory charge and stock compensation expense.
The reconciliation of the non-GAAP to GAAP results is provided in today's earnings release and I encourage you to reference these tables as I discuss the financials.
Moving to revenue.
Rabbit Lake, we reported revenue of $6 9 million in the fourth quarter of 2023 compared to $2 2 million in the fourth quarter of 2022 up $4 $7 million or over 200% increase in revenue was attributable to the acquisition of Walter G. Excluding ultra G sales the fourth quarter of 2023 revenue was $2.
Michael A. Lawless: The increase in revenue is attributable to the acquisition of Alter-G. Excluding Alter-G sales, the fourth quarter of 2023 revenue was $2.2 million, up $0.7 million sequentially from the third quarter of 2023 and in line with the $2.2 million reported in the fourth quarter of 2022. Rewalk exoskeleton revenue in Q4'23 was flat versus Q4'22 on the same number of units sold, while the revenue from the sale of Myocycle FES training cycles declined slightly but was offset with an increase in revenue from restore units. Turning to our pipeline metrics, our pace of active rental consists of 24 cases, down two from last quarter, which is broken down with 21 in Germany and three VHA rentals.
2 million 0.7 million sequentially from the third quarter of 2023 and in line with the $22 2 million reported in the fourth quarter of 2022.
We walk exercise skeleton revenue in Q4, 23 was flat versus Q4 'twenty two on the same number of units sold while the revenue from the sale of <unk> S. A S training cycles declined slightly but was offset with an increase of revenue from restore units.
Turning to our pipeline metrics are a piece of active rentals consists of 24 cases down two from last quarter, which is broken down with 'twenty, one in Germany, and three VHS V H a rentals.
As of December 31, 2023, or overall number of reward cases in process with 70 with 49 in Germany in 'twenty one in the U S.
Michael A. Lawless: As of December 31, 2023, our overall number of Rewalk cases in process was 70, with 49 in Germany and 21 in the U.S. We ended the quarter with orders for 46 AlterG systems in the backlog, which is lower than the backlog at the end of Q3'23 due to our internal focus on our commercial reorganization and integration activities. We expect the Alter-G backlog to return to higher levels in the coming quarters. As Larry discussed earlier, we expect to have submitted a cumulative 35 claims to Medicare by the end of February for reimbursement of Rewalk's system. To date, one of these claims has been paid, and we expect that more will begin to be processed and paid by the Medicare contractors in the near future.
We ended the quarter with orders for 46 Ultra G systems in backlog, which is lower than the backlog at the end of Q3 dollars 23 due to our internal focus on our commercial reorganization and integration activities. We expect the ultra G backlog to return to higher levels in the coming quarters.
As Larry discussed earlier, we expect to have submitted a cumulative 35 claims to Medicare by the end of February for reimbursement of reward systems to date. What are these claims has been paid and we expect that more will begin to be processed and paid by the Medicare contractors in the near future.
Michael A. Lawless: This revenue from Medicare will be added to the revenue from our traditional pipeline of BHA and workers' compensation cases. Moving to gross profit, in the fourth quarter of 2023, our gap gross profit was $2.4 million, or 35.5% of revenue, as compared to $0.7 million, or 30.9% of revenue, in the fourth quarter of 2022. On a non-GAAP basis, gross profit was $3.2 million, or 47% of revenue, for the fourth quarter of 2023, as compared to $52.8 million for the fourth quarter of 2022. The fourth quarter a year ago had a very favorable mix of product sales and favorable material costs, which contributed to the higher gross margin.
This revenue for Medicare will be additive to the revenue from our traditional pipeline the BHA in workers compensation cases.
Moving to gross profit in the fourth quarter of 2023, our GAAP gross profit was $2 $4 million or 35, 5% of revenue as compared to seven.
047 billion or 39% of revenue in the fourth quarter of 2022.
On a non-GAAP basis gross profit was $3 2 million or 47% of revenue for the fourth quarter of 'twenty three as compared to $52 eight for the fourth quarter of 'twenty two.
The fourth quarter, a year ago had a very favorable mix of product sales and favorable material costs, which contributed to the higher gross margin.
Michael A. Lawless: In Q4'23, Alter-G Gross Margin was accretive to the overall LifeWorth Consolidated Gross Margin. All right, moving to operating expenses. Gap operating expenses were $8.6 million in the fourth quarter of 2023, up $2.9 million or 51% compared to $5.7 million in Q4-22.
In Q4, 'twenty three ultra <unk> gross margin was accretive to the overall life were consolidated gross margin.
Moving to operating expenses.
GAAP operating expenses were $8 6 million in the first quarter and the fourth quarter of 'twenty, three up $2 9 million or 51% compared to $5 7 million in Q4 22.
Within the major Opex categories GAAP R&D expenses were $1 3 million in Q4, 23 as compared to $1 1 million in Q4 22 on.
Michael A. Lawless: Within the major OPEX categories, GAAP R&D expenses were $1.3 million in Q4'23 as compared to $1.1 million in Q4'22. On a non-GAAP basis, R&D expenses were $1.1 million and flat with the amount in the fourth quarter of 2022. AlterG contributed $0.5 million in the most recent quarter, while the R&D expenses for Rewalk declined due to lower spending on subcontractors and consultants from the conclusion of the Stairs Curbs project and a reduction in spending on the Rewalk 7 project since we are at the final stage before FDA submission. Gap selling and marketing expenses were $4.8 million in Q4'23 as compared to $2.7 million in Q4'22.
On a non-GAAP basis, R&D expenses were $1 1 million and flat with the amount in the fourth quarter of 2022.
<unk> contributed <unk> 5 billion in the most recent quarter, while the R&D expenses for reward declined due to lower spending on subcontractors and consultants from the conclusion of the stairs curbs project and reduction in spending on the <unk> seven project. Since we are at the final stage before FDA submission.
GAAP selling and marketing expenses were $4 8 million in Q4, 'twenty three as compared to $2 7 billion in Q4 22.
On a non-GAAP basis, selling and marketing expenses were 4 million $1 4 million or 52%. The majority of this increase came from the addition of the <unk> business, which contributed $1 3 million in selling and marketing expenses.
The rest of the increase was primarily due to higher consulting and professional service fees associated with CMS reimbursement related activity.
Michael A. Lawless: On a non-GAAP basis, selling and marketing expenses were $4 million, up $1.4 million, or 52%. The majority of this increase came from the addition of the Alter-G business, which contributed $1.3 million in selling and marketing expenses. The rest of the increase was primarily due to higher consulting and professional service fees associated with CMS reimbursement-related activities. Gap general and administrative expenses were $2.4 million as compared to $1.9 million in the prior year's quarter.
GAAP general and administrative expenses were $2 4 million as compared to $1 9 billion in the prior year's quarter.
On a non-GAAP basis, G&A expenses were $1 9 million up 0.3 million or 17%.
The addition of the ultra <unk> business contributed to all of this increase while G&A for the reward business declined.
Our GAAP operating loss for the fourth quarter was $6 1 million compared to an operating loss of $5 million in the fourth quarter of 'twenty two.
Michael A. Lawless: On a non-GAAP basis, G&A expenses were $1.9 million, up $0.3 million, or 17%. The addition of the Alter-G business contributed to all of this increase, while G&A from the Rewalk business declined. Our GAAP operating loss for the fourth quarter was $6.1 million, compared to an operating loss of $5 million in the fourth quarter of 2022. The non-GAAP operating loss was $3.8 million in Q4'23 as compared to $4 million in Q4'22.
The non-GAAP operating loss was $3 8 million in Q4, 23 as compared to $4 million in Q4, 'twenty to the fourth quarter 'twenty two.
2023 results also reflect a $1 1 million sequential improvement in the operating loss versus Q3 23.
As was the case last quarter, the ultra <unk> business had a positive operating profit in Q4 and contributed to the improvement in the non-GAAP operating loss.
Moving to the balance sheet, we ended the quarter with $28 1 million in cash and cash equivalents and no debt.
Cash used in operations was in Q4 was $4 $4 million, which includes some transition and integration costs.
Michael A. Lawless: 2023 results also reflect a 1.1 million sequential improvement in the operating loss versus Q3 2023. As was the case last quarter, the Ultra G business had a positive operating profit in Q4 and contributed to the improvement in the non-GAAP operating income. Moving to the balance sheet, we ended the quarter with $28.1 million in cash and cash equivalents and no debt. Cash used in operations during Q4 was $4.4 million, which includes some transition and integration costs.
Next I want to provide an update on the status of our listing requirements for Nasdaq.
As you know back in October we were notified by NASDAQ that our second Grace period to regain compliance with the $1 bid price requirement had expired.
We requested and received extensions from the NASDAQ hearings panel through March 31, 2024 based on the anticipated announcement of the final payment rates by CMS for Exoskeletons, which we believe would provide the clarity and certainty investors are seeking and positively impact our stock price such that.
A reverse stock split would not be necessary.
Michael A. Lawless: Next, I want to provide an update on the status of our listing requirements for NASDAQ. As you know, back in October, we were notified by NASDAQ that our second grace period to regain compliance with the $1 bid price requirement had expired. We requested and received extensions from the NASDAQ hearings panel through March 31, 2024 based on the anticipated announcement of the final payment rates by CMS for Exoskeleton, which we believe would provide the clarity and certainty investors are seeking and positively impact our stock price such that a reverse stock split would not be necessary. At this stage, there are no further extensions available for us under the NASDAQ listing rules.
At this stage there are no further extensions available for us under the NASDAQ listing rules, we continue to expect a favorable stock response once the final payment rate as announced by CMS, but the timing of this is uncertain relative to our NASDAQ compliance deadline.
We have our contingency plans in place for our board to authorize a reverse stock split should the CMS announcement not take place in time for our deadline with Nasdaq.
Okay, now moving to financial guidance.
As a reminder, Medicare has still not provided a final payment rate for Exoskeletons, nor do we have the timetable at which the Medicare claims will begin to be processed and paid by the Max. These two factors have a significant influence on our potential 2024 results.
Michael A. Lawless: We continue to expect a favorable stock response once the final payment rate is announced by CMS, but the timing of this is uncertain relative to our NASDAQ compliance deadline. We have contingency plans in place for our board to authorize a reverse stock split should the CMS announcement not take place in time for our deadline with NASDAQ. Okay, now moving to financial guidance. As a reminder, Medicare has still not provided a final payment rate for exoskeletons, nor do we have the timetable for when Medicare claims will begin to be processed and paid by the MAC. These two factors have a significant influence on our potential 2024 results. The following guidance is our attempt to factor in the uncertainty related to these two variables with appropriate conservatism.
The following guidance is our attempt to factor in the uncertainty related to these two variables with the appropriate conservativism.
For the full year 2024, we expect revenues of between $28 million to $32 million. The growth in revenue is driven by a full year's contribution from the altra GE business augmented by a new product introduction that we expect in mid 2024 of our new entry level model of the altra.
<unk>.
Additionally, we expect <unk> revenue will benefit from the expansion of the market coming for the new benefit category and payment rate by Medicare starting on April one.
We expect non-GAAP gross margin to expand to the high 40%, 40% range driven by volume leverage from a higher level of shipments of <unk> devices and product cost improvements in the ultra <unk> systems.
Michael A. Lawless: For the full year 2024, we expect revenues of between $28 and $32 million. The growth in revenue is driven by a full year's contribution from the Alter-G business augmented by a new product introduction that we expect in mid-2024 of a new entry-level model of the Alter-G. Additionally, we expect Rewalk revenue will benefit from the expansion of the market coming from the new benefit category and payment rate by Medicare starting on April 1st. We expect non-GAF gross margin to expand to the high 40% range, driven by buying leverage from a higher level of shipments of Rewalk devices and product cost improvements in the Alter-G system. We expect non-GAAP operating expenses to decline from the fourth quarter 2023 run rate level, and our non-GAAP operating loss will be reduced to the lowest double-digit million.
We expect non-GAAP operating expenses to decline from the fourth quarter 2023 run rate level, and our non-GAAP operating loss will be reduced to below double digit millions.
We expect to exit 2024, with a significantly reduced quarterly operating loss, which provides visibility to achievement of future operating profit.
Since we still have little visibility to the timing and pricing of Medicare payments, our guidance does not anticipate any Medicare revenue in Q1 24.
Additionally, the first quarter is seasonally the lowest quarter of revenue for the ultra G systems and the new combined commercial team, which just came together in January we'll also need time to achieve sales traction across the product portfolio.
Taking these factors into account, we expect revenue in Q1 'twenty four to be in the range of five to $5 5 million.
In the quarters that follow we expect revenue will increase sequentially on Medicare claims that you need to be paid and the seasonal increase in ultra <unk> revenue supplemented by the new Ultra G product introduction expected in mid 2024.
Michael A. Lawless: We expect to exit 2024 with a significantly reduced quarterly operating loss, which provides visibility to the achievement of future operating profits. However, since we still have low visibility to the timing and pricing of Medicare payments, our guidance does not anticipate any Medicare revenue in Q1-24. Additionally, the first quarter is seasonally the lowest quarter of revenue for Alter-G systems, and the new combined commercial team, which just came together in January, will also need time to achieve sales traction across the product portfolio. Taking these factors into account, we expect revenue in Q124 to be in the range of $5 million to $5.5 million.
With that I'll turn the call back over to Larry for further remarks.
Thank you Mike.
I would now like to provide more detail on our market goals are ongoing technological advancements our commercial operations and our financial goals.
First the successful CNS and something we seek to build on in the U S market, we will work with CMS to optimize the submission process.
In parallel we will initiate interaction with U S private commercial payers and workman compensation groups to seek similar coverage is provided by CMS.
These processes are a multiyear approach and we will update accordingly as they progress.
Yeah.
Technology Advancement is central to our mission and to our growth expectations.
Larry Jasinski: In the quarters that follow, we expect revenue will increase sequentially on Medicare claims beginning to be paid, and the seasonal increase in AlterG revenue, supplemented by the new AlterG product introduction expected in mid-2024. With that, I'll turn the call back over to Larry for his remarks. Thank you, Mike.
Midyear, we plan to launch a new ultra G. Anti gravity model, which has features and pricing specifically designed to address the needs of smaller clinics, who have previously been unable to access anti gravity technology as a treatment option for their patients due to limited budgets and other constraints.
Larry Jasinski: I would now like to provide more detail on our market goals, our ongoing technological advancements, our commercial operations, and our financial goals. First, the success of CMS is something we seek to build on in the U.S. market. We will work with CMS to optimize the submission process. In parallel, we will initiate interaction with U.S. private commercial payers and workmen compensation groups to seek similar coverage as provided by CMS.
We see this as an underserved market with this design can advance penetration for these smaller clinics.
We have also progressed on technology that expands clinical applications with new features for larger rehab centers, we have not yet established a specific launch date for this product, but seek to launch in 2025.
Larry Jasinski: These processes are a multi-year approach, and we will update accordingly as they progress. Technology advancement is central to our mission and to our growth expectations. Mid-year, we plan to launch a new Ultra-G anti-gravity model, which has features and pricing specifically designed to address the needs of smaller clinics who have previously been unable to access anti-gravity technology as a treatment option for their patients due to limited budgets and other constraints.
The Milwaukee personal exoskeleton product line will soon be filing an FDA submission for a new iteration of the reward design.
It is part of the constant advancement of adding new features and improvements from our extensive interaction with our users.
The timing for this launch will be defined by the FDA clearance and we are hopeful this launch will be able to occur in 2024.
In addition separate efforts are being made to establish our longer term pipeline for advancements with Exoskeletons and we have incorporated artificial intelligence or AI into a functional prototype to improve usability and add new capabilities.
Larry Jasinski: We see this as an underserved market where this design can advance penetration for these smaller clinics. We have also progressed on technology that expands clinical applications with new features for larger rehab centers. We have not yet established a specific launch date for this product, but we seek to launch it in 2025. The Rewalk personal exoskeleton product line will soon be filing an FDA submission for a new iteration of the Rewalk design.
This project is currently focused on testing and development and a timeline for launch we will develop accordingly.
For commercial execution, we are shifting our U S sales teams focus to be more physician oriented as a key element for referrals and market development.
Larry Jasinski: It is part of the constant advancement of adding new features and improvements from our extensive interaction with our users. The timing for this launch will be defined by FDA clearance, and we are hopeful that this launch will be able to occur in 2024. In addition, separate efforts are being made to establish our longer-term pipeline for advancements with exoskeletons, and we have incorporated artificial intelligence (AI) into a functional prototype to improve usability and add new capabilities. This project is currently focused on testing and development, and a timeline for launch will be developed accordingly. For commercial execution, we are shifting our U.S. sales team's focus to be more physician-oriented as a key element for referrals and market development. This utilizes our larger sales team with deeper clinic-driven connections and a broader product offering.
This utilizes our larger sales team with deeper clinic, driven connections with a broader product offering.
Marketing has organized supporting scientific material by working with our medical director to shift this to more to this more scalable approach.
We will educate and assist the medical community to efficiently identify the eligible individuals who would benefit from a <unk> exoskeleton now that Medicare coverage is available.
I would now like to address our operational direction for 2024.
We expect revenue of 28 to 32 million and as CMS compresses with our current 35 submissions and the additional 60 to 75 that we will do this year.
We will be able to better define the pace and impact on the.
<unk>, an eventual elimination of our operating loss as the year goes on.
We will adjust and work to reduce our operating losses each quarter in 2004 with sales growth.
To obtain synergy from combined operations and increased activity to reduce the cost of goods and improve margins as part of the process as we gain volume.
Larry Jasinski: Marketing has organized supporting scientific material while working with our medical director to shift us to this more scalable approach. We will educate and assist the medical community to efficiently identify the eligible individuals who would benefit from Rewalk Pexoskeleton now that Medicare coverage is available. I would now like to address our operational direction for 2024. We expect revenue of $28 to $32 million, and as CMS progresses with our current 35 submissions and the additional 60 to 75 that we will do this year.
Our goal is profitability in 2026 on our current cash.
We set many milestones in our strategic plan of these past few years and we have successfully reach them. We are optimistic and confident that LIBOR can now achieve the dream of access to life changing technology with parallel financial success.
Thank you everybody for your time today.
Operator can we move to questions. Please.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Larry Jasinski: We will be able to better define the pace and impact on the reduction and eventual elimination of our operating loss as the year goes on. We will adjust and work to reduce our operating losses each quarter in 2024 with sales gross, to obtain synergy from combined operations and increased activity to reduce the cost of goods and improve margins as part of the process as we gain volume. Our goal is profitability in 2026 on our current... We have set many milestones in our strategic plan over these past few years, and we have successfully reached them. We are optimistic and confident that Lifeboard can now achieve the dream of access to life-changing technology with parallel financial success. Thank you, everybody, for your time today.
If you're using a speaker phone.
Please pickup your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily.
To assemble our roster.
The first question.
From.
So well yeah.
<unk> <unk> with H C. Wainwright. Please go ahead.
Thank you. This is RK from H C Wainwright, good morning, Larry and Mike.
So a few questions from me to start off on the on the CMS reimbursement.
Operator: Operator, can we move to questions, please? Yes. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad if you're using a speaker phone.
It is.
I mean, I initially talking about some by that time by the end of this month, we should have something in place is that still the expectation.
You know what sort of communications are you having currently.
Operator: Please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Soya Ampakula Ramakams with H.C. Wainwright, please go ahead.
With CMS to ensure yourself that we'll have everything in place for April 1st.
For for it to be effective April 1st.
Yeah.
Okay.
The our expectation is.
And that we are.
Expected the rule to take place on April one as it always has.
Larry Jasinski: Thank you. This is RK from HC Wainwright. Good morning, Larry and Mike. So a few questions from me to start off on the CMS reimbursement issue is, I mean, I initially thought that by the end of this month, we should have something in place. Is that still the expectation, and what sort of communication are you having currently with CMS to ensure yourself that we'll have everything in place for... and many, many more, for it to be effective, and more? I hope you enjoyed this video.
We recognize with CMS that there were more than 30 categories of products and the six 6 million.
We were one of those.
No.
I think they have a lot of detailed answer to get all of the categories doesn't even though most of them have nothing to do with us.
We're just a part of a overall package. So our confidence is very high April 1st as our effective date.
The timing, we also had expected it by now.
And we anticipate it any day in order for the Max to have time to implement the fee schedule into their systems, but I don't have it as of this call, but as soon as I do if youre going to see a press release.
Larry Jasinski: I'll see you in the next one. Our expectation is consistent in that we are expecting the rule change to take place on April 1st, as it always has. We recognize with CMS that there were more than 30 categories of products in the 6-6 meeting, and we were one of those. So I think they have a lot of detail to answer to get all of the categories done, even though most of them have nothing to do with us. We're just a part of the overall package, so our confidence is very high. April 1st is our effective date. The timing, we also had expected it by now, and we anticipate it any day now in order for the MACs to have time to implement the fee schedule into their systems.
Thanks for that and then.
At the end of last year, you know you got.
You submitted are you successfully that's got the site submission done to one of the Max and that actually gave us an indication of how.
You have to set up their systems I'm going smooth so beyond that have there been any submissions.
Between then and now or are you holding up aldi, our submissions until you get the final ruling.
Larry Jasinski: But I don't have it as of this call, but as soon as I do, you're going to see a press release. Thanks for that. And then, I think at the end of last year, you know, you submitted, or you successfully got the submission done to one of the MACs, and that actually gave us an indication of how you have set up your systems, and they're going smoothly. So beyond that, have there been any submissions between then and now? Or are you holding up all your submissions till you get the final rule? No, we continued and restarted submissions on January 1st when it switched over to lump-sum payment. So we did put them on hold in the latter part of Q4, and we will finish the end of February with a total, this will include the earlier ones, of about 35 submissions in, roughly half of them here in the first part of this year; the other half were from last year.
No we are.
It continued and restarted submissions on January one when it switched over to a lump sum payment. So we didnt put them on hold in the latter part of Q4.
And we will finish the end of February with a total. This will include the earlier ones are about 35 submissions in roughly half of them here in the first part of this year. The other half were from last year.
And again, our timing was simply now we know at least all the later ones are under lump sum payment designation.
And.
We will continue to build our pipeline.
To try to put in roughly 60 to 75 additional submissions this year.
Okay. Thank you and then Hum.
Larry Jasinski: And again, our timing was simply, now we know at least all the later ones are under the lump-sum payment designation, and we will continue to build our pipeline to try to put in roughly 60 to 75 additional submissions this year. Thank you. And then, I want to... see what commentary you have. In terms of growth expectations in Germany and Europe in general, I did hear on the call that you said that you have about 18 or 19 sales folks out there, distributors out there, so how are they helping you to grow the business? in Europe
I want to.
See what commentary you have.
In terms of growth expectations in Germany.
In general.
I did hear on the call you were saying that you have.
How about 18 or 19 sales folks out there I'm distributors out there so how are they.
Helping you to grow that business.
No.
Well one of the.
Larry Jasinski: Well, one of the primary advantages of the addition of the Alter-G technologies is that it built our network in Europe and Asia that we didn't have. So for the Alter-G product line, now that they are fully focused on the field and no longer involved with this element of the sale and acquisition, we expect that they are going to see reasonably good growth in the European and Asian markets through the size and scope of their distribution organization. For our direct team in Germany, we're optimistic on both sides that Alter-G will continue to do well in Germany. It's been a very well-accepted product there, and we see the exoskeleton market beginning to grow in Germany well, as we see an increase of up to 50% year-over-year in Germany.
Primary advantages of the addition of the Altra D technologies is it built our network in Europe, and Asia that we didn't have.
So for the Ultra G product line now that they are fully focused on the field and no longer involved with this elements of the <unk> acquisition, we expect that they are going to see a reasonably good growth in the European and Asian markets through the size.
And scope of their distribution organization.
For our direct team in Germany.
We're optimistic on both sides that the ultra G will continue to do well in Germany, it's been a very well accepted product there and we see the.
Exoskeleton market beginning to grow in Germany, as well as we see an increase of up to 50% year over year in Germany.
Perfect. So my last set of questions on Ultra G.
Larry Jasinski: So my last set of questions on AlterG: in general, what is the revenue dynamics as we go through the year? And then for the new product that you're planning to launch in mid-2024, what sort of a market is there, you know, for that product? Thank you.
In general what what is the revenue dynamics as we go through the year.
Then for the new product that you're planning to launch in mid 2024.
What sort of a market is out there for that product.
Michael A. Lawless: Mike, I've asked you to start with the trends. Yeah, so, okay, we expect that the sales of the Alter-G systems will grow sequentially as we move through the year. That's typically been the historical pattern for that business, whereas Q1 is the lowest quarter, and it gradually builds as we move through the year. I guess that's a function of the order patterns and the purchasing patterns of the customer base.
Mike I'd ask you to start with.
Trends.
Yes.
We expect that the.
The sales of the ultra <unk> systems will.
We'll grow sequentially as we move through the year, that's typically been the historical pattern for that business.
Whereas Q1 is the lowest quarter and then it gradually builds as we move through the year I guess, that's a function of.
The order patterns in the purchasing patterns of the customer base.
Larry Jasinski: But I think that will be particularly true this year because of the fact that the introduction of the new NPI right around mid-year is when we're expecting it. So the second half of the year will get the benefit of that new product introduction in addition to the normal seasonal growth that we typically see with that product line. Okay, and regarding the new product, I'd step back for a second and remind you of the ones that we're doing so well with AlterG. Entering a new segment is what we're excited about, but the product is extremely well accepted in the professional sports arena, and we expect that business to stay very steady, and we also have a healthy business in the larger rehab clinics.
But I think that will be particularly true this year because of the fact that of the introduction of the new NPI right around midyear is what we're expecting that so so the second half of the year, we'll get the benefit of that new product introduction. In addition to the normal seasonal growth that we took.
<unk> see with that product line.
Okay and regarding the new product.
Ill step back for a second and remind you the ones that we're doing so well was with ultra G and enter new segment is what we're excited about.
<unk>.
The product is extremely well accepted in the professional sports.
Arena, and we expect that business to stay very steady.
And we also have a healthy business in the larger rehab clinics.
Larry Jasinski: The area we've not been able to penetrate heavily is the smaller, private practice places because the features of the products we build into the pro sports, for example, are for 300-pound people that might run 15 miles an hour. And in the larger rehab clinics, we have a lot of other features and capability. But the smaller, private practice clinics don't need that level of capability. They're not training pro athletes.
The area, we have not been able to penetrate heavily is the smaller private practice places because of the features of the products. We build into the pro sports for example, or for 300 pound people that might run 15 miles an hour.
And in the larger rehab clinics, we have a lot of other features and capability.
These smaller private practice don't need that level of capability theyre not trading pro athletes.
Larry Jasinski: They can really work well with an audience. So we have built the features around something that will allow us to begin to penetrate that segment, which is about 15,000 clinics in the U.S. that are, at this point, really not penetrated. So it's rounding out us in all of the major markets where this technology could be used. So we're excited about it this year. We'll begin shipping this product right around mid-year.
<unk> can really work well with an audience. So we have built the features around something that will allow us to begin to penetrate that segment, which.
Which is about 15000 clinics in the U S that is.
At this point really not penetrated so it's rounding out us and all of the major markets, where this technology can be used so we're excited about it this year will.
We will begin shipping this product right around mid year.
Larry Jasinski: And it is a significant part of our growth and trajectory for AlterGene. Thanks, thanks. Thank you very much for taking all my questions. Good luck to you. Again, if you have a question, please press star then 1. The next question comes from Ben Hainer with Alliance Global Partners. Please go ahead.
It is a significant part of our growth.
Trajectory for Ultrashape.
Thanks. Thanks, Thank you very much for taking all my questions.
Okay.
Again, if you have a question. Please press Star then one.
The next question comes from Ben Hayner with Alliance Global Partners. Please go ahead.
Operator: Good day, gentlemen. Thanks for taking the questions. Can you hear me okay?
Hey, Good day, gentlemen, and thanks for taking the questions can you hear me okay.
Yes, yes.
Operator: Yes, that's right. Great. Just wanted to check on the guidance. How much CMS revenue is included in that? Just kind of back of the envelope, if I look at it and say you've got 35 submissions in that you could get paid for, you've got the 60 to 75 that you plan to put in this year, even at the preliminary figure, that could be in the high single-digit millions or even low double-digit millions. What's the right way to think about that? And then I assume any CMS revenue that you do have in there is reimbursed at the preliminary reimbursement rate or slated to be reimbursed, model to be reimbursed at the preliminary reimbursement figure that's out there. Yeah, hey, Ben and Clary.
Okay, Great just wanted to check on the guidance.
For how much CMS revenue is included in that.
Just kind of back of the envelope if I look at it and say you've got 35 submissions and they could get paid for you got the 60 to 75 that you plan to put in this year, even at the preliminary figure of that could be high.
High single digit millions or even low double.
Digit millions.
What's the right way to think about that and then I assume any CMS revenue that you do have in there is a reimbursement the preliminary reimburse.
<unk>.
The model to be reimbursed at the <unk>.
Preliminary reimbursement figure that's out there.
Yeah, Hey, beneficiary, yes, we have presently modeled this using.
Larry Jasinski: Yes, we have presently modeled this using a combination of our submissions we're making and the preliminary pricing, although we think that will be higher. So we have the 110 claims total. So the 35 already in place, the 75 new ones, at least that's our goal, 60 to 75, but we expect around 100 or more claims or submissions. The percentage that we are looking for in, for payment for 2024, the reason we gave a range is somewhere between 10 and about 40% we think will be paid in the 2024 calendar year, and we believe the balance will be paid in the 2025 period.
Combination of our submissions were making.
And.
The preliminary pricing, although we think that will be higher.
We have the 110 claims total so the 35 already in place the 75, new ones at least that's our goal is 60 to 75, but we expect of around 100 or more claims our submission.
The percentage that we are looking for in for payment for 2024. The reason, we gave a range and somewhere between 10 and above 40%. We think will be paid in 2024 calendar year and we believe the balance will be played.
In the 2025 period. So this is partially building our pipeline for 'twenty five.
Larry Jasinski: So this is partially building our pipeline for 2025. We're being conservative in our estimates because we can't completely predict the pace of things with CMS, and that's how we built it. So there's upside if that 10% to 40% proportion is higher and, obviously, if the reimbursement figure is higher. Isn't that right? Is it fair?
We're being conservative in our estimates because we can't completely predict.
The pace of things with CMS.
That's how we built that.
So theres upside if the if that 10% to 40% proportion is higher.
And obviously, if the reimbursement vigorous hires at the rate is that fair.
Larry Jasinski: Yeah, we'll take a sale whenever we can get it, so yes. Okay, fair enough. And then you mentioned kind of refocusing or focusing the Salesforce more on physician referrals. Can you kind of walk us through, you know, a typical patient journey as it stands today to get a personal home unit and then how that might change, you know, over the course of this year as the CMS changes take effect? Well, the definition and activities of CMS will help us a lot.
Yes, we will take the sale whenever we can get it so yes.
Okay, Okay fair enough.
And then you mentioned kind of a refocusing and are focusing our sales force more on physician referrals can you kind of walk us through.
You know a typical patient journey as it stands today.
To get a personal home unit and then how that might change.
Over the course of this year as CMS.
The CMS changes take effect.
Well the definition activities, where CMS will help us a lot.
Larry Jasinski: I'll kind of look backwards. Most of our work over the past few years has been very patient-driven. We would have a patient and help qualify that patient with our clinical team and then help them through the system. But our referrals really came from patients that really just desperately wanted the benefits of this technology. The physician community was not really willing to advance this because they didn't want to give false hope to patients.
Ill kind of look backwards most of our work over the past few years has been very patient driven we would have a patient and help qualify that patient with our clinical team and then help them through the system.
But.
Our referrals really came from patients that really just desperately wanted the benefits of this technology the.
The position humidity was not.
Not really willing to.
Advanced us because they didn't want to give false hope to patients. If there was no coverage they really wouldn't.
Larry Jasinski: If there was no coverage, they really wouldn't push this with the patient community. So our change in profile to a physician-focused approach a little bit here is because it's more scalable and will help us get to the right patients. Our success rate from a patient-referred group of individuals is dramatically higher than the individuals who come to us just individually because they get qualified a lot better. For a patient's journey right now, we would encourage and educate them to ask their physician, have their physician guide them through the inclusion-exclusion criteria, and then hand them off to our customer service team, which has all the elements that we know we need for a CMS submission.
Pushes with the patient community.
Our change in profile to a physician focused approach a little bit here is because it's more scalable and will help us get to the right patients are.
Success rate from a patient referred group.
Individuals' is dramatically higher than the individuals who come to us just individually because they get qualified a lot better.
So for a patient's journey right now we would encourage and educate them to ask their physician have theyre positioned guide them through the inclusion exclusion criteria.
And then <unk>.
Hand them off to our customer service team, which has all the elements that we know we need for a CMS submission and we help pull that together and get the submission with our internal teams.
Larry Jasinski: And we help pull that together and get the submission together with our internal teams. And then we work back to the clinic that we originally got the position or the referral came from, and we will do the training there, in most cases, and then the product is provided at the end of that cycle. So it's a combination now of the physician as a starting point for many of them, followed by Rewalk's involvement in helping with the hard work of processing and preparing a claim that will go through, followed by the clinic training them. And then after that, you know, we have a very good warranty and service program here to make sure these individuals have the device working for the entire five-year life of the device.
And then we work back to the clinic that we originally got the position or the referral came from and we will do the training there in most cases.
And then the product is provided at the end of that cycle. So it's a combination now of the physician as a starting point for many of them followed by remarks involvement in helping the hard work of processing and preparing a claim to.
That will go through followed by the clinic training them and then after that.
We have a very good warranty and service program here to make sure. These individuals at the device working for the entire five year life of the device.
Larry Jasinski: So the flowchart is much longer than that, but that is a reasonably good verbal explanation. No, and that makes sense, and it's definitely helpful. You know, our, you know, obviously with the patients coming to you, is kind of the way that it's been historically. You know, obviously, you're never going to run Super Bowl ads to try and target all the patients that could potentially be candidates. But in terms of the physicians that you go after, I mean, is that a relatively smaller group of folks that, you know, might be, you know, X thousand out there that you can easily target, or is there sort of a back of the envelope number that we should think about on, you know, these, your sales force will be going after, you know, 2,000 or 10,000 or 500 physicians that really you guys think have the potential to write, excuse me There's a pretty good variety.
So there is the flow chart is much longer than that but that is a reasonably good verbal explanation.
No that makes sense and it's definitely helpful.
Are you know obviously, what the patients coming to you as kind of the way that it's been historically.
You know obviously you are never going to run a Super Bowl ads to try and target all of the patients that could potentially be.
Candidates.
But in terms of the physicians that you go after I mean is that a relatively.
The smaller group of folks.
It might be.
X thousand out there.
You can easily target or is there sort of a back of the envelope number that we should think about on.
These your salesforce will be going after.
2000, or 10000 or 500 physicians that really you guys think of the potential way to right excuse me a lot of prescriptions.
There's a proven variety.
Larry Jasinski: Yeah, sorry. Yeah, there's a pretty good variety in the physician base. The core initial one is the PM&R docs, the people who do physical and rehabilitation medicine. As they see these patients, particularly early, as patients get a little later in years past their injury, the group becomes more varied with some neurologists and internists.
Yes, so there's a pretty good variety of the physician base.
Core initial one P M at our docks, the people, who do physical and rehabilitation medicine.
As they see these patients, particularly early.
As patients get a little later in the years past their injury.
Injury, the group becomes more varied with some neurologist an internist and.
Larry Jasinski: So our initial focus would be a little more on the clinic-based. We believe that gives us sufficient numbers for growth. But over time, getting neurologists and some internal medicine and other groups educated will matter.
So our initial focus would be a little more in the clinic based.
Believe that gives us sufficient numbers for growth, but over time getting neurologist and some internal medicine.
Groups.
<unk> will matter.
Larry Jasinski: So I think we have a pretty good early target, and it will grow over time, for the Spinal Cord Injury Title. Okay, I got it. That's helpful. And then a couple quick ones: Can you provide the pro forma Alter G revenues for 2023 and the growth versus 2022? Or don't you have those available? Or can you provide them? Proforma Revenue, if you combine the two organizations together. Well, either that way or just alter the geography, kind of a standalone, if you will.
So I think we have a pretty good early target it will grow over time.
For the for the spinal cord injury side of the business.
Okay got it that's helpful and then a couple of quick ones on.
Can you provide the pro forma altra GE revenues for 2023, and the growth versus 2022 or do you have those available or can provide them.
Pro forma revenue if you combine the two organizations together.
Well, either that way or or just also just kind of a standalone if you will.
Operator: I don't have that in my pocket, so let me try to pull that up while we're on the call here. Okay, give me a moment. Yep, no problem. And then, just on, I guess, another one to distract you from the test, but the integration savings that you expect, do those kind of kick in fully during Q1, or is that ramped down into Q2 and beyond? Or should we just model it as, you know, kind of $750,000 savings over a quarter over the course of the year?
I don't have that at my Fingertips, Let me, let me try to pull that up while we're while we're on the call here.
Okay.
Mode.
Yes, no problem and then.
Just on the I guess the other one to distract you from the tests, but the integration savings that you expect.
Does that kind of kick in fully during Q1 or does that ramp down in Q2 and beyond.
Or should we just model with us kind of a $750000 savings over.
<unk> over the course of the year.
That will that will phase in that will phase in over time.
Michael A. Lawless: That will phase in over time. That's not all immediate. We should start to see the benefits in Q1, but we won't really see the full impact until we get later through the year. Okay, that's all for now. Makes sense.
Not all immediate.
We should we should start to see the benefit adding in Q1, but we wont really see the full impact until we move later later through the year.
Okay.
That's helpful.
To kick in.
It makes sense okay.
Operator: Okay, I think that's all I have. I'll leave it at that, and thanks for taking the questions, guys. Thanks, Matt. Thank you, Ben. I'll follow up with you with the answer to that other question that you had.
I think that's all I have.
I'll leave it at that.
Thanks for taking the questions guys.
Thanks, Matt.
You bet.
I'll follow up with you with the answer to that other question that you had.
This concludes our question and answer session I would like to turn the conference back over to Larry Jasinski for any closing remarks.
Larry Jasinski: This concludes our question and answer session. I would like to turn the conference back over to Larry Kaczynski for any closing remarks. I'd like to thank everyone for joining us today. I started out with a fairly long list of 2023 milestones, and we've very much been a milestone-driven company because that was the basis for us to really expand.
I'd like to thank everyone for joining us today.
I started out with a fairly long list of 2023 milestones and we very much been a milestone driven company because that was the basis for us to really expand.
Larry Jasinski: And this is the year we get to do it. We are moving to the execution phase. We have the right team in place, which is an important part of the integration of the companies. And we have the size and scale to do it. So we very much look forward to presenting this on future quarterly calls. And we ask everyone to please watch us closely.
And this is a year, we get to do it.
Moving to execution phase, we have the right team in place, which is an important part of the integration of the companies and we have the size and scale to do it. So we very much look forward.
Two presenting us on future quarterly calls.
We ask everyone to please watch us closely.
Operator: That's it for today. Thank you, everybody. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
That's it for today, Thank you everybody.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
Operator: Thank you for watching. I hope you enjoyed this video. If you did, please leave a like and subscribe. I'll see you in the next video.
[music].
Yeah.
Okay.