Q2 2025 Lifeward Earnings Call

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Alicia: Good day and welcome to the second quarter 2025 Lifeward Ltd. 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. Almog Adar. Please go ahead.

Thank you Alicia good morning, and welcome to life for second quarter 2025 earnings call.

And we will go down like Fords, Chief Financial Officer, and with me on today's call is Mark Grant, our President and Chief Executive Officer.

Speaker #2: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press *1 on a touch-tone telephone.

Earlier this morning, <unk> issued a press release detailing financial results for the three and six months ended June 32025.

Speaker #2: 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. Ahmed Adhar.

Press release and in <unk>.

Cost of this call can be accessed through the Investor Relations section of the <unk> website at <unk> Dot com before we get started I would like to remind everyone that.

Speaker #2: Please go ahead.

Speaker #3: Thank you, Alicia. Good morning and welcome to Lifeward second quarter 2025 earnings call. I am Almag Adhar, Lifeward's chief financial officer and with me on today's call is Mark Grant, our president and chief executive officer.

Almog Adar: Thank you, Alicia. Good morning and welcome to Lifeward Ltd. Second Quarter 2025 earnings call. I am Almog Adar, Lifeward Ltd. Chief Financial Officer, and with me on today's call is Mark Grant, our President and Chief Executive Officer. Earlier this morning, Lifeward Ltd. issued a press release detailing financial results for the three and six months ended June 30, 2025. The press release and webcast of this call can be accessed through the Investor Relations section of the Lifeward Ltd. website at golifeward.com. Before we get started, I would like to remind everyone that any statement made on today's conference call that expressed a belief, expectation, projection, forecast, anticipation, or intent regarding future events and the company's future performance may be considered a forward-looking statement within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are based on information available to Lifeward Ltd.

Any statements made on today's conference call.

Fred 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.

Speaker #3: Earlier this morning, Lifeward issued a press release detailing financial results for the three and six months ended June 30th, 2025. The press release and webcast of this call can be accessed through the investor relations section of the Lifeward website at golifeward.com.

These forward looking statements are based on information available to lifestyle management as of today and involve risks.

And uncertainties, including those noted in our press release and our filings with the SEC.

Speaker #3: Before we get started, I would like to remind everyone that any statement made on today's conference call that expresses a belief, expectation, projection, forecast, anticipation, or intent regarding future events and the company's future performance may be considered forward-looking statements.

Such forward looking statements are not guarantees.

For 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.

Speaker #3: Within the meaning of the private security litigation reform act. This forward-looking statement is based on information available to Lifeward management as of today and involves risk and uncertainties, including those noted in our press release, and our filing with the SEC.

A replay will be available shortly after completion of the call accessible from the dial in information in todays press release.

Almog Adar: 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. Lifeward Ltd. specifically disclaims any intent or obligation to update this forward-looking statement, 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 our website at golifeward.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, Lifeward Ltd.

The archived webcast will be available in the Investor Relations section of our website at <unk> Dot com.

Speaker #3: Such forward-looking statements are not guaranteed of future performance; actual results may differ materially from those projected in the forward-looking statement. Lifeward specifically disclaimed 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.

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 <unk> may have made subsequent announcements related to the topics discussed. So please reference to the company's most recent press release and SEC filings for the most up to date information and with that I will turn the call over to life worked president.

Speaker #3: A replay will be available shortly after the completion of the call, accessible from the dial-in information in today’s press release. The archived webcast will be available in the Investor Relations section of our website at golifeward.com.

And CEO Mark Grant.

Thank you Mark good morning, everyone and thank you for joining us today are Mark Grant us the privilege to speak with you on my first earnings call as <unk>, President and Chief Commercial Officer.

Speaker #3: For the benefit of those who may be listening to the replay, or the archived webcast, this call was held and recorded on August 14th, 2025.

Over the past several weeks I've met with our teams customers and partners and I have been inspired by the positive energy and deep commitment that runs through this company life.

<unk> is built on a foundation of innovation purpose and patient centered delivery and I intend to build on that strength as we move forward.

Speaker #3: Since that date, Lifeward may have made subsequent announcements related to the topic discussed. Please reference the company's most recent press release and SEC filing for the most up-to-date information.

Almog Adar: may have made subsequent announcements related to the topic discussed, so please reference the company's most recent press release and SEC filing for the most up-to-date information. With that, I will turn the call over to Lifeward Ltd. President and CEO, Mark Grant.

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 with cutting edge solutions and holding ourselves accountable through the operational rigor needed to deliver sustainable results for customers and shareholders alike.

Speaker #3: And with that, I will turn the call over to Lifeward President and CEO, Mark Grant.

Speaker #4: 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 Lifeward's president and chief commercial officer.

Mark Grant: Thank you, Almog. Good morning, everyone, and thank you for joining us today. I am Mark Grant. It is a privilege to speak with you on my first earnings call as Lifeward Ltd. President and Chief Commercial Officer. Over the past several weeks, I have met with our teams, customers, and partners, and I have been inspired by the positive energy and deep commitment that runs through this company. Lifeward Ltd. 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.

Also with this mission personally a lot.

Speaker #4: 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.

Over 20 years ago, I experienced the spinal cord injury that resulted in less electrodialysis and a long difficult recovery.

The journey in which I could have directly benefited from <unk> portfolio.

Speaker #4: Lifeward 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 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.

Speaker #4: That means accelerating commercial adoption across all of our products, expanding our portfolio with cutting-edge solutions, and holding ourselves accountable through the operational rigor needed to deliver sustainable results for customers and shareholders alike.

Mark Grant: That means accelerating commercial adoption across all of our products, expanding our portfolio with 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 Lifeward Ltd.'s portfolio. That experience, combined with more than two decades of global medical device leadership and commercial execution, operations, and peer 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.

Frankly, it started even earlier than my Andrew's decades set with my father in law was the first deans of disabilities support services and the University system left an indelible Mark with me.

He played a pivotal role in instituting section fiber for the rehabilitation Act of $19 73, and in driving the support and execution that led to the American with Disabilities Act of 1990 as well as the 2008 amendments act titled two entitled three of the FDA and the Fair Housing Act, all which established a well.

Speaker #4: I also led this mission personally. A little over 20 years ago, I experienced the spinal cord injury that resulted in left leg paralysis and a long, difficult recovery.

Speaker #4: A journey in which I could have directly benefited from Lifeward'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.

Rounded foundation for me to build upon during my life and my career.

As you can see from 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.

Speaker #4: 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 on me.

My commitment is to ensure that we stay ahead of the market needs expand access to our solutions and deliver tangible lasting impact.

Speaker #4: He played a pivotal role in instituting Section 504 of the Rehabilitation Act of 1973 and in driving the support and execution that led to the Americans 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.

Mark Grant: He played a pivotal role in 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 ADA, and the Fair Housing Act, all of which established a well-grounded foundation for me to build upon during my life and my career. As you can see from me stepping into this role, it is not just a professional milestone; it is 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 us move on to some recent accomplishments.

Now, let's move on some recent accomplishments.

In Q2, 2025 revenue was $5 7 million.

So reflecting a record quarter for re walk Medicare placements.

As you remember in March we achieved FDA clearance for our <unk> seven personal exoskeleton. The latest innovation of reward pipeline introduces new features a streamlined for accessibility and ease of use and everyday environments improve battery life.

Speaker #4: All of which established a well-grounded foundation for me to build upon during my life and my career. As you can see from me stepping into this role as not just a professional milestone, it's a personal mission.

Push button control seamless fair curb activation and cloud connectivity.

Speaker #4: 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.

To date over 40 systems over 20, <unk> seven 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 <unk> seven and look forward to similar response with our subsequent launch in Europe.

Speaker #4: Now, let's move on to some recent accomplishments. In Q2 2025, revenue was $5.7 million, also reflecting a record quarter for Rewalk Medicare placements. As you remember, in March, we achieved FDA clearance for our Rewalk 7 personal exoskeleton, the latest innovation in Rewalk pipeline that introduces new features, streamlined for accessibility and ease of use in everyday environments.

Mark Grant: In Q2 2025, revenue was $5.7 million, also reflecting a record quarter for REWALK Medicare placements. As you remember, in March, we achieved FDA clearance for our REWALK 7 Personal Exoskeleton, the latest innovation in the REWALK pipeline that 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 REWALK 7 units have been installed in the U.S., with overwhelmingly positive feedback from both patients and therapists. We are currently in the final stages of attaining 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.

On the operation side, we completed the transition to in house manufacturing of the <unk> 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 ultra <unk> manufacturing facility in Fremont, California.

Speaker #4: 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 US with an overwhelmingly positive feedback from both patients and therapists.

In the U S. We've continued to expand our payer base for the reward personal exoskeleton.

Our partnership with core lies a division do 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 Max to achieve clarity on case submission requirements and we received a recent ruling by the administrative law judge affirming that reward personal exoskeleton is a reasonable and necessary for medical beneficiaries.

Speaker #4: We're currently in the final stages of attaining CE clearance for the Rewalk 7, and look forward to a similar response with our subsequent launch in Europe.

Speaker #4: On the operations side, we completed the transition to in-house manufacturing of the Rewalk personal exoskeleton, delivering cost savings and improved quality control, and greater production flexibility.

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 24.

Speaker #4: Additionally, as part of our consolidation efforts, we've finalized the closure of our Alter G manufacturing facility in Fremont, California. In the US, we've continued to expand our payer base for the Rewalk personal exoskeleton.

Mark Grant: Additionally, as part of our consolidation efforts, we have finalized the closure of our AlterG manufacturing facility in Fremont, California. In the U.S., we have continued to expand our payer base for the REWALK Personal Exoskeleton. Our partnership with CoreLife, a division of NuMotion, has accelerated our lead pipeline and processing timelines for workers' compensation claims. We have 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 REWALK Personal Exoskeleton is reasonable and necessary for medical beneficiaries. As a result of these and other achievements, we improved our quarterly cash flow 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.

Also a $5 5 million in Q2 to 25% 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.

Speaker #4: Our partnership with CoreLife, a division of Lumotion, has accelerated our lead pipeline and processing timelines for workers' compensation claims. We've also continued to work with the Medicare administrative contractors, the Max, to achieve clarity on case submission requirements and we received a recent ruling by administrative law judge affirming that Rewalk personal exoskeleton is a reasonable and necessary for medical beneficiaries.

The first pillar is accelerating commercial adoption, we are 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 include improvements in reimbursement and collections, we aim to speed order to cash cycles.

Speaker #4: As a result of these and other achievements, we improved our quarterly cash flow to $3.9 million down from $5.6 million in Q2 '24; also $5.5 million in Q2 '25.

Improved dsos and convert demand into revenue more efficiently.

Speaker #4: 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 second pillar is portfolio diversification we.

Mark Grant: 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 are 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 in 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.

We are leveraging software innovation robust hardware and AI integrations to expand capabilities to deepen customer engagement.

Speaker #4: 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.

Our innovation focus is matched by disciplined execution, ensuring that our solutions are effective intuitive and accessible to the broadest patient base, while remaining commercially viable at scale.

Speaker #4: This effort is supported by four key levers: payer expansion, channel distribution, digital engagement, and strategic alliances. By pairing innovation and 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 third operator is operational excellence.

Focus on driving margin improvement deploying capital with rigor accelerating cash conversion through greater efficiency in reimbursement and collections here.

Kieran innovation means continuously refining our internal processes for manufacturing to revenue cycle management. These.

These improvements are designed.

Speaker #4: The second pillar is portfolio diversification. We are leveraging software innovation and robust hardware and AI integration to expand capabilities to deepen customer engagement. Our innovation focus is matched by disciplined execution, ensuring that our solutions are effective, intuitive, and accessible to the broadest patient base while remaining commercially viable at scale.

To extend our financial runway enhance our profitability and sure that growth translates to the predictable timely revenue.

One highlight and a clear glimpse of what's possible as the performance of our <unk> team in Germany.

They are operating profitably building, a strong patient community and using their payer acceleration in market scale to move quickly enrolling out innovative new business models.

Speaker #4: The third, our operation is operational excellence. We're focused on driving margin improvement, deploying capital with rigor, and accelerating cash conversion through greater efficiency and reimbursement and collections. Curing innovation means continuously refining our internal processes for manufacturing to revenue cycle management.

Mark Grant: The third is operational excellence. We are focused on driving margin improvement, deploying capital with rigor, accelerating cash conversion through greater efficiency in reimbursement and collections. Herein, innovation means continuously refining our internal processes from manufacturing to revenue cycle management. These improvements are designed to extend our financial runway, enhance our profitability, and ensure that growth translates into predictable, timely revenue. One highlight and a clear glimpse of what is possible is the performance of our GmbH team in Germany. They are operating profitably, building a strong patient community, and using their payer acceleration and market skill 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.

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 <unk> sales through targeted channel strategies and local market innovation.

Speaker #4: 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.

Moving the value of our portfolio.

The 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.

Speaker #4: They're operating profitably, building a strong patient community, and using their payer acceleration and market skill to move quickly in rolling out innovative new business models.

Germany has become our proving ground here, we pushed the limits of delivery integrate customer feedback quickly and perfect strategies before broader rollout.

Speaker #4: 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 Alter G sales through targeted channel strategies and local market innovation.

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 them, but I'm pleased to share earlier. This week, we appointed Ahmad Adar as LIBOR, its chief financial Officer.

Mark Grant: At the same time, the team is expanding AlterG sales through targeted channel strategies and local market innovation, 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 rollout. This approach reinforces the strength of our three pillars, delivering tangible results today while charting the course for sustainable, profitable growth tomorrow. Lastly, I know you have already heard from him, but I am pleased to share earlier this week, we appointed Almog Adar as Lifeward Ltd. Chief Financial Officer. Almog is no stranger to Lifeward, having served more than five years in senior finance roles within the company.

Speaker #4: Proving the value of our portfolio diversification approach, operational excellence is evident in our ability to test, refine, and scale solutions rapidly. Ensuring that what works in Germany can also adapt for other global markets, including the United States.

<unk> is no stranger to LIBOR, having served more than five years in senior finance roles within the company amongst proven track record year LIBOR gives me full confidence in his ability to strengthened performance improve operating efficiency and progress toward our long term profitability I am looking forward to working closely with them to accelerate execution and unlock more of <unk> growth.

Speaker #4: Germany has become our proving ground. Here we push the limits of delivery, integrate customer feedback quickly, and perfect strategies before broader rollout. This approach reinforces the strength of our three pillars: delivering tangible results today, while chartering the course for sustainable, profitable growth tomorrow.

Potential.

Welcome to your new role and over to you.

Thanks Mark.

I am pleased to be speaking with you in my first week as <unk> Chief Financial Officer.

Having spent more than five years in senior finance roles here at.

Speaker #4: Lastly, I know you've already heard from me, but I'm pleased to share earlier this week we appointed Almag Adhar as Lifeward's chief financial officer.

<unk> is developing a deep understanding of our products.

And operations complemented by prior leadership experience outside life's words. This combination enables me to contribute not only as a financial leader, but also as a strategic partner in guiding the company's direction.

Speaker #4: Almag is no stranger to Lifeward. Having served more than five years in senior finance roles within the company, Almag's proven track record here at Lifeward gives me full confidence in his ability to strengthen performance, improve operating efficiency, and progress toward long-term profitability.

Mark Grant: Almog's proven track record here at Lifeward Ltd. 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 him to accelerate execution and unlock more of Lifeward Ltd.'s growth potential. Almog, welcome to your new role and over to you.

Florida's strong foundation.

Speaker #4: I'm looking forward to working closely with them to accelerate execution and unlock more of Lifeward's growth potential. Almag, welcome to your new role and over to you.

And innovative product portfolio, a talented team and a mission that is deeply meaningful to improving the quality of life for the people. We serve as CFO my focus will be on maintaining a rigorous financial offer oversights aligning resource.

Speaker #3: Thanks, Mark. I'm pleased to be speaking with you in my first week as Lifeward's chief financial officer. Having spent more than five years in senior finance roles here, I've developed a deep understanding of our product, market, and operations, complemented by prior leadership experience outside Lifeward.

Almog Adar: Thanks, Mark. I am pleased to be speaking with you in my first week as Lifeward Ltd. Chief Financial Officer. Having spent more than five years in senior finance roles here, I have developed a deep understanding of our product, market, and operation, complemented by prior leadership experience outside Lifeward. This combination enables me to contribute not only as a financial leader but also as a strategic partner in guiding the company's direction. Lifeward Ltd. has a strong foundation, an innovative product portfolio, a talented team, and a mission that is deeply meaningful to me: improving the quality of life for the people we serve. As CFO, my focus will be on maintaining rigorous financial oversight, aligning resources with the highest impact opportunities, and managing our cash position prudently to support sustainable long-term growth. With that, let us turn to our financial results for the quarter.

With the highest impact opportunities and managing our cash position prudently to support sustainable long term growth with that let's turn to our financial results for the quarter.

Speaker #3: This combination enables me to contribute not only as a financial leader but also as a strategic partner in guiding the company's direction. Lifeward has a strong foundation and an innovative product portfolio, a talented team, and a mission that is deeply meaningful to me, improving the quality of life, for the people we serve.

As we review our results.

I will cover both GAAP and non-GAAP figures the non-GAAP results.

<unk> items detailed in the reconciliation tables in today's earnings release.

In our view provides a clear picture of the company's underlying operating performance and encouraging you to refer to the GAAP results and the reconciliation table.

Speaker #3: As CFO, my focus will be on maintaining rigorous financial oversight, aligning resources with the highest impact opportunities, and managing our cash position prudently to support sustainable long-term growth.

As we go through the second quarter 2025 finance yet.

Global lifestyle reported revenues of $5 $7 million in Q2, 2025 compared to $6 7 million in the second quarter of 2024, a decrease of $1 million or about 15%.

Speaker #3: With that, let's turn to our financial results for the quarter. As we review our results, I will cover both GAAP and non-GAAP figures. The non-GAAP results exclude the items detailed in the reconciliation tables in today's earnings release.

Almog Adar: As we review our results, I will cover both GAAP and non-GAAP figures. The non-GAAP results exclude the items detailed in the reconciliation table in today's earnings release and, in our view, provide a clear picture of the company's underlying operating performance. I am encouraging you to refer to the GAAP results and the reconciliation table. As we go through the second quarter 2025 financials, year over year, Lifeward Ltd. reported revenues of $5.7 million in Q2 2025, compared to $6.7 million in the second quarter of 2024, a decrease of $1 million, or about 15%. Quarter over quarter, revenue increased approximately 14% from $5 million in Q1 2025, driven primarily by higher sales of REWALK systems in Germany. Now, let us break it down by product line on a year-over-year basis.

Water over quarter.

Revenue increased approximately 14% from 5 million in Q1 2025 driving driven.

Driven primarily by higher since the framework system in Germany.

Speaker #3: And in our view, provide a clear picture of the company's underlying operating performance. I encourage you to refer to the GAAP results and the reconciliation tables.

Now, let's break it down by product line on a year over year basis.

Revenue from our traditional products and services, which include the rework personal exoskeleton, the biocycle SCS spike and their restore exo suit totaled $2 $5 million in Q2, 2025 compared to $3 1 million in Q2 2024.

Speaker #3: As we go through the second quarter of 2025 financials, we note that Lifeward reported revenues of $5.7 million in Q2 2025, compared to $6.7 million in the second quarter of 2024, a decrease of $1 million or about 15%.

Decrease of about $600000 or 19% the prior year period, including about $700000. Both Medicare related revenue recognized for submission made in 2023 and the first quarter of 2024, excluding the onetime revenue recognition.

Speaker #3: Quarter over quarter, revenue increased approximately 14% from $5 million in Q1 2025. Driving driven primarily by higher sales of Rewalk system in Germany. Now, let's break it down by product line on a year-over-year basis.

In Q2, 2020 for Medicare related sale growth <unk>.

Speaker #3: Revenue from our traditional production services includes the Rewalk personal exoskeleton, the MyoCycle SES bike, and the Restore Exosuit, totaling $2.5 million in Q2 2025, compared to $3.1 million in Q2 2024.

Almog Adar: Revenue from our traditional products and services, which include the REWALK Personal Exoskeleton, the MyoCycle FES Cycling Therapy System, and the ReStore Exo-Suit, totaled $2.5 million in Q2 2025, compared to $3.1 million in Q2 2024, a decrease of about $600,000, or 19%. The prior year period included about $700,000 of Medicare-related revenue recognized for submissions made in 2023 and the first quarter of 2024. Excluding the one-time revenue recognition in Q2 2024, Medicare-related sales grew year over year. We also continue to improve REWALK sales, achieving our highest quarterly total of units placed to Medicare beneficiaries since its schedule established in April 2024. Our pipeline of qualified leads continues to expand and advance, with more cases moving into later stages of the claim processes, positioning us for future conversion to sales.

We also continued to improve <unk>, achieving our highest quarterly total of units placed to Medicare beneficiaries seems to schedule established in two.

2020, so our pipeline of qualified leads continues to expand and advance with more cases moving into later stages of the claim processes positioning us for future conversion to <unk>.

Speaker #3: A decrease of about $600,000 or 19%. The prior year period, including about $700,000 of Medicare-related revenue, recognized for submissions made in 2023 and the first quarter of 2024.

Revenue from <unk> products and services was $3 2 million in Q2 2025 down from $3 6 million in Q2, 2024, primarily due to the timing of deliveries to international distributors.

Speaker #3: Excluding the one-time revenue recognition in Q2 2024, Medicare-related sales grew year-over-year. We also continue to improve Rewalk sales. Achieving our highest quarterly total of units placed to Medicare beneficiaries since fiscal year established in April 2024.

Pipeline with high probability.

<unk> remained strong.

Yes.

And is expected to support higher deliveries in the second half.

<unk>.

Across both product lines, our commercial pipeline remains healthy.

Speaker #3: Our pipeline of qualified leads continues to expand and advance, with more cases moving into later stages of the claim processes positioning us for future conversion to sale.

The <unk> product line, we saw our third consecutive quarter of pipeline growth ending the quarter with more than 130 qualified leads in process in the U S, reflecting an 86% increase.

Speaker #3: Revenue from Alter G products and services was $3.2 million in Q2 2025, down from $3.6 million in Q2 2024, primarily due to the timing of deliveries to international distributors.

Almog Adar: Revenue from AlterG products and services was $3.2 million in Q2 2025, down from $3.6 million in Q2 2024, primarily due to the timing of deliveries to international distributors. The pipeline of high-probability leads remains strong and is expected to support higher deliveries in the second half of the year. Across both product lines, our commercial pipeline remains healthy. For the REWALK product line, we saw our third consecutive quarter of pipeline growth, ending the quarter with more than one-third qualified leads in process in the U.S., reflecting an 86% increase in our active pipeline since Q3 2024. In Germany, we had 46 leads in process at the quarter end, including 34 active rentals, which historically convert to sales within three to six months. For AlterG, we closed the quarter with 15 systems in backlog.

Our active pipeline since Q3 2024 in Germany, We had 46 fleet new process.

Quarter end included.

Speaker #3: The pipeline of high-probability leads remains strong and is expected to support higher deliveries in the second half of the year. Across both product lines, our commercial pipeline remains healthy.

34, active rentals, which historically convert to sales within three to six months.

So <unk>, we closed the quarter with 15 system in backlog the high probability lead pipeline provides visibility into anticipated demand and we continue to focus on converting into orders.

Speaker #3: For the Rewalk product line, we saw our third consecutive quarter of pipeline growth, ending the quarter with more than 130 qualified leads in process in the U.S., reflecting an 86% increase in our active pipeline since Q3 2024.

Moving to gross profit in.

In the second quarter of 2025, our GAAP gross profit was $2 5 million or 43, 9% of revenue compared to $2 8 million or 41, 1% in the second quarter of 2024 on a non-GAAP basis for the second quarter of 2025.

Speaker #3: In Germany, we had $46 leads in process, at the quarter end, including 34 active rentals, which historically convert to sales within three to six months.

Gross profit was $2 5 million.

<unk> 44, or 44% deferred revenue compared to $3 1 million or 46, 9% in the second quarter of 2024.

Speaker #3: For Alter G, we closed the quarter with $15 million in backlog. The high-probability lead pipeline provides visibility into anticipated demand, and we continue to focus on converting these leads into orders.

Almog Adar: The high-probability lead pipeline provides visibility into anticipated demand, and we continue to focus on converting these leads into orders. Moving to gross profit, in the second quarter of 2025, our GAAP gross profit was $2.5 million, or 43.9% of revenue, compared to $2.8 million, or 41.1% in the second quarter of 2024. On a non-GAAP basis, for the second quarter of 2025, gross profit was $2.5 million, or 44% of revenue, compared to $3.1 million, or 46.9% in the second quarter of 2024. The year-over-year change in non-GAAP margin primarily reflects the absence of a one-time benefit from Medicare-related revenue recognized in last year's second quarter, for which the related cost has been recorded in prior periods. GAAP operating expenses were $9.1 million in the second quarter of 2025, compared to $7.2 million in the second quarter of 2024.

<unk> change in non-GAAP margin primarily reflects depth.

On time.

A one time benefit for Medicare related revenue recognized in last year second quarter for which the related cost has been recorded in prior periods.

Speaker #3: Moving to gross profit, in the second quarter of 2025, our GAAP gross profit was $2.5 million, or 43.9% of revenue, compared to $2.8 million, or 41.1% in the second quarter of 2024.

GAAP operating expenses were $9 $1 million in the second quarter of 2025 compared to $7 2 million in the second quarter of 2020 for the increase was largely was largely driven by $2 $8 million goodwill in.

Speaker #3: On a non-GAAP basis, for the second quarter of 2025, gross profit was $2.5 million, or 44.4% of revenue, compared to $3.1 million or 46.9% in the second quarter of 2024.

Permian charts.

By a significant decline in our share price that created a gap between our market value and book value. This non cash charge has no impact on our liquidity.

Speaker #3: The year-over-year change in non-GAAP margin primarily reflects the absence of a one-time benefit from Medicare-related revenue recognized in last year's second quarter.

Our ongoing operation performance of the business.

Speaker #3: For which the related cost has been recorded in prior periods. GAAP operating expenses were $9.1 million in the second quarter of 2025, compared to $7.2 million in the second quarter of 2024.

On a non-GAAP basis, adjusted operating expenses were $6 million in the second quarter of 2025 compared to six 9 million in the second quarter of 2020. So the decrease primarily reflects greater efficiency and reimbursement activities improved.

Speaker #3: The increase was largely driven by a $2.8 million goodwill impairment charge, triggered by a significant decline in our share price that created a gap between our market value and book value.

Almog Adar: The increase was largely driven by a $2.8 million goodwill impairment charge, triggered by a significant decline in our share price that created a gap between our market value and book value. This non-cash charge has no impact on our liquidity or the ongoing operational performance of the business. On a non-GAAP basis, adjusted operating expenses were $6 million in the second quarter of 2025, compared to $6.9 million in the second quarter of 2024. The decrease primarily reflects greater efficiency in reimbursement activities, improved efficiency in marketing and sales operations, and lower R&D spending after the completion of major development programs. We expect this positive trend to continue into the second half of 2025, supported by the ongoing impact of our efficiency measures. Our GAAP operating loss for the second quarter of 2025 was $6.6 million, compared to $4.4 million in the second quarter of 2024.

You shouldn't see in marketing and sales operations and <unk> R&D spending after the completion of major development programs.

Expect this positive trend to continue into the second half of 2025.

Speaker #3: This non-cash charge has no impact on our liquidity or the ongoing operational performance of the business. On a non-GAAP basis, adjusted operating expenses were $6 million in the second quarter of 2025, compared to $6.9 million in the second quarter of 2024.

Courted by the ongoing impact of our efficiency measures.

Our GAAP operating loss for the second quarter of 2025 was $6 6 million compared to $4 4 million in the second quarter of 2024 on a non-GAAP basis operating loss was $3 5 million compared to $3 7 million in the same period last deal with.

Speaker #3: The decrease primarily reflects greater efficiency in reimbursement activities, improved efficiency in marketing and sales operations, and lower R&D spending after the completion of major development programs.

Expect our quarterly operating loss to narrow, Florida in the second half of 2025, its sales volume continued to grow and efficiency measure take oil.

We ended the second quarter of 2025 with $5 $1 million in cash and cash equivalents and no debt.

Speaker #3: We expect this positive trend to continue into the second half of 2025. Supported by the ongoing impact of our efficiency measures, our GAAP operating loss for the second quarter of 2025 was $6.6 million compared to $4.4 million in the second quarter of 2024.

Including approximately $1 $2 million in gross proceeds from our ATM facility and approximately $2 $6 million from our public offering completed during the quarter.

Speaker #3: On a non-GAAP basis operating loss was $3.5 million compared to $3.7 million in the same period last year. We expect our quarterly operating loss to narrow further in the second half of 2025.

Almog Adar: On a non-GAAP basis, operating loss was $3.5 million, compared to $3.7 million in the same period last year. We expect our quarterly operating loss to narrow further in the second half of 2025 as sales volume continues to grow and efficiency measures take hold. We ended the second quarter of 2025 with $5.1 million in cash and cash equivalents and no debt, including approximately $1.2 million in gross profit from our ATM facility and approximately $2.6 million from our public offering completed during the quarter. Our operating cash usage in the second quarter of 2025 was $3.9 million, compared to $5.6 million in the second quarter of 2024 and $5.5 million in the first quarter of 2025. The improvements reflect the benefit of operational efficiencies and the closure of our Fremont facility. Our cash usage was still higher than expected due to two main factors.

Our operating cash usage in the second quarter of 2025 was $3 9 million compared.

Compared to $5 6 million in the second quarter of 2024, and $5 5 million in the first quarter of 2025, the improvement reflects the benefit of operational efficiencies and the closure will follow a framework facility.

Speaker #3: As sales volume continue to grow and efficiency measure take hold. We ended the second quarter of 2025 with $5.1 million in cash and cash equivalents and no debt.

Our cash usage was still higher than expected due to two main factors first Medicare collection remains slower than anticipated, while we continue to submit claims and built our receivables payments from Medicare administrative contractors are still not occurring on your <unk>.

Speaker #3: Included approximately $1.2 million in gross profit from our ATM facility and approximately $2.6 million from our public offering completed during the quarter. Our operating cash usage in the second quarter of 2025 was $3.9 million compared to $5.6 million in the second quarter of 2024, and $5.5 million in the first quarter of 2025.

We are actively working with the macs to improve processing times and accept to see progress in the second half of 2025.

Second inventory increased due to our transition to in our manufacturing following the conclusion of our agreement with Sanmina, which required us to secure long lead time components internally. In addition, we are simultaneously supporting production for both.

Speaker #3: The improvement reflects the benefit of operational efficiencies and the closure of our framework facility. Our cash usage was still higher than expected due to two main factors: first, Medicare collection remained slower than anticipated.

Almog Adar: First, Medicare collection remains slower than anticipated. While we continue to submit claims and build our receivables, payments from Medicare Administrative Contractors are still not occurring on a regular cycle. We are actively working with the MACs to improve processing times and expect to see progress in the second half of 2025. Second, inventory increased due to our transition to in-house manufacturing following the conclusion of our agreement with Semena, which required us to secure long lead-time components internally. In addition, we are simultaneously supporting production for both the REWALK 6 and the REWALK 7, as we await CE approval in Europe for the REWALK 7. Over time, we expect inventory levels to decline and for this transition to drive improved gross margin and enhanced product quality. Based on our current plan, we remain a growing concern with sufficient cash to fund operations into the fourth quarter of 2025.

<unk> six <unk> seven.

Speaker #3: While we continue to submit claims and build our receivables, payments from Medicare administrative contractors are still not occurring on a regular cycle. We are actively working with the Max to improve processing times and accept to see progress in the second half of 2025.

As we await CE approval in Europe for <unk> seven.

Over time, we expect inventory levels to decline and for this transition to drive improved gross margin, turning and enhanced product quality.

Based on our current plan, we remain a going concern with sufficient cash to fund operations into the fourth quarter of 2025, we are considering both debt and equity opportunities to support our operations and growth plan, while implementing cost management plan to preserve research.

Speaker #3: Second, inventory increase due to our transition to in-house manufacturing following the conclusion of our agreement with Sanmina. Which required us to secure long lead time components internally.

Speaker #3: In addition, we are simultaneously supporting production for both the ReWalk 6 and the ReWalk 7 as we await CE approval in Europe for the ReWalk 7.

And maintained focus on our core business.

<unk> is resetting full 2025 guidance under the new management team focusing on revenue and non-GAAP net loss is our key performance indicators for <unk>.

Speaker #3: Over time, we expect inventory levels to decline and for this transition to drive improved gross margin and enhanced product quality. Based on our current plan, we remain a going concern with sufficient cash to fund operation into the fourth quarter of 2025.

25, the company now expects full year revenue in the range of $24 million to $26 million and the projected non-GAAP net loss in the range of $12 million to $14 million.

While we have adjusted our near term outlook to reflect the current environment, our long term growth drivers remains Germany intact.

Speaker #3: We are considering both debt and equity opportunities to support our operations and growth plans, while implementing cost management plans to preserve resources and maintain focus on our core business.

Almog Adar: We are considering both debt and equity opportunities to support our operations and growth plans, while implementing cost management plans to preserve resources and maintain focus on our core business. Lifeward Ltd. is resetting its full 2025 guidance under the new management team, focusing on revenue and non-GAAP net loss as our key performance indicators. For 2025, the company now expects full-year revenue in the range of $24 million to $26 million and a projected non-GAAP net loss in the range of $12 million to $14 million. While we have adjusted our near-term outlook to reflect the current environment, our long-term growth drivers remain firmly intact. We are executing with focused discipline to capture these opportunities and position the company for sustained value creation. With that, I would like to turn the call back to Mark for further remarks.

We are executing with focus discipline to capture these opportunities and position the company for sustained value creation.

Speaker #3: Lifeward is resetting its full 2025 guidance under the new management team, focusing on revenue and non-GAAP net loss as our key performance indicators. For 2025, the company now expects total revenue in the range of $24 million to $26 million and a projected non-GAAP net loss in the range of $12 million to $14 million.

With that I would like to turn the call back to Mark for further remarks.

Thank you Ahmad.

We're committed to setting expectations responsibly, while our long term opportunity remains significant it is important to acknowledge that some revenue cycles and our markets are inherently extended particularly those dependent on payer approvals and coverage decisions.

At the same time, we are deliberately pacing our investments to preserve cash sustained operational discipline and support long term value creation.

Speaker #3: While we have adjusted our near-term outlook to reflect the current environment, our long-term growth drivers remain firmly intact. We are executing with focused discipline to capture these opportunities and position the company for sustained value creation.

As a result, we expect to grow in the next few quarters to be more gradual than some anticipate.

With meaningful acceleration weighted toward the back half of our strategic plan and beyond this.

This measured approach reflects disciplined execution, ensuring every step we take advances our mission strengthens our financial foundation and position <unk> for durable profitable growth.

Speaker #3: With that, I would like to turn the call back to Mark for further remarks.

Speaker #4: Thank you, Almag. We're committed to setting expectations responsibly. While our long-term opportunity remains significant, it's important to acknowledge that some revenue cycles in our markets are inherently extended particularly those dependent on payer approvals and coverage decisions.

Mark Grant: Thank you, Almog. We are committed to setting expectations responsibly. While our long-term opportunity remains significant, it is important to acknowledge that some revenue cycles in our markets are inherently extended, particularly those dependent on payer approvals and coverage decisions. At the same time, we are deliberately pacing our investments to preserve cash, sustain operational discipline, and support long-term value creation. As a result, we expect the next few quarters to be more gradual than some might anticipate, with meaningful acceleration weighted toward the back half of our strategic plan and beyond. This measured approach reflects disciplined execution, ensuring every step we take advances our mission, strengthens our financial foundation, and positions Lifeward Ltd. for durable, profitable growth. As your new CEO, I bring a different kind of rigor, one shaped by a track record of transformative commercial execution, relentless innovation, and operational discipline.

As your new CEO I bring a different kind of rigor one shaped by a track record of transformative commercial execution relentless innovation and operational discipline. This approach will define how we operate how we compete and ultimately how we win.

Speaker #4: At the same time, we are deliberately pacing our investments to preserve cash, sustain operational discipline, and support long-term value creation. As a result, we expect to grow the next few quarters to be more gradual than some might anticipate.

You should expect the same high standards I've consistently upheld standards that our patients providers and shareholders rightly deserve.

We remain committed to developing solutions that provide restore and enhanced independence confidence and quality of life for the people we serve.

Speaker #4: With meaningful acceleration weighted toward the back half of our strategic plan and beyond. This measured approach reflects discipline execution ensuring every step we take advances our mission, strengthens our financial foundation, and positions Lifeward for durable, profitable growth.

I'll look forward to sharing our continued progress with you next quarter.

In closing I want to thank the employees customers shareholders for your ongoing trust and support I am confident that <unk> is on the right path one that balances bold innovation with disciplined patient centered execution.

Speaker #4: As your new CEO, I bring a different kind of rigor. One shaped by a track record of transformative commercial execution, relentless innovation, and operational discipline.

Operator, let's now open the line for questions.

Speaker #4: This approach will define how we operate, how we compete, and ultimately how we win. You should expect the same high standards I've consistently upheld, standards that our patients, providers, and shareholders rightly deserve.

We will now begin the question and answer session.

Mark Grant: This approach will define how we operate, how we compete, and ultimately how we win. You should expect the same high standards I have consistently upheld, standards that our patients, providers, and shareholders rightly deserve. We remain committed to developing solutions that provide, restore, and enhance independence, confidence, and quality of life for the people we serve. I look forward to sharing our continued progress with you next quarter. In closing, I want to thank the employees, customers, and shareholders for your ongoing trust and support. I am confident that Lifeward Ltd. is on the right path, one that balances bold innovation with disciplined, patient-centered execution. Operator, the line is now open for questions.

To ask a question you May Press Star then one on your Touchtone telephone.

If you're using a speakerphone please pick up your handset before pressing the key.

Speaker #4: We remain committed to developing solutions that provide, restore, and enhance independence, confidence, and quality of life for the people we serve. I look forward to sharing our continued progress with you next quarter.

Anytime Youre question is being addressed and you would like to withdraw your question. Please.

Please press Star then two.

This time, we will pause momentarily to assemble our roster.

Speaker #4: In closing, I want to thank the employees, customers, shareholders, for your ongoing trust and support. I'm confident that Lifeward is on the right path.

The next question is from.

Yes.

Speaker #4: One that balances bold innovation with discipline, patience, and centered execution. Operator, let's now open the line for questions.

Jan.

Laidlaw and call.

Yes.

Good morning, and thanks for taking the questions.

Speaker #2: We We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone telephone. If you're using a speakerphone, please pick up your handset before pressing the key.

Alicia: We will now begin the question and answer session. To ask a question, you may press star, then one, on your touch-tone telephone. If you are using a speakerphone, please pick up your handset before pressing the keys. At any time your question has been addressed and you would like to withdraw your question, please press star, then two. This time, we will pause momentarily to assemble our roster. First question is from Yale Jen, Laidlaw, and Co.

And <unk>.

Congrats for being the new CFO.

Couple of quick ones here. The first one is in terms of the Med D.

Revenue for the quarter.

I didn't hear any specific maybe I missed it could you provide some color so that.

Speaker #2: 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.

Yes sure. Thanks first year. So in Q2 2024, we had the onetime revenue recognition that's related to submissions that we made during 2023 in Q1 2024.

Speaker #2: First question is from Yale Jan, Laidlow & Co.

Approximately $700000 so.

Speaker #5: Excuse me. Good morning and thanks for taking the questions. And Almag, congrats for being this new CFO. A couple of quick ones here. The first one is in terms of the Medicare revenue for the quarter I didn't hear any specific, maybe I missed it.

Yale Jen: Excuse me. Good morning and thanks for taking the questions. Congratulations for being this new CFO. A couple of quick ones here. The first one is in terms of the Medicare revenue for the quarter. I did not hear any specific. Maybe I missed it. Could you provide some colors on that?

As I explained excluding this portion of onetime item in Q2 2024, we have a growth that for us.

To submit the original submission that we made in Q2 2025 compared to Q2 2024 for Medicare and in addition, and this is our highest.

Quarterly revenues with the place joined with the CMS since we launched the plan.

Speaker #5: Could you provide some colors on that?

Speaker #3: Yeah, sure. Thanks first, Yale. So in Q2 2024, we had a one-time revenue recognition that related to submissions that we made during 2023 and Q1 2024.

Almog Adar: Yeah, sure. Thanks first, Yale. In Q2 2024, we had the one-time revenue recognition that is related to submissions that we made during 2023 and Q1 2024. Approximately over $700,000. As I explained, excluding this portion of one-time item in Q2 2024, we have a growth like for the original submission that we made in Q2 2025 compared to Q2 2024 for Medicare. In addition, this is our highest quarterly revenues with the placed unit with the CMS since we launched the plan.

Okay, Great that's very helpful.

And you mentioned there is a number for lease in the United States.

And chairman of the queue.

I'm not sure I catch that.

<unk> thought about it.

Speaker #3: Approximately over $700,000, so we as I explained, excluding this portion of one-time item in Q2 2024, we have a growth like for the the original submission that we made in Q2 2025 compared to Q2 2024 for Medicare and in addition, this is our highest quarterly revenues with the placed unit with the CMS since we launched the plan.

130, but could you.

Clarify that for me.

Yes. Thanks for the question, yes, the Medicare leads or greater than 130, right now and the pipeline continues to build quarter over quarter.

As you as you would imagine as you've alluded to and as these questions are kind of digging into is the revenues a bit lumpy just because we're still expanding the coverage and understanding the timing.

But things continue to grow quarter over quarter.

And I would add to that one third.

Speaker #5: Okay, great. That's very helpful. And you mentioned there's a number for leads in the United States. That's why in German... could you... I'm not sure I caught that precisely.

Yale Jen: Okay, great. That's very helpful. You mentioned there's a number of leads in the United States as well in Germany. I'm not sure I caught that precisely. I thought that it was 130, but could you clarify that for me?

Sorry.

We have another one third and its combined with a combination not only CMS. It's also workers' comp in VA opportunities correct.

Okay, Great Thats very helpful and maybe my last question.

Speaker #5: I thought that was 130, but could you you know clarify that? For me.

<unk> in two parts. The first one is is that is the current tariff situation has any impact on you and the second part of that is.

Speaker #4: Yeah, thank you for the question. Yeah, the Medicare leads are greater than 130 right now in the pipeline continues to build quarter over quarter.

Mark Grant: Yeah, thank you for the question. The Medicare leads are greater than 130 right now, and the pipeline continues to build quarter over quarter. As you would imagine, as you've alluded to, and as these questions are kind of digging into, the revenue is a bit lumpy just because we're still expanding the coverage and understanding the timing. Things continue to grow quarter over quarter.

Speaker #4: As you would imagine, as you've alluded to and as these questions are kind of digging into is the revenue is a bit lumpy just because we're still expanding the coverage and understanding the timing.

Given your guide for that.

2025 guidance.

You are.

Total you will expect to grow the revenue, particularly in the <unk> side.

Speaker #4: So, but things continue to grow quarter over quarter.

Speaker #3: And I would add to that 130 sorry. Yeah, so we have more than one-third and it's combined it's a combination. It's not only CMS, it's also workers' comp and VA opportunities.

Almog Adar: I would add to that the one-third. Sorry? Yes. We have more than one-third, and it is a combination. It is not only CMS, it is also workers' comp and VA opportunities.

The highest.

So far in history.

It was something that you guys feel that achievable.

And thanks for the.

Speaker #4: Correct.

Well take any questions.

Yale Jen: Correct. Okay, great. That's very helpful. My last question is a little bit in two parts. The first one is, is the current sort of tariff situation has any impact on you? The second part of that is, given your guidance for the 2025 guidance, you will expect to grow and have the revenue, particularly on the REWALK side, have the highest so far in the history. Was something that you guys feel that achievable? Thanks for taking the questions.

Speaker #5: Okay, great. That's very helpful. Maybe in my last questions, a little bit in two parts. The first one is, is that is the current sort of tariff situation has any impacts on you?

Okay. So related to do the first question related to retiree.

We don't have we're not facing with any issues with the tariff because our our rework exoskeleton as a medical device.

Speaker #5: And the second part of that is given your guidance for the 2025 guidance, you were you know total you will expect to grow and have the revenue particularly in the Rewalk side have the highest so far in the history.

Some.

And some.

Exemptions exemption correctly.

Exemption.

We are facing with some tariff situation with China, and Taiwan for our allergy products.

While we are working towards to to find some solution here in the U S. But.

Speaker #5: Was something that you guys feel that achievable? And thanks for the for taking the questions.

The effect is immaterial at this stage for us.

Related to the second question and the guidance update yes, we are expecting some growth in Royal Caribbean users in Q3 and Q4.

Speaker #4: Okay, so related to your first

Almog Adar: Related to your first question related to the tariff, we do not have issues. We are not facing any issues with the tariff because our REWALK Personal Exoskeleton is a medical device that has some exemptions. Exemption, exactly. Thank you. Exemption. We are facing some tariff situations with China and Taiwan for our AlterG product, but we are working towards finding some solution here in the U.S., but the effect is immaterial at this stage for us. Related to the second question and the guidance update, yes, we are expecting some growth in REWALK revenues also in Q3 and Q4 for the REWALK product.

Speaker #3: question related to the tariff, we don't have issues we are not facing with any any with with issues with the tariff because our our Rewalk exoskeleton is a medical device that has some has some exemptions.

For the fourth.

For the legacy product.

Okay, Great. That's very helpful again thanks.

Congrats for both viewed new positions.

Thank you. Thank you. Thank you for the questions.

Next question is from why cooler.

Speaker #3: Exemption, exactly. Thank you. Exemption and we are facing with some tariff situation with China and Taiwan for our Alter G product, but while we are working towards to to find some solution here in the US, but the the the effect is is immaterial at this stage for us.

Mark hand.

H C Wainwright.

Yes.

Thank you thanks.

Taking my questions good morning, Mark.

Congratulations to both of you for.

Speaker #3: Related to the second question, and and the guidance update, yes, we we are expecting some growth in Rewalk revenues also in Q3 and Q4.

For your positions here.

And market is great it's nothing like.

Having a personal interest and are and theyre coming into a new.

Speaker #3: For the for the for for the Rewalk product.

Our position.

Speaker #5: Okay, great. That's very helpful. Again, thanks, and congratulations to both of you on the new positions.

Yale Jen: Okay, great. That's very helpful. Again, thanks. Congrats to both of you on the new position.

So starting off.

Yeah.

Sure.

In the in the opening remarks about 2000 units.

Speaker #4: Thank you. Thank you. Thank you for the questions.

Almog Adar: Thank you. Thank you. Thank you for the questions.

<unk> seven having placed.

Speaker #2: Next question is from Swaiyampa Kula. Ramakant, H.C. Wainwright.

Alicia: Next question is from Swayampakula Ramakanth, HC Wainwright.

Since then.

<unk>.

So are these units.

Primarily.

Through them through through Medicare private Payors VA I'm, just trying to see how well distributed as 20 units are.

Speaker #6: Thank you. Thanks for taking my questions. Good morning, Mark. And Almag, congratulations to both of you for for your positions here. And Mark, it's it's great it's nothing like having a personal interest you know when you're coming into a new new position.

Almog Adar: Thank you. Thanks for taking my questions. Good morning, Mark and Almog, congratulations to both of you for your positions here. Mark, it's great. It's nothing like having a personal interest when you are coming into a new position. Starting off, you were saying in the opening remarks about 20 units of REWALK 7 having placed since approval. Are these units primarily through Medicare, private payers, V.A.? I am just trying to see how well distributed these 20 units are.

Yes, they are.

Thats a good question, they're distributed across all channels, but yes, we have a high focus on the CMS Medicare.

Okay and then.

Regarding the ALJ ruling how does it benefit does it.

Speaker #6: So starting off, you know you were saying in the in the opening remarks about 20 units of Rewalk 7 having placed in you know since since approval.

In.

The CMS processing.

Does it improve on the timing does it improve on.

Getting less.

<unk>.

Speaker #6: So are these units primarily through the through through Medicare, private payers, VA, I'm just trying to see how how well distributed these 20 units are.

Uh huh.

In a lesser number of questions on pushback from the CMS part how does that <unk> really help you.

Yes based on my previous experience and I think you'll remember.

I've managed hundreds of payer contracts and government contracts across the globe and thousands of variance and so as ALJ decisions come forward. If they do they shape. How the policies are written they shaped coverage determination. They also shape how the processes are actually built.

Speaker #4: Yeah, they're that's a good question. They're distributed across all channels. But yes, we have a high focus on the CMS Medicare.

Mark Grant: That's a good question. They're distributed across all channels. But yes, we have a high focus on CMS Medicare.

Speaker #6: Okay. And then regarding the ALJ ruling, how does it benefit does it help in the CMS processing with with the with the does it improve on the timing?

Almog Adar: Okay. Regarding the administrative law judge ruling, how does it benefit? Does it help in the CMS processing? Does it improve on the timing? Does it improve on getting less number of questions and pushback from the CMS? How does that administrative law judge ruling really help you?

And so it's been helpful to have those rulings, even though it's painful for patients and for everybody involved it's an important processes step in how we secure our current coverage.

Speaker #6: Does it improve on getting less you know less number of questions and pushback from the CMS? How does that ALJ ruling really help you?

Okay and then.

On the reimbursement itself.

During that process, there was a lot of going back and forth on the dollar amount and whatnot and now that they are introducing remark seven.

Speaker #4: Yeah, based on my previous experience and I think you remember you know I've managed hundreds of payer contracts and government contracts across the globe and thousands of variants.

Mark Grant: Yeah, based on my previous experience, and I think you remember, I have managed hundreds of payer contracts and government contracts across the globe in thousands of variants. As administrative law judge decisions come forward, they do. They shape how the policies are written. They shape coverage determination. They also shape how the processes are actually built. It has been helpful to have those rulings, even though it is painful for a patient and for everybody involved. It is an important process and step in how we secure our current coverage.

Is the reimbursement dollar amount.

Has it gotten better because this is an advanced emission.

Speaker #4: And so as ALJ decisions come forward, they do. They they shape how the policies are written, they shape coverage determination, they also shape how the processes are actually built.

Our.

You're kind of in the first make sure that you have more installations before worrying about reimbursement price.

Okay.

That's actually a really unique question because that payment is deferring across all payer channels right. So whether thats workers' comp, whether it's VA, whether it's private mandates or Medicare and so for Medicare the <unk> six and <unk> seven are the same ESP, but across the other payers, it's actually completely different so we intend to expand the <unk>.

Speaker #4: And so it's been helpful to have those rulings even though it's painful for a patient and for everybody involved, it's an important process and step in how we secure our current coverage.

Speaker #6: Okay. And then you know on the reimbursement itself, you know during that process, there was a lot of going back and forth on the dollar amount and whatnot.

Almog Adar: Okay. On the reimbursement itself, during that process, there was a lot of going back and forth on the dollar amount and whatnot. Now that you are introducing REWALK 7, has the reimbursement dollar amount gotten better because this is an advanced mission, or are you trying to first make sure that you have more installations before worrying about reimbursement price?

<unk> over time as we bring additional <unk>.

Speaker #6: And now that you're introducing Rewalk 7, is the reimbursement dollar amount has it gotten better because this is an advanced mission? Or or you know you are trying to first make sure that you have more installations before worrying about reimbursement price.

Innovation forward, but right now as you alluded to we're really trying to penetrate the market and understand all the payer environment. So I don't know that I have a comprehensive picture to be able to tell you that we can officially go change pricing right now I think more it's about establishing this novel technology and making sure that it's got a Forbes solidified.

Placed in the marketplace.

Speaker #6: You know.

Okay.

Speaker #4: That's actually a really unique question because the payment is differing across all payer channels, right? So whether that's workers' comp, whether it's VA, whether it's private, managed, or Medicare, and so for Medicare, the Rewalk 6 and Rewalk 7 are the same ASP, but across the other payers, it's actually completely different.

Mark Grant: That's actually a really unique question because the payment is differing across all payer channels, right? So whether that's workers' comp, whether it's VA, whether it's private managed or Medicare. For Medicare, the REWALK 6 and REWALK 7 are the same ASP, but across the other payers, it's actually completely different. We intend to expand the reimbursement over time as we bring additional innovation forward. But right now, as you alluded to, we're really trying to penetrate the market and understand all the payer environments. I don't know that I have a comprehensive picture to be able to tell you that we could officially go change pricing right now. I think more it's about establishing this novel technology and making sure that it's got a forge-solidified place in the marketplace.

<unk>.

Just a couple more I'm, sorry, I'm, taking too much of your time there.

Obviously, our strategy on the answer to your commercialization since.

Quarter after quarter, we are seeing ultra G.

Contribution getting better.

How do you.

Speaker #4: So we we intend to expand the reimbursement over time as we bring additional innovation forward. But right now, as you alluded to, we're really trying to penetrate the market and understand all the payer environments.

What are your plans to ensure that you actually we maintain that that sustainability of growth.

What are the near term milestones for that to happen.

Speaker #4: So I don't know that I have a comprehensive picture to be able to tell you that we could officially go change pricing right now.

Yes couple of things one of which is an exceptional product right. So I actually had the chance to use it as I came on board.

Speaker #4: I think more it's about establishing this novel technology and making sure that it's got a forged solidified place in the marketplace.

As I mentioned in earlier in the call.

Less leg deficiency and so it immediately picked up on that left leg efficiency to the point, where they thought the system was off because I didnt disclose that I had actually previously.

Speaker #6: Okay. Just a couple more, I'm sorry, I'm taking too much of your time there. On the Alter G on the Alter G commercialization, since you know quarter after quarter, we are seeing Alter G contribution getting better.

Almog Adar: Okay. Just a couple more. I am sorry I am taking too much of your time there. On the AlterG commercialization, since quarter after quarter, we are seeing AlterG contribution getting better. How do you, what are your plans to ensure that you actually maintain that sustainability of growth? What are the near-term milestones for that to happen?

So I love the product I could have used it in my therapy and healing along the way.

There is a definite.

Speaker #6: How do you how what are your plans to ensure that you actually maintain that that sustainability of growth you know and what are the near-term milestones you know for that to happen?

<unk> is a growth that can happen with the ultra G product, we're looking at channel partners across the globe right now to figure out how the best expand that product also we're looking at a renewed focus on how we actually go to market with it.

It fits well within our portfolio, but our portfolio doesn't expand to all of the professional athletics and high school sports leagues.

Speaker #4: Yeah, a couple of things. You know one of which is an exceptional product, right? So I actually had the chance to use it as I came on board.

Mark Grant: A couple of things. One of which, it is an exceptional product, right? I actually had the chance to use it as I came on board. As I mentioned earlier in the call, I have a left leg deficiency, and so it immediately picked up on that left leg deficiency to the point where they thought the system was off because I did not disclose that I had actually had some previous injuries. I love the product. I could have used it in my therapy and healing along the way. There is a definite re-insurgence of growth that can happen with the AlterG product. We are looking at channel partners across the globe right now to figure out how to best expand that product. Also, we are looking at a renewed focus in how we actually go to market with it.

And so really habits of hyper focus around those particular markets as important for us to do going forward. So I think it's a really key part of our portfolio and I do see its acceleration as we go forward.

Speaker #4: As I mentioned in earlier in the call, you know I have I have a left leg deficiency, and so it immediately picked up on that left leg deficiency.

Speaker #4: To the point that where they thought the system was off because I didn't disclose that I had actually had some previous injuries. So I love the product.

Okay and then the last question is actually on the guidance on the margins.

Speaker #4: I could have used it in my therapy and healing along the way. There there is a a definite reinsurgence of growth that can happen with the Alter G product.

<unk>.

The guidance came down a bit obviously, its not huge numbers, but in but in general what.

What's the thinking behind lowering and lowering the guidance start that and then.

Speaker #4: We're looking at channel partners across the globe right now to figure out how the best expand that product. Also, we're looking at a renewed focus in how we actually go to market with it.

Mark as you said youre, bringing manufacturing in house.

Speaker #4: It fits well within our portfolio, but our portfolio doesn't expand to all of the professional athletics and high school sports and elites. And so really having some hyper-focus around those particular markets is important for us to do going forward.

Mark Grant: It fits well within our portfolio, but our portfolio does not expand to all of the professional athletics and high school sports and elites. Having some hyper-focus around those particular markets is important for us to do going forward. I think it is a really key part of our portfolio, and I do see its acceleration as we go forward.

I know you said that it's going to be some impact on the inventory at the beginning but overall.

What sort of margin expansion could we expect by bringing that in house.

Speaker #4: So I think it's a really key part of our portfolio, and I do see its acceleration as we go forward.

Okay. So I will start first with the margin. So as you mentioned, we make the transition during Q2 from Sanmina to our facility in New York now.

Speaker #6: Okay. And then the last question is actually on the guidance on the margins. You know the guidance came down a bit obviously, it's not a huge numbers, but in but in general, you know what's what's the thinking behind lowering lowering the guidance that bit?

Almog Adar: Okay. The last question is actually on the guidance and the margins. The guidance came down a bit. Obviously, it is not huge numbers, but in general, what is the thinking behind lowering the guidance that bit? Then, Almog Adar, as you said, you are bringing manufacturing in-house. I know you said there was going to be some impact on the inventory at the beginning, but overall, what sort of margin expansion could we expect by bringing that in-house?

<unk>.

These changes bring with them a lot of efficiency and improvement from a lot of aspects some of them is.

In the margin area some of them as a quality area. So we are expecting the margin to be improved for sure.

Speaker #6: And then Almag, as you said, you're bringing manufacturing in-house. I know you said there is going to be some impact on the inventory at the beginning, but overall, you know what sort of a margin expansion could we expect by bringing that in-house?

And then.

I cannot provide right in that number but there is there is an improvement in terms of the margin.

Okay.

And then I think in your comments I think it's been noticeably I'm sorry, I think it's important to note as we move the facility internally, we took on quite a bit of inventory, which we didn't have on our books. So.

Speaker #4: Okay, so I will start first

Almog Adar: I will start first with the margins. As you mentioned, we made the transition during Q2 from Semena to our facility in Yokneham. This change brings with them a lot of efficiency and improvements from a lot of aspects. Some of them are in the margin area, some of them are in the quality area. We are expecting the margin to be improved for sure. I cannot provide right now a number, but there is an improvement in terms of the margin.

Speaker #3: with the margin. So as you mentioned, we make the transition during Q2 from Sanmina. To our facility in Yokneum, and this change brings with him a lot of efficiency and improvement from a lot of aspects.

This is actually going to impede the margin in the short term modelo improve over time as well so not only do we have value engineered into place to make sure that we actually improved.

The true Cogs of the product. We also are just battling a little bit of inventory is in the short term.

And then there is another reason to the inventory increase.

Speaker #3: Some of them are in the margin area, and some of them are in the quality area. So we are expecting the margin to improve for sure.

We are right now.

A levering two products in Germany, we are still providing the <unk> and <unk> in the U S. We are in the sermon, but we need to maintain pilot.

Speaker #3: And I cannot provide right now a number, but there is there is there is an improvement in terms of the margin.

Hopefully.

During Q3, we will get the CE approval and.

Speaker #6: Okay. And then on the any comments?

Almog Adar: Okay. Any comments on the guidance?

This is will affect most of the inventory from this aspect.

Speaker #4: I think it's the guidance. I'm sorry, I think it's important to notice we move the facility internally. You know we took on quite a bit of inventory, which we didn't have on our books.

Related to your question to the guidance can you remind me the question again.

Mark Grant: I think it is important to note is we moved the facility internally. We took on quite a bit of inventory, which we did not have on our books. This is actually going to impede the margin in the short term, but that will improve over time as well. Not only do we have value engineering in place to make sure that we actually improve the true COGS of the product, we also are just battling a little bit of inventory in the short term.

No I'm just saying.

The reasoning behind lowering the guidance.

Speaker #4: So, you know this is actually going to impede the margin in the short term, but that'll improve over time as well. Not only do we have value engineering in place to make sure that we actually improve the true COGS of the product, we are also just battling a little bit of inventory in the short term.

Because.

At one level Youre, saying, you expect better revenues going forward in the second half, but at the same time, you're kind of lowering the guidance. So is there something.

Speaker #3: Yeah, and there is another reason to the inventory increase. It's we are right now delivering two products in Germany. We are still providing the six and in the US, we are in the seven.

Almog Adar: Yeah, there is another reason to the inventory increase. We are right now delivering two products in Germany. We are still providing the six, and in the U.S., we are in the REWALK 7 Personal Exoskeleton. So we need to maintain parallel. Hopefully, during Q3, we will get the CE approval, and this will affect also the inventory from this aspect. Related to your question to the guidance, can you remind me the question again?

That you're concerned about.

There's nothing we're concerned about the future trajectory of growth that was in the previous plan is just different right as we start to navigate all the different payers across the globe. The timing has not been what we expected as.

Speaker #3: So, we need to maintain parallel. Hopefully, during Q3, we'll get the CE approval, and this will also affect the inventory from this aspect. Related to your question about the guidance, can you remind me of the question again?

As you can see farmer numbers the pipelines are growing right. The products are expanding the innovation is being approved but the timing is something yet to be understood and frankly, that's why I'm here the expertise that <unk> had over the last 20 years of delivering in this exact environment is the rigor that I'm going to bring to hopefully speed this up but I want to be realistic in my initial overview of the organization.

Speaker #6: No, I'm just saying you know the reasoning behind lowering the guidance, you know because you know at one level you're saying you expect better revenues going forward you know in the second half.

Almog Adar: No, I am just saying, you know, the reasoning behind lowering the guidance, because you know at one level, you are saying you expect better revenues going forward, in the second half, but at the same time, you are kind of lowering the guidance. Is there something that you are concerned about?

Expectations correctly.

Thank you. Thank you Mark and Mark for taking all my questions.

Speaker #6: But at the same time, you're kind of lowering the guidance. So is there something you know that you're concerned about?

Thank you thanks, Okay.

Next question is from Ben Hayner Lake Street capital markets.

Speaker #4: There's nothing we're concerned about. The trajectory of growth that was in the previous plan is just different, right? As we start to navigate all these different payers across the globe, the timing has not been what we've expected.

Mark Grant: is nothing we are concerned about. The trajectory of growth that was in the previous plan is just different, right? As we start to navigate all these different payers across the globe, the timing has not been what we have expected. As you can see from our numbers, the pipelines are growing, right? The products are expanding. The innovation is being approved, but the timing is something yet to be understood. Frankly, that is why I am here. The expertise that I have had over the last 20 years of delivering in this exact environment is the rigor that I am going to bring to hopefully speed this up. I want to be realistic in my initial overview of the organization and set expectations correctly.

Good morning, gentlemen.

Shortly.

Thanks for taking the questions.

First off for me Marc in your experience, obviously, great to see that ALJ decision.

Speaker #4: As you can see from our numbers, the pipelines are growing, right? The products are expanding. The innovation is being approved. But the timing is something yet to be understood.

But just thinking kind of through that I mean, I know these things are kind of.

Speaker #4: And frankly, that's why I'm here. The expertise that I've had over the last 20 years of delivering in this exact environment is the rigor that I'm going to bring to hopefully speed this up.

One off individually, but does it take kind of a handful of these things to go your way or is it more about us.

Undefeated win rate or a high win rate to get people to kind of.

Speaker #4: But I want to be realistic in my initial overview of the organization and set expectations correctly.

Get the policies in place that makes these things more smoothly in the future what what really trips that trigger.

Speaker #6: Thank you. Thank you, Mark. And Almag, for taking all my questions.

Almog Adar: Thank you. Thank you, Mark and Almog, for taking all my questions.

Speaker #4: Thank you.

Speaker #3: Thanks, Almag.

Mark Grant: Thank you.

Almog Adar: Thanks, Algin.

Yes, definitely give you based on my experience because this market is a little different just from a size wise, but yes, it's a heavy lift for everyone right. So it brings people together to solution.

Speaker #2: Next question is from Benjamin Hainer, Lakestreet Capital Markets.

Alicia: Next question is from Benjamin Hainer, Lake Street Capital Markets.

Speaker #7: Good morning, gentlemen. Thank you. Thanks for being here. Thanks for taking the questions. First off, for me, Mark, in your experience, you know, obviously great to see that ALJ decision.

Benjamin Hainer: Good morning, gentlemen.

Almog Adar: Good morning, gentlemen.

Benjamin Hainer: Thanks for taking the questions. First off, for me, Mark, in your experience, obviously great to see that administrative law judge decision. But just thinking kind of through that, I mean, I know these things are kind of one-offs individually, but does it take kind of a handful of these things to go your way? Is it more about an undefeated win rate or a high win rate to get people to kind of get the policies in place that make these things go more smoothly in the future? What really trips that trigger?

And you are correct you need to have a high hit rate.

So the product needs to be the right patient at the right time.

So both of those combined actually really work well in this type of market I don't actually take it takes a bunch.

Speaker #7: But just thinking kind of through that, I mean, I know these things are kind of one-offs individually, but does it take kind of a handful of these things to go your way?

Because it's a heavy lift around everyone. My previous experiences. It has not taken a lot of ALJ cases bring everybody to the table I think everybody just wants to make sure that we're spending the health care dollars appropriately. So I understand the process I'm not a fan of it.

Speaker #7: Is it more about a, you know, undefeated win rate or a high win rate to get people to kind of get the policies in place that make these things go more smoothly in the future?

Speaker #7: What really trips that trigger?

But I understand it and so I think your summary of it.

Speaker #4: Yeah, I mean, I'm definitely going to give you a base of my experience because this market's a little different. You know, just from a size-wise.

Mark Grant: Yeah, I'm definitely going to give you based on my experience because this market's a little different, you know, just from a size-wise. But it's a heavy lift for everyone, right? It brings people together to solutions. And you're correct. You need to have a high hit rate, you know, so the product needs to be the right patient at the right time. Both of those combined actually really work well. In this type of market, I don't actually think it takes a bunch, you know, because it's a heavy lift around everyone. My previous experience is it has not taken a lot of administrative law judge cases to bring everybody to the table. I think everybody just wants to make sure that we're spending the healthcare dollars appropriately. I understand the process. I'm not a fan of it, but I understand it.

Just take the high win rate, we've got to make sure we have the right patients to the right therapies.

Speaker #4: But yeah, it's a heavy lift for everyone. Right? So it brings people together to solution. And you're correct. You need to have a high hit rate.

We need to actually go through the lift.

To get through to understand that we have the right patients to the right technologies and then as we do that we can formulate the processes with the governing bodies as well as the private payers.

Speaker #4: You know, so the product needs to be the right patient, the right time. You know, so both of those combined actually really work well.

Okay.

You get.

Speaker #4: And this type of market, I don't actually think it takes a bunch. You know, because it's a heavy lift around everyone. My previous experiences, it has not taken a lot of ALJ cases to bring everybody to the table.

Do you get there.

Center folks are moving more closely and are putting kind of.

Okay.

Yes.

A decision in place, where it's just like here's what we need and.

Speaker #4: I think everybody just wants to make sure that we're spending the healthcare dollars appropriately. So I understand the process. I'm not a fan of it.

And.

That's these are the criteria or is that still a little bit amorphous.

Speaker #4: But I understand it. And so I think I think your summary of it, you know, that no, it just takes a high win rate.

Mark Grant: I think your summary of it, you know, that it just takes a high win rate. We got to make sure we have the right patients and the right therapies. We need to actually go through the lift to get through to understand, you know, that we have the right patients for the right technologies. And then as we do that, we can formulate the processes with the governing bodies as well as the private payers.

I'll give you one one point and that's probably as far as I can elaborate is near term claims are being processed further out claims that we process a longtime ago. We're still in the works. So that would tell me that we're figuring it out both sides ratepayer and internally here our livelihood.

Speaker #4: We got to make sure we have the right patients and the right therapies. We need to actually go through the lift. To get through to understand, you know, that we have the right patients for the right technologies.

Speaker #4: And then as we do that, we can formulate the processes with the governing bodies as well as the private payers.

Okay. That's that's helpful color.

Speaker #7: Okay, got it. And do you get do you get the sense that folks are moving more closely to putting, you know, kind of a a decision in place where it's it's just like, here's what we need and and that these are the criteria?

Benjamin Hainer: Okay, got it. Do you get the sense that folks are moving more closely to putting, you know, kind of a decision in place where it is just like, here is what we need and these are the criteria, or is that still a little bit amorphous?

I appreciate the commentary on kind of the timeline has not been nailed down completely yet.

But maybe can you talk about to the extent that.

Cost per pipeline addition, attrition in the pipeline ultimate cost.

<unk> successfully.

Acquire reward patient and then.

Speaker #7: Or is that still a little bit amorphous?

Does the timeline shortening hopefully over time.

Speaker #4: I'll give you one one point, and that's probably as far as I can elaborate is is near-term claims are being processed. The further out claims that we processed a long time ago are still in the works.

Mark Grant: I'll give you one point, and that's probably as far as I can elaborate, is near-term claims are being processed. The further out claims that we processed a long time ago are still in the works. That would tell me that we're figuring it out both sides, right? Payer and internally here at Lifeward.

Does that.

In your view ultimately impact kind of everything in that the cost of the additions to the attrition and all that all those sorts of metrics.

Speaker #4: So that would tell me that we're figuring it out both sides, right? Payer and internally here at Lifeward.

Then I'll back up a step and then I'll attempt to answer. The question. You know first for me. There are three areas that are core to the business access is key and that's across the patient and payer market. The next innovation is really still in our core and we need to make sure that we capitalize on that by delivering a high quality product and moving on into.

Speaker #7: Okay, that's that's helpful color. And I appreciate the commentary on on kind of the timelines, not being nailed down completely yet. But maybe can you talk about to the extent that, you know, cost per pipeline addition, attrition in the pipeline, you know, ultimate cost to successfully acquire a Rewalk patient, and then you know, does the timeline shortening you know hopefully over time?

Benjamin Hainer: Okay, that is helpful color. I appreciate the commentary on the timelines not being nailed down completely yet. But maybe can you talk about to the extent that, you know, cost per pipeline addition, attrition in the pipeline, ultimate cost to successfully acquire a REWALK.

Next iterations, and then operational excellence, which is frankly, where you're landing that needs to be our fabric.

So we're seeing the pipeline is actually there.

Alicia: patient, and then, you know, does the timeline shortening, you know, hopefully over time. Does that, in your view, ultimately impact kind of everything in that, the cost of the additions, the attrition, and all that, all those sorts of metrics?

Can you speak to attrition and everything else I see this organization as a startup the pipelines are growing there is not a lot of attrition as we're finding the patients who actually were trying to find its how do we find partners or build ourselves to make sure. We can access all of the payer needs.

Speaker #7: Does that in your view ultimately impact kind of everything in that, the cost of the additions, the the attrition and all that? All those sorts of metrics?

And so right now theres not a lot of attrition in the pipeline.

Speaker #4: Then I'll back up a step and attempt to answer the question. For me, there are three areas that are core to the business.

Mark Grant: Then I will back up a step and then I will attempt to answer the question. First for me, there are three areas that are core to the business. Access is key, and that is across the patient and payer market. Next, innovation is really still at our core. We need to make sure that we capitalize on that by delivering a high-quality product and moving on into next iterations. Then the operational excellence, which is frankly where you are landing, that needs to be our fabric. We are seeing the pipelines actually there. When you speak to attrition and everything else, I see this organization as a startup. The pipelines are growing. There is not a lot of attrition as we are finding the patients.

Whats happening as we exited the Polish pipelines through and formalized processes. So it's cleaner.

Speaker #4: You know, access is key. And that's across, you know, the patient and payer market. The next is innovation is really still at our core.

Theres not a lot of time to for me to based on attrition metrics at this point, it's definitely something we should talk about the future.

Speaker #4: And we need to make sure that we capitalize on that by delivering a high-quality product and moving on to the next iterations. Then, the operational excellence, which is frankly where you're landing, needs to be our fabric.

Okay Thats helpful Fair enough and then I appreciate the comment commentary on.

What you guys have going on in Germany.

Speaker #4: You know, so we're seeing the pipelines actually that when you speak to attrition and everything else, I see this organization as a startup. The pipelines are growing.

What kind of needs to happen here in the U S to duplicate some of the things the positive things that you've seen in Germany.

Yes. So one is focused execution right. So ultra GE has a very specific call point in the sports arena and we need to make sure that we're highly focused on that and getting back to those roots.

Mark Grant: What we are actually trying to find is how do we find partners or build ourselves to make sure we can access all the payer needs. So right now, there is not a lot of attrition in the pipeline. What is happening is we actually need to pull these pipelines through and formalize the processes so it is cleaner. So there is not a lot of time for me to base on attrition metrics at this point. It is definitely something we should talk about in the future.

Secondarily the portfolio sale is really good we have highly skilled clinical reps uncomfortable with having to re work and the mylan products.

And also <unk> in their portfolio. So I think a poster focused effort here in the U S. I think secondarily as we've got to find some different channel partners.

Exploring some things out of my past and looking forward to make sure. We're using the right delivery model ultimately, it's all about REIT. We have excellent products are all underpenetrated there all exceptional quality, it's all about the reach penetration so.

Alicia: Okay. That is helpful. Fair enough. Then, I appreciate the commentary on what you guys have going in Germany. What kind of needs to happen here in the U.S. to duplicate some of the positive things that you have seen in Germany?

Again, I'll go back to the four tenants three tenants.

This is going to be key that's across all portfolios are innovation, but just picking on what it is today. They are great products are excellent our marketplace incredibly relevant.

Mark Grant: Yeah. So one is focused execution, right? So AlterG has a very specific call point in the sports arena, and we need to make sure that we are highly focused on that and getting back to those roots. Secondarily, the portfolio sale is really good. We have highly skilled clinical reps, so I am comfortable with having REWALK and the MYOLYN products and AlterG in their portfolio. So I think a focused effort here in the U.S. I think secondarily is we have got to find some different channel partners. I have been exploring some things out of my past and looking forward to make sure we are using the right delivery model. Ultimately, it is all about reach. You know, we have excellent products. They are all underpenetrated. They are all exceptional in quality. It is all about the reach penetration.

And still forging passed with the best names and then the operational excellence, it's just where it's coming down to and I'm going to lean on that third one because thats. The question you asked it's really about the rigor and discipline that we take into the marketplace. That's actually what's required for us to excel.

Okay got it and then lastly for me just on the.

Myelin products and ultra cheap.

What is kind of embedded in the guidance for that I mean, do you expect growth from last year.

We expect growth from last year on both product lines, yes.

Mark Grant: So, you know, again, I will go back to the four tenets, you know, three tenets. You know, it is access is going to be key. It is across all portfolios. You know, our innovation, but I am just picking on what it is today. Their great products are excellent in the marketplace, incredibly relevant, and still forging paths with the best names. And then the operational excellence, you know, is just where it is coming down to. And I am going to lean on that third one because that is the question you asked. It is really about the rigor and discipline that we take into the marketplace. That is actually what is required for us to excel.

Okay got it.

Okay.

Oh, Thank you enough.

Thanks, a lot guys.

This concludes our question and answer session.

I would like to turn the conference back over to Mr. Mark <unk> for any closing remarks.

Okay No more questions. We'll go ahead and conclude the call I appreciate everybody's attendance today. Thank you and we're looking forward to next quarter.

Alicia: Okay. Got it. Lastly for me, just on the MYOLYN products and AlterG, what is kind of embedded in the guidance for that? Do you expect growth from last year?

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Mark Grant: We expect growth from last year on both product lines. Yes.

Alicia: Okay. That's all three.

Mark Grant: Okay. Thank you, Mark.

David Brown: Yep. Thanks a lot, guys.

Almog Adar: This concludes our question and answer session. I would like to turn the conference back over to Mr. Mark Grant for any closing remarks.

Mark Grant: If there are no more questions, we will go ahead and conclude the call. I appreciate everybody's attendance today. Thank you. We are looking forward to the next quarter.

Almog Adar: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

[music].

Okay.

[music].