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What changed in Lifeward Ltd.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Lifeward Ltd.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+122 added−114 removedSource: 10-K (2025-03-07) vs 10-K (2024-02-27)

Top changes in Lifeward Ltd.'s 2024 10-K

122 paragraphs added · 114 removed · 90 edited across 4 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe individual currently serving in this position is a third-party consultant who maintains 20 years of experience advising similarly situated companies on information technology and cybersecurity risk management. Our CTO provides regular cybersecurity updates to our Vice President of Finance and Chief Financial Officer on matters relating to our cybersecurity program and cybersecurity risk management. 55
Biggest changeOur Chief Technology Officer (“CTO”), who reports directly to our Vice President of Finance and, ultimately, our Chief Financial Officer, is responsible for the day-to-day management of our cybersecurity risk management program. The individual currently serving in this position is a third-party consultant who maintains 20 years of experience advising similarly situated companies on information technology and cybersecurity risk management.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy The Company relies on information systems and the data stored on them to conduct its operations. We have adopted and maintain a cybersecurity risk management program in accordance with our risk profile and business that is informed by and incorporates elements of industry standards.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy We rely on information systems and the data stored on them to conduct our operations. We have adopted and maintain a cybersecurity risk management program in accordance with our risk profile and business that is informed by and incorporates elements of industry standards.
Governance Our audit committee, which reports directly to the board of directors, is responsible for overseeing our cybersecurity risk management program. The audit committee receives periodic updates on cybersecurity risks, mitigation strategies, and, in the event of a cybersecurity incident, incident response strategies from our Chief Financial Officer (“CFO”).
The audit committee receives periodic updates on cybersecurity risks, mitigation strategies, and, in the event of a cybersecurity incident, incident response strategies from our Chief Financial Officer. The audit committee updates the full board of directors on matters relating to cybersecurity risk management and critical cybersecurity risks as appropriate.
However, like other companies in our industry, we and our third-party vendors have from time to time experienced threats and security incidents that could affect our information or systems. For more information, please see the section entitled “Risk Factors” in this Annual Report on Form 10-K.
However, like other companies in our industry, from time to time we and our third-party vendors have experienced threats and security incidents that could affect our information or systems.
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The audit committee updates the full board of directors on matters relating to cybersecurity risk management and critical cybersecurity risks as appropriate. Our Chief Technology Officer (“CTO”), who reports directly to our Vice President of Finance and, ultimately, our Chief Financial Officer, is responsible for the day-to-day management of our cybersecurity risk management program.
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For more information, please see the section entitled “Risk Factors - Risks Related to Our Intellectual Property and Information Technology” in this Annual Report on Form 10-K. 61 Governance Our audit committee, which reports directly to the board of directors, is responsible for overseeing our cybersecurity risk management program.
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Our CTO provides regular cybersecurity updates to our Vice President of Finance and Chief Financial Officer on matters relating to our cybersecurity program and cybersecurity risk management. ITEM 2 . PROPERTIES Our corporate headquarters are located in Yokneam, Israel, our U.S. headquarters are located in Marlborough, Massachusetts and our European headquarters are located in Berlin, Germany.
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We also have an office in Fremont, California where operations ceased as of December 31, 2024. All of our facilities are leased, and we do not own any real property. The table below sets forth details of the square footage of our current leased properties, all of which are utilized.
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We have no material tangible fixed assets apart from the properties described below. Square feet (approximate) Fremont, California 40,320 Marlborough, Massachusetts 11,850 Yokneam, Israel 11,500 Berlin, Germany 950 Total 64,620 We believe our facilities are adequate and suitable for our current needs. ITEM 3 .
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LEGAL PROCEEDINGS Occasionally we are involved in various claims, lawsuits, regulatory examinations, investigations and other legal matters arising, for the most part, in the ordinary course of business. The outcome of litigation and other legal matters is inherently uncertain.
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In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or regulatory proceedings to which we are a party and records a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated.
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Where we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for any potential litigation loss. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defences and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates.
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It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our consolidated results of operations, liquidity, or financial condition.
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For information regarding legal proceedings, see Note 8 “Commitments and Contingent Liabilities” in the notes to our audited consolidated financial statements included in this annual report, which discussion we incorporate by reference into this Item. ITEM 4 . MINE SAFETY DISCLOSURES . Not applicable. 62 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn January 2024, the symbol for our ordinary shares was changed to “LFWD”. As of February 23, 2024, we had approximately 278,478 shareholders of record. Dividend Policy We have never declared or paid any cash dividends on our ordinary shares. We do not anticipate paying any cash dividends in the foreseeable future.
Biggest changeIn January 2024, the symbol for our ordinary shares was changed to “LFWD”. As of March 6, 2025, we had approximately 32,492 shareholders of record. Dividend Policy We have never declared or paid any cash dividends on our ordinary shares. We do not anticipate paying any cash dividends in the foreseeable future.
In addition, the individual will be deemed to be a substantial shareholder if at any time during the 12 months preceding the date of the sale he or she was a substantial shareholder. 57 Dividends paid on publicly traded shares, like our ordinary shares, to non-Israeli residents are generally subject to Israeli income tax at the rate of 25%, or 30% if the recipient of the dividend was a substantial shareholder at the time of distribution or at any time during the prior 12-month period.
In addition, the individual will be deemed to be a substantial shareholder if at any time during the 12 months preceding the date of the sale he or she was a substantial shareholder. 63 Dividends paid on publicly traded shares, like our ordinary shares, to non-Israeli residents are generally subject to Israeli income tax at the rate of 25%, or 30% if the recipient of the dividend was a substantial shareholder at the time of distribution or at any time during the prior 12-month period.
Individuals who are subject to tax in Israel are also subject to an additional tax at the rate of 3% on annual income exceeding a certain threshold (NIS 721,560 for 2024, linked to the annual change in the Israeli Consumer Price Index), including, but not limited to, income derived from dividends, interest, and capital gains.
Individuals who are subject to tax in Israel are also subject to an additional tax at the rate of 5% on annual income exceeding a certain threshold (NIS 721,560 for 2025, linked to the annual change in the Israeli Consumer Price Index), including, but not limited to, income derived from dividends, interest, and capital gains.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeCash Flows Years Ended December 31, 2023 2022 2021 Net cash used in operating activities $ (20,667 ) $ (17,891 ) $ (11,469 ) Net cash used in investing activities (18,149 ) (25 ) (47 ) Net cash (used in) provided by financing activities (992 ) (2,500 ) 79,512 Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash 45 (79 ) — Net cash flow $ (39,763 ) $ (20,495 ) $ 67,996 68 Year Ended December 31, 2023 to Year Ended December 31, 2022 Net Cash Used in Operating Activities Net cash used in operating activities was $20.7 million in 2023, an increase of $2.8 million as compared to 2022 mainly due to higher consulting and professional services fees primarily associated with the acquisition of AlterG and the CMS reimbursement process, as well as increased inventory purchases.
Biggest changeAs of December 31, 2024, pursuant to the share repurchase program, we had repurchased a total of 574,658 of our outstanding ordinary shares at a total cost of $3.5 million. 74 Cash Flows Years Ended December 31, 2024 2023 2022 Net cash used in operating activities $ (21,718 ) $ (20,667 ) $ (17,891 ) Net cash used in investing activities - (18,149 ) (25 ) Net cash used in financing activities - (992 ) (2,500 ) Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash 34 45 (79 ) Net cash flow $ (21,684 ) $ (39,763 ) $ (20,495 ) Year Ended December 31, 2024 to Year Ended December 31, 2023 Net Cash Used in Operating Activities Net cash used in operating activities was $21.7 million in 2024, an increase of $1.1 million as compared to 2023 mainly due to higher investment in working capital items, including trade receivables and inventory reflecting the timing of collections, payments and inventory management, partially offset by higher revenues in relation to cash expenses.
Our AlterG Anti-Gravity systems use patented, National Aeronautics and Space Administration (“NASA”) derived differential air pressure (“DAP”) technology to reduce the effects of gravity and allow patients to rehabilitate with finely calibrated support and reduced pain. AlterG Anti-Gravity systems are utilized in over 4,000 facilities globally in more than 40 countries.
The AlterG Anti-Gravity systems use patented, National Aeronautics and Space Administration (“NASA”) derived differential air pressure (“DAP”) technology to reduce the effects of gravity and allow patients to rehabilitate with finely calibrated support and reduced pain. AlterG Anti-Gravity systems are utilized in over 4,000 facilities globally in more than 40 countries.
We expect that third-party payors will be an increasingly important source of revenue in the future as we increase the volume of sales of ReWalk Personal systems to Medicare-eligible beneficiaries following establishment of a benefit category and anticipated pricing.
We expect that third-party payors will be an increasingly important source of revenue in the future as we increase the volume of sales of ReWalk Personal systems to Medicare-eligible beneficiaries following establishment of a benefit category and pricing.
Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Special Note Regarding Forward-Looking Statements and “Part I. Item 1A.
Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Special Note Regarding Forward-Looking Statements” and “Part I. Item 1A.
We sell our products primarily directly in the United States, through a combination of direct sales and distributors (depending on the product line) in Germany, Canada, and Australia, and primarily through distributors in other markets.
We sell our products primarily directly in the United States, through a combination of direct sales and distributors (depending on the product line) in Germany and Canada, and primarily through distributors in other markets.
We generally do not grant a right of return for our products except in rare circumstances, and in those cases we record reductions to revenue for expected future product returns based on our historical experience and estimates. 65 For the majority of sales of ReWalk Rehabilitation Exoskeleton systems, we include insignificant training and consider the elements in the arrangement to be a single performance obligation.
We generally do not grant a right of return for our products except in rare circumstances, and in those cases we record reductions to revenue for expected future product returns based on our historical experience and estimates. 71 For the majority of sales of ReWalk Rehabilitation Exoskeleton systems, we include insignificant training and consider the elements in the arrangement to be a single performance obligation.
In February 2018, the head office of German Statutory Health Insurance (“SHI”) Spitzenverband (“GKV”) confirmed their decision to list the ReWalk Personal Exoskeleton system in the German Medical Device Directory. This decision means that ReWalk is listed among all medical devices for compensation, which SHI providers can procure for any approved beneficiary on a case-by-case basis.
In February 2018, the head office of German Statutory Health Insurance (“SHI”) Spitzenverband (“GKV”) confirmed its decision to list the ReWalk Personal Exoskeleton system in the German Medical Device Directory. This decision means that ReWalk is listed among all medical devices for compensation, which SHI providers can procure for any approved beneficiary on a case-by-case basis.
The preliminary payment determination was made by CMS by applying a “gap filling” process, which was used in light of CMS determining that the code describing the technology has no fee schedule pricing history and that lower extremity exoskeletons incorporate “revolutionary features” that cannot be described by or considered comparable to any other existing code or combination of codes.
The final payment determination was made by CMS by applying a “gap filling” process, which was used in light of CMS determining that the code describing the technology has no fee schedule pricing history and that lower extremity exoskeletons incorporate “revolutionary features” that cannot be described by or considered comparable to any other existing code or combination of codes.
All product development milestones contemplated by the License Agreement have been met as of December 31, 2023; however, there are still outstanding commercialization milestones under the License Agreement that depend on us reaching certain sales amounts, some or all of which may not occur. Our Collaboration Agreement with Harvard was concluded on March 31, 2022.
All product development milestones contemplated by the License Agreement have been met as of December 31, 2024; however, there are still outstanding commercialization milestones under the License Agreement that depend on us reaching certain sales amounts, some or all of which may not occur. Our Collaboration Agreement with Harvard was concluded on March 31, 2022.
We will continue to be subject to these limitations for the remainder of the 2024 fiscal year and until the earlier of such time as our public float reaches at least $75 million or when we file our next annual report for the year ended December 31, 2024, at which time we will be required to re-test our status under these rules.
We will continue to be subject to these limitations for the remainder of the 2025 fiscal year and until the earlier of such time as our public float reaches at least $75 million or when we file our next annual report for the year ended December 31, 2025, at which time we will be required to re-test our status under these rules.
Our revenue is generated from a combination of third-party payors, including private and government employers, institutions, and self-payors. Payments for our products by third party payors have been made primarily through case-by-case determinations. Third-party payors include, without limitation, private insurance plans, workers’ compensation programs, managed care organizations, and government programs including the VHA and Medicare.
Our revenue is derived from a combination of third-party payors, including private and government employers, institutions, and self-payors. Payments for our products by third party payors have been made primarily through case-by-case determinations. Third-party payors include, without limitation, private insurance plans, workers’ compensation programs, managed care organizations, and government programs including the VHA and Medicare.
As of December 31, 2023, the aggregate contingent liability to the IIA was $1.6 million. For more information, see “Part I, Item 1A. Risk Factors-We have received Israeli government grants for certain of our research and development activities and we may receive additional grants in the future.
As of December 31, 2024, the aggregate contingent liability to the IIA was $1.6 million. For more information, see “Part I, Item 1A. Risk Factors-We have received Israeli government grants for certain of our research and development activities and we may receive additional grants in the future.
The agreements with IIA require us to pay royalties at a rate of 3% on sales of certain systems and related services up to the total amount of funding received for the development of these systems, linked to the dollar, and bearing interest at an annual rate of LIBOR applicable to dollar deposits.
The agreements with IIA require us to pay royalties at a rate of 3% on sales of certain systems and related services up to the total amount of funding received for the development of these systems, linked to the dollar, and bearing interest at an annual rate of SOFRPR applicable to dollar deposits.
Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 A discussion of changes in our cash flows in 2022 compared to 2021 has been omitted from this annual report on Form 10-K but may be found in “Part I. Item 7.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 A discussion of changes in our cash flows in 2023 compared to 2022 has been omitted from this annual report on Form 10-K but may be found in “Part I. Item 7.
Food and Drug Administration (“FDA”) for the ReWalk Personal Exoskeleton with stair and curb functionality, which adds usage on stairs and curbs to the indication for use for the device in the United States (U.S.).
Food and Drug Administration (“FDA”) for the ReWalk Personal Exoskeleton with stair and curb functionality, which adds usage on stairs and curbs to the indication for use for the device in the U.S.
The first two years are considered as an assurance type warranty and the additional period is considered an extended service arrangement, which is a service type warranty. A service type warranty is either sold with a unit or separately for a unit for which the warranty has expired.
For the five-year warranty, the first two years are considered as an assurance type warranty and the additional three-year period is considered an extended service arrangement, which is a service type warranty. A service type warranty is either sold with a unit or separately for a unit for which the warranty has expired.
We recognize interest and penalties, if any, related to unrecognized tax benefits in tax expense. 66 Recently Issued and Adopted Accounting Pronouncements A discussion of recent accounting pronouncements is included in Note 2w, New Accounting Pronouncements, to our consolidated financial statements included elsewhere in this annual report.
We recognize interest and penalties, if any, related to unrecognized tax benefits in tax expense. 72 Recently Issued and Adopted Accounting Pronouncements A discussion of recent accounting pronouncements is included in Note 2y, New Accounting Pronouncements, to our consolidated financial statements included elsewhere in this annual report.
Of the royalty-bearing grants received, we have paid royalties to the IIA in the total amount of $110 thousand.
Of the royalty-bearing grants received, we have paid royalties to the IIA in the total amount of $114 thousand.
We calculated the payments due under our operating lease obligation for our Israeli office that are to be paid in NIS at a rate of exchange of NIS 3.627:$1.00, of which were the applicable exchange rate as of December 31, 2023. Off-Balance Sheet Arrangements We had no off-balance sheet arrangements or guarantees of third-party obligations during the periods presented.
We calculated the payments due under our operating lease obligation for our Israeli office that are to be paid in NIS at a rate of exchange of NIS 3.647:$1.00, which was the applicable exchange rate as of December 31, 2024. Off-Balance Sheet Arrangements We had no off-balance sheet arrangements or guarantees of third-party obligations during the periods presented.
We have developed our ReStore Exo-Suit device, which we began commercializing in June 2019. The ReStore is a powered, lightweight soft exo-suit intended for use during the rehabilitation of individuals with lower limb disabilities due to stroke.
We have developed our ReStore Exo-Suit device, which we began commercializing in June 2019 (we ceased sales in the EU in May 2024). The ReStore is a powered, lightweight soft exo-suit intended for use during the rehabilitation of individuals with lower limb disabilities due to stroke.
In 2022, the National Spinal Cord Injury Statistical Center (“NSCISC”) reported that CMS is the primary payor for approximately 57% of the SCI population which are at least five years post their injury date, with Medicare representing a majority of this percentage.
In 2022, the National Spinal Cord Injury Statistical Center (“NSCISC”), which maintains the world’s largest database on spinal cord injury research, reported that CMS is the primary payor for approximately 57% of the SCI population which are at least five years post their injury date, with Medicare representing a majority of this percentage.
Further investment in the development path of the ReBoot was paused in 2023 pending determination regarding the clinical and commercial opportunity of this device. Our principal markets are primarily in the United States and Europe with some lesser sales in Asia, the Middle East and South America.
Further investment in the development path of the ReBoot was paused in 2023 pending determination regarding the clinical and commercial opportunity of this device and at this time it remains on hold. Our principal markets are primarily in the United States and Europe with some lesser sales in Asia, the Middle East and South America.
The offering of the ordinary shares, the pre-funded warrants and the ordinary shares that are issuable from time to time upon exercise of the pre-funded warrants was made pursuant to our shelf registration statement on Form S-3 initially filed with the SEC on May 9, 2019, and declared effective by the SEC on May 23, 2019, and the ordinary warrants were issued in a concurrent private placement.
The offering of the ordinary shares and the ordinary shares that are issuable from time to time upon exercise of the pre-funded warrants was made pursuant to our shelf registration statement on Form S-3 initially filed with the SEC on March 30, 2022, and declared effective by the SEC on May 16, 2022, and the ordinary warrants were issued in a concurrent private placement.
Trend Information For information on significant known trends, please see “Part I-Item 1. “Business – Overview” in this annual report. 70
Trend Information For information on significant known trends, please see “Part I-Item 1. Business – Overview” in this annual report.
ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” provides presentation requirements to classify deferred tax assets and liabilities, along with any related valuation allowance, are classified as non-current on the balance sheet.
ASC 740, “Balance Sheet Classification of Deferred Taxes” provides presentation requirements to classify deferred tax assets and liabilities, along with any related valuation allowance, are classified as non-current on the balance sheet.
Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. SCI Products include a five-year warranty.
Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. SCI Products typically include a five-year warranty except for certain payors in which it is a two-year warranty.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 23, 2023, which is available free of charge on the SEC's website at www.sec.gov and at golifeward.com, and is incorporated by reference herein.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 27, 2024, as amended on April 29, 2024, which is available free of charge on the SEC’s website at www.sec.gov and at golifeward.com, and is incorporated by reference herein.
For these products, cost of revenue also includes internal costs such as salaries and related personnel costs including non-cash share-based compensation, functions that support manufacturing and inventory management, training and inspection, service activities, freight costs, and reserves for warranty and inventory condition.
For these products, cost of revenue also includes internal costs such as salaries and related personnel costs including non-cash share-based compensation, functions that support manufacturing and inventory management, training and inspection, service activities, freight costs, and reserves for warranty and inventory condition. The cost of revenue also includes royalties and expenses related to royalty-bearing research and development grants.
In markets where we sell direct to consumers, we have established relationships with clinics and rehabilitation centers, professional and college sports teams, and individuals and organizations in the SCI community, and in markets where we do not sell direct to consumers, our distributors maintain these relationships.
In markets where we sell direct to consumers, we have established relationships with clinics and rehabilitation centers, professional and college sports teams, and individuals and organizations in the SCI community, and in markets where we do not sell direct to consumers, our distributors maintain these relationships. We have primary offices in Yokneam, Israel, Marlborough, Massachusetts, and Berlin, Germany.
Income Taxes As part of the process of preparing our consolidated financial statements, we are required to estimate our taxes in each of the jurisdictions in which we operate. We account for income taxes in accordance with ASC Topic 740, “Income Taxes,” or ASC Topic 740.
Each unit placed is considered an independent, unbundled performance obligation. Income Taxes As part of the process of preparing our consolidated financial statements, we are required to estimate our taxes in each of the jurisdictions in which we operate. We account for income taxes in accordance with ASC Topic 740, “Income Taxes,” or ASC Topic 740.
Research and Development Expense, Net Our research and development expense, net for 2023 and 2022 was as follows (in thousands): Years Ended December 31, 2023 2022 Research and development expense, net $ 4,148 $ 4,031 Research and development expense was $4.1 million in 2023, an increase of $0.1 million, or 3%, during 2023 as compared to 2022.
Research and Development Expense, Net Our research and development expense, net for 2024 and 2023 was as follows (in thousands): Years Ended December 31, 2024 2023 Research and development expense, net $ 4,625 $ 4,148 Research and development expense was $4.6 million in 2024, an increase of $0.5 million, or 11.5%, during 2024 as compared to 2023.
Gross Profit Our gross profit for 2023 and 2022 were as follows (in thousands): Years Ended December 31, 2023 2022 Gross profit $ 4,453 $ 1,905 Gross profit was $4.5 million, or 32% of revenue, for 2023, as compared to a gross profit of $1.9 million, or 35% of revenue for 2022.
Gross Profit Our gross profit for 2024 and 2023 were as follows (in thousands): Years Ended December 31, 2024 2023 Gross profit $ 8,216 $ 4,453 Gross profit was $8.2 million, or 32% of revenue, for 2024, as compared to a gross profit of $4.5 million, or 32% of revenue for 2023.
Share Repurchase Program On June 2, 2022, our board of directors approved a share repurchase program to repurchase up to $8.0 million of our ordinary shares . On July 21, 2022, we received approval from an Israeli court for the share repurchase program.
Wainwright as compensation for its role as the placement agent in January 2025 private placement offering. Share Repurchase Program On June 2, 2022, our board of directors approved a share repurchase program to repurchase up to $8.0 million of our ordinary shares. On July 21, 2022, we received approval from an Israeli court for the share repurchase program.
This feature has been available in Europe since initial CE Clearance, and real-world data from a cohort of 47 European users throughout a period of over seven years consisting of over 18,000 stair steps was collected to demonstrate the safety and efficacy of this feature and support the FDA submission. 58 We have sought to expand our product offerings beyond the SCI Products through internal development and distribution agreements and acquisitions.
This feature has been available in Europe since initial CE Clearance, and real-world data from a cohort of 47 European users throughout a period of over seven years consisting of over 18,000 stair steps was collected to demonstrate the safety and efficacy of this feature and support the FDA submission.
Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 23, 2023, which is available free of charge on the SECs website at www.sec.gov and at golifeward.com, and is incorporated by reference herein. 69 Obligations and Commercial Commitments Set forth below is a summary of our contractual obligations as of December 31, 2023: Payments due by period (in dollars, in thousands ) Contractual obligations Total Less than 1 year 1-3 years Purchase obligations (1) $ 8,551 $ 8,551 $ — Collaboration Agreement and License Agreement obligations (2) 34 34 — Operating lease obligations (3) 2,050 1,364 686 Earnout liability (4) 3,292 576 2,716 Total $ 13,927 $ 10,525 $ 3,402 (1) We depend on one contract manufacturer, Sanmina Corporation, for both the SCI products and the ReStore Products.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 27, 2024, as amended on April 29, 2024, which is available free of charge on the SECs website at www.sec.gov and at golifeward.com, and is incorporated by reference herein. 75 Obligations and Commercial Commitments Set forth below is a summary of our contractual obligations as of December 31, 2024: Payments due by period (in dollars, in thousands ) Contractual obligations Total Less than 1 year 1-3 years Purchase obligations (1) $ 7,257 $ 7,257 $ - Collaboration Agreement and License Agreement obligations (2) 35 35 - Operating lease obligations (3) 919 894 25 Earnout liability (4) 608 608 - Total $ 8,819 $ 8,794 $ 25 (1) We depend on one contract manufacturer, Sanmina Corporation, for both the SCI products and the ReStore Products, and one contract manufacturer, Cirtronics Corporation, for the AlterG Anti-Gravity systems.
In the near term our sales and marketing expense are expected to be driven by our efforts to expand the reimbursement coverage of our ReWalk Personal Exoskeleton device, to integrate and unify the combined sales and marketing resources of the ReWalk and AlterG organizations, and to support our current commercial product activities.
In the near term our sales and marketing expense are expected to be driven by our efforts to facilitate growth in the sales of our commercial product lines, expand the reimbursement coverage of our ReWalk Personal Exoskeleton device, and support the training activities of ReWalk customers.
We have also pursued updates with the Centers for Medicare & Medicaid Services (“CMS”) to clarify the Medicare coverage category (i.e., benefit category) applicable for personal exoskeletons.
We have also been pursuing updates with the CMS to clarify the Medicare coverage category (i.e., benefit category) applicable for personal exoskeletons.
Equity Raises Use of Form S-3 Beginning with the filing of our Form 10-K on February 17, 2017, we were subject to limitations under the applicable rules of Form S-3, which constrained our ability to secure capital with respect to public offerings pursuant to our effective Form S-3.
Risk Factors-We have concluded that there is substantial doubt as to our ability to continue as a going concern.” 73 Equity Raises Use of Form S-3 Beginning with the filing of our Form 10-K on February 17, 2017, we were subject to limitations under the applicable rules of Form S-3, which constrained our ability to secure capital with respect to public offerings pursuant to our effective Form S-3.
In addition, cost of revenue also includes field service costs, shipping expenses and reserves for warranty and inventory condition. For Distributed Products such as the MyoCycle cost of revenue consists primarily of complete systems purchased from MYOLYN. In addition, the cost of revenue also includes field service costs and shipping expenses.
For certain products that we distributed, such as the MyoCycle and Meditouch product lines, cost of revenue consists primarily of complete systems purchased from the manufacturers. In addition, the cost of revenue also includes field service costs and shipping expenses.
We refer to the MediTouch and MyoCycle devices as our “Distributed Products.” On August 11, 2023, we made our first acquisition to supplement our internal growth when we acquired AlterG, Inc. (“AlterG”), a leading provider of Anti-Gravity systems for use in physical and neurological rehabilitation.
In August 2023, we made our first acquisition to supplement our internal growth when we acquired AlterG, a leading provider of Anti-Gravity systems for use in physical and neurological rehabilitation.
We intend to focus the rest of our research and development expenses mainly on our current product support, as well as to advance the FDA submission for clearance of the ReWalk 7 next-generation exoskeleton model.
The increase is attributable to the full year impact of the AlterG business and included investments in new product development projects. We intend to focus the rest of our research and development expenses mainly on our current product support, as well as to advance the FDA review of the submission for clearance of the ReWalk 7 next-generation exoskeleton model.
The terms of those grants restrict our ability to manufacture products or transfer technologies outside of Israel and we may be required to pay penalties in such cases or upon the sale of our company.” Results of Operations Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenue Our revenue for 2023 and 2022 were as follows (dollars in thousands, except unit amounts): Years Ended December 31, 2023 2022 Revenue $ 13,854 $ 5,511 Revenues consist of SCI Products, AlterG Anti-Gravity systems, ReStore and Distributed Products. 62 Revenue was $13.9 million, an increase of $8.3 million, or 51%, during 2023 as compared to 2022.
The terms of those grants restrict our ability to manufacture products or transfer technologies outside of Israel and we may be required to pay penalties in such cases or upon the sale of our company.” 68 Results of Operations Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue Our revenue for 2024 and 2023 were as follows (dollars in thousands, except unit amounts): Years Ended December 31, 2024 2023 Revenue $ 25,663 $ 13,854 Revenue consist of transactions for our portfolio of ReWalk, AlterG, ReStore and MyoCycle systems.
A service type warranty is accounted as a separate performance obligation and revenue is recognized ratably over the life of the warranty. The ReStore device is sold with a two-year warranty which is considered as assurance type warranty.
A service type warranty is accounted as a separate performance obligation and revenue is recognized ratably over the life of the warranty.
As a result, our effective tax rate will be a function of the relative proportion of our taxable income that is generated in those locations compared to our overall net income. 61 Grants and Other Funding Israel Innovation Authority (formerly known as the Office of the Chief Scientist) From our inception through December 31, 2023, we have received a total of $2.6 million in funding from the IIA, $1.6 million of which are royalty-bearing grants, $400 thousand were received in consideration for an investment in our preferred shares while $570 thousand was received without future obligation.
Grants and Other Funding Israel Innovation Authority (formerly known as the Office of the Chief Scientist) From our inception through December 31, 2024, we have received a total of $2.8 million in funding from the IIA, $1.6 million of which are royalty-bearing grants, $400 thousand were received in consideration for an investment in our preferred shares while $806 thousand was received without future obligation.
Cost of Revenue and Gross Profit For ReWalk and ReStore, cost of revenue consists primarily of complete systems purchased from our outsourced manufacturer, Sanmina.
The ReStore device is sold with a two-year warranty. 66 Cost of Revenue and Gross Profit For ReWalk and ReStore, cost of revenue consists primarily of complete systems purchased from our outsourced manufacturer, Sanmina.
We have primary offices in Marlborough, Massachusetts, Fremont, California, Berlin, Germany and Yokneam, Israel, from where we operate our business. We have in the past generated and expect to generate in the future revenue from a combination of clinics and rehabilitation centers, commercial distributors, third-party payors (including private and government payors), professional and college sports teams, and self-pay individuals.
We also had offices in Fremont, California and Queens, New York where we ceased operations as of December 31, 2024. We have in the past generated and expect to generate in the future revenue from a combination of clinics and rehabilitation centers, commercial distributors, third-party payors (including private and government payors), professional and college sports teams, and self-pay individuals.
In September 2017, each of German insurer BARMER GEK (“BARMER”) and national social accident insurance provider Deutsche Gesetzliche Unfallversicherung (“DGUV”), indicated that they will provide coverage to users who meet certain inclusion and exclusion criteria.
In Germany, we continue to make progress toward achieving coverage from the various government, private and worker’s compensation payors for our SCI products. In September 2017, each of German insurer BARMER GEK (“BARMER”) and national social accident insurance provider Deutsche Gesetzliche Unfallversicherung (“DGUV”) indicated that they will provide coverage to users who meet certain inclusion and exclusion criteria.
In the future, we expect our growth to be driven by sales of our ReWalk Personal device through expansion of coverage and reimbursement by commercial and government third-party payors, and our AlterG Anti-Gravity systems, as well as sales of Distributed Products, and the ReStore device to rehabilitation clinics and personal users.
In the future, we expect our growth to be primarily driven by sales of our ReWalk Personal device through expansion of coverage and reimbursement by commercial and government third-party payors, more shipments of our AlterG Anti-Gravity system through greater penetration of rehabilitation clinics in the U.S. and internationally, and more placements of the MyoCycle device with rehabilitation clinics and personal users.
We place our manufacturing orders with Sanmina pursuant to purchase orders or by providing forecasts for future requirements. The AlterG Anti-Gravity systems are produced in Fremont, California by us. Purchase orders are executed with suppliers based on our sales forecast.
We place our manufacturing orders with each of Sanmina and Cirtronics pursuant to purchase orders or by providing forecasts for future requirements. Purchase orders are executed with suppliers based on our sales forecast.
We also sell extended warranties for AlterG Anti-Gravity systems for the periods after the expiration of the original warranty. These are accounted for as separate performance obligations from the AlterG Anti-Gravity system. We rent our AlterG Anti-Gravity systems to customers for a fixed monthly fee over the rental term, which typically ranges from 2 to 3 years.
These are accounted for as separate performance obligations from the AlterG Anti-Gravity system. We rent our AlterG Anti-Gravity systems to customers for a fixed monthly fee over the rental term, which typically ranges from 2 to 3 years. Rental revenues accounted for under ASC Topic 842 and are recorded as earned on a monthly basis.
General and Administrative Expense Our general and administrative expense for 2023 and 2022 was as follows (in thousands): Years Ended December 31, 2023 2021 General and administrative $ 9,995 $ 7,134 General and administrative expense was $10.0 million, an increase of $2.9 million, or 40%, during 2023 as compared to 2022.
General and Administrative Expense Our general and administrative expense for 2024 and 2023 was as follows (in thousands): Years Ended December 31, 2024 2023 General and administrative $ 5,195 $ 9,995 General and administrative expense was $5.2 million, a decrease of $4.8 million, or 48.0%, during 2024 as compared to 2023.
Medicare personal exoskeleton claims with dates of service on or after January 1, 2024 that are billed using HCPCS code K1007 are assigned to the brace benefit category. CMS reimburses items classified under the brace benefit category using a lump sum payment methodology.
The Final Rule includes a policy confirming that personal exoskeletons are included in the Medicare brace benefit category, as of January 1, 2024. Medicare personal exoskeleton claims with dates of service on or after January 1, 2024 that are billed using HCPCS code K1007 are assigned to the brace benefit category.
We are also currently working with several additional SHIs on securing a formal operating contract that will establish the process of obtaining a ReWalk Personal Exoskeleton for their beneficiaries within their system. Additionally, to date, several private insurers in the United States and Europe are providing reimbursement for ReWalk in certain cases.
In February 2025, we finalized an agreement with BARMER to formalize the reimbursement process for the provision of ReWalk exoskeletons to medically eligible beneficiaries. We are also currently working with several additional SHIs on securing a formal operating contract that will establish the process of obtaining a ReWalk Personal Exoskeleton for their beneficiaries within their system.
Net Cash Used in Investing Activities Net cash used in investing activities increased to $18.1 million in 2023 as compared to $0.03 million in 2022, primarily due to the acquisition of AlterG. Net Cash Used in Financing Activities Net cash used in financing activities was $0.9 million in 2023, a decrease of $1.5 million, as compared to 2022.
Net Cash Used in Investing Activities Net cash used in investing activities decreased by $18.1 million in 2024 as compared to 2023, primarily due to the acquisition of AlterG.
During the second quarter of 2020, we finalized and moved to implement two separate agreements to distribute additional product lines in the United States. We are the exclusive distributor of the MYOLYN MyoCycle FES Pro cycles to U.S. rehabilitation clinics and for the MyoCycle Home cycles available to US veterans through the Veterans Health Administration (“VHA”) hospitals.
We are the exclusive distributor of the MYOLYN MyoCycle FES Pro cycles to U.S. rehabilitation clinics and for the MyoCycle Home cycles available to U.S. veterans through the Veterans Health Administration (“VHA”) hospitals.
The ordinary warrants are exercisable at any time and from time to time, in whole or in part, following the date of issuance and ending five and one-half years from the date of issuance. All of the pre-funded warrants were exercised in full on September 27, 2021, and the offering closed on September 29, 2021.
The ordinary warrants are exercisable at any time and from time to time, in whole or in part, following the date of issuance and ending three years from the date of issuance. The offering closed on January 8, 2025.
The cost of revenue also includes royalties and expenses related to royalty-bearing research and development grants. 60 For our AlterG systems, which we manufacture ourselves at our facility in Fremont, California, cost of revenue consists primarily of raw materials, direct labor, indirect labor, and other factory overhead costs such as rent and utilities.
For our AlterG systems, which we manufactured at our facility in Fremont, California until December 31,2024, cost of revenue consists primarily of raw materials, direct labor, indirect labor, and other factory overhead costs such as rent and utilities. In addition, cost of revenue also includes field service costs, shipping expenses and reserves for warranty and inventory condition.
ReWalk Personal and ReWalk Rehabilitation Exoskeleton systems are generally covered by a five-year warranty from the date of purchase, which is included in the purchase price. The warranty covers all elements of the systems, including the batteries, other than normal wear and tear. Our ReStore device is sold with a two-year warranty.
ReWalk Personal and ReWalk Rehabilitation Exoskeleton systems are generally covered by a five-year warranty from the date of purchase, which is included in the purchase price. ReWalk systems sold to Medicare beneficiaries carry a two-year warranty, consistent with the coverage decision by CMS.
Taxes on Income As of December 31, 2023, we had not yet generated taxable income in Israel. As of that date, our net operating loss carryforwards for Israeli tax purposes amounted to approximately $242.6 million.
Foreign currency exchange changes reflect gains or losses related to transactions denominated in currencies other than the U.S. dollar. Taxes on Income As of December 31, 2024, we had not yet generated taxable income in Israel. As of that date, our net operating loss carryforwards for Israeli tax purposes amounted to approximately $256.5 million.
Rental revenues accounted for under ASC Topic 842 and are recorded as earned on a monthly basis. We also offer for the SCI Products a rent-to-purchase model in which we recognize revenue ratably according to the agreed rental monthly fee for a limited period prior to selling its products.
We also offer for the SCI Products a rent-to-purchase model in which we recognize revenue ratably according to the agreed rental monthly fee for a limited period prior to selling its products. For units placed, we transfer control and recognize a sale when title has passed to our customer and rental revenue ratably according to the agreed rental monthly fee.
Interest income consists of interest earned on our cash and cash equivalent balances. Interest expense consists of interest accrued on, and certain other costs with respect to any indebtedness. Foreign currency exchange changes reflect gains or losses related to transactions denominated in currencies other than the U.S. dollar.
Financial Expenses (Income), Net Financial income and expenses consist of bank commissions, foreign exchange gains and losses, interest earned on investments in short term deposits and royalty income. Interest income consists of interest earned on our cash and cash equivalent balances. Interest expense consists of interest accrued on, and certain other costs with respect to any indebtedness.
In July 2020, following a successful submission and hearing process, a code was issued for ReWalk Personal Exoskeleton, which may be used for purposes of claim submission to Medicare, Medicaid, and other payors.
In July 2020, following a successful submission and hearing process, a code was issued for ReWalk Personal Exoskeleton, which may be used for purposes of claim submission to Medicare, Medicaid, and other payors. 65 On November 1, 2023, CMS released the Calendar Year 2024 Home Health Prospective Payment System Final Rule, CMS-1780-F (“Final Rule”), which was adopted through the notice and comment rulemaking process.
The decrease was due to the repurchase of our ordinary shares under our share repurchase program, which expired on August 9, 2023.
Net Cash Used in Financing Activities Net cash used in financing activities decreased by $0.9 million in 2024 as compared to 2023, mainly due to the repurchase of our ordinary shares under our share repurchase program, which expired on August 9, 2023.
We may receive additional funding from these entities or others in the future. See “Grants and Other Funding” below. Sales and Marketing Expenses Our sales and marketing expenses consist primarily of salaries and related personnel costs including share-based compensation for sales, sales support, marketing, and reimbursement related activities, travel, marketing, advertisement, tradeshows and conferences, lobbying, and public relations activities.
Sales and Marketing Expenses Our sales and marketing expenses consist primarily of salaries and related personnel costs including share-based compensation for sales, sales support, marketing, and reimbursement related activities, travel, marketing, advertisement, tradeshows and conferences, lobbying, and public relations activities. 67 General and Administrative Expenses Our general and administrative expenses consist primarily of salaries and related personnel costs including share-based compensation for our administrative, finance, and general management personnel, professional services, and insurance.
We have ongoing product development activity with our AlterG Anti-Gravity systems, including a program to develop a new entry level model of AlterG Anti-Gravity system aimed to improve the affordability to price-conscious customers. 63 Sales and Marketing Expense Our sales and marketing expense for 2023 and 2022 was as follows (in thousands): Years Ended December 31, 2023 2022 Sales and marketing expense $ 13,922 $ 9,842 Sales and marketing expense was $13.9 million in 2023, an increase of $4.1 million, or 41%, during 2023 as compared to 2022.
We also have ongoing product development activity to reduce the material costs for our ReWalk and AlterG product lines. 69 Sales and Marketing Expense Our sales and marketing expense for 2024 and 2023 was as follows (in thousands): Years Ended December 31, 2024 2023 Sales and marketing expense $ 17,949 $ 13,922 Sales and marketing expense was $17.9 million in 2024, an increase of $4.0 million, or 28.9%, during 2024 as compared to 2023.
Income Tax Our income tax for 2023 and 2022 was as follows (in thousands): Years Ended December 31, 2023 2022 Taxes on income (benefit) $ (12 ) $ 467 Income tax decreased by $0.5 million during 2023 as compared to 2022, mainly due to the utilization of net operation losses forward arising from the acquisition of AlterG. 64 Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 A discussion of changes in our results of operations in 2022 compared to 2021 has been omitted from this annual report on Form 10-K but may be found in “Part I.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 A discussion of changes in our results of operations in 2023 compared to 2022 has been omitted from this annual report on Form 10-K but may be found in “Part I. Item 7.
As part of gap-filling, CMS utilizes verifiable supplier or commercial pricing information and adjusts this pricing information according to a deflation and update factor methodology.
As part of gap-filling, CMS utilizes verifiable supplier or commercial pricing information and adjusts this pricing information according to a deflation and update factor methodology. In applying this formula to the K1007 code describing the ReWalk Personal Exoskeleton, CMS says that it calculated this final payment amount by averaging pricing information for exoskeleton devices from Lifeward and other manufacturers.
The Distributed Products are sold with an assurance type warranty ranging from between three years to ten years, depending on the specific part. The AlterG Anti-Gravity systems are sold with a one-year assurance type warranty for parts and labor in the US and with a two-year assurance type warranty for parts for distributors.
The AlterG Anti-Gravity systems are sold with a one-year assurance type warranty for parts and labor in the US and with a two-year assurance type warranty for parts for distributors. We also sell extended warranties for AlterG Anti-Gravity systems for the periods after the expiration of the original warranty.
On September 27, 2021, we signed a purchase agreement with certain institutional investors for the issuance and sale of 15,403,014 ordinary shares, pre-funded warrants to purchase up to an aggregate of 610,504 ordinary shares and ordinary warrants to purchase up to an aggregate of 8,006,759 ordinary shares at an exercise price of $2.00 per share.
Equity Offerings and Warrant Exercises On January 7, 2025, we entered into a purchase agreement with certain institutional investors for the issuance and sale of 1,818,183 ordinary shares and ordinary warrants to purchase up to an aggregate of 1,818,183 ordinary shares at an exercise price of $2.75 per share. Each ordinary share was sold at an offering price of $2.75.
The AlterG Anti-Gravity systems are sold with a one-year factory warranty covering parts and services in the U.S. and a two-year factory warranty covering parts only in the rest of the world. Warranties for our Distributed Products range between three years to ten years depending on the specific product and part and are the responsibility of the manufacturers.
The warranty covers all elements of the systems (except the batteries, which carry a one-year warranty), other than repairs for normal wear and tear. The AlterG Anti-Gravity systems are sold with a one-year factory warranty covering parts and services in the U.S. and a two-year factory warranty covering parts only in the rest of the world.
Financial income, net Our financial income, net for 2023 and 2022 was as follows (in thousands): Years Ended December 31, 2023 2022 Financial income, net $ 1,467 $ *) Financial income, net, reflects an increase in financial income of $1.5 million during 2023 as compared to 2022.
Impairment charges Years Ended December 31, 2024 2023 Impairment charges $ 9,794 $ - During the year ended December 31, 2024, we recorded an impairment charge of $9.8 million primarily related to certain acquired intangible assets, due to lower-than-expected financial performance Financial income, net Our financial income, net for 2024 and 2023 was as follows (in thousands): Years Ended December 31, 2024 2023 Financial income, net $ 448 $ 1,467 Financial income, net, reflects a decrease in financial income of $1.0 million during 2024 as compared to 2023.
Components of Our Statements of Operations Revenue We currently rely, and in the future will rely, on sales and rentals of our ReWalk Personal and ReWalk Rehabilitation Exoskeleton devices, sales and rentals of our AlterG Anti-Gravity systems and related consumables and services, and sales of our ReStore exo-suit device, additional Distributed Products such as the MyoCycle, and related extended service contracts for the SCI Products.
Additionally, to date, several private insurers in the United States and Europe are providing reimbursement for ReWalk in certain cases. Components of Our Statements of Operations Revenue We currently rely, and in the future will rely, on sales of our ReWalk Personal Exoskeletons, AlterG Anti-Gravity systems, MyoCycle FES cycles, and related consumables, services, and extended warranties for our revenue.
We have registered up to $100 million of ordinary shares warrants and/or debt securities and certain other outstanding securities with registration rights on our registration statement on Form S-3, which was declared effective by the SEC in May 2022. 67 Equity Offerings and Warrant Exercises On February 19, 2021, the Company entered into a purchase agreement with certain institutional and other accredited investors for the issuance and sale of 10,921,502 ordinary shares, par value NIS 0.25 per share at $3.6625 per ordinary share and warrants to purchase up to an aggregate of 5,460,751 ordinary shares with an exercise price of $3.60 per share, exercisable from February 19, 2021, until August 26, 2026.
We have registered up to $100 million of ordinary shares warrants and/or debt securities and certain other outstanding securities with registration rights on our registration statement on Form S-3, which was declared effective by the SEC in May 2022.
The AlterG business contributed $1.1 million of general and administrative expenses for 2023. General and administrative expenses also included $2.5 million of M&A-related expenses, and $0.1 million of amortization of intangible assets from the acquisition of AlterG offset partially by $0.3 remeasurement of earn out liability.
The decrease was mainly driven by remeasurement of earn out liability of $2.6 million and decrease in M&A related expenses to the AlterG acquisition in 2023.
Additionally, we issued warrants to purchase up to 960,811 ordinary shares, with an exercise price of $2.5438 per share, exercisable from September 27, 2021, until September 27, 2026, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in our September 2021 private placement offering.
Additionally, we issued warrants to purchase up to 109,091 ordinary shares, with an exercise price of $3.4375 per share, exercisable at any time and from time to time, in whole or in part, following the date of issuance and ending three years from the date of issuance, to certain representatives of H.C.
The extension was approved by an Israeli court on February 9, 2023, and it expired on August 9, 2023. As of December 31, 2023, pursuant to the share repurchase program, we had repurchased a total of 4,022,607 of our outstanding ordinary shares at a total cost of $3.5 million.
The extension was approved by an Israeli court on February 9, 2023, and it expired on August 9, 2023.
AlterG had federal net operating loss carry forwards totalling $31.4 million and state net operating loss carry forwards of $47.2 million, set to expire in 2025 and 2028, respectively. Our taxable income generated outside of Israel will be subject to the regular corporate tax rate in the applicable jurisdictions.
Our taxable income generated outside of Israel will be subject to the regular corporate tax rate in the applicable jurisdictions. As a result, our effective tax rate will be a function of the relative proportion of our taxable income that is generated in those locations compared to our overall net income.
Of this increase, $7.7 million was attributable to the AlterG business, which was acquired on August 11, 2023. The remaining increase of $0.7 million was a result of a higher revenues from ReWalk Personal Exoskeletons and MyoCycles.
Revenue was $25.7 million, an increase of $11.8 million, or 85%, during 2024 as compared to 2023. Of this increase, $7.9 million was attributable to the full year impact of the AlterG business. The remaining increase of $3.9 million was primarily from higher revenue from ReWalk Personal Exoskeletons in the U.S. due to Medicare coverage.
Removed
In the second quarter of 2020, we also became the exclusive distributor of the MediTouch Tutor movement biofeedback systems in the United States; however, due to unsatisfactory sales performance of the MediTouch product lines, we terminated this agreement as of January 31, 2023.
Added
In June 2024, we submitted to the FDA a 510(k) premarket notification for ReWalk 7 Personal Exoskeleton device, a next-generation ReWalk model, and such 510(k) is pending FDA review. 64 We have sought to expand our product offerings beyond the SCI Products through internal development, distribution agreements, and acquisitions.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+2 added−0 removed2 unchanged
Biggest changeOther Market Risks We do not believe that we have material exposure to interest rate risks or to inflationary risks.
Biggest changeA 10% increase or decrease in the value of the euro against the U.S. dollar would have decreased or increased our net loss by approximately $73 thousand in 2024. 76 Other Market Risks We do not believe that we have material exposure to interest rate risks or to inflationary risks. ITEM 8 .
Accordingly, changes in the value of the NIS and Euro relative to the U.S. dollar in each of the years 2023, 2022, and 2021 impacted amounts recorded on our consolidated statements of operations for these periods. We expect that the denominations of our revenue and expenses in 2024 will be consistent with what we experienced in 2023.
Accordingly, changes in the value of the NIS and Euro relative to the U.S. dollar in each of the years 2024, 2023, and 2022 impacted amounts recorded on our consolidated statements of operations for these periods. We expect that the denominations of our revenue and expenses in 2025 will be consistent with what we experienced in 2024.
The following table presents information about the devaluation in the exchange rates of the NIS and euro against the U.S. dollar in 2023, 2022 and 2021: Change in Average Exchange Rate Period NIS against the U.S. Dollar (%) Euro against the U.S.
The following table presents information about the devaluation in the exchange rates of the NIS and euro against the U.S. dollar in 2024, 2023 and 2022: Change in Average Exchange Rate Period NIS against the U.S. Dollar (%) Euro against the U.S.
A 10% increase or decrease in the value of the NIS against the U.S. dollar would have decreased or increased our net loss by approximately $513 thousand in 2023. A 10% increase or decrease in the value of the euro against the U.S. dollar would have decreased or increased our net loss by approximately $14 thousand in 2023.
A 10% increase or decrease in the value of the NIS against the U.S. dollar would have decreased or increased our net loss by approximately $498 thousand in 2024.
Dollar (%) 2023 (9.00 ) 2.67 2022 3.70 10.84 2021 (6.38 ) 3.46 The figures above represent the change in the average exchange rate in the given period compared to the average exchange rate in the immediately preceding period. Negative figures represent the devaluation of the U.S. dollar compared to the NIS or the euro.
Dollar (%) 2024 (0.25 ) 0.06 2023 (9.00 ) 2.67 2022 3.70 10.84 The figures above represent the change in the average exchange rate in the given period compared to the average exchange rate in the immediately preceding period. Negative figures represent the appreciation of the U.S. dollar compared to the NIS or the euro.
Added
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The information required hereunder is set forth under Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Consolidated Statements of Operations, Statements of Changes in Shareholders’ Equity, Consolidated Statements of Cash Flows and Notes to Consolidated Financial Statements included in the Consolidated Financial Statements that are a part of this annual report.
Added
Other financial information is included in the Consolidated Financial Statements that are a part of this annual report. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.

Other LFWD 10-K year-over-year comparisons