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What changed in Lifeward Ltd.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Lifeward Ltd.'s 2024 and 2025 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 2025 report.

+165 added−133 removedSource: 10-K (2026-03-18) vs 10-K (2025-03-07)

Top changes in Lifeward Ltd.'s 2025 10-K

165 paragraphs added · 133 removed · 90 edited across 4 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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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.
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 Chief Financial Officer on matters relating to our cybersecurity program and cybersecurity risk management. 68
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.
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.
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.
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 . 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.
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.
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 Chief Financial Officer , is responsible for the day-to-day management of 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 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.
Biggest changeDividends 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 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.
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 2026, linked to the annual change in the Israeli Consumer Price Index), including, but not limited to, income derived from dividends, interest, and capital gains.
However, non-Israeli corporations will not be entitled to the foregoing exemption if Israeli residents (i) have a controlling interest of more than 25% in such non-Israeli corporation or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenue or profits of such non-Israeli corporation, whether directly or indirectly.
However, non-Israeli entities will not be entitled to the foregoing exemption if Israeli residents (i) have a controlling interest of more than 25% in such non-Israeli entity or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenue or profits of such non-Israeli entity, whether directly or indirectly.
In 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 January 2024, the symbol for our ordinary shares was changed to “LFWD”. As of March 18, 2026, we had approximately 2,699 shareholders of record. 69 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.
The reduced treaty rate, if applicable, is 15% in the case of dividends paid from income derived from a Beneficiary or Preferred Enterprise (which is entitled to corporate tax benefits) or 12.5% otherwise.
The reduced treaty rate, if applicable, is 15% in the case of dividends paid from income which was subject to benefits under the Encouragement of Capital Investments Law, 5719-1959 (which is entitled to corporate tax benefits) or 12.5% otherwise.
The determination of whether the individual is a substantial shareholder will be made on the date on which the securities are sold.
The determination of whether the individual is a substantial shareholder will be made on the date on which the securities are sold. 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.
Recent Sales of Unregistered Equity Securities None. Purchases of Equity Securities by the Issuer and Affiliated Purchasers None. ITEM 6. [RESERVED]
In addition, beginning in 2025, certain capital income, including dividends, interest and capital gains, may be subject to an additional 2% surtax in Israel to the extent such income exceeds the above-mentioned threshold. 70 Recent Sales of Unregistered Equity Securities None. Purchases of Equity Securities by the Issuer and Affiliated Purchasers None. ITEM 6. [RESERVED]

Item 7. Management's Discussion & Analysis

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

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Biggest changeManagement’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.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 7, 2025, which is available free of charge on the SECs website at www.sec.gov and at golifeward.com, and is incorporated by reference herein.
The preparation of our financial statements requires us to make estimates, judgments and assumptions that can affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
The preparation of our financial statements requires us to make estimates, judgments and assumptions that can affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
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.
Risk Factors-We have concluded that there is substantial doubt as to our ability to continue as a going concern.” 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.
Operating Expenses Research and Development Expenses, Net Research and development expenses, net consist primarily of salaries and related personnel costs including share-based compensation, supplies, materials, and consulting expenses associated with to product design and development, clinical studies, regulatory submissions, patent costs, sponsored research and other related activities. We expense all research and development expenses as they are incurred.
Operating Expenses Research and Development Expenses, Net Research and development expenses, net consist primarily of salaries and related personnel costs including share-based compensation, supplies, materials, and consulting expenses associated with product design and development, clinical studies, regulatory submissions, patent costs, sponsored research and other related activities. We expense all research and development expenses as they are incurred.
We expect gross profit and gross margin will expand in the future as we increase our revenue volumes and realize operating efficiencies associated with greater scale which will reduce the cost of revenue as a percentage of revenue.
We expect that gross profit and gross margin will expand in the future as we increase our revenue volumes and realize operating efficiencies associated with greater scale which will reduce the cost of revenue as a percentage of revenue.
These limitations do not apply to secondary offerings for the resale of our ordinary shares or other securities by selling shareholders or to the issuance of ordinary shares upon conversion by holders of convertible securities, such as warrants.
These limitations do not apply to secondary offerings for the resale of our ordinary shares or other securities by selling shareholders or to the issuance of ordinary shares upon conversion by holders of outstanding convertible securities, such as warrants.
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.
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. 79 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 will continue to evaluate other products for distribution or acquisition that can broaden our product offerings further to help individuals with neurological injury and disability.
We will continue to evaluate other products for distribution or acquisition that can broaden our product offerings further to help individuals with injury and disability.
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.
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 6,000 facilities globally in more than 40 countries.
In March 2025, we announced an agreement to increase our penetration of SCI Products into the workers’ compensation market in which CorLife, LLC., a Delaware limited liability company (“CorLife”) and a division of Numotion, the nation’s leading and largest provider of products and services that provide mobility, health and personal independence.
In March 2025, we announced an agreement with CorLife, LLC., a Delaware limited liability company (“CorLife”) and a division of Numotion, the nation’s leading and largest provider of products and services that provide mobility, health and personal independence, to increase our penetration of SCI Products into the workers’ compensation market.
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.
As of December 31, 2025, 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 consolidated financial statements for the year ended December 31, 2024 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern.
The consolidated financial statements for the year ended December 31, 2025 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern.
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.
In markets where we sell direct to consumers, we have established relationships with clinics and rehabilitation centers, professional and college sports teams, 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, Hudson, Massachusetts, and Berlin, Germany.
Trend Information For information on significant known trends, please see “Part I-Item 1. Business – Overview” in this annual report.
Trend Information For information on significant known trends, please see “Part I-Item 1. Business – Overview” in this annual report. 84
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.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 A discussion of changes in our results of operations in 2024 compared to 2023 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.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 A discussion of changes in our cash flows in 2024 compared to 2023 has been omitted from this annual report on Form 10-K but may be found in “Part I. Item 7.
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 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 3.19:$1.00, which was the applicable exchange rate as of December 31, 2025. Off-Balance Sheet Arrangements We had no off-balance sheet arrangements or guarantees of third-party obligations during the periods presented.
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.
Grants and Other Funding Israel Innovation Authority (formerly known as the Office of the Chief Scientist) From our inception through December 31, 2025, we have received approximately $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.
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.
In 2024, 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 that is at least five years post-injury, with Medicare representing a majority of this percentage.
Of the royalty-bearing grants received, we have paid royalties to the IIA in the total amount of $114 thousand.
Of the royalty-bearing grants received, we have paid royalties to the IIA in the total amount of $117 thousand.
The Company intends to finance operating costs over the next twelve months with existing cash on hand, potential reduction in operating cash burn and future issuances of equity and debt securities, or through a combination of the foregoing.
We intend to finance operating costs over the next twelve months with existing cash on hand, potential reduction in operating cash burn and future issuances of equity and debt securities, or through a combination of the foregoing.
Liquidity and Capital Resources Sources of Liquidity and Outlook Since inception, we have funded our operations primarily through the sale of our equity securities and convertible notes to investors in private placements, the sale of our equity securities in public offerings, cash exercises of outstanding warrants and the incurrence of bank debt.
Liquidity and Capital Resources Sources of Liquidity and Outlook Since inception, we have funded our operations primarily through the sale of our equity securities and convertible notes to investors in private placements, the sale of our equity securities in public offerings, cash exercises of outstanding warrants, the incurrence of bank debt and loans (including the [Loan] from Oramed.
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.
Foreign currency exchange changes reflect gains or losses related to transactions denominated in currencies other than the U.S. dollar. 75 Taxes on Income As of December 31, 2025, 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 $279.9 million.
With the recent establishment of a Medicare reimbursement pathway for the ReWalk product, the Company includes variable consideration when, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.
With the recent establishment of a Medicare reimbursement pathway for the ReWalk product, the Company includes variable consideration in the form of implicit price concessions if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.
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.
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, 2025 Compared to Year Ended December 31, 2024 Revenue Our revenue for 2025 and 2024 were as follows (dollars in thousands, except unit amounts): Years Ended December 31, 2025 2024 Revenue $ 22,034 $ 25,663 76 Revenue consists primarily of transactions for our portfolio of ReWalk, AlterG, ReStore and MyoCycle systems.
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.
Gross Profit Our gross profit for 2025 and 2024 were as follows (in thousands): Years Ended December 31, 2025 2024 Gross profit $ 8,428 $ 8,216 Gross profit was $8.4 million, or 38% of revenue, for 2025, as compared to a gross profit of $8.2 million, or 32% of revenue, for 2024.
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.
Additionally, we issued warrants to purchase up to 9,088 ordinary shares, with an exercise price of $41.25 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.
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.
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 151,515 ordinary shares and ordinary warrants to purchase up to an aggregate of 151,514 ordinary shares at an exercise price of $33 per share. Each ordinary share was sold at an offering price of $33.
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.
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 January 2026 (the “2026 Shelf Registration Statement”).
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.
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, were collected to demonstrate the safety and efficacy of this feature and support the FDA submission. In March 2025, we received 510(k) clearance from the U.S.
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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 7, 2025, 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. The cost of revenue also includes royalties and expenses related to royalty-bearing research and development grants.
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.
At the time of filing this annual report, we were subject to these limitations because our public float did not reach at least $75 million in the 60 days preceding the filing of this annual report.
At the time of filing this Annual Report , we were subject to these limitations because our public float did not reach at least $75 million in the 60 days preceding the filing of this Annual Report. We will continue to be subject to these limitations until such time as our public float reaches at least $75 million.
As of December 31, 2024, the Company had cash and cash equivalents of $6.7 million. The Company has an accumulated deficit in the total amount of $264.8 million as of December 31, 2024 and further losses are anticipated in the development of its business. Those factors raise substantial doubt about the Company’s ability to continue as a going concern.
As of December 31, 2025, we had cash and cash equivalents of $2.2 million. We had an accumulated deficit in the total amount of $284.7 million as of December 31, 2025 and further losses are anticipated in the development of its business. Those factors raise substantial doubt about the Company’s ability to continue as a going concern.
CMS reimburses items classified under the brace benefit category using a lump sum payment methodology. On April 11, 2024, CMS revised its April 2024 Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (“DMEPOS”) Fee Schedule to include a final lump-sum Medicare purchase fee schedule amount for personal exoskeletons (HCPCS code K1007) with an established rate of $91,032.
On April 11, 2024, CMS revised its April 2024 Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (“DMEPOS”) Fee Schedule to include a final lump-sum Medicare purchase fee schedule amount for personal exoskeletons (HCPCS code K1007) with an established rate of $91,032.
While a broad uniform policy of coverage and reimbursement by third-party commercial payors currently does not exist in the United States for exoskeleton technologies such as the ReWalk Personal Exoskeleton, we are pursuing various paths of reimbursement and support fundraising efforts by institutions and clinics, such as the VHA policy that was issued in December 2015 for the evaluation, training, and procurement of ReWalk Personal Exoskeleton systems for all qualifying veterans living with SCI across the United States.
While a broad uniform policy of coverage and reimbursement by third-party commercial payors currently does not exist in the United States for exoskeleton technologies such as the ReWalk Personal Exoskeleton, we are pursuing various paths of reimbursement, such as the VHA policy that was issued in December 2015 for the evaluation, training, and procurement of ReWalk Personal Exoskeleton systems for all qualifying veterans living with SCI across the United States. 72 We have engaged with CMS regarding the Medicare coverage framework applicable to personal exoskeletons.
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.
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.
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.
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 paid a cash purchase price of approximately $19 million at closing.
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.
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.
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.
The ReStore is a powered, lightweight soft exo-suit intended for use during the rehabilitation of individuals with lower limb disabilities due to stroke. Sales of the device in the European Union ceased in May 2024.
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.
Our principal markets are primarily in the United States and Europe with some lesser sales in Asia, the Middle East and South America. 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.
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.
For the MyoCycle product line, which we distribute, 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 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.
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 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.
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, government third-party payors and through channel partnerships. We also expect increased shipments of our AlterG Anti-Gravity systems over time as we continue to expand our penetration of rehabilitation clinics in the U.S. and internationally.
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.
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 and market access activities, travel, marketing, advertising, tradeshows and conferences, lobbying, and public relations activities.
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.
General and Administrative Expense Our general and administrative expense for 2025 and 2024 was as follows (in thousands): Years Ended December 31, 2025 2024 General and administrative $ 8,195 $ 5,195 General and administrative expense was $8.2 million, an increase of $3.0 million, or 58%, as compared to 2024.
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 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.
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.
Recently Issued and Adopted Accounting Pronouncements A discussion of recent accounting pronouncements is included in Note 2z, New Accounting Pronouncements, to our consolidated financial statements included elsewhere in this annual report.
Our anticipated primary uses of cash are funding (i) sales, marketing, and promotion activities related to market development for our ReWalk Personal Exoskeleton device and AlterG Anti-Gravity system, broadening third-party payor and CMS coverage for our ReWalk Personal Exoskeleton device and commercializing our new product lines added through distribution agreements; (ii) development of future generation designs for our ReWalk device, new AlterG products utilizing DAP technology, and our lightweight exo-suit technology for potential home personal health utilization for multiple indications; (iii) routine product updates; (iv) potential acquisitions of businesses, such as our recent acquisition of AlterG, and (v) general corporate purposes, including working capital needs.
Notwithstanding, there can be no assurance that we will be able to raise additional funds or achieve or sustain profitability or positive cash flows from operations. 81 Our anticipated primary uses of cash are funding (i) sales, marketing, and promotion activities related to market development for our ReWalk Personal Exoskeleton device and AlterG Anti-Gravity system, broadening third-party payor and CMS coverage for our ReWalk Personal Exoskeleton device and commercializing our new product lines added through distribution agreements; (ii) development of future generation designs for our ReWalk device, new AlterG products utilizing DAP technology, and the development and commercialization of the upper-body exoskeleton technology acquired from Skelable for potential personal health and rehabilitation applications across multiple indications; (iii) routine product updates; (iv) potential acquisitions of businesses and (v) general corporate purposes, including working capital needs.
See Note 2 to our consolidated financial statements presented elsewhere in this annual report for a description of the significant accounting policies that we used to prepare our consolidated financial statements. The critical accounting policies that were impacted by the estimates, judgments and assumptions used in the preparation of our consolidated financial statements are discussed below.
In addition to the estimates identified above that are considered critical, we make many other accounting estimates in preparing our financial statements and related disclosures. See Note 2 to our consolidated financial statements presented elsewhere in this annual report for a description of the significant accounting policies that we used to prepare our consolidated financial statements.
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.
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.
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.
In the near term, our sales and marketing expenses are expected to be driven by our efforts to facilitate growth in sales of our commercial product lines, expand reimbursement coverage for our ReWalk Personal Exoskeleton device, support training activities of ReWalk customers, promote sales through channel partners, and increase adoption of our AlterG Anti-Gravity systems through greater penetration of rehabilitation clinics and hospitals and expansion of our distributor network internationally.
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.
In the second quarter of 2020, we signed an agreement to become 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. We continue to distribute these products; however, our distribution rights are no longer exclusive.
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.
Research and Development Expense, Net Our research and development expense, net for 2025 and 2024 was as follows (in thousands): Years Ended December 31, 2025 2024 Research and development expense, net $ 3,249 $ 4,625 Research and development expense was $3.2 million in 2025, a decrease of $1.4 million, or 30%, as compared to 2024.
In addition, we may seek additional capital through arrangements with strategic partners or from other sources and we will continue to address our cost structure. Notwithstanding, there can be no assurance that we will be able to raise additional funds or achieve or sustain profitability or positive cash flows from operations.
In addition, we may seek additional capital through arrangements with strategic partners or from other sources and we will continue to address our cost structure.
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.
Financial (Expeses) Income, Net Financial income and expenses consist primarily of bank commissions, foreign exchange gains and losses, interest income earned on investments in short-term deposits, interest expense on our outstanding borrowings, and changes in the fair value of derivative liabilities associated with our loan arrangements. Interest income consists of interest earned on our cash and cash equivalent balances.
Gross margin is also expected to increase in the future as a result of the transition of the production of the AlterG systems from our factory in Fremont, California, where we discontinued operations as of December 31, 2024, to a contract manufacturer.
We expect gross profit and gross margin to improve over time as revenue volumes increase and we realize operating efficiencies associated with greater scale. Gross margin is also expected to improve as a result of the transition of AlterG system production from our Fremont, California facility, where operations were discontinued as of December 31, 2024, to a contract manufacturer.
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.
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. Our revenue is derived from a combination of third-party payors, including private and government employers, institutions, and self-payors.
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.
Food and Drug Administration (“FDA”) for the ReWalk 7 Personal Exoskeleton device, a next-generation ReWalk model. 71 We have sought to expand our product offerings beyond the SCI Products through internal development, distribution agreements, and acquisitions. We have developed our ReStore Exo-Suit device, which we began commercializing in June 2019.
We base our estimates, judgments and assumptions on historical experience and other factors that we believe to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known. Besides the estimates identified above that are considered critical, we make many other accounting estimates in preparing our financial statements and related disclosures.
We base our estimates, judgments and assumptions on historical experience and other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates as circumstances change and additional information becomes known.
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.
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.
The Company reassesses variable consideration at each reporting period and, if necessary, these estimates are adjusted to reflect the anticipated amounts to be collected when those facts and circumstances become known. The ReStore device is sold with a two-year warranty which is considered as assurance type warranty.
The Company reassesses variable consideration at each reporting period and, if necessary, these estimates are adjusted to reflect the anticipated amounts to be collected when those facts and circumstances become known. For contracts with Medicare, the Company determines the amount of variable consideration that should be included at the transaction price, using contractual agreements and historical reimbursement experience with Medicare.
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.
When we file our next annual report for the year ended December 31, 2026, we will also be required to re-test our status under these rules.
The decrease in financial income was primarily due to lower yielding interest earning accounts, a decline in interest income, and unfavourable exchange rate fluctuations. 70 Income Tax Our income tax for 2024 and 2023 was as follows (in thousands): Years Ended December 31, 2024 2023 Taxes on income (benefit) $ 43 $ (12 ) Income tax increased by $55 thousand during 2024 as compared to 2023, mainly due to our subsidiary’s activity in Germany.
The decrease was mainly attributable to interest expense recognized on the Oramed short-term loan in 2025, lower yields on a reduced cash balance reflecting fewer funds on deposit, and unfavorable foreign currency exchange rate fluctuations. 78 Income Tax Our Income tax expense (benefit) for 2025 and 2024 was as follows (in thousands): Years Ended December 31, 2025 2024 Taxes on income (benefit) $ (55 ) $ 43 Income tax changed by $98 thousand during 2025 as compared to 2024, primarily due to lower current tax expenses in certain foreign jurisdictions.
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.
Financial (expense) income, net Our financial income, net for 2025 and 2024 was as follows (in thousands): Years Ended December 31, 2025 2024 Financial (expenses) income, net $ (295 ) $ 448 Financial (expenses) income, net, reflects a decrease in financial income of $0.7 million during 2025 as compared to 2024.
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.
In addition, we expect to invest in the development and integration of technologies acquired as part of the Skelable transaction. 77 Sales and Marketing Expense Our sales and marketing expense for 2025 and 2024 was as follows (in thousands): Years Ended December 31, 2025 2024 Sales and marketing expense $ 13,875 $ 17,949 Sales and marketing expense was $13.9 million in 2025, a decrease of $4.1 million, or 23%, as compared to 2024.
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.
State NOLs will begin to expire in 2028, subject to applicable state tax laws. Our taxable income generated outside of Israel will be subject to the applicable corporate tax rates in those jurisdictions. Accordingly, our effective tax rate will depend on the geographic distribution of our taxable income.
A service type warranty is accounted as a separate performance obligation and revenue is recognized ratably over the life of the warranty.
Service-type warranty is accounted for as a separate performance obligation, and revenue is recognized ratably over the service period as the customer consumes the benefit over the service term. Goodwill Impairment Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination.
We paid a cash purchase price of approximately $19 million at closing and additional cash earnout payments may be paid based upon a percentage of AlterG’s revenue growth over the two years following the closing.
The purchase agreement also provided for the potential of additional cash earnout payments based on AlterG’s revenue growth over the two years following the closing; however, no earnout payments were earned.
As 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.
Cash Flows Years Ended December 31, 2025 2024 2023 Net cash used in operating activities $ (16,826 ) $ (21,718 ) $ (20,667 ) Net cash used in investing activities (16 ) - (18,149 ) Net cash provided by (used in) financing activities 12,203 - (992 ) Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash 110 34 45 Net cash flow $ (4,529 ) $ (21,684 ) $ (39,763 ) 83 Year Ended December 31, 2025 to Year Ended December 31, 2024 Net Cash Used in Operating Activities Net cash used in operating activities was $16.8 million in 2025, a decrease of $4.9 million as compared to 2024.
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 decrease is primarily attributable to lower costs associated with the development projects for the ReWalk 7 and NEO products, which were substantially completed. Following the FDA clearance of the ReWalk 7 next-generation exoskeleton model in 2025, we expect to focus our research and development efforts primarily on product improvements and ongoing enhancements to our current products.
(3) Our operating leases consist of leases for our facilities in the United States, Israel and Germany and motor vehicles in Israel. (4) Earnout payments based on AlterG’s revenue growth during the two consecutive trailing twelve-month periods following closing of the acquisition.
Purchase orders are placed with suppliers based on our sales forecasts and anticipated production requirements. (2) Our operating leases consist of leases for our facilities in the United States, Israel and Germany and motor vehicles in Israel.
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.
Net Cash Used in Investing Activities Net cash used in investing activities increased by $16 thousand in 2025 compared to 2024, primarily reflecting slightly higher purchases of property and equipment.
Removed
In the second quarter of 2020, we finalized and moved to implement two separate agreements to distribute additional product lines in the United States, one of which we later discontinued.
Added
In February 2026, we entered into an Intellectual Property Assignment and Technology Transfer Agreement with Skelable Ltd., an Israeli technology company, pursuant to which we agreed to acquire certain intellectual property and related technology assets associated with a powered upper-body robotic orthotic system designed to assist individuals with impaired upper-limb function, including stroke survivors.
Removed
We are in the research stage of ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke, and we are currently evaluating the reimbursement landscape and the potential clinical impact of this device.
Added
The transaction remains subject to customary closing conditions. As part of the transaction, certain key employees of Skelable are expected to join our company. The consideration consists primarily of our ordinary shares and is subject to the achievement of certain milestones. The technology remains under development and is intended to expand our neurorehabilitation platform beyond lower-limb exoskeleton systems.
Removed
This product would be a complementary product to ReStore as it provides active assistance to the ankle during plantar flexion and dorsiflexion for gait and mobility improvement in the home environment, and it received Breakthrough Device Designation from the FDA in November 2021.
Added
In December 2025, we announced a distribution agreement with Verita Neuro, a provider of intensive neurological rehabilitation services. Pursuant to the agreement, Verita Neuro will serve as a distributor of the ReWalk Personal Exoskeleton in certain international markets, including Mexico, Thailand and the United Arab Emirates.
Removed
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−0 removed3 unchanged
Biggest changeA 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.
Biggest changeA 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 $555 thousand in 2025. 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 $92 thousand in 2025.
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 financial information is included in the Consolidated Financial Statements that are a part of this annual report. 85 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
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.
Accordingly, changes in the value of the NIS and Euro relative to the U.S. dollar in each of the years 2025, 2024, and 2023 impacted amounts recorded on our consolidated statements of operations for these periods. We expect that the denominations of our revenue and expenses in 2026 will be consistent with what we experienced in 2025.
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.
The following table presents information about the devaluation in the exchange rates of the NIS and euro against the U.S. dollar in 2025, 2024 and 2023: Change in Average Exchange Rate Period NIS against the U.S. Dollar (%) Euro against the U.S.
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.
Dollar (%) 2025 7.13 4.20 2024 (0.25 ) 0.06 2023 (9.00 ) 2.67 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.
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 $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 .
Other Market Risks We do not believe that we have material exposure to interest rate risks or to inflationary risks. ITEM 8 .

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