ReWalk Robotics announces board changes and shareholder decisions

Published 04/09/2024, 23:18
ReWalk Robotics announces board changes and shareholder decisions

ReWalk Robotics Ltd. (NASDAQ:RWLK), a medical device company, announced significant changes to its board and shared the outcomes of its Annual Meeting of Shareholders held today.

The company, which specializes in orthopedic and prosthetic devices, saw the departure of Jeff Dykan, a Class I director and chairperson of the board, effective as of the meeting's close. Joseph Turk was appointed as the new chairperson, a decision that took effect today as well.

The annual meeting resulted in the re-election of Hadar Levy and Joseph Turk as Class I directors, with their terms extending until the 2027 annual meeting.

Additionally, shareholders approved the change of the company's name to "Lifeward Ltd." or a similar name as determined by the board and approved by the Israel Registrar of Companies. This change will also be reflected in an amendment to the company's Articles of Association.

In contrast, several proposals did not receive the required level of shareholder support. These included the approval of the ReWalk Robotics Ltd. 2024 Incentive Compensation Plan, the payment of double annual fees and equity grants to the chairperson of the board, a one-time grant of restricted stock units to CEO Larry Jasinski, changes to Jasinski's variable compensation terms, and the approval of equity compensation issuance to board member Randel E. Richner in connection with additional consulting services.

The shareholder meeting also saw the reappointment of Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global, as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2024. However, an advisory proposal on the compensation of the company's named executive officers did not pass.

The board's Compensation Committee has acknowledged the results of the advisory "say-on-pay" proposal and plans to consider shareholder feedback when setting future executive compensation.

In other recent news, Lifeward matched revenue expectations and reported a smaller-than-anticipated net loss per share in its second-quarter financial report.

The company disclosed revenues of $6.7 million and a net loss of $0.50 per share, less severe than the expected $0.55 per share loss. Following these results, H.C. Wainwright maintained a Buy rating on Lifeward and increased the price target to $13.00 from $9.00.

Lifeward confirmed its revenue guidance for 2024, anticipating a range between $28 million and $32 million. H.C. Wainwright projects Lifeward's total revenues for the year to be around $30.8 million, with a predicted net loss of $1.62 per share. As of the second quarter's end, Lifeward reported approximately $15.1 million in cash and cash equivalents, which H.C. Wainwright believes should sustain the company's operations until the first quarter of 2026.

InvestingPro Insights

As Lifeward Ltd., formerly known as ReWalk Robotics Ltd., navigates through its leadership transition and rebranding, the company's financial health and market performance remain critical for investors. According to recent InvestingPro data, Lifeward holds a market capitalization of $28.31 million. Despite a challenging market environment, the company has demonstrated impressive revenue growth, with a 313.3% increase over the last twelve months as of Q2 2024. This growth is further highlighted by a quarterly revenue surge of 401.65% in Q2 2024.

InvestingPro Tips suggest that Lifeward is managing its finances cautiously, holding more cash than debt on its balance sheet, which is a positive sign for liquidity. Moreover, analysts foresee sales growth in the current year, which may indicate potential for future expansion. However, it's worth noting that the company's stock has experienced significant volatility and a downward trend in price, trading near its 52-week low. Investors should be aware that analysts do not expect the company to be profitable this year, and the stock has not performed well over the past month, six months, or even the last decade.

For those considering an investment in Lifeward, these metrics and additional InvestingPro Tips, which total 13 for the company, can provide valuable insights into its performance and prospects. To explore further, investors can visit InvestingPro for a comprehensive analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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