Good day, ladies and gentlemen, and welcome to the Q4 2017 ReWalk Robotics Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to introduce your host for the conference call, Mr. Ilanit Allen, you may begin now.

Thank you, Kevin. Good morning, and welcome to ReWalk Robotics fourth quarter and full year 2017 earnings call. This is Ilanit Allen of In-Site Communications, Investor Relations for ReWalk. With me on today's call are Larry Jasinski, Chief Executive Officer; Ori Gon, Chief Financial Officer of ReWalk; and Kevin Hershberger, former CFO. This morning, the company issued a press release detailing financial results for the three months and year ended December 31, 2017. This can be accessed through the Investor Relations section of the ReWalk website at rewalk.com, and you can also access the webcast of this call from there. Before we get started, I would like to remind everyone that any statements made on today's conference call that express a belief, expectation, projection, forecast, anticipation or intent regarding future events, and the company's future performance may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act. These forward-looking statements are based on information available to ReWalk management as of today and involve risks and uncertainties, including those noted in this morning's press release and ReWalk's filings with the SEC. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. ReWalk specifically disclaims any intent or obligation to update these forward-looking statements, except as required by law. A telephone replay of the call will be available shortly after completion of this call for the next two weeks. You'll find the dial-in information in today's press release. The archived webcast will be available for one year on the company's website, rewalk.com. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on March 8, 2017. Since then, ReWalk may have made announcements related to the topics discussed, so please reference the company's most recent press releases and filings. And with that, I'll turn the call over to ReWalk's CEO, Larry Jasinski.

Thank you, Ilanit. Good morning, everyone from snowy Boston, thank you for joining us. Before I review our 2017 results. I'd like to discuss our announcement this morning that ReWalk and Timwell Corporation Limited, its affiliates and RealCan Ambrum Healthcare Industry Partnership Enterprise have entered into a broad strategic agreement. This agreement establishes a joint venture to develop, manufacture and market the ReWalk and Restore devices throughout China and includes an equity investment of US$20 million by Timwell in exchange for 16 million ReWalk shares which reflects a per share price of $1.25. The equity investment will be structured as an initial $5 million investment in escrow to be released upon shareholder approval of the transaction. A $10 million investment upon the formation of the joint venture established in China between RealCan Ambrum and ReWalk, which is planned for mid-year and 5 million which is expected by year-end or no later than April 1, 2019. In the near term we expect the joint venture to focus on the Restore soft suit exoskeleton for stroke patients in China with a number of stroke rehabilitation centers are expected to exceed those in the U.S. and EU combined by 2021. Following that, we intend to commercialize our SCI products, ReWalk Personal 6.0, and ReWalk rehabilitation systems for the Chinese market. This significant expansion in to China is a key component of our robot strategy. It will allow us to increase revenue from new market segments and to expand into key markets. We also expect that the lower price of the soft exosuit will allow greater market penetration and allow us to lower our overall cost structure since we plan to develop the devices through local manufacturing with our Chinese partner. The JV will primarily be funded by RealCan Pharma, a publicly traded, diversified…

Thanks Larry, Q4 revenue was $1.5 million compared to $1.6 million in the prior year quarter and included 10 favorable commercial coverage decisions of which one was from the VA. For the full year, we had revenue of $7.8 million, an increase of 32% compared with $5.9 million in 2016. This increase is primarily due sales mix, increase sales for the VA and our ability to convert previously rented units into purchases. We placed a total of 23 units in Q4 of which four where in the U.S 12 in our direct markets in Europe and seven in auto market. So, the full year, we placed 107 units of which 57 were in the U.S, 37 were in direct markets in Europe and 13 in other markets. During the quarter we had nine new rented purchase units placed, and four previously rented units convert the purchase. During the year 23 units converted from rental to purchases including 19 converted units which were covered by commercial payers and the VA. We currently have 30 open flyers, including 25 active rentals and five claims that have completed the trial period and are awaiting a final insurance decision. As of the end of 2017, we had 222 pending insurance claims relating to coverage for ReWalk compared to 199 in the same time last year. Gross margin improved to 40% during the fourth quarter compared to negative 8% in the prior year quarter. For the year gross margin was also 40% compared to 13% in 2016. The improvement was driven by sales mix, the increase in the conversion of rental units to purchases and lower product cost. Total operating expenses for the quarter was $6.2 million compared to $7.9 million in the prior year period. For the year operating expenses decreased $25.1 million compared to $31.2 million in 2016. Net loss for the fourth quarter was 6.2 million compared to a net loss of $8.5 million in the fourth quarter of 2016. Full year net loss was $24.7 million compared to $32.5 million in the prior year. We ended the quarter with $14.6 million in cash. With that, I'd like to open the call for question, operator please go ahead with instructions.

[Operator Instructions]. Our first question comes from Brandon Vazquez with Canaccord Genuity.

I just wanted to focus first on Germany, can you just give us some color maybe on what the process is like for patients that are currently filing claims with Barmer. I am just trying to understand how long is that process taking, how smooth is it going and how do you expect maybe that timetable to -- for those patients, the trend going forward?

The process is getting well defined, with the policy approval in October and then the more recent listing in the medical device directive, it is starting to create a very routine process, there is one more step which we will also have is a formal process defined, that will be in place here at the end of the quarter. So, any patients will actually know how it's going to work. The process in Germany looks like it's going to develop where they will do in an evaluation period. And approximately three months or it could vary a little bit depending on the patient's results, but it will get us to a predictable pattern of about six months, is what we believe going forward for German user to be go from a point of wanting a unit to the point where he takes one home. There will be some variability dependent on the patient but that I believe it makes it predictable for the individuals that have waited as many as three or four years, so they are quite excited.

Our next question comes from Ian Mahmud with Barclays.

I just want to focus on U.S. reimbursement a bit, because you alluded to it in your press release and you mentioned that these reimbursement efforts underway with national regional providers and I'm just curious at this point what's the sort of sticking point there, what are the areas of pushback and how do you see yourself kind of overcoming those areas?

Well the sticking point is really been a combination of data and belief in utilization and the things that have happened from the time we got FDA clearance whether it was quickly several non-coverage decisions based on the FDA data not being sufficient in the view of many of the insurers. At the time we got FDA clearance in June of 2014 we had roughly 12 significant published papers. What has happened in the time since and really what drove the German and Italian reimbursement decisions were a lot of the additional papers including our meta-analysis by Dr. Miller, for example of 113 patients that had been provided. So, we are now up to almost 50 papers in sight when we are going forward with this. And the other variable that's changed in June of 2014 we had very many users out there. We now have 433 systems in the marketplace. So, the users themselves are also providing data, so the progress you saw in Germany was a progress -- was a development built on data and experience. We expect the U.S. will follow the same pattern.

And I’m not showing any further questions at this time. I would like to turn the conference back over to our host.

Good morning everyone and we very much appreciate you join us today. We look forward to answering and providing any further information as you request. So, thank you and have a great day.

Ladies and gentlemen that conclude today’s presentation. You may now disconnect and have a wonderful day.