DarioHealth(DRIO) - 2024 Q4 - Annual Report

Business Growth and Client Acquisition - DarioHealth has signed over 100 total contracts as of now, indicating rapid scaling of its B2B2C model [559]. - In the fiscal year 2024, the B2B2C channel added 36 new employers and health plan clients, bringing the total client base to 83 [574]. - The company has expanded its solutions beyond diabetes to include hypertension, pre-diabetes, musculoskeletal health, and behavioral health [559]. - The company has entered into contracts with a preferred partner and a health plan provider for data licensing and implementation services [575]. Financial Performance - Revenues for the year ended December 31, 2024, amounted to $27,040, an increase of 33.2$20,352 for the year ended December 31, 2023, driven by growth in the commercial channel and the consolidation of Twill's revenues [584]. - Gross profit for the year ended December 31, 2024, was $13,267, representing 49.1$5,984 or 29.4% of revenues for the year ended December 31, 2023 [588]. - Net loss for the year ended December 31, 2024, was $42,747, a decrease of 28.2$59,427 for the year ended December 31, 2023 [600]. - As of December 31, 2024, the company had incurred an accumulated deficit of $390,343 since inception [611]. - The company expects to continue incurring losses until it achieves profitability through successful product development and commercialization [611]. Cash Flow and Capital Management - Cash and cash equivalents as of December 31, 2024, were approximately$27,764, down from $36,797 at December 31, 2023 [612]. - Net cash used in operating activities increased to$38.562 million for the year ended December 31, 2024, compared to $30.379 million in 2023, primarily due to increased operating expenses and working capital [636]. - Net cash used for investing activities rose to$8.934 million in 2024, significantly higher than $547, attributed to the acquisition of Twill [637]. - Net cash provided by financing activities was$38.531 million for the year ended December 31, 2024, compared to $18.253 million in 2023, driven by private placements [638]. - The company expects to meet its contractual obligations totaling$4.884 million, with $3.948 million due within one year [640]. Mergers and Acquisitions - The company acquired Upright for a total consideration of 1,687,612 shares of common stock and options to purchase up to 100,193 shares [560]. - DarioHealth paid$10.0 million in cash as part of the merger with Twill, along with additional stock options and warrants [561]. - Research and development expenses increased by $3,931 to$24,179 for the year ended December 31, 2024, primarily due to higher payroll and consulting expenses related to the consolidation of Twill [590]. - Sales and marketing expenses rose by $2,565 to$26,350 for the year ended December 31, 2024, mainly due to increased payroll and consulting expenses from the Twill acquisition [592]. - General and administrative expenses increased by $2,342 to$20,482 for the year ended December 31, 2024, largely due to higher payroll and acquisition costs associated with Twill [594]. Regulatory and Accounting Changes - The FASB issued ASU 2023-07, effective January 1, 2024, enhancing segment reporting disclosures, particularly on significant segment expenses [644]. - ASU 2023-09, effective January 1, 2025, requires disaggregated information on effective tax rate reconciliation and income taxes paid, currently under evaluation [645]. - ASU 2024-03 mandates additional disaggregated disclosures for certain expense categories, effective after December 15, 2026, with early adoption permitted [646]. - The company adopted the fiscal year standard for segment disclosures on a retrospective basis starting January 1, 2024 [644]. - The impact of ASU 2023-09 on financial statement disclosures is currently being evaluated by the company [645]. - The company is assessing the effects of adopting ASU 2024-03 on its disclosures [646]. - No quantitative or qualitative market risk disclosures are applicable at this time [647].