Financial Performance - DIH generated revenue of $35.1 million for the six months ended September 30, 2024, a 34.5% increase compared to $26.1 million for the same period in 2023[108]. - Revenue for the three months ended September 30, 2024 increased by $5.1 million, or 39.1%, to $18.2 million from $13.1 million for the same period in 2023, primarily driven by a $4.9 million increase in device sales[128]. - Devices revenue for the six months ended September 30, 2024 increased by $8.0 million, or 39.0%, to $28.6 million compared to $20.6 million for the same period in 2023[130]. - Gross profit for the three months ended September 30, 2024 was $9.6 million, representing a 76.7% increase from $5.4 million in the same period in 2023[127]. - Operating income for the three months ended September 30, 2024 was $1.9 million, a significant improvement from an operating loss of $2.5 million in the same period in 2023[127]. - Net loss for the three months ended September 30, 2024 was $234,000, a 90.6% improvement from a net loss of $2.5 million in the same period in 2023[127]. - The net loss for the six months ended September 30, 2024, was $0.5 million, significantly improved from a net loss of $5.4 million in the prior year, reflecting a $4.9 million improvement driven by an $8.2 million increase in gross profit[109]. Expenses and Costs - Selling, general and administrative expenses are expected to rise as the company scales its workforce and enhances support functions to meet public company demands[122]. - Research and development costs are projected to increase as DIH invests in product design and technology to drive business growth[123]. - Selling, general, and administrative expenses for the three months ended September 30, 2024 decreased by $0.6 million, or 9.6%, to $5.8 million from $6.4 million in the same period in 2023[135]. - Research and development costs for the three months ended September 30, 2024 increased by $0.3 million, or 20.6%, to $1.9 million compared to $1.6 million in the same period in 2023[137]. - Total operating expenses for the three months ended September 30, 2024 decreased by $287,000, or 3.6%, to $7.7 million compared to $8.0 million in the same period in 2023[127]. Cash Flow and Financing - The company had cash and cash equivalents of $1.8 million as of September 30, 2024, down from $3.2 million as of March 31, 2024[143]. - The company experienced negative cash flows from operating activities of $(1.5) million during the six months ended September 30, 2024[143]. - Net cash used in operating activities increased by $3.3 million to $(1.5) million for the six months ended September 30, 2024, compared to $1.8 million for the same period in 2023[150]. - Net cash provided by financing activities increased by $4.5 million to $0.8 million for the six months ended September 30, 2024, compared to $(3.7) million for the same period in 2023, primarily due to $2.8 million proceeds from convertible debt financing[151]. - Company continues to explore financing alternatives in debt or equity to fund ongoing operations and fulfill current obligations[146]. - Company expects to fund future cash flows used in investing activities with cash flow generated by operations[150]. - Company anticipates sources of liquidity to include cash on hand and cash flow from operations[146]. Business Developments - The company completed a business combination on February 7, 2024, which included Hocoma Medical, enhancing its asset base and operational capabilities[110]. - DIH issued $3.3 million in principal amount of convertible debentures on June 6, 2024, with a conversion price of $5.00 per share, resulting in net proceeds of approximately $2.8 million[113]. - The company expects to incur additional annual expenses as a public company, including increased costs for directors' and officers' liability insurance and compliance-related expenses[111]. Market Outlook - DIH anticipates revenue growth in future periods due to expanding demand for its rehabilitation products in represented markets[119]. - Cost of sales is expected to increase in absolute dollars as orders grow, while cost per unit is projected to decrease due to improved leverage[120]. - The company faces ongoing challenges from global macroeconomic factors, including supply chain disruptions and inflationary pressures, which could impact future operations[118]. Working Capital - Net decrease of $8.0 million in working capital was driven by a decrease of $4.3 million in advanced payments from customers for the six months ended September 30, 2024, compared to the same period in 2023[154]. - The remaining balance on related party notes payable is $9.4 million and $11.5 million as of September 30, 2024, and March 31, 2024, respectively[144]. - Company incurred three related party notes payable to Hocoma AG totaling $19.84 million, due on June 30, 2026, with an interest rate of 1.25%[144]. - Non-cash charges decreased by $0.1 million for the six months ended September 30, 2024, compared to the same period in 2023[153].
Aurora Technology Acquisition (ATAK) - 2024 Q3 - Quarterly Report