Revenue Performance - In the six months ended September 30, 2024, DIH generated revenue of $35.1 million, a 34.5% increase compared to $26.1 million in the same period of 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 from $20.6 million for the same period in 2023[130] Profitability and Loss - DIH's 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, driven by an $8.2 million increase in gross profit[109] - 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 of 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 of 2023[127] Expenses and Costs - Selling, general and administrative expenses are projected to rise as DIH scales its workforce and enhances compliance with public company regulations[122] - Total operating expenses for the six months ended September 30, 2024 were $17.9 million, an increase of $2.7 million, or 17.7%, compared to $15.2 million for the same period in 2023[127] - 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 compared to $6.4 million for the same period in 2023[135] - Research and development costs are expected to increase as DIH invests in product design and technology advancements[123] - Research and development costs for the three months ended September 30, 2024 increased by $0.3 million, or 20.6%, to $1.9 million from $1.6 million for the same period in 2023[137] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024 amounted to $1.8 million, 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] - The company anticipates sources of liquidity to include cash on hand and cash flow from operations, while exploring financing alternatives in debt or equity[146] Business Developments - The business combination completed on February 7, 2024, included Hocoma Medical, enhancing DIH's asset base and operational capabilities[110] - DIH issued $3.3 million in principal amount of convertible debt on June 6, 2024, with net proceeds of approximately $2.8 million, convertible into 660,000 shares at a $5.00 per share conversion price[113] - The first redemption payment for the 8% Original Issue Discount Senior Secured Convertible Debentures was made in cash on November 1, 2024[145] Challenges and Outlook - DIH faces ongoing challenges from global supply chain disruptions and inflation, which may impact future operations and costs[114] - The transition to the EU MDR is expected to incur additional costs and complexities for DIH as it seeks to comply with new regulatory requirements[117] - DIH expects revenue to increase sequentially in future periods due to anticipated growth in demand for its rehabilitation products[119] - Cost of sales is expected to increase in absolute dollars as orders grow, but cost per unit is anticipated to decrease due to improved leverage[120] - The company continues to take steps to streamline its organization and cost structure to improve future revenue growth[146]
DIH Holding(DHAI) - 2024 Q3 - Quarterly Report