DarioHealth(DRIO) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2025 were $5,007,000, a decrease of 32.5% compared to $7,423,000 in Q3 2024[24] - Operating loss for Q3 2025 was $9,484,000, down from $12,030,000 in Q3 2024, indicating a 21% improvement[24] - Net loss attributable to common shareholders for Q3 2025 was $18,855,000, compared to $14,608,000 in Q3 2024, representing a 28.5% increase[24] - The company reported a net loss of $10,466,000 for the three months ended September 30, 2025, compared to a net loss of $12,330,000 for the same period in 2024, indicating a reduction in losses[30] - For the nine months ended September 30, 2025, the company reported a net loss of $32,683,000, compared to a net loss of $33,115,000 for the same period in 2024, showing a slight improvement[30] - The company experienced a decrease in net loss year-over-year, reflecting improved financial performance[154] - The overall financial metrics indicate a trend towards reduced losses, which may signal potential for future profitability[154] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $31,907,000, up from $27,764,000 at the end of 2024, showing a 15.4% increase[18] - The company used approximately $20,054 in cash for operating activities during the nine months ended September 30, 2025, a decrease from $31,830 used in the same period of 2024[33] - DarioHealth's cash, cash equivalents, and restricted cash increased to $31,907 as of September 30, 2025, from $16,210 at the end of the same period in 2024, reflecting a significant improvement in liquidity[33] Assets and Liabilities - Total current liabilities decreased to $9,279,000 as of September 30, 2025, from $16,635,000 at the end of 2024, a reduction of 44.4%[21] - Long-term loan increased to $30,617,000 as of September 30, 2025, compared to $23,472,000 at the end of 2024, reflecting a 30.5% rise[21] - Total assets as of September 30, 2025, were $117,727,000, slightly down from $118,884,000 at the end of 2024, a decrease of 1%[18] - As of September 30, 2025, the total stockholders' equity was $74,934,000, an increase from $63,986,000 as of June 30, 2025, reflecting a growth of approximately 17.5%[27] Stock and Equity - The total number of common shares outstanding increased to 6,768,184 as of September 30, 2025, up from 2,273,747 as of June 30, 2025, due to the conversion of preferred stock and issuance of common stock[27] - The company issued common stock and prefunded warrants, net of issuance costs, totaling $1,154,420, which contributed to the increase in additional paid-in capital by $17,393,000[27] - The total additional paid-in capital as of September 30, 2025, was $516,756,000, reflecting an increase from $486,953,000 as of June 30, 2025[27] - The company executed a reverse share split on August 28, 2025, which resulted in a round-up of shares totaling 53,518[27] - The company raised approximately $17,500 in gross proceeds from the sale of 1,154,420 shares of Common Stock and pre-funded warrants at a price of $6.45 per share on September 22, 2025[134] Expenses - Research and development expenses for Q3 2025 were $3,328,000, down from $5,446,000 in Q3 2024, a decrease of 38.9%[24] - Stock-based compensation for the three months ended September 30, 2025, amounted to $2,950,000, compared to $2,575,000 for the same period in 2024, reflecting an increase of approximately 14.6%[30] - The company recorded share-based compensation expenses of $35,000 and $135,000 for the three and nine-month periods ended September 30, 2025, respectively[107] Customer and Revenue Diversification - DarioHealth's major customer accounted for 11.5% of accounts receivable as of September 30, 2025, down from 41.6% at the end of 2024, indicating a diversification in customer base[49] - The company generated revenues from B2B2C contracts and direct consumer offerings, with total revenues for the nine months ended September 30, 2025, at $17,128[60] Future Outlook - The company expects to continue incurring net losses and will depend on raising additional funds to support operations until it achieves profitability[39] - The company expects to recognize approximately $860 in deferred revenue over the next 12 months[61] Corporate Actions - The company completed the acquisition of Twill, Inc. on February 15, 2024, enhancing its capabilities in personalized digital therapeutics and care solutions[38] - The company appointed a new Chief Financial Officer, effective May 15, 2025, and agreed to issue 25,000 restricted shares to her[108]