DIH Announces Fiscal 2025 Fourth Quarter and Fiscal Year End Financial Results

Core Insights - DIH Holding US, Inc. reported financial results for the fiscal year ended March 31, 2025, highlighting a decrease in revenue primarily due to a change in product mix and unfavorable foreign currency exchange rates [1][4][5]. Financial Performance - Total revenue for the fiscal year was $62.9 million, a decrease of 2.5% compared to the prior year [8]. - Device revenue was $49.7 million, down 2.8%, while service revenue increased by 8.4% to $12.0 million [8]. - Gross profit for the fiscal year was $32.2 million, an increase of 8.2% year-over-year, attributed to a decrease in the cost of goods sold [6]. - Selling, general, and administrative expenses rose by 16.3% to $30.0 million, driven by increased personnel expenses and impairment of related party receivables [7]. - Research and development costs increased by 7.4% to $7.1 million, primarily due to higher software costs [8]. Quarterly Results - For the fourth quarter ended March 31, 2025, revenue was $12.6 million, a significant decrease of 34.7% compared to the same period last year, largely due to lower sales volume in the EMEA region [10]. - Gross profit for the fourth quarter was $6.0 million, reflecting a 30.4% decrease from the prior year [11]. - Selling, general, and administrative expenses for the quarter were $7.4 million, down 8.7% year-over-year, mainly due to non-recurring transaction costs from the previous year [12]. Impairments and Discontinuations - The company discontinued the development of the SafeGait product, resulting in an impairment loss of $0.6 million, and also recognized an additional impairment loss of $1.5 million related to capitalized software for the HocoNet platform [14][9]. Cash Flow and Liquidity - The company reported negative operating cash flow of $4.1 million for the fiscal year ended March 31, 2025 [8]. - Cash and cash equivalents at the end of the fiscal year totaled $1.9 million, down from $3.2 million the previous year [9]. Subsequent Events - Following the fiscal year, the company entered into a Securities Purchase Agreement, issuing senior secured convertible debentures with an aggregate principal amount of $2.2 million [16]. - A reverse stock split of 1-for-25 was approved, reducing the number of outstanding shares from approximately 52.3 million to 2.1 million [20]. Company Overview - DIH Holding US, Inc. is a global provider of advanced robotic devices for physical rehabilitation, focusing on improving the lives of individuals with disabilities through innovative rehabilitation solutions [22].