- Q2 revenue of 6.2 million, a 17.5% increase from the
$5.3 million of the second quarter of
2021. Six-month year-to-date revenue totaled $14.2 million, a 60.8% increase over the
first six months of 2021
- $55 million in total
commercial contract value reflecting continued strong momentum
across Business-to-Business-to-Consumer (B2B2C) channels
- Selected by a national health plan as strategic behavioral
health partner, providing reach to nearly ten million additional
members
- Sanofi and other strategic partnerships gaining traction and
expected to accelerate recurring revenue streams from employers and
health plans
- Improved financial profile as company completes shift to
B2B2C focus and reports $68 million
of cash and equivalents on the balance sheet as of June 30
Company to host conference call and webcast 8:30 am ET today
NEW
YORK, Aug. 15, 2022 /PRNewswire/
-- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the
"Company"), a leader in the global digital therapeutics (DTx)
market, today reported financial results for the second quarter
2022 and provided a corporate and commercial update.
"Dario continues to enjoy tremendous momentum since establishing
our focus on B2B2C customer channels more than two years ago,
reflecting the market's increasing demand for integrated, holistic
digital health solutions to manage chronic conditions," stated
Erez Raphael, Chief Executive
Officer of Dario. "We now see B2B2C contract values totaling
$55 million in the aggregate,
demonstrating the strength of our offering as an emerging leader in
the digital therapeutics market."
"A clear highlight since our last quarterly update is our recent
contract with a national health plan to deploy our behavioral
health solution through its behavioral health platform, allowing us
to reach approximately ten million additional members. A brief
contracting delay with this plan contributed to the decline in
revenue during the second quarter relative to the first quarter.
However, we anticipate that this will reverse in the second half of
2022, as this plan has already started contributing revenue in the
current quarter."
"Our Direct-to-Consumer (DTC) business was foundational to the
initial development of Dario's platform as it exists today,
yielding the data and insights necessary to drive the product
enhancements necessary to create attractive solutions for both
employers and health plans. We believe that our strategy and
efforts in the DTC business were a resounding success, as we see
the market now demands a comprehensive, clinically proven offering
such as the one we developed."
"Now, given the significant activity we are experiencing in the
B2B2C channel both through direct and partner led initiatives, we
need to deploy our human and capital resources to address value
accretive activities in the much larger and more lucrative B2B2C
channel – the next stage of our multi-year strategic plan. As a
result, we made the strategic decision during the second quarter to
diminish focus on our legacy DTC business while prioritizing our
B2B2C opportunity. This decision had a modest impact on DTC revenue
and related expenses in the second quarter. We anticipate
that this impact will continue to lessen the influence of DTC
revenue and expenses in the second half of the year while enhancing
the long-term growth opportunity with employers and health
plans."
"However, we anticipate this impact will be temporary as we
expect continued strong demand for our B2B2C solutions to more than
offset the decrease in DTC revenue, driving overall revenue growth
in 2023 and 2024. Going forward, we expect that this strategic
shift will significantly improve our financial profile, with
larger, more stable, recurring revenues from B2B2C pools of users
and lower customer acquisition costs, and also result in higher
margins and an extended cash runway," Mr. Raphael concluded.
"We are seeing continued contract and revenue growth with
several 'off-cycle' employer sales and our previously announced
health plans contributing to revenue," stated Rick Anderson, President of Dario North America. "Our collaboration with
Sanofi continues to gain traction, as the Sanofi sales organization
amplifies our efforts and starts to yield health plan and other
strategic opportunities. Similarly, our partnership with Solera
Health is off to a strong start, with a large regional health plan
in the late contracting phase, offering further evidence of the
value that we can drive through our partner channels. Our pipeline
is the richest it has been in the company's history, driven by the
breadth and depth of our integrated, multi-chronic condition
platform. We anticipate announcing many more customers from our
growing pipeline over the remainder of the year."
Q2 2022 and Recent Highlights
- Completed transition from DTC to B2B2C business focus, which is
expected to continue to improve margins, reduce operating expenses
and extend cash runway
- Announced a contract with a leading national health plan to
incorporate Dario's behavioral health solution within the plan's
behavioral health platform. The contract, which allows Dario to
reach close to ten million additional members, is expected to begin
to generate revenue in Q3 of 2022
- B2B2C accounts increased 10% in an off-cycle quarter which
keeps Dario on track to exceed 100 contracts by year end
- Reduced ongoing customer acquisition costs by 70% as a result
of the strategic shift to B2B2C model
- Collaboration with Sanofi continues to gain traction with
health plan sales outreach
- Announced strategic partnership with Solera Health, adding
another valuable partnership, extending the Company's reach and
penetration into the health plan market
- Existing partnerships, including Virgin Pulse, are seeing
strong opportunity growth and are beginning to yield customers
- Hired Brian Harrigan as Senior
Vice President of Employer Sales to support Dario's rapid growth in
the employer markets
- Strong pipeline growth continues to demonstrate the strength of
Dario's multi-condition suite, with more than 40% of pipeline
opportunities for multi-condition contracts
- Secured up to $50 million
non-dilutive credit facility with OrbiMed, a leading healthcare
investor; ended the second quarter with $68
million in cash and equivalents
- Presented three new studies demonstrating improved health in
users with multiple conditions at the American Diabetes
Association's 82nd Scientific Sessions
Second Quarter 2022 Results Summary
Revenues for the second quarter ended June 30, 2022, were $6.2
million, a 17.5% increase from the $5.3 million for the second quarter ended
June 30, 2021. The increase in
revenues resulted from higher revenues from the company's
commercial market segments, including health plans, employers and
providers. Revenues declined 23.3% sequentially from the first
quarter ended March 31, 2022 due to a
delay in the signing of one large health plan contract.
Gross profit for the second quarter of 2022 was $1.1 million, a decrease of $0.4 million, compared to gross profit of
$1.5 million for the second quarter
of 2021. Gross profit as a percentage of revenues declined to 18.4%
in the second quarter of 2022, from 28.7% in the second quarter of
2021, due to the change in mix of revenue caused by the
aforementioned delay in health plan revenues.
Pro-forma gross profit, excluding $1.1
million of non-cash amortization of expenses related to the
acquisition of technology, was $2.2
million, or 36.1% of revenues, for the three months ended
June 30, 2022, compared to a
pro-forma gross profit of $2.6
million, or 49.4% of revenues for the three months ended
June 30, 2021. Non-GAAP gross margins
for the B2B2C business channel exceeded 70% in the second
quarter.
Total operating expenses for the second quarter of 2022 were
$18.5 million compared with
$19.5 million for the second quarter
of 2021 and $19.8 million for the
first quarter of 2022, a decrease of $1
million, or 5.2%, compared to the second quarter of 2021,
and a decrease of $1.3 million, or
6.9%, compared to the first quarter of 2022. The decrease compared
to the first quarter of 2022 resulted from a decrease in our DTC
marketing expenses. Total operating expenses excluding stock-based
compensation, acquisition expenses and depreciation for the second
quarter of 2022 were $13.4 million
compared to $13.5 million for the
second quarter of 2021, and $14.9
million for the first quarter of 2022.
Operating loss for the second quarter of 2022 was $17.4 million, a decrease of $0.6 million, or 3.6%, compared to $18.0 million for the second quarter of 2021, and
an increase of $1.5 million, or 9.3%,
compared to $15.9 million for the
first quarter of 2022. The decrease compared to the second quarter
of 2021 was mainly due to the decrease in operating expenses, and
the increase compared to the first quarter of 2022 was mainly due
to the decrease in our gross profit.
Net loss was $18.0 million in the
second quarter of 2022, an increase of $0.2
million, or 1.5%, compared to the $17.8 million net loss in the second quarter of
2021, and an increase of $2.1
million, or 13.3%, compared to the first quarter of 2022.
Net loss excluding stock-based compensation, acquisition expenses
and depreciation for the second quarter of 2022 was $11.8 million compared to $10.6 million for the second quarter of 2021 and
$9.9 million in the first quarter of
2022.
Non-GAAP billings for the three months ended June 30, 2022, were $6.1
million, a 19% increase from $5.1
million for the three months ended June 30, 2021. The increase is a result of higher
sales generated in the three months ended June 30, 2022, compared to the three months ended
June 30, 2021. A reconciliation of
GAAP to non-GAAP measures has been provided in the financial
statement tables included in this press release. An explanation of
these measures is also included below under the heading "Non-GAAP
Financial Measures."
Financial Results for the Six Months Ended June 30, 2022:
Revenues for the six months ended June
30, 2022 were $14.2 million, a
60.8% increase from $8.8 million for
the six months ended June 30,
2021.
Gross profit for the six months ended June 30, 2022 was $5.1
million, an increase of 98%, or $2.5
million, compared to gross profit of $2.6 million for the six months ended
June 30, 2021.
Pro-forma gross profit, excluding $2
million of amortization of expenses related to acquisitions,
was $7.1 million for the six months
ended June 30, 2022, compared to a
proforma gross profit of $4.2 million
for the six months ended June 30,
2021. Pro-forma gross profit margin, excluding amortization
of expenses related to the acquisitions, was 50.2% for the six
months ended June 30, 2022, compared
to 47.5% for the six months ended June 30,
2021.
Total operating expenses for the six months ended June 30, 2022 were $38.3
million, an increase of $3.4
million, or 9.8%, compared with $34.9
million for the six months ended June
30, 2021. The increase resulted from an increase in research
and development activities and sales and marketing expenses.
Operating loss for the six months ended June 30, 2022 increased by $0.9 million to $33.2
million, compared to a $32.3
million operating loss for the six months ended June 30, 2021. This increase is mainly due to the
increase in operating expenses. Total operating expenses excluding
stock-based compensation, acquisition expenses and depreciation for
the six months ended June 30, 2022
were $28.3 million compared to
$24.1 million for the six months
ended June 30, 2021.
Net loss was $33.9 million for the
six months ended June 30, 2022
compared to a net loss of $32.7
million for the six months ended June
30, 2021. The increase was driven by higher operating
expenses.
Non-GAAP billings for the six months ended June 30, 2022 were $14.1
million, a 59% increase from $8.8
million for the six months ended June
30, 2021.
Non-GAAP adjusted net loss for the six months ended June 30, 2022 was $21.1
million, a 6.5% increase from a $19.8
million non-GAAP adjusted net loss for the six months ended
June 30, 2021.
A reconciliation of GAAP to non-GAAP measures has been provided
in the financial statement tables included in this press release.
An explanation of these measures is also included below under the
heading "Non-GAAP Financial Measures."
Conference Call Details: Monday,
August 15, 8:30am ET
Dial-in Number: 877-451-6152
International Dial-in: 201-389-0879
Conference ID: DarioHealth Second Quarter 2022 Results
Call
Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1562603&tp_key=47da09b71a
Participants are asked to dial-in approximately 10 minutes prior
to the start of the event. A replay of the call will be available
approximately two hours after completion through September 15, 2022. To listen to the replay, dial
844-512-2921 (domestic) or 412-317-6671 (international) and use
replay passcode 13732068.
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading global digital
therapeutics company revolutionizing how people with chronic
conditions manage their health. DarioHealth offers one of the most
comprehensive digital therapeutics solutions on the market -
covering multiple chronic conditions including diabetes,
hypertension, weight management, musculoskeletal and behavioral
health within one integrated technology platform.
Dario's next-generation, AI-powered, digital therapeutic
platform supports more than just an individual's disease. Dario
provides adaptive, personalized experiences that drive behavior
change through evidence-based interventions, intuitive, clinically
proven digital tools, high-quality software, and coaching to help
individuals improve health and sustain meaningful outcomes.
Dario's unique user-centric approach to product design and
engagement creates an unparalleled experience that is highly rated
by users and delivers sustainable results.
The company's cross-functional team operates at the intersection
of life sciences, behavioral science, and software technology and
utilizes a performance-based approach to improve its users'
health.
On the path to better health, Dario makes the right thing to do
the easy thing to do. To learn more about DarioHealth and its
digital health solutions or for more information, visit
http://dariohealth.com, the content of which is not incorporated by
reference in this press release.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and
partners of the Company related thereto contain or may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the generality of the foregoing, words
such as "plan," "project," "potential," "seek," "may," "will,"
"expect," "believe," "anticipate," "intend," "could," "estimate" or
"continue" are intended to identify forward-looking statements. For
example, the Company is using forward-looking statements in this
press release when it discusses that it continues to enjoy
tremendous momentum since establishing our focus on B2B2C, that the
current B2B2C contract value totaling $55
million demonstrates the strength of its offering as an
emerging leader in the digital therapeutics market, that it expects
the decline in revenue observed in the second quarter to reverse in
the second half of 2022 as it expects its customer to start
contributing to revenue later in 2022, that it expects its DTC
revenue and expenses to decrease as it focuses its resources on the
B2B2C business, that it expects continuing, strong demand for its
B2B2C solutions to more than offset the decrease in DTC revenue and
support its anticipated revenue growth in 2023 and 2024, that it
anticipates its strategic shift will significantly improve its
financial profile with higher margins and an extended cash runway,
that it anticipated announcing many more customers over the
remainder of the year, the timing that certain agreements will
begin contributing to revenue, that it anticipates exceeding 100
contracts by year end. Readers are cautioned that certain important
factors may affect the Company's actual results and could cause
such results to differ materially from any forward-looking
statements that may be made in this news release. Factors that may
affect the Company's results include, but are not limited to,
regulatory approvals, product demand, market acceptance, impact of
competitive products and prices, product development,
commercialization or technological difficulties, the success or
failure of negotiations and trade, legal, social and economic
risks, and the risks associated with the adequacy of existing cash
resources. Additional factors that could cause or contribute to
differences between the Company's actual results and
forward-looking statements include, but are not limited to, those
risks discussed in the Company's filings with the U.S. Securities
and Exchange Commission. Readers are cautioned that actual results
(including, without limitation, the timing for and results of the
Company's commercial and regulatory plans for Dario™ as described
herein) may differ significantly from those set forth in the
forward-looking statements. The Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Non-GAAP Financial Measures
We have provided in this release financial information that has
not been prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures are not based
on any standardized methodology prescribed by GAAP and are not
necessarily comparable to similar measures presented by other
companies. We use these non-GAAP financial measures internally in
analyzing our financial results and believe they are useful to
investors, as a supplement to GAAP measures, in evaluating our
ongoing operational performance. We believe that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial results with peer companies, many of
which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures provided in
the financial statement tables below.
Billings (non-GAAP). We define billings as revenue
recognized in accordance with GAAP plus the change in deferred
revenue from the beginning to the end of the period and adjustment
to the deferred revenue balance due to adoption of the new revenue
recognition standard less any deferred revenue balances acquired
from business combination(s) during the period. We consider
billings to be a useful metric for management and investors because
billings drive future revenue, which is an important indicator of
the health and viability of our business. There are a number of
limitations related to the use of billings instead of GAAP revenue.
First, billings include amounts that have not yet been recognized
as revenue and are impacted by the term of security and support
agreements. Second, we may calculate billings in a manner that is
different from peer companies that report similar financial
measures. Management accounts for these limitations by providing
specific information regarding GAAP revenue and evaluating billings
together with GAAP revenue.
Operating expenses (non-GAAP). Our presentation of
non-GAAP operating expenses excludes stock-based compensation
expenses. Due to varying available valuation methodologies,
subjective assumptions, and the variety of equity instruments that
can impact a company's non-cash operating expenses, we believe that
providing non-GAAP financial measures that exclude non-cash expense
provides us with an important tool for financial and operational
decision making and for evaluating our own core business operating
results over different periods of time.
Net loss (non-GAAP). Our presentation of adjusted net
loss excludes the effect of certain items that are non-GAAP
financial measures. Adjusted net loss represents net loss
determined under GAAP without regard to stock-based compensation
expenses, deferred inventory and depreciation of fixed assets. We
believe these measures provide useful information to management and
investors for analysis of our operating results.
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
|
INTERIM CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Unaudited
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
67,949
|
|
$
|
35,808
|
|
Short-term restricted
bank deposits
|
|
|
177
|
|
|
192
|
|
Trade
receivables
|
|
|
3,138
|
|
|
1,310
|
|
Inventories
|
|
|
8,347
|
|
|
6,228
|
|
Other accounts
receivable and prepaid expenses
|
|
|
2,833
|
|
|
2,067
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
82,444
|
|
|
45,605
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Deposits
|
|
|
9
|
|
|
20
|
|
Operating lease right
of use assets
|
|
|
212
|
|
|
287
|
|
Long-term
assets
|
|
|
71
|
|
|
57
|
|
Property and equipment,
net
|
|
|
773
|
|
|
702
|
|
Intangible assets,
net
|
|
|
12,190
|
|
|
12,460
|
|
Goodwill
|
|
|
41,640
|
|
|
41,640
|
|
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
|
54,895
|
|
|
55,166
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
137,339
|
|
$
|
100,771
|
|
|
|
|
|
|
|
|
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
INTERIM CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Unaudited
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
3,280
|
|
$
|
5,109
|
|
Deferred
revenues
|
|
|
999
|
|
|
1,195
|
|
Operating lease
liabilities
|
|
|
137
|
|
|
266
|
|
Other accounts payable
and accrued expenses
|
|
|
6,806
|
|
|
7,806
|
|
Earn-out
liability
|
|
|
1,764
|
|
|
825
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
12,986
|
|
|
15,201
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
52
|
|
|
21
|
|
Long-term
loan
|
|
|
23,061
|
|
|
—
|
|
Warrant
liability
|
|
|
1,588
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
|
24,701
|
|
|
21
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Common stock of $0.0001
par value - Authorized: 160,000,000 shares at
June 30, 2022 (unaudited)
and December 31, 2021; Issued and Outstanding:
22,860,044 and 16,573,420 shares at
June 30, 2022 (unaudited) and December 31, 2021,
respectively
|
|
|
2
|
|
|
2
|
|
Preferred stock of
$0.0001 par value - Authorized: 5,000,000 shares at
June 30, 2022 (unaudited)
and December 31, 2021; Issued and Outstanding: 10,797 and
11,927 shares at June 30, 2022
(unaudited) and December 31, 2021, respectively
|
|
|
*) -
|
|
|
*) -
|
|
Additional paid-in
capital
|
|
|
356,492
|
|
|
307,561
|
|
Accumulated
deficit
|
|
|
(256,842)
|
|
|
(222,014)
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
99,652
|
|
|
85,549
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
137,339
|
|
$
|
100,771
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
INTERIM CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Revenues
|
|
$
|
6,183
|
|
$
|
5,261
|
|
$
|
14,242
|
|
$
|
8,856
|
|
Cost of revenues
(excluding amortization shown separately below)
|
|
|
3,951
|
|
|
3,033
|
|
|
7,093
|
|
|
5,172
|
|
Amortization of
acquired intangible assets
|
|
|
1,094
|
|
|
720
|
|
|
2,026
|
|
|
1,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,138
|
|
|
1,508
|
|
|
5,123
|
|
|
2,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
$
|
4,137
|
|
$
|
3,742
|
|
$
|
10,064
|
|
$
|
6,397
|
|
Sales and
marketing
|
|
|
9,297
|
|
|
9,648
|
|
|
18,832
|
|
|
16,780
|
|
General and
administrative
|
|
|
5,059
|
|
|
6,121
|
|
|
9,454
|
|
|
11,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
18,493
|
|
|
19,511
|
|
|
38,350
|
|
|
34,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
17,355
|
|
|
18,003
|
|
|
33,227
|
|
|
32,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial
(income) expenses, net
|
|
|
672
|
|
|
(238)
|
|
|
716
|
|
|
401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
|
18,027
|
|
|
17,765
|
|
|
33,943
|
|
|
32,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
18,028
|
|
$
|
17,765
|
|
$
|
33,944
|
|
$
|
32,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed
dividend
|
|
|
433
|
|
|
488
|
|
|
884
|
|
|
1,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to shareholders
|
|
$
|
18,461
|
|
$
|
18,253
|
|
$
|
34,828
|
|
$
|
33,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
$
|
0.74
|
|
$
|
0.99
|
|
$
|
1.43
|
|
$
|
1.85
|
|
Weighted average number
of common stock used in computing basic and diluted net loss per
share
|
|
|
22,426,019
|
|
|
15,691,359
|
|
|
21,925,089
|
|
|
15,460,758
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Six months
ended
|
|
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
|
|
|
Unaudited
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(33,944)
|
|
$
|
(32,731)
|
|
Adjustments required to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation, common stock, and payment in stock to directors,
employees,
consultants, and service providers
|
|
|
8,972
|
|
|
9,900
|
|
Depreciation
|
|
|
154
|
|
|
133
|
|
Change in operating
lease right of use assets
|
|
|
75
|
|
|
65
|
|
Amortization of
acquired inventories step-up
|
|
|
-
|
|
|
523
|
|
Amortization of
acquired intangible assets
|
|
|
2,087
|
|
|
1,106
|
|
Increase in trade
receivables
|
|
|
(1,828)
|
|
|
(452)
|
|
Decrease (increase) in
other accounts receivable, prepaid expense and long-term
assets
|
|
|
(562)
|
|
|
134
|
|
Increase in
inventories
|
|
|
(2,119)
|
|
|
41
|
|
Increase in trade
payables
|
|
|
(1,838)
|
|
|
54
|
|
Decrease in other
accounts payable and accrued expenses
|
|
|
(1,107)
|
|
|
(1,472)
|
|
Decrease in deferred
revenues
|
|
|
(196)
|
|
|
(43)
|
|
Change in operating
lease liabilities
|
|
|
(98)
|
|
|
(96)
|
|
Remeasurement of
earn-out
|
|
|
939
|
|
|
—
|
|
Non-Cash financial
expenses
|
|
|
256
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(29,209)
|
|
|
(22,838)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Investment In
deposit
|
|
|
-
|
|
|
(1)
|
|
Purchase of property
and equipment
|
|
|
(225)
|
|
|
(97)
|
|
Cash paid as part of
PsyInnovations Inc. (dba WayForward) acquisition
|
|
|
-
|
|
|
(5,023)
|
|
Cash paid as part of
Upright Technologies Ltd. acquisition
|
|
|
-
|
|
|
(2,472)
|
|
Intangible assets
purchases incurred, Physimax Technologies LTD.
|
|
|
(115)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(340)
|
|
|
(7,593)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock and prefunded warrants (net of issuance
costs)
|
|
|
38,023
|
|
|
64,877
|
|
Proceeds from exercise
of warrants
|
|
|
-
|
|
|
633
|
|
Proceeds from exercise
of options
|
|
|
-
|
|
|
256
|
|
Proceeds from
borrowings on credit agreement
|
|
|
23,786
|
|
|
-
|
|
Repurchase and
retirement of common stock
|
|
|
(134)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
61,675
|
|
|
65,766
|
|
|
|
|
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash and cash equivalents
|
|
|
32,126
|
|
|
35,335
|
|
Cash, cash equivalents
and restricted cash and cash equivalents at beginning of
period
|
|
|
35,948
|
|
|
28,725
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash and cash equivalents at end of
period
|
|
$
|
68,074
|
|
$
|
64,060
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the
period for interest on long-term loan
|
|
$
|
181
|
|
$
|
-
|
|
Reconciliation of
Revenue to Billing (Non-GAAP)
|
U.S. dollars in
thousands
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
GAAP Revenue
|
|
6,183
|
|
5,261
|
|
14,242
|
|
8,856
|
Add:
|
|
|
|
|
|
|
|
|
Change in deferred
revenue
|
|
(94)
|
|
(136)
|
|
(196)
|
|
(43)
|
|
|
|
|
|
|
|
|
|
Billing
(Non-GAAP)
|
|
6,089
|
|
5,125
|
|
14,046
|
|
8,813
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
U.S. dollars in
thousands
|
|
Three months ended
June 30, 2022
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Earn-out
revaluation,
acquisition costs,
amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
5,045
|
|
(25)
|
|
(1,121)
|
|
3,899
|
Gross Profit
|
|
1,138
|
|
25
|
|
1,121
|
|
2,284
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
4,137
|
|
(560)
|
|
(10)
|
|
3,567
|
Sales and
Marketing
|
|
9,297
|
|
(1,481)
|
|
(263)
|
|
7,553
|
General and
Administrative
|
|
5,059
|
|
(1,563)
|
|
(1,206)
|
|
2,290
|
Total Operating
Expenses
|
|
18,493
|
|
(3,604)
|
|
(1,479)
|
|
13,410
|
Operating
Loss
|
$
|
(17,355)
|
|
3,629
|
|
2,600
|
|
(11,126)
|
Financing
income
|
|
672
|
|
-
|
|
-
|
|
672
|
Income Tax
|
|
1
|
|
|
|
|
|
1
|
Net Loss
|
$
|
(18,028)
|
|
3,629
|
|
2,600
|
|
(11,799)
|
Three months ended
June 30, 2021
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Acquisition
costs, amortization of
acquisition
related expenses and depreciation
of fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
3,753
|
|
(24)
|
|
(1,123)
|
|
2,606
|
Gross Profit
|
|
1,508
|
|
24
|
|
1,123
|
|
2,655
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
3,742
|
|
(650)
|
|
(17)
|
|
3,075
|
Sales and
Marketing
|
|
9,648
|
|
(1,169)
|
|
(23)
|
|
8,456
|
General and
Administrative
|
|
6,121
|
|
(3,619)
|
|
(511)
|
|
1,991
|
Total Operating
Expenses
|
|
19,511
|
|
(5,438)
|
|
(551)
|
|
13,522
|
Operating
Loss
|
$
|
(18,003)
|
|
5,462
|
|
1,674
|
|
(10,867)
|
Financing
income
|
|
(238)
|
|
-
|
|
-
|
|
(238)
|
Net Loss
|
$
|
(17,765)
|
|
5,462
|
|
1,674
|
|
(10,629)
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
U.S. dollars in
thousands
|
|
Six months ended
June 30, 2022
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Earn-out
revaluation,
acquisition costs,
amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
9,119
|
|
(48)
|
|
(2,075)
|
|
6,996
|
Gross Profit
|
|
5,123
|
|
48
|
|
2,075
|
|
7,246
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
10,064
|
|
(2,048)
|
|
(21)
|
|
7,995
|
Sales and
Marketing
|
|
18,832
|
|
(3,132)
|
|
(304)
|
|
15,396
|
General and
Administrative
|
|
9,454
|
|
(3,744)
|
|
(781)
|
|
4,929
|
Total Operating
Expenses
|
|
38,350
|
|
(8,924)
|
|
(1,106)
|
|
28,320
|
Operating
Loss
|
$
|
(33,227)
|
|
8,972
|
|
3,181
|
|
(21,074)
|
Financing
income
|
|
716
|
|
-
|
|
-
|
|
716
|
Income Tax
|
|
1
|
|
|
|
|
|
1
|
Net Loss
|
$
|
(33,944)
|
|
8,972
|
|
3,181
|
|
(21,791)
|
Six months ended
June 30, 2021
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Acquisition
costs,
amortization of
acquisition related
expenses and
depreciation of
fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
6,267
|
|
(37)
|
|
(1,680)
|
|
4,550
|
Gross Profit
|
|
2,589
|
|
37
|
|
1,680
|
|
4,306
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
6,397
|
|
(1,064)
|
|
(32)
|
|
5,301
|
Sales and
Marketing
|
|
16,780
|
|
(2,204)
|
|
(34)
|
|
14,542
|
General and
Administrative
|
|
11,742
|
|
(6,595)
|
|
(896)
|
|
4,251
|
Total Operating
Expenses
|
|
34,919
|
|
(9,863)
|
|
(962)
|
|
24,094
|
Operating
Loss
|
$
|
(32,330)
|
|
9,900
|
|
2,642
|
|
(19,788)
|
Financing
income
|
|
401
|
|
-
|
|
-
|
|
401
|
Net Loss
|
$
|
(32,731)
|
|
9,900
|
|
2,642
|
|
(20,189)
|
DarioHealth Corporate Contact
Mary Mooney
VP Marketing
Mary@dariohealth.com
+1-312-593-4280
Media Contact:
Scott Stachowiak
Scott.Stachowiak@russopartnersllc.com
+1-646-942-5630
View original
content:https://www.prnewswire.com/news-releases/dariohealth-reports-second-quarter-2022-financial-and-operating-results-301605539.html
SOURCE DarioHealth Corp.