DIH Announces Fiscal 2024 Fourth Quarter and Fiscal Year End Financial Results
DIH Holding US, Inc. (NASDAQ:DHAI) reported financial results for fiscal 2024, ending March 31, 2024. Key highlights include:
- Revenue of $64.5 million, up 19% year-over-year
- Device revenue of $51.1 million, up 18%
- Service revenue of $11.1 million, up 20%
- Positive operating cash flow of $5.2 million
- Strategic partnership with B. Temia for exclusive licensing of Keego™ Dermoskeleton in North America
For Q4 2024, revenue decreased 10.2% to $19.4 million due to customer scheduling delays. The company issued $3.3 million in convertible debentures post-fiscal year. For fiscal 2025, DIH projects revenue between $74-77 million, representing 15-20% growth.
- Revenue growth of 19% year-over-year to $64.5 million
- Device revenue increased by 18% to $51.1 million
- Service revenue grew by 20% to $11.1 million
- Positive operating cash flow of $5.2 million
- Strategic partnership with B. Temia for exclusive licensing of Keego™ Dermoskeleton
- Projected revenue growth of 15-20% for fiscal 2025
- Q4 2024 revenue decreased by 10.2% to $19.4 million
- Gross profit for fiscal 2024 decreased by 2.7%
- Selling, general and administrative expenses increased by 12.3%
- Issuance of $3.3 million in convertible debentures, potentially diluting shareholders
The fiscal year 2024 financial results for DIH showcase a significant revenue growth of 19% compared to the prior year, primarily driven by increased device and service revenues. This is a noteworthy performance in the rehabilitation robotics sector, reflecting strong market demand and sales execution. However, despite the revenue growth, the company experienced a decrease in gross profit by 2.7%, attributed to inflationary cost increases and higher overhead costs. This indicates a challenge in managing cost structures effectively, which may need strategic addressing going forward.
The company's positive operating cash flow of $5.2 million is a positive indicator of financial health, suggesting efficient operational management. However, the increase in selling, general and administrative expenses by 12.3% could be a concern if it continues to outpace revenue growth. Investors should watch for how the company controls these expenses in future quarters.
Additionally, the issuance of $3.3 million in Senior Secured Convertible Debentures raises some questions about the company’s liquidity. Although this move provides immediate capital, the 8% interest rate and the security constraints could be a burden if the company doesn’t achieve expected revenue growth.
Overall, the company’s financial performance is strong, but the increased costs and reliance on external financing are aspects to monitor closely.
NORWELL, Mass., July 15, 2024 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. ("DIH")(NASDAQ:DHAI), a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions, today announced financial results for the fiscal 2024 fourth quarter and year ended March 31, 2024.
Recent Highlights
- Revenue of
$64.5 million for the fiscal year ended March 31, 2024, representing growth of19% over the prior year - Device revenue of
$51.1 million and service revenue of$11.1 million for the fiscal year ended March 31, 2024, representing growth of18% and20% , respectively over the prior year - Positive operating cash flow of
$5.2 million for the year ended March 31, 2024 - Announced strategic partnership with B. Temia to enrich DIH’s rehabilitative solutions through exclusive licensing of B. Temia’s Keego™ Dermoskeleton product in North America
“We are proud of our team and their excellent work over the past year,” said Jason Chen, Chairman and CEO of DIH. “Fiscal 2024 was a critical inflection year for DIH and I am encouraged by our performance. We were able to deliver significant commercial growth while simultaneously completing our initial public offering. Additionally, generating positive operating cash flow while furthering operational accomplishments creates a strong foundation for our growth strategy. With our continued industry leadership, we remain committed in our mission to build an integrated platform and consolidate the fragmented rehabilitation industry. We believe consolidation of the industry will accelerate our growth in the coming years and look forward to what fiscal 2025 will bring.”
Financial Results for the Fiscal Year Ended March 31, 2024
Revenue for the fiscal year ended March 31, 2024, was
Changes in foreign currency exchange rates had a favorable impact on our net sales for the year ended March 31, 2024, resulting in an increase of approximately
Gross profit for the fiscal year ended March 31, 2024, was
Selling, general and administrative expense for the fiscal year ended March 31, 2024, was
Research and development costs for the fiscal year ended March 31, 2024, were
Cash and cash equivalents at March 31, 2024 totaled
Financial Results for the Fourth Quarter Ended March 31, 2024
Revenue for the three months ended March 31, 2024 was
Changes in foreign currency exchange rates had a minor favorable impact on our net sales in the three months ended March 31, 2024, resulting in an increase of approximately
Gross profit for the three months ended March 31, 2024 was
Selling, general and administrative expense for the three months ended March 31, 2024, was
Research and development costs for the three months ended March 31, 2024, were
Subsequent Events
On June 6, 2024, the Company entered into a Securities Purchase Agreement, pursuant to which the Company issued
The Debentures are convertible into an aggregate of 660,000 shares of the Company’s Class A Common Stock at a conversion price of
Provided that no event of default has occurred or is continuing, and at least
The Debentures are secured by substantially all of the assets of the Company and its domestic subsidiaries, excluding certain specified assets. Additionally, the Company’s domestic subsidiaries have provided an unconditional guarantee of the Debentures. In connection with the issuance of the Debentures, the Company also issued warrants to purchase an aggregate of 330,000 shares of Class A Common Stock at an exercise price of
Fiscal Year 2025 Outlook
The Company expects gross revenue for fiscal year 2025 to range between
About DIH Holding US, Inc.
DIH stands for the vision to “Deliver Inspiration & Health” to improve the daily lives of millions of people with disabilities and functional impairments through providing devices and solutions enabling intensive rehabilitation. DIH is a global provider of advanced robotic devices that incorporate virtual reality technologies (“VR”) to enable research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions. Built through the mergers of global-leading niche technology providers, DIH is positioning itself as a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.
Caution Regarding Forward-Looking Statements
This press release contains certain statements which are not historical facts, which are forward-looking statements within the meaning of the federal securities laws, for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include certain statements made with respect to the business combination, the services offered by DIH and the markets in which it operates, and DIH’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions provided for illustrative purposes only, and projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. These risks and uncertainties include, but are not limited to: general economic, political and business conditions; the ability of DIH to achieve its projected revenue, the failure of DIH realize the anticipated benefits of the recently-completed business combination and access to sources of additional debt or equity capital if needed. While DIH may elect to update these forward-looking statements at some point in the future, DIH specifically disclaims any obligation to do so.
Investor Contact
Greg Chodaczek
332-895-3230
Investor.relations@dih.com
DIH HOLDING US, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data, unaudited) | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,225 | $ | 3,175 | ||||
Accounts receivable, net of allowances of | 5,197 | 5,998 | ||||||
Inventories, net | 7,830 | 4,850 | ||||||
Due from related party | 5,688 | 6,383 | ||||||
Other current assets | 5,116 | 4,855 | ||||||
Total current assets | 27,056 | 25,261 | ||||||
Property, and equipment, net | 530 | 742 | ||||||
Capitalized software, net | 2,131 | 2,019 | ||||||
Other intangible assets, net | 380 | 380 | ||||||
Operating lease, right-of-use assets, net | 4,466 | 2,604 | ||||||
Other tax assets | 267 | 1 | ||||||
Other assets | 905 | 772 | ||||||
Total assets | $ | 35,735 | $ | 31,779 | ||||
Liabilities and Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,305 | $ | 2,190 | ||||
Employee compensation | 2,664 | 3,163 | ||||||
Due to related party | 10,192 | 6,841 | ||||||
Current portion of deferred revenue | 5,211 | 7,714 | ||||||
Manufacturing warranty obligation | 513 | 973 | ||||||
Current portion of long-term operating lease | 1,572 | 1,005 | ||||||
Advance payments from customers | 10,562 | 6,255 | ||||||
Accrued expenses and other current liabilities | 9,935 | 8,631 | ||||||
Total current liabilities | 44,954 | 36,772 | ||||||
Notes payable - related party | 11,457 | 17,301 | ||||||
Non-current deferred revenues | 4,670 | 2,282 | ||||||
Long-term operating lease | 2,917 | 1,621 | ||||||
Deferred tax liabilities | 112 | 110 | ||||||
Other non-current liabilities | 4,171 | 2,647 | ||||||
Total liabilities | $ | 68,281 | $ | 60,733 | ||||
Commitments and contingencies | ||||||||
Deficit: | ||||||||
Preferred Stock, | — | — | ||||||
Common stock, | 3 | 2 | ||||||
Additional paid-in-capital | 2,613 | (1,898 | ) | |||||
Accumulated deficit | (35,212 | ) | (26,769 | ) | ||||
Accumulated other comprehensive income (loss) | 50 | (289 | ) | |||||
Total deficit | $ | (32,546 | ) | $ | (28,954 | ) | ||
Total liabilities and deficit | $ | 35,735 | $ | 31,779 |
DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) | ||||||||||||||||
Three Months Ended March 31, | Years Ended March 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | $ | 19,356 | $ | 21,556 | $ | 64,473 | $ | 54,059 | ||||||||
Cost of sales | 9,547 | 6,742 | 34,702 | 23,474 | ||||||||||||
Gross profit | 9,809 | 14,814 | 29,771 | 30,585 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general, and administrative expense | 8,124 | 6,813 | 25,776 | 22,957 | ||||||||||||
Research and development | 1,928 | 1,977 | 6,609 | 6,919 | ||||||||||||
Total operating expenses | 10,052 | 8,790 | 32,385 | 29,876 | ||||||||||||
Operating income (loss) | (243 | ) | 6,024 | (2,614 | ) | 709 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest (expense) | (232 | ) | (117 | ) | (693 | ) | (277 | ) | ||||||||
Other income (expense), net | (3,709 | ) | 27 | (3,890 | ) | 572 | ||||||||||
Total other income (expense) | (3,941 | ) | (90 | ) | (4,583 | ) | 295 | |||||||||
Income (loss) before income taxes | (4,184 | ) | 5,934 | (7,197 | ) | 1,004 | ||||||||||
Income tax expense (benefit) | 587 | 1,255 | 1,246 | 2,018 | ||||||||||||
Net Income (loss) | $ | (4,771 | ) | $ | 4,679 | $ | (8,443 | ) | $ | (1,014 | ) | |||||
Net earnings (loss) per share, basic and diluted | $ | (0.16 | ) | $ | 0.19 | $ | (0.32 | ) | $ | (0.04 | ) | |||||
Weighted-average shares outstanding, basic and diluted | 30,559 | 25,000 | 26,382 | 25,000 |
DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, unaudited) | ||||||||||||||||
Three Months Ended March 31, | Years Ended March 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) | $ | (4,771 | ) | $ | 4,679 | $ | (8,443 | ) | $ | (1,014 | ) | |||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||
Foreign currency translation adjustments, net of tax of | 627 | (282 | ) | 1,455 | (503 | ) | ||||||||||
Pension liability adjustments, net of tax of | (100 | ) | (230 | ) | (1,116 | ) | (421 | ) | ||||||||
Other comprehensive (loss) income | (924 | ) | (512 | ) | 339 | (924 | ) | |||||||||
Comprehensive loss | $ | (1,938 | ) | $ | 4,167 | $ | (8,104 | ) | $ | (1,938 | ) |
DIH HOLDING US, INC. AND SUBSIDIARIES INTERIM CONDENSED COMBINED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (in thousands, unaudited) | ||||||||||||||||||
Common Stock | ||||||||||||||||||
Shares(1) | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Equity (Deficit) | |||||||||||||
Balance, March 31, 2022 | 25,000,000 | $ | 2 | $ | (1,776 | ) | $ | (25,755 | ) | $ | 635 | $ | (26,894 | ) | ||||
Net loss | — | — | — | (1,014 | ) | — | (1,014 | ) | ||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (924 | ) | (924 | ) | ||||||||||
Net transactions with DIH Cayman | — | — | (122 | ) | — | — | (122 | ) | ||||||||||
Balance, March 31, 2023 | 25,000,000 | $ | 2 | $ | (1,898 | ) | $ | (26,769 | ) | $ | (289 | ) | $ | (28,954 | ) | |||
Net loss | — | — | — | (8,443 | ) | — | (8,443 | ) | ||||||||||
Issuance of common stock upon reverse recapitalization | 9,544,935 | 1 | 4,511 | — | — | 4,512 | ||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 339 | 339 | ||||||||||||
Balance, March 31, 2024 | 34,544,935 | $ | 3 | $ | 2,613 | $ | (35,212 | ) | $ | 50 | $ | (32,546 | ) |
DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | ||||||||
Years Ended March 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (8,443 | ) | $ | (1,014 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 302 | 66 | ||||||
Provision for credit losses | (1,016 | ) | 669 | |||||
Allowance for inventory obsolescence | 617 | (1,639 | ) | |||||
Noncash business combination expense | 3,514 | - | ||||||
Pension contributions | (530 | ) | (569 | ) | ||||
Pension (income) expense | (75 | ) | (400 | ) | ||||
Foreign exchange (gain) loss | 376 | (584 | ) | |||||
Noncash lease expense | 1,590 | 1,423 | ||||||
Noncash interest expense | 28 | 19 | ||||||
Change in manufacturing warranty obligation estimate | (626 | ) | — | |||||
Deferred and other noncash income tax expense | (304 | ) | 58 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,853 | (514 | ) | |||||
Inventories | (3,259 | ) | 518 | |||||
Due from related parties | 1,018 | (969 | ) | |||||
Due to related parties | 3,337 | 2,471 | ||||||
Other assets | (229 | ) | (1,805 | ) | ||||
Operating lease liabilities | (1,782 | ) | (1,448 | ) | ||||
Accounts payable | 2,920 | 38 | ||||||
Employee compensation | (551 | ) | (151 | ) | ||||
Other liabilities | 970 | (96 | ) | |||||
Deferred revenue | (90 | ) | 4,059 | |||||
Manufacturing warranty obligation | 163 | 160 | ||||||
Advance payments from customers | 4,338 | 2,083 | ||||||
Accrued expense and other current liabilities | 1,071 | 3,126 | ||||||
Net cash provided by operating activities | 5,192 | 5,501 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (202 | ) | (145 | ) | ||||
Net cash used in investing activities | (202 | ) | (145 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from reverse recapitalization | 899 | — | ||||||
Payments on related party notes payable | (5,844 | ) | (4,053 | ) | ||||
Net cash used in financing activities | (4,945 | ) | (4,053 | ) | ||||
Effect of currency translation on cash and cash equivalents | 5 | (61 | ) | |||||
Net increase in cash, and cash equivalents, and restricted cash | 50 | 1,242 | ||||||
Cash, and cash equivalents, and restricted cash - beginning of year | 3,175 | 1,933 | ||||||
Cash, and cash equivalents, and restricted cash - end of year | $ | 3,225 | $ | 3,175 | ||||
Cash and cash equivalents - end of year | $ | 3,225 | $ | 3,175 | ||||
Restricted cash - end of year | — | — | ||||||
Total cash, and cash equivalents, and restricted cash - end of year | $ | 3,225 | $ | 3,175 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 665 | $ | 258 | ||||
Income tax paid | $ | — | $ | 210 | ||||
Supplemental disclosure of non-cash investing and financing activity: | ||||||||
Accrued liability related to asset acquisition | $ | — | $ | 533 | ||||
Accounts payable settled through escrow account upon reverse recapitalization | $ | 1,439 | $ | — |
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