• DIH Announces Second Quarter 2025 Financial Results and Restates June 30, 2024 Form 10-Q

    ソース: Nasdaq GlobeNewswire / 14 11 2024 17:30:33   America/New_York

    NORWELL, Mass., Nov. 14, 2024 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. ("DIH")(NASDAQ:DHAI), a global provider of advanced robotic devices used in physical rehabilitation, which incorporates 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 second fiscal quarter ended September 30, 2024, and a restatement of the financial results for the first fiscal quarter ended June 30, 2024, to account for the timing of revenue and associated cost of sales recognition for two devices sold in late June 2024.

    Recent Highlights

    • Revenue of $18.2 million for the quarter ended September 30, 2024, representing growth of 39% over the prior year period
    • Device revenue of $15.0 million and service revenue of $2.7 million for the quarter ended September 30, 2024, representing a growth of 49% and flat growth, respectively, over the prior year period
    • Revenue growth in Europe, Middle East and Africa (EMEA) and the Americas of 72% and 20%, respectively, over the prior year period
    • Gross Margin of 52.6%, representing an 11% improvement over the prior year period
    • Income before taxes of $0.1 million, representing an improvement of $2.5 million over the prior year period
    • Appointed Dietmar Dold to position of Chief Operating Officer
    • Restated first quarter 2025 revenue to equal $17.0 million, a 30.0% year-over-year growth rate, versus previously reported revenue of $16.2 million, a 24.1% year-over-year growth rate
    • Adjusted revenue guidance for the fiscal year 2025 to range between $60 million to $67 million

    “Our financial results represent another consecutive quarter of strong revenue growth and operational performance across the income statement,” said Jason Chen, Chairman and CEO of DIH. “We are pleased to have delivered positive income before taxes for the quarter in addition to recognizing a significant inflection in our gross margin profile. While we will continue to prioritize operational efficiencies going forward, we are adjusting our revenue guidance for the remainder of 2025 to account for certain macro environmental conditions as well as other business factors. We now anticipate revenue for fiscal year 2025 to range between $60 million to $67 million.”

    Financial Results for the Second Fiscal Quarter Ended September 30, 2024

    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 three months ended September 30, 2023. The overall increase was primarily due to an increase in devices sold of $4.9 million, or 48.8% year over year. The increase in devices revenue was primarily driven by higher sales volume in EMEA. Services revenue remained flat as compared to the prior period. Other revenue increased by $0.2 million to $0.4 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended September 30, 2023. Total revenue in the EMEA and in the Americas increased by $4.5 million and $0.8 million, respectively, to $10.7 million and $4.6 million for the three months ended September 30, 2024 compared to $6.2 million and $3.8 million for the three months ended September 30, 2023. The increase was partially offset by a decrease in sales in APAC of $0.1 million.

    The impact due to foreign currency translation is immaterial for the three months ended September 30, 2024.

    Gross profit for the second fiscal quarter ended September 30, 2024, was $9.6 million, an increase of 76.7% compared to the prior year period. The increase was driven by an increase of $4.5 million in sales primarily in the EMEA region. Cost of sales was improved as compared to September 30, 2023, and was driven in part by a provision adjustment in the prior year that was not recurring in the current period and the realization of an average 10% price increase implemented in the prior year for any new orders placed after the effective date of the increase.  Due to the significant order intake in the last half of fiscal year 2024, the impact of the price increase is largely realized in fiscal year 2025 and beyond.

    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 from $6.4 million for the three months ended September 30, 2023. The decrease was driven by a $0.5 million decrease in professional service fees during the three months ended September 30, 2024 because professional expenses incurred during three months ended September 30, 2023 were related to the business combination and are not recurring.

    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 three months ended September 30, 2023. The increase was primarily attributable to a $0.2 million increase in the amortization expense related to capitalized software that was ready for its intended use during the three months ended September 30, 2024 and a $0.1 million increase in employee compensation.

    Cash and cash equivalents on September 30, 2024 totaled $1.8 million.

    Fiscal Year 2025 Outlook

    The Company has revised its expected gross revenue for fiscal year 2025 to range between $60 million and $67 million.

    Restatement of June 30, 2024 Form 10-Q

    During the preparation of the Company’s financial statements as of and for the three and six months ended September 30, 2024, the Company identified two device sales and related cost of sales which should have been recognized in the quarter ended June 30, 2024 when the transfer of control occurred. The device sales had erroneously not been recorded in the originally issued Form 10-Q. The errors in the unaudited condensed consolidated financial statements for the June 30, 2024 Non-Reliance Periods noted above will be corrected in the restated financial statements for the June 30, 2024 Non-Reliance Period in an amendment to the previously-filed Form 10-Q and a Post-Effective Amendment to the Form S-1.

    As the company is restating the June 30, 2024 Non-Reliance Period, we are taking the opportunity to adjust for immaterial adjustments identified during the current review period, or were passed in the prior review period.  The financials including any restated amounts are included as supplemental tables in this press release.  The June 30, 2024 10Q-A and September 30, 2024 10Q will be filed no later than November 19, 2024. 

    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 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. Built through the mergers of global-leading niche technology providers, DIH is a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.

    Caution Regarding Forward-Looking Statement

    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)
           
      As of September 30, 2024  As of March 31, 2024 
    Assets      
    Current assets:      
    Cash and cash equivalents $1,759  $3,225 
    Restricted cash  300   — 
    Accounts receivable, net of allowances of $233 and $667, respectively  6,383   5,197 
    Inventories, net  9,591   7,830 
    Due from related party  6,133   5,688 
    Other current assets  5,608   5,116 
    Total current assets  29,774   27,056 
    Property, and equipment, net  790   530 
    Capitalized software, net  1,992   2,131 
    Other intangible assets, net  380   380 
    Operating lease, right-of-use assets, net  4,182   4,466 
    Other tax assets  128   267 
    Other assets  948   905 
    Total assets $38,194  $35,735 
    Liabilities and Deficit      
    Current liabilities:      
    Accounts payable $5,231  $4,305 
    Employee compensation  3,813   2,664 
    Due to related party  10,322   10,192 
    Current portion of deferred revenue  5,900   5,211 
    Manufacturing warranty obligation  621   513 
    Current portion of long-term operating lease  1,494   1,572 
    Current maturities of convertible debt, at fair value  1,991   — 
    Advance payments from customers  8,945   10,562 
    Accrued expenses and other current liabilities ($480 measured at fair value)  11,046   9,935 
    Total current liabilities  49,363   44,954 
    Convertible debt, net of current maturities, at fair value  928   — 
    Notes payable - related party  9,404   11,457 
    Non-current deferred revenues  4,943   4,670 
    Long-term operating lease  2,731   2,917 
    Deferred tax liabilities  86   112 
    Other non-current liabilities  5,134   4,171 
    Total liabilities $72,589  $68,281 
    Commitments and contingencies      
    Deficit:      
    Preferred stock, $0.00001 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and March 31, 2024  —   — 
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 34,544,935 shares issued and outstanding at September 30, 2024 and March 31, 2024  3   3 
    Additional paid-in-capital  3,323   2,613 
    Accumulated deficit  (35,756)  (35,212)
    Accumulated other comprehensive income (loss)  (1,965)  50 
    Total deficit $(34,395) $(32,546)
    Total liabilities and deficit $38,194  $35,735 
             


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data, unaudited)
          
     Three Months Ended September 30,  For the Six Months Ended September 30, 
      2024  2023  2024  2023 
    Revenue $18,162  $13,060  $35,122  $26,105 
    Cost of sales  8,605   7,652   16,110   15,300 
    Gross profit  9,557   5,408   19,012   10,805 
    Operating expenses:            
    Selling, general, and administrative expense  5,758   6,372   14,368   12,209 
    Research and development  1,911   1,584   3,555   3,022 
    Total operating expenses  7,669   7,956   17,923   15,231 
    Operating income (loss)  1,888   (2,548)  1,089   (4,426)
    Other income (expense):            
    Interest expense  (26)  (155)  (161)  (275)
    Other income (expense), net  (1,761)  271   (414)  (418)
    Total other income (expense)  (1,787)  116   (575)  (693)
    Income (loss) before income taxes  101   (2,432)  514   (5,119)
    Income tax expense  335   52   1,058   278 
    Net loss $(234) $(2,484) $(544) $(5,397)
                 
    Net loss per share, basic and diluted $(0.01) $(0.10) $(0.02) $(0.22)
    Weighted average common shares outstanding, basic and diluted  34,545   25,000   34,545   25,000 
                     


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, unaudited)
           
      Three Months Ended September 30,  For the Six Months Ended September 30, 
      2025 2023  2024 2023 
    Net loss $(234) $(2,484) $(544) $(5,397)
    Other comprehensive (loss) income, net of tax            
    Foreign currency translation adjustments, net of tax of $0  454   (601)  (934)  240 
    Pension liability adjustments, net of tax of $0  (562)  60   (1,081)  (360)
    Other comprehensive (loss) income  (108)  (541)  (2,015)  (120)
    Comprehensive loss $(342) $(3,025) $(2,559) $(5,517)
                     


    DIH HOLDING US, INC. AND SUBSIDIARIES
    CONDENSED COMBINED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
    (in thousands, unaudited)
       
     For the Three Months Ended September 30, 
     Common Stock         
     Shares Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, June 30, 2024 34,544,935 $3 $3,323 $(35,522)$(1,857)$(34,053)
    Net loss —  —  —  (234) —  (234)
    Other comprehensive loss, net of tax —  —  —  —  (108) (108)
    Balance, September 30, 2024 34,544,935 $3 $3,323 $(35,756)$(1,965)$(34,395)
                 
     Shares(1) Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, June 30, 2023 25,000,000 $2 $(1,898)$(29,682)$132 $(31,446)
    Net loss —  —  —  (2,484) —  (2,484)
    Other comprehensive loss, net of tax —  —  —  —  (541) (541)
    Balance, September 30, 2023 25,000,000 $2 $(1,898)$(32,166)$(409)$(34,471)
                 


     For the Six Months Ended September 30, 
     Common Stock         
     Shares Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, March 31, 2024 34,544,935 $3 $2,613 $(35,212)$50 $(32,546)
    Net loss —  —  —  (544) —  (544)
    Out of period adjustment related to reverse recapitalization —  —  710  —  —  710 
    Other comprehensive loss, net of tax —  —  —  —  (2,015) (2,015)
    Balance, September 30, 2024 34,544,935 $3 $3,323 $(35,756)$(1,965)$(34,395)
                 
     Shares(1) Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, March 31, 2023 25,000,000 $2 $(1,898)$(26,769)$(289)$(28,954)
    Net loss —  —  —  (5,397) —  (5,397)
    Other comprehensive loss, net of tax —  —  —  —  (120) (120)
    Balance, September 30, 2023 25,000,000 $2 $(1,898)$(32,166)$(409)$(34,471)
                 

    (1)  All outstanding share and per-share amounts have been restated to reflect the reverse recapitalization as established in the Business Combination Agreement as described in Note 1 to the condensed consolidated financial statements.


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands, unaudited)
        
      For the Six Months Ended September 30, 
      2024  2023 
    Cash flows from operating activities:      
    Net loss $(544) $(5,397)
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization  351   147 
    Provision for credit losses  (434)  (869)
    Allowance for inventory obsolescence  (108)  739 
    Pension contributions  (309)  (309)
    Pension expense  155   136 
    Change in fair value of convertible debt and warrant liability  400   — 
    Foreign exchange (gain) loss  (38)  418 
    Noncash lease expense  828   770 
    Noncash interest expense  —   14 
    Deferred and other noncash income tax (income) expense  112   12 
    Changes in operating assets and liabilities:      
    Accounts receivable  (694)  2,149 
    Inventories  (1,527)  (1,528)
    Due from related parties  (548)  343 
    Due to related parties  (98)  988 
    Other assets  (481)  (1,350)
    Operating lease liabilities  (820)  (957)
    Accounts payable  813   1,764 
    Employee compensation  1,070   (59)
    Other liabilities  (247)  197 
    Deferred revenue  846   1,265 
    Manufacturing warranty obligation  100   180 
    Advance payments from customers  (1,737)  2,591 
    Accrued expense and other current liabilities  1,376   519 
    Net cash provided by (used in) operating activities  (1,534)  1,763 
    Cash flows from investing activities:      
    Purchases of property and equipment  (423)  (73)
    Net cash used in investing activities  (423)  (73)
    Cash flows from financing activities:      
    Proceeds from issuance of convertible debt, net of issuance costs  2,809   — 
    Payments on related party notes payable  (2,053)  (3,744)
    Net cash provided by (used in) financing activities  756   (3,744)
    Effect of currency translation on cash and cash equivalents  35   15 
    Net decrease in cash, and cash equivalents, and restricted cash  (1,166)  (2,039)
    Cash, cash equivalents and restricted cash - beginning of period  3,225   3,175 
    Cash, cash equivalents and restricted cash- end of period $2,059  $1,136 
    Reconciliation of cash, cash equivalents and restricted cash:      
    Cash and cash equivalents $1,759  $1,136 
    Restricted cash  300   — 
    Total cash, cash equivalents and restricted cash $2,059  $1,136 
    Supplemental disclosure of cash flow information:      
    Interest paid $162  $262 
    Income tax paid $15  $— 
    Supplemental disclosure of non-cash investing and financing activity:      
    Accounts payable settled upon reverse recapitalization $710  $— 
             


     DIH HOLDING US, INC.
    RESTATED CONSOLIDATED BALANCE SHEETS
    (in thousands, except share and per share data, unaudited)
        
      As of June 30, 2024 
      As Previously Reported  Adjustment  As Restated 
    Assets         
    Current assets:         
    Cash and cash equivalents $2,749  $—  $2,749 
    Accounts receivable, net of allowances of $631  5,690   773   6,463 
    Inventories, net  9,014   (32)  8,982 
    Due from related party  5,728   —   5,728 
    Other current assets  6,194   (398)  5,796 
    Total current assets  29,375   343   29,718 
    Property, and equipment, net  664   —   664 
    Capitalized software, net  2,052   —   2,052 
    Other intangible assets, net  380   —   380 
    Operating lease, right-of-use assets, net  4,388   —   4,388 
    Other tax assets  417   —   417 
    Other assets  933   —   933 
    Total assets $38,209  $343  $38,552 
    Liabilities and Deficit         
    Current liabilities:         
    Accounts payable $5,368  $—  $5,368 
    Employee compensation  3,991   —   3,991 
    Due to related party  9,790   —   9,790 
    Current portion of deferred revenue  6,350   —   6,350 
    Manufacturing warranty obligation  549   —   549 
    Current portion of long-term operating lease  1,509   —   1,509 
    Current maturities of convertible debt  1,461   82   1,543 
    Advance payments from customers  9,272   —   9,272 
    Accrued expenses and other current liabilities  9,950   165   10,115 
    Total current liabilities  48,240   247   48,487 
    Convertible debt, net of current maturities  1,177   —   1,177 
    Notes payable - related party  10,722   —   10,722 
    Non-current deferred revenues  4,747   —   4,747 
    Long-term operating lease  2,925   —   2,925 
    Deferred tax liabilities  89   —   89 
    Other non-current liabilities  4,304   154   4,458 
    Total liabilities $72,204  $401  $72,605 
    Commitments and contingencies         
    Deficit:         
    Preferred stock, $0.00001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and March 31, 2024  —   —   — 
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 34,544,935 shares issued and outstanding at June 30, 2024 and March 31, 2024  3   —   3 
    Additional paid-in-capital  3,685   (362)  3,323 
    Accumulated deficit  (35,826)  304   (35,522)
    Accumulated other comprehensive income (loss)  (1,857)  —   (1,857)
    Total deficit $(33,995) $(58) $(34,053)
    Total liabilities and deficit $38,209  $343  $38,552 
                 

     

    DIH HOLDING US, INC.
    RESTATED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data, unaudited)
        
      For the Three Months Ended June 30, 2024 
      Reported  Adjustment  As Restated 
    Revenue $16,187  $773  $16,960 
    Cost of sales  7,521   (16)  7,505 
              
    Gross profit  8,666   789   9,455 
    Operating expenses:         
    Selling, general, and administrative expense  8,676   (66)  8,610 
    Research and development  1,644   —   1,644 
    Total operating expenses  10,320   (66)  10,254 
    Operating loss  (1,654)  855   (799)
    Other income (expense):         
    Interest income (expense)  (135)  —   (135)
    Other income (expense), net  1,898   (551)  1,347 
    Total other income (expense)  1,763   (551)  1,212 
    Income (loss) before income taxes  109   304   413 
    Income tax expense  723   —   723 
    Net loss $(614) $304  $(310)
              
    Net loss per share         
    Net loss per share, basic and diluted $(0.02) $0.01  $(0.01)
    Weighted average common shares outstanding         
    Weighted average common shares outstanding, basic and diluted  34,545   —   34,545 
                 


    DIH HOLDING US, INC.
    RESTATED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands, unaudited)
        
      For the Three Months Ended June 30, 2024 
      Reported  Adjustment  As Restated 
    Cash flows from operating activities:         
    Net loss $(614) $304  $(310)
    Adjustments to reconcile net loss to net cash provided by operating activities:         
    Depreciation and amortization  91   —   91 
    Provision for credit losses  (36)  —   (36)
    Allowance for inventory obsolescence  (13)  —   (13)
    Pension contributions  (150)  —   (150)
    Pension expense  77   —   77 
    Change in fair value of convertible debt and warrant liability  —   105   105 
    Foreign exchange (gain) loss  (1,899)  32   (1,867)
    Noncash lease expense  422   —   422 
    Noncash interest expense  —   —   — 
    Change in manufacturing warranty obligation estimate  —   —    
    Deferred and other noncash income tax (income) expense  (166)  —   (166)
    Changes in operating assets and liabilities:         
    Accounts receivable  (489)  (773)  (1,262)
    Inventories  (1,468)  —   (1,468)
    Due from related parties  (108)  —   (108)
    Due to related parties  (584)  —   (584)
    Other assets  (872)  398   (474)
    Operating lease liabilities  (425)  —   (425)
    Accounts payable  1,508   —   1,508 
    Employee compensation  1,388   —   1,388 
    Other liabilities  —   154   154 
    Deferred revenue  1,411   —   1,411 
    Manufacturing warranty obligation  50   —   50 
    Advance payments from customers  (1,136)  —   (1,136)
    Accrued expense and other current liabilities  1,003   (220)  783 
    Net cash used in operating activities  (2,010)  —   (2,010)
    Cash flows from investing activities:         
    Purchases of property and equipment  (235)  —   (235)
    Capitalized software development costs  —   —   — 
    Net cash used in investing activities  (235)  —   (235)
    Cash flows from financing activities:         
    Proceeds from issuance of convertible debt, net of issuance costs  2,509   —   2,509 
    Payments on related party notes payable  (735)  —   (735)
    Net cash provided by financing activities  1,774   —   1,774 
    Effect of currency translation on cash and cash equivalents  (5)  —   (5)
    Net increase in cash, and cash equivalents, and restricted cash  (476)  —   (476)
    Cash, and cash equivalents - beginning of period  3,225   —   3,225 
    Cash, and cash equivalents - end of period $2,749  $—  $2,749 
    Cash and cash equivalents - end of period $2,749  $—  $2,749 
    Restricted cash - end of period  —   —   — 
    Total cash, and cash equivalents - end of period $2,749  $—  $2,749 
    Supplemental disclosure of cash flow information:         
    Interest paid $135  $—  $135 
    Income tax paid $—  $—  $— 
    Supplemental disclosure of non-cash investing and financing activity:         
    Accrued liability related to asset acquisition $—     $— 
    Accounts payable settled upon reverse recapitalization $710  $—  $710 

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