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 periodDevice 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 periodRevenue growth in Europe, Middle East and Africa (EMEA) and the Americas of 72% and 20%, respectively, over the prior year periodGross Margin of 52.6%, representing an 11% improvement over the prior year periodIncome before taxes of $0.1 million, representing an improvement of $2.5 million over the prior year periodAppointed Dietmar Dold to position of Chief Operating OfficerRestated 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 rateAdjusted 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 SUBSIDIARIESCONDENSED 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