DarioHealth Reports First Quarter 2018 Results

    Record Q1 2018 Revenue of $1.76 Million; year over year growth of 74%

    May 15, 2018

    NEW YORK and CAESAREA, Israel, May 15, 2018 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO), a leading global digital health company with mobile health and big data solutions, today reported financial and operational results for the first quarter ended on March 31, 2018.

    DarioHealth logo

    First Quarter Highlights

    • Record revenue of $1.76 million increased 74% compared to the first quarter of 2017
      • Sequential quarterly revenue growth of 11.3% over the fourth quarter of 2017
      • Thirteenth consecutive quarter of revenue growth
    • Gross profit of $552,000, an increase of 420% compared to the first quarter of 2017
    • Operating loss of $2,875,000, a decrease of 32% compared to the first quarter of 2017
    • Net loss of $2,919,000, a decrease of 46% compared to the first quarter of 2017
      • Net loss decreased by 11% from the fourth quarter of 2017

    Erez Raphael, Chairman and CEO of DarioHealth, commented, "The 74% revenue growth rate we achieved in the first quarter over the prior year's period is in line with the annual 60%-80% revenue growth rate we expect for the full 2018 year. We are effectively executing on all fronts. As our revenues grow, gross profits are increasing at a higher rate, resulting in narrowing operating and net losses.

    "Having completed a $6.6 million raise during the first quarter, we are investing in our commercialization capabilities, including boosting our business-to-business Dario Engage platform, especially in the U.S. with an extended commercialization team, and also further building upon the success we are achieving in the direct-to-consumer market. A substantial global market opportunity is present and we believe DarioHealth has the technology, products, market access and team to best serve the stakeholders in this market."

    First Quarter 2018 Results Summary
    Revenue for the first quarter ended March 31, 2018 was $1,756,000, a 74% increase from $1,007,000 in first quarter ended March 31, 2017, and an 11.3% increase sequentially from the fourth quarter of 2017.

    Revenue for the first quarter of 2018 included direct-to-consumer sales in the United States and Australia, as well as initial sales in Germany, and product sales to distributors in the United Kingdom.

    Gross profit increased by $446,000, a 420% increase to a profit of $552,000 in the first quarter of 2018, as compared to a gross profit of $106,000 in the first quarter of 2017.

    Operating loss for the first quarter ended March 31, 2018 decreased by $1.3 million to $2.88 million, as compared to a $4.2 million operating loss in the first quarter ended March 31, 2017. This decrease is mainly due to the improvement in our gross profit and a decrease in our operating expenses due a reduction in share-based compensation.

    Net loss attributable to holders of common stock decreased by $2.5 million to $2.9 million in the first quarter of 2018, as compared to $5.4 million in the first quarter of 2017, and decreased by $346,000 as compared to $3.26 million in the fourth quarter of 2017.

    As of March 31, 2018, cash and cash equivalents totaled $7 million following the raise of $6.6 million during the quarter in a private placement.

    Conference Call Details:
    Date: Tuesday, May 15, 2018
    Time: 9:00am EDT
    Dial-in Number: 1-877-407-8035
    International Dial-in Number: 1-201-689-8035 
    Webcast: http://www.investorcalendar.com/event/27776

    About DarioHealth Corp.
    DarioHealth Corp. (NASDAQ: DRIO) is a leading global digital health company serving its users with dynamic mobile health solutions. In today's day and age, knowledge of health and treatment is being democratized, and we believe people deserve to know everything about their own health and have the best tools to manage their condition. DarioHealth employs a revolutionary approach whereby harnessing big data, we have developed a novel method for chronic disease data management, empowering people to analyze and personalize self-diabetes management in a totally new way without having the disease slow them down. DarioHealth has a commercial office in New York with an R&D center in Caesarea, Israel. For more information, visit http://mydario.investorroom.com/.

    Cautionary Note Regarding Forward-Looking Statements 
    This news release and the statements of representatives and partners of DarioHealth Corp. (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 the Company provides revenue forecasts, describes growth potential for 2018, and describes market opportunity.  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. 

     

     

    DARIOHEALTH CORP.

    CONSOLIDATED BALANCE SHEETS

    U.S. dollars in thousands






    March 31,


    December 31,





    2018


    2017





    Unaudited



    ASSETS














    CURRENT ASSETS:







    Cash and cash equivalents




    $          7,041


    $             3,718

    Short-term bank deposits




    188


    258

    Trade Receivables




    200


    282

    Inventories




    912


    1,184

    Other accounts receivable and prepaid expenses




    566


    604








    Total current assets




    8,907


    6,046








    LEASE DEPOSITS




    45


    42








    PROPERTY AND EQUIPMENT, NET




    828


    869








    Total assets




    $          9,780


    $          6,957









     

     

    DARIOHEALTH CORP.

    CONSOLIDATED BALANCE SHEETS

    U.S. dollars in thousands (except stock and stock data)






    March 31,


    December 31,





    2018


    2017





    Unaudited










    LIABILITIES AND STOCKHOLDERS' EQUITY














    CURRENT LIABILITIES:







    Trade payables




    $         1,112


    $            1,852

    Other accounts payable and accrued expenses




    1,297


    1,163








    Total current liabilities




    2,409


    3,015








    LIABILITY RELATED TO WARRANTS




    *) -


    1








    STOCKHOLDERS' EQUITY







    Common Stock of $0.0001 par value -
         
    Authorized: 160,000,000 shares at March 31, 2018 
         (unaudited) and December 31, 2017; Issued and Outstanding: 
         16,480,164 and 14,074,238 shares at March 31, 2018 
         (unaudited) and December 31, 2017, respectively




    7


    7

    Preferred Stock of $0.0001 par value -
         
    Authorized: 5,000,000 shares at March 31, 2018 (unaudited) 
         and December 31, 2017; Issued and Outstanding: 1,234,080 
         and None shares at March 31, 2018 (unaudited) and 
         December 31, 2017, respectively




    *) -


    -

    Additional paid-in capital




    81,241


    74,892

    Accumulated deficit




    (73,877)


    (70,958)








    Total stockholders' equity




    7,371


    3,941








    Total liabilities and stockholders' equity




    $         9,780


    $        6,957



    *) Represents an amount lower than $1.

     

     

    DARIOHEALTH CORP.


    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS


    U.S. dollars in thousands (except stock and stock data)







    Three months ended




    March 31




    2018


    2017




    Unaudited








    Revenues


    $                 1,756


    $                 1,007


    Cost of revenues


    1,204


    901








    Gross profit


    552


    106








    Operating expenses:






    Research and development


    $                   742


    $                469


    Sales and marketing


    1,824


    1,825


    General and administrative


    861


    2,017








    Total operating expenses


    3,427


    4,311








    Operating loss


    (2,875)


    (4,205)








    Financial expenses, net:






    Revaluation of warrants


    (1)


    1,195


    Other financial expense, net


    45


    13








    Total financial expenses, net


    44


    1,208








    Net loss


    $           (2,919)


    $             (5,413)








    Net loss attributable to holders of Common Stock


    $             (2,919)


    $             (5,413)








    Net loss per share












    Basic and diluted loss per share


    $               (0.20)


    $            (0.75)


    Weighted average number of Common Stock used in 
         computing basic and diluted net loss per share


    14,943,032


    7,195,801








     

     

    DARIOHEALTH CORP.

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    U.S. dollars in thousands




    Three months ended



    March 31,



    2018


    2017



    Unaudited






    Cash flows from operating activities:





    Net loss


    $          (2,919)


    $          (5,413)

    Adjustments required to reconcile net loss to net cash used in operating activities:





    Stock-based compensation and Common Stock to service providers


    230


    1,585

    Depreciation


    53


    43

    Decrease (increase) is trade receivables


    82


    (256)

    Decrease (increase) in accounts receivables and prepaid expenses


    38


    (210)

    Decrease in inventories


    272


    39

    Decrease in trade payables


    (740)


    (328)

    Increase in other accounts payable and accrued expenses


    219


    262

    Change in fair value of warrants to purchase shares of Common Stock


    (1)


    1,195






    Net cash used in operating activities


    (2,766)


    (3,083)






    Cash flows from investing activities:





    Maturities of short-term bank deposit


    70


    -

    Investment in lease deposits


    (3)


    (9)

    Purchase of property and equipment


    (12)


    -






    Net cash provided by (used in) investing activities


    55


    (9)






    Cash flows from financing activities:





    Proceeds from issuance of Common Stock and warrants, net of issuance cost


    6,034


    4,816






    Net cash provided by financing activities


    6,034


    4,816






    Increase in cash and cash equivalents


    3,323


    1,724

    Cash and cash equivalents at the beginning of the period


    3,718


    1,093






    Cash and cash equivalents at the end of the period


    $           7,041


    $           2,817






    Non-cash investing and financing activities:










    Reclassification of warrants from liability to Common Stock


    $                    -


    $           8,655






    Payment for directors and Consultants under Shares for Salary Program


    $                 85


    $               183

     

    DarioHealth Corporate Contact: Shmuel Herschberg, Marketing Director, shmuel@mydario.com, 1-914-775-5548

    DarioHealth Public Relations Contact: Terese Kelly, Rosica PR, terese@rosica.com, 1-201-843-5600

    DarioHealth Investor Relations Contact: Westwicke Partners, Dario@Westwicke.com, 1-443-213-0500

     

    SOURCE DarioHealth Corp.


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