DIH Reports First Half Fiscal 2024 Financial Results

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NORWELL, Mass., Feb. 20, 2024 (GLOBE NEWSWIRE) — DIH Holding US, Inc. (“DIH”)(NASDAQ:DHAI), a leading global robotics and virtual reality (“VR”) technology provider in the rehabilitation and human performance industry, today reported financial results for the six months ended September 30, 2023.

Recent Highlights

Revenue of $27.3 million for the 6 months end September 30, 2023, representing growth of 57.7% over the prior year period
Revenue from device sales in the 6 months end September 30, 2023 increased by 73.9%
Publicly listed on Nasdaq Global Markets following completion of the business combination with Aurora Technology Acquisition Corp (ATAK) on February 7, 2024
Introduction of the Armeo®Spring Pro to the upper extremity device portfolio

“We are very pleased with the Company’s performance in the first half of Fiscal Year 2024 as we’re continuing to penetrate new and existing markets, seeing strong growth momentum throughout the first two quarters after strong growth in the prior year,” said Jason Chen, Chairman and CEO of DIH. “I’m excited by the significant growth opportunities ahead of us as we begin to operate as a publicly traded company; and look forward to connecting with the many valued stakeholders in DIH’s mission to advance our vision for a transformative rehabilitative care model.”

First Half 2024 Financial Results

Revenue for the six months ended September 30, 2023 increased by $10.0 million, or 57.7%, to $27.3 million from $17.3 million for the six months ended September 30, 2022. The overall increase was primarily due to a net increase in devices sold of $9.0 million, or 73.9%, which consisted of an increase in sales to third-party customers. The increase in devices revenue was driven by higher sales volume in Europe, the Americas and Asia. Services revenue represented an increase of $0.8 million, up 16.1% compared to the prior period. Other revenues represented an increase of $0.2 million, up 76.1% compared to the prior period.

Changes in foreign currency exchange rates had a favorable impact on our combined net sales in six months ended September 30, 2023, resulting in an increase of approximately $0.7 million. This was mainly driven by fluctuations in Euro valuations throughout the period.

Cost of sales for the six months ended September 30, 2023 increased by $7.7 million, or 109.7%, to $14.7 million from $7.0 million for the six months ended September 30, 2022. The Cost of Goods for device sales increased by $5.0 million, which is directly correlates to the increase in device sales and related margins remained relatively constant in local currency. The additional increase in cost of sales is mainly driven by an increase of $0.7 million in inventory reserve for slow moving parts as well as $2 million services parts costs.

Selling, general and administrative expense for the six months ended September 30, 2023 increased by $1.8 million, or 15.8%, to $13.7 million from $11.8 million for the six months ended September 30, 2022. The increase was primarily due to professional service and IT costs increase of $2.5 million related to audit, legal and other professional services in preparation for the anticipated business combination with ATAK and becoming a publicly listed company, and investment in finance capacity in preparation for public company reporting obligations, and offset by decreases in bad debt allowance and overhead expenses.

Research and development costs for the six months ended September 30, 2023 decreased by $0.1 million, or 2.4%, to $3.8 million from $3.9 million for the six months ended September 30, 2022. The decrease was primarily due to a decrease in consulting costs, research and development materials and services of $0.3 million offset by slight increase in personnel expenses of $0.2 million.

As of September 30, 2023 DIH’s cash and cash equivalents amounted to $2.0 million.

About DIH Holding US, Inc.

DIH stands for the vision to “Deliver Inspiration & Health” to improve the functioning of millions of people with disability and functional impairments. DIH is a global solution provider in blending innovative robotic and virtual reality (“VR”) technologies with clinical integration and insights. Built through the mergers of global-leading niche technologies providers, DIH is positioning itself as a transformative total smart solutions provider and consolidator in 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 inability of the parties to consummate the proposed business combination or the occurrence of any event, change or other circumstances that could give rise to the termination of the business combination agreement, failure to realize the anticipated benefits of the business combination, including as a result of a delay in consummating the potential transaction or difficulty in integrating the businesses of DIH; the inability to maintain the listing of the DIH’s securities on Nasdaq; costs related to the proposed business combination; 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. AND SUBSIDIARIES
INTERIM CONDENSED COMBINED BALANCE SHEETS
(UNAUDITED) (in thousands)

 

 
 
As of September 30,
2023
 
 
As of March 31,
2023

 

Assets
 
 
 
 
 
 

Current assets:
 
 
 
 
 
 

Cash and cash equivalents
 
$
1,987
 
 
$
5,560
 

Restricted cash
 
 
501
 
 
 
415
 

Accounts receivable, net of allowances of $901 and $1,771, respectively
 
 
4,891
 
 
 
6,079
 

Inventories, net
 
 
8,170
 
 
 
6,121
 

Promissory note – related party
 
 
405
 
 
 

 

Due from related party
 
 
119
 
 
 
7,400
 

Other current assets
 
 
5,611
 
 
 
5,210
 

Total current assets
 
 
21,684
 
 
 
30,785
 

Property, and equipment, net
 
 
632
 
 
 
826
 

Capitalized software, net
 
 
2,293
 
 
 
2,203
 

Other intangible assets, net
 
 
380
 
 
 
380
 

Operating lease, right-of-use assets, net
 
 
4,887
 
 
 
3,200
 

Deferred tax assets
 
 

 
 
 
1
 

Other assets
 
 
46
 
 
 
39
 

Total assets
 
$
29,922
 
 
$
37,434
 

Liabilities and Equity (Deficit)
 
 
 
 
 
 

Current liabilities:
 
 
 
 
 
 

Accounts payable
 
$
5,638
 
 
$
3,200
 

Employee compensation
 
 
3,684
 
 
 
3,678
 

Due to related party
 
 

 
 
 
7,322
 

Current maturities of long-term debt
 
 
1,472
 
 
 
1,514
 

Revolving credit facilities
 
 
10,931
 
 
 
12,976
 

Current portion of deferred revenue
 
 
8,992
 
 
 
9,374
 

Current portion of long-term operating lease
 
 
1,675
 
 
 
1,255
 

Advance payments from customers
 
 
9,918
 
 
 
6,878
 

Accrued expenses and other current liabilities
 
 
12,692
 
 
 
12,411
 

Total current liabilities
 
 
55,002
 
 
 
58,608
 

Long-term debt, net of current maturities
 
 

 
 
 
489
 

Non-current deferred revenues
 
 
3,906
 
 
 
2,282
 

Long-term operating lease
 
 
3,238
 
 
 
1,970
 

Deferred tax liabilities
 
 
409
 
 
 
391
 

Other non-current liabilities
 
 
3,281
 
 
 
2,748
 

Total liabilities
 
$
65,836
 
 
$
66,488
 

Commitments and contingencies (Note 15)
 
 
 
 
 
 

Equity (Deficit):
 
 
 
 
 
 

Net parent company investment