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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 14, 2025 |
DIH HOLDING US, INC.
(Exact name of Registrant as Specified in Its Charter)
Delaware |
001-41250 |
98-1624542 |
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(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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77 Accord Park Drive; Suite D-1 |
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Norwell, Massachusetts |
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02061 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: 877 944-2200 |
Not Applicable |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Class A Common Stock |
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DHAI |
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The Nasdaq Stock Market LLC |
Warrants |
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DHAIW |
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The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 14, 2025, DIH Holding US, Inc. (the “Company”) issued a press release reporting its results of operations for the fiscal quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On February 14, 2025, the Registrant posted an updated investor deck to its website. A copy of the updated deck is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(a)-(b) Financial Statements.
(c) Exhibits.
99.1 |
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99.2 |
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104 |
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Cover Page Interactive Data File (Formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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DIH HOLDING US, INC. |
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Date: |
February 14, 2025 |
By: |
/s/ Jason Chen |
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Jason Chen |
Exhibit 99.1
DIH Announces Third Quarter 2025 Financial Results
NORWELL, MA – February 14, 2025 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 third fiscal quarter ended December 31, 2024.
Recent Highlights
“Our third quarter results were in line with our expectations despite facing challenges with import restrictions related to the ongoing conflict between Russia and Ukraine and lower overall European sales volumes. We continue to position the company for future success through upgrades to our commercial organizations while also remaining focused on reaching our year-end revenue targets,” said Jason Chen, Chairman and CEO of DIH. "Interest in our products remains high, as evidenced by multiple recently formed partnerships, and the recent stock offering will enable us to continue working towards fulfilling this order demand. We remain confident for a strong finish through the remainder of fiscal year 2025 and are reiterating our full year revenue guidance range of $60 to $67 million."
Financial Results for the Third Fiscal Quarter Ended December 31, 2024
Revenue for the three months ended December 31, 2024 decreased by $3.9 million, or 20.6%, to $15.1 million from $19.0 million for the three months ended December 31, 2023. The overall decrease was primarily due to a decrease in devices sold of $4.0 million, or 25.6% year over year. The decrease in devices revenue was primarily driven by lower sales volume in EMEA. In EMEA, we sell our equipment through a distributor network across Europe. One of our largest sales partners, which primarily operates in Eastern Europe, has been impacted by wartime import restrictions resulting from the ongoing conflict between Russia and Ukraine. The decrease was offset by a $0.1 million increase in service revenue for the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Other revenue was consistent in the three months ended December 31, 2024 compared to that in the three months ended December 31, 2023. Total revenue in the EMEA and in the Americas decreased by $3.6 million and $0.3 million, respectively, to $8.7 million and $3.5 million for the three months ended December 31, 2024 compared to $12.3 million and $3.8 million for the three months ended December 31, 2023.
The impact due to foreign currency translation gain was $0.2 million for the three months ended December 31, 2024.
Gross profit for the third fiscal quarter ended December 31, 2024, was $7.2 million, a decrease of 30.4% compared to the prior year period. The decrease was driven by a decrease in sales of $3.9 million, primarily in the EMEA region. Cost of sales for the three months ended December 31, 2024 decreased by $0.8 million, or 8.7%, to $7.9 million from $8.6 million for the three months ended December 31, 2023.
Selling, general and administrative expense for the three months ended December 31, 2024 increased by $2.8 million, or 50.6%, to $8.2 million from $5.4 million for the three months ended December 31, 2023. The increase was driven by a $1.1 million increase in employee compensation due to increase in headcount and stock compensation and $1.0 million increase in other overhead costs to support future sales growth. The increase is also attributable to $0.5 million increase in professional service costs in connection with the Company becoming a publicly listed company during the year.
Research and development costs for the three months ended December 31, 2024 increased by $0.1 million, or 7.7%, to $1.8 million from $1.7 million for the three months ended December 31, 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 in July 2024. The increase was offset by a $0.1 million decrease in external consulting fees.
Cash and cash equivalents on December 31, 2024 totaled $1.1 million.
Fiscal Year 2025 Outlook
The Company has reiterated its revenue guidance for fiscal year 2025 to range between $60 million and $67 million.
SUBSEQUENT EVENTS
On February 3, 2025, the Company closed an offering of 5,937,100 Units (“Units”), each consisting of one share of common stock, par value $0.0001 per share, and one Class A warrant to purchase one share of common stock at a public offering price of $0.7832 per Unit, for gross proceeds of $4.6 million. The Units have no stand-alone rights and will not be certified or issued as stand-alone securities. The common stock and Class A warrants are immediately separable and were issued separately in this offering. Each Class A warrant was immediately exercisable for one share of common stock at an exercise price of $0.7832 per share (100% of the public offering price per Unit) and will expire on the fifth anniversary of the original issuance date. The offering resulted in a net proceeds of approximately $3.9 million, after deducting placement agent fees sand estimated offering expenses payable by the Company.
Subsequent to the close of the stock offering, the conversion price of the Debentures and the exercise price of the warrants issued in connection with the convertible note changed to $0.7832 pursuant to the Purchase Agreement. The number of Common Stock issuable increased to 2,106,742 shares from 330,000 shares.
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
Investor.relations@dih.com
DIH HOLDING US, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data, unaudited)
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As of December 31, 2024 |
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As of March 31, 2024 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,120 |
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$ |
3,225 |
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Accounts receivable, net of allowances of $240 and $667, respectively |
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3,834 |
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5,197 |
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Inventories, net |
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7,962 |
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7,830 |
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Due from related party |
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6,333 |
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5,688 |
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Other current assets |
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4,909 |
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5,116 |
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Total current assets |
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24,158 |
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27,056 |
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Property, and equipment, net |
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714 |
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530 |
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Capitalized software, net |
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1,768 |
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2,131 |
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Other intangible assets, net |
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380 |
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380 |
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Operating lease, right-of-use assets, net |
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3,735 |
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4,466 |
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Other tax assets |
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152 |
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267 |
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Other assets |
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907 |
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|
905 |
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Total assets |
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$ |
31,814 |
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$ |
35,735 |
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Liabilities and Deficit |
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Current liabilities: |
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Accounts payable |
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$ |
3,945 |
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$ |
4,305 |
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Due to related party |
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10,213 |
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10,192 |
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Advance payments from customers |
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9,476 |
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10,562 |
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Current portion of deferred revenue |
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6,644 |
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5,211 |
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Employee compensation |
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3,937 |
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2,664 |
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Current maturities of convertible debt, at fair value |
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1,918 |
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— |
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Current portion of long-term operating lease |
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1,331 |
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1,572 |
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Manufacturing warranty obligation |
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582 |
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513 |
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Accrued expenses and other current liabilities ($1,111 measured at fair value) |
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9,278 |
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9,935 |
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Total current liabilities |
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47,324 |
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44,954 |
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Notes payable - related party |
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8,648 |
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11,457 |
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Non-current deferred revenues |
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4,986 |
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4,670 |
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Long-term operating lease |
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2,443 |
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2,917 |
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Convertible debt, net of current maturities, at fair value |
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693 |
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— |
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Deferred tax liabilities |
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221 |
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112 |
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Other non-current liabilities |
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5,381 |
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4,171 |
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Total liabilities |
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69,696 |
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68,281 |
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Commitments and contingencies |
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Deficit: |
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Preferred stock, $0.00001 par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2024 and March 31, 2024 |
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— |
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— |
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Common stock, $0.0001 par value; 100,000,000 shares authorized; 34,861,837 shares issued and outstanding at December 31, 2024; 34,544,935 shares issued and outstanding at March 31, 2024 |
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3 |
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3 |
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Additional paid-in-capital |
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3,773 |
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2,613 |
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Accumulated deficit |
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(39,484 |
) |
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|
(35,212 |
) |
Accumulated other comprehensive income (loss) |
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(2,174 |
) |
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50 |
|
Total deficit |
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|
(37,882 |
) |
|
|
(32,546 |
) |
Total liabilities and deficit |
|
$ |
31,814 |
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$ |
35,735 |
|
DIH HOLDING US, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
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Three Months Ended December 31, |
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For the Nine Months Ended December 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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$ |
15,094 |
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$ |
19,011 |
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$ |
50,216 |
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$ |
45,116 |
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Cost of sales |
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7,858 |
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8,611 |
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23,968 |
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23,911 |
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Gross profit |
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7,236 |
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10,400 |
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26,248 |
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21,205 |
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Operating expenses: |
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Selling, general, and administrative expense |
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8,196 |
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5,443 |
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22,564 |
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17,652 |
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Research and development |
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1,786 |
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1,659 |
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5,341 |
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|
4,681 |
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Total operating expenses |
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9,982 |
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7,102 |
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27,905 |
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22,333 |
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Operating income (loss) |
|
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(2,746 |
) |
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|
3,298 |
|
|
|
(1,657 |
) |
|
|
(1,128 |
) |
Other income (expense): |
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|
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|
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|
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Interest expense |
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(25 |
) |
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(185 |
) |
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(186 |
) |
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|
(460 |
) |
Other income (expense), net |
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(590 |
) |
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|
237 |
|
|
|
(1,004 |
) |
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|
(181 |
) |
Total other income (expense) |
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(615 |
) |
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52 |
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(1,190 |
) |
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|
(641 |
) |
Income (loss) before income taxes |
|
|
(3,361 |
) |
|
|
3,350 |
|
|
|
(2,847 |
) |
|
|
(1,769 |
) |
Income tax expense |
|
|
367 |
|
|
|
381 |
|
|
|
1,425 |
|
|
|
659 |
|
Net Income (loss) |
|
$ |
(3,728 |
) |
|
$ |
2,969 |
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|
$ |
(4,272 |
) |
|
$ |
(2,428 |
) |
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|
|
|
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Net income (loss) per share, basic and diluted |
|
$ |
(0.11 |
) |
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$ |
0.12 |
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|
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
Weighted average common shares outstanding, basic and diluted |
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|
34,645 |
|
|
|
25,000 |
|
|
|
34,578 |
|
|
|
25,000 |
|
DIH HOLDING US, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, unaudited)
|
|
Three Months Ended December 31, |
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For the Nine Months Ended December 31, |
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2025 |
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2023 |
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2024 |
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2023 |
|
||||||
Net Income (loss) |
|
$ |
(3,728 |
) |
|
$ |
2,969 |
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|
$ |
(4,272 |
) |
|
$ |
(2,428 |
) |
Other comprehensive (loss) income, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
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Foreign currency translation adjustments, net of tax of $0 |
|
|
(145 |
) |
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|
636 |
|
|
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(1,079 |
) |
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|
876 |
|
Pension liability adjustments, net of tax of $0 |
|
|
(64 |
) |
|
|
(704 |
) |
|
|
(1,145 |
) |
|
|
(1,064 |
) |
Other comprehensive loss |
|
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(209 |
) |
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(68 |
) |
|
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(2,224 |
) |
|
|
(188 |
) |
Comprehensive income (loss) |
|
$ |
(3,937 |
) |
|
$ |
2,901 |
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|
$ |
(6,496 |
) |
|
$ |
(2,616 |
) |
DIH HOLDING US, INC. AND SUBSIDIARIES
CONDENSED COMBINED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
(in thousands, unaudited)
|
For the Three Months Ended December 31, |
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Common Stock |
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|
|
|
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|
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|
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Shares |
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Amount |
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Additional Paid-In Capital |
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Accumulated Deficit |
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Accumulated Other Comprehensive Income (Loss) |
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Total Equity (Deficit) |
|
||||||
Balance, September 30, 2024 |
|
34,544,935 |
|
$ |
3 |
|
$ |
3,323 |
|
$ |
(35,756 |
) |
$ |
(1,965 |
) |
$ |
(34,395 |
) |
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
(3,728 |
) |
|
— |
|
|
(3,728 |
) |
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(209 |
) |
|
(209 |
) |
Net transactions with parent |
|
316,902 |
|
|
— |
|
|
450 |
|
|
— |
|
|
— |
|
|
450 |
|
Balance, December 31, 2024 |
|
34,861,837 |
|
$ |
3 |
|
$ |
3,773 |
|
$ |
(39,484 |
) |
$ |
(2,174 |
) |
$ |
(37,882 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Shares(1) |
|
Amount |
|
Additional Paid-In Capital |
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Equity (Deficit) |
|
||||||
Balance, September 30, 2023 |
|
25,000,000 |
|
$ |
2 |
|
$ |
(1,898 |
) |
$ |
(32,166 |
) |
$ |
(409 |
) |
$ |
(34,471 |
) |
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
2,969 |
|
|
— |
|
|
2,969 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(68 |
) |
|
(68 |
) |
Balance, December 31, 2023 |
|
25,000,000 |
|
$ |
2 |
|
$ |
(1,898 |
) |
$ |
(29,197 |
) |
$ |
(477 |
) |
$ |
(31,570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the Nine Months Ended December 31, |
|
||||||||||||||||
|
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 |
|
— |
|
|
— |
|
|
— |
|
|
(4,272 |
) |
|
— |
|
|
(4,272 |
) |
Out of period adjustment related to reverse recapitalization (Note 2) |
|
— |
|
|
— |
|
|
710 |
|
|
— |
|
|
— |
|
|
710 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,224 |
) |
|
(2,224 |
) |
Stock Compensation |
|
316,902 |
|
|
— |
|
|
450 |
|
|
— |
|
|
— |
|
|
450 |
|
Balance, December 31, 2024 |
|
34,861,837 |
|
$ |
3 |
|
$ |
3,773 |
|
$ |
(39,484 |
) |
$ |
(2,174 |
) |
$ |
(37,882 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
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 |
|
— |
|
|
— |
|
|
— |
|
|
(2,428 |
) |
|
— |
|
|
(2,428 |
) |
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(188 |
) |
|
(188 |
) |
Balance, December 31, 2023 |
|
25,000,000 |
|
$ |
2 |
|
$ |
(1,898 |
) |
$ |
(29,197 |
) |
$ |
(477 |
) |
$ |
(31,570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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 Nine Months Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(4,272 |
) |
|
$ |
(2,428 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
611 |
|
|
|
230 |
|
Provision for credit losses |
|
|
(427 |
) |
|
|
(815 |
) |
Allowance for inventory obsolescence |
|
|
(67 |
) |
|
|
705 |
|
Stock compensation |
|
|
450 |
|
|
|
— |
|
Pension contributions |
|
|
(475 |
) |
|
|
(456 |
) |
Pension expense |
|
|
238 |
|
|
|
201 |
|
Change in fair value of convertible debt and warrant liability |
|
|
1,193 |
|
|
|
— |
|
Foreign exchange (gain) loss |
|
|
(241 |
) |
|
|
181 |
|
Noncash lease expense |
|
|
1,263 |
|
|
|
1,165 |
|
Noncash interest expense |
|
|
— |
|
|
|
19 |
|
Deferred and other noncash income tax (income) expense |
|
|
257 |
|
|
|
(237 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
1,762 |
|
|
|
1,298 |
|
Inventories |
|
|
(106 |
) |
|
|
(2,186 |
) |
Due from related parties |
|
|
(1,079 |
) |
|
|
(294 |
) |
Due to related parties |
|
|
100 |
|
|
|
1,910 |
|
Other assets |
|
|
114 |
|
|
|
(2,540 |
) |
Operating lease liabilities |
|
|
(1,275 |
) |
|
|
(1,352 |
) |
Accounts payable |
|
|
(336 |
) |
|
|
1,484 |
|
Employee compensation |
|
|
1,276 |
|
|
|
(603 |
) |
Other liabilities |
|
|
157 |
|
|
|
205 |
|
Deferred revenue |
|
|
1,819 |
|
|
|
807 |
|
Manufacturing warranty obligation |
|
|
75 |
|
|
|
189 |
|
Advance payments from customers |
|
|
(1,036 |
) |
|
|
4,992 |
|
Accrued expense and other current liabilities |
|
|
(849 |
) |
|
|
702 |
|
Net cash provided by (used in) operating activities |
|
|
(848 |
) |
|
|
3,177 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(444 |
) |
|
|
(135 |
) |
Net cash used in investing activities |
|
|
(444 |
) |
|
|
(135 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from issuance of convertible debt, net of issuance costs |
|
|
2,809 |
|
|
|
— |
|
Payment on convertible debt |
|
|
(471 |
) |
|
|
— |
|
Payments on related party notes payable |
|
|
(3,156 |
) |
|
|
(4,543 |
) |
Net cash used in financing activities |
|
|
(818 |
) |
|
|
(4,543 |
) |
Effect of currency translation on cash and cash equivalents |
|
|
5 |
|
|
|
5 |
|
Net decrease in cash, and cash equivalents, and restricted cash |
|
|
(2,105 |
) |
|
|
(1,496 |
) |
Cash, cash equivalents and restricted cash - beginning of period |
|
|
3,225 |
|
|
|
3,175 |
|
Cash, cash equivalents and restricted cash- end of period |
|
$ |
1,120 |
|
|
$ |
1,679 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
218 |
|
|
$ |
442 |
|
Income tax paid |
|
$ |
15 |
|
|
$ |
— |
|
Supplemental disclosure of non-cash investing and financing activity: |
|
|
|
|
|
|
||
Accounts payable settled upon reverse recapitalization |
|
$ |
710 |
|
|
$ |
— |
|
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH DIH DEDICATED TO RESTORING MOBILITY AND ENHANCING HUMAN PERFORMANCE Investor Presentation February 2025 Nasdaq: DHAI
DELIVER INSPIRATION & HEALTH In this presentation, “DIH”, the “Company”, “we”, “us” and “our” mean DIH Holding US, Inc, a Delaware corporation (Nasdaq: DHAI). All amounts are in U.S. dollars unless otherwise indicated. The information contained herein does not purport to contain all of the information about the Company. The information contained herein has not been independently verified. No representations or warranties are made or implied with respect to the information contained herein. This presentation contains forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, including without limitation the successful and timely completion and the commercialization of the products referred to herein. Forward-looking statements are not guarantees of performance. These forward-looking statements, including financial outlooks and strategies or deliverables stated herein, may involve, but are not limited to, comments with respect to the Company’s business or financial objectives, its strategies or future actions, its targets, expectations for financial condition or outlook for operations. Words such as “may”, “will”, “would”, “could”, “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”, “continue”, or the negative or comparable terminology, as well as terms usually used in the future and conditional, are intended to identify forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. These assumptions are considered to be reasonable based on currently available information, but the reader is cautioned that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company and its business. The forward-looking information set forth therein reflects expectations as of the date hereof and is subject to change thereafter. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Undue reliance should not be placed on forward-looking statements. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. This presentation is not intended to form the basis of any investment decision and there can be no assurance that any transaction will be undertaken or completed in whole or in part. The delivery of this presentation shall not be taken as any form of commitment on the part of the Company or its stockholders to proceed with any transaction, and no offers will subject the Company or its stockholders to any contractual obligations before definitive documentation has been executed. The Company reserves the right at any time without prior notice and without any liability to (i) negotiate with one or more prospective investors in accordance with any timetable and on any terms that the Company may decide, (ii) provide different information or access to information to different prospective investors, (iii) enter into definitive documentation and (iv) terminate the process, including any negotiations with any prospective investor without giving any reasons therefor. INVESTOR PRESENTATION Page 2
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH DIH at a glance: Robotic-enabled movement platform improving the lives of people with disabilities and functional impairments
INVESTOR PRESENTATION Improving lives by providing human movement therapy while empowering leading scientists and clinics to study balance and movement disorders through Advanced Technology. DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION DIH – a Global Solution Provider, has the broadest portfolio in neuro-rehabilitation and human performance research, with over 4,500 devices installed. With an aging population and an increasing number of people living with neurological diseases, hospitals and clinics will be understaffed; robotic rehabilitation fills the gap and helps therapists and patients thrive. More intensive, repetition-based therapy, supported by Advanced Technology is shown to have superior patient outcomes and can send them home sooner. Technology solves the supply-demand problem in rehabilitation settings by allowing occupational and physical therapists to work with multiple patients effectively. Bridges the gap between Clinical and Research applications by enabling and inventing the most advanced technological ways to study and treat balance and movement disorders. DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION 19 Products & Systems $64.5M FY242 Revenue 5 Commercial Regions USA, Singapore, Chile, Slovenia, Germany 243 Employees in 9 global locations from 33 nationalities ` 4,500+ Devices installed1 1,500+ Medical device registrations in 75 countries Sites 3 For R&D and manufacturing in CH,NL and USA 1,800 Customer Accounts 1 HQ DIH Holding US $60M - $67M FY25 Revenue Guidance DELIVER INSPIRATION & HEALTH 1 Includes clinical and research install base 2 FY24 year ending March 31, 2024
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH Meeting market demands with innovative Advanced Technologies
Patients Neurological Stroke SCI & cerebral palsy Parkinson’s disease Traumatic brain injury Orthopedic Amputation Osteoarthritis Musculoskeletal disorders Geriatric & Pediatric Aging population with an increased risk of falling and functional impairment Pediatric patients with mobility impairments Health Providers Rehabilitation Hospitals Research Facilities INVESTOR PRESENTATION Physical Therapy and Rehab Clinics DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION Research & Human Movement Labs* (“Research Market”) CAREN DOME CAREN EXTENDED GRAIL M-GAIT 1 Two product lines available 2 Product line consists of three products 3 Prototype available; In development . *Motek products are currently being sold by DIH through an exclusive relationship between Motek and DIH Rehabilitation Hospitals and Outpatient Clinics (“Hospital and Clinic Market”) ARM & HAND ARMEO POWER ARMEO SPRING / SPRING PRO ARMEO SENSO GAIT & BALANCE ERIGO1 LOKOMAT 1 SAFEGAIT1 RYSEN ANDAGO C-MILL2 3 DATA INTEGRATION DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION Aging population Advanced Technology is key to meeting market demands. Increasing neurological disorders and related disabilities Need of care and lack of therapist 1 WHO: Ageing and Health; https://www.who.int/news-room/fact-sheets/detail/ageing-and-health 2 United Nations: Aging and Disability; https://www.un.org/development/desa/disabilities/disability-and-ageing.html 3 https://pubmed.ncbi.nlm.nih.gov/36902495/ 4 NCBI: Causes and Trends of Disabilities in Community-Dwelling Stroke Survivors: A Population-Based Study; https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9833459/ DELIVER INSPIRATION & HEALTH 5 WHO: Rehabilitation; https://www.who.int/news-room/fact- sheets/detail/rehabilitation#:~:text=Globally%2C%20an%20estimated%202.4%20billion,and%20characteristics%20of%20t he%20population. 6 2020: World Physio: https://world.physio/sites/default/files/2021-02/AMC2020-Europe.pdf // WHO: https://www.who.int/data/gho/indicator-metadata-registry/imr-details/3408; https://www.theglobaleconomy.com/rankings/physiotherapists_per_1000_people/ 38%+ of stroke survivors were found to have disabilities4 >1B Members of a growing elderly population, worldwide1 46%+ of the world's aging population has disabilities2 Est. 2.4B People are currently living with a health condition that may benefit from rehabilitation5 1.09 physiotherapists per 1,000 people6 Est.15% of the global population is affected by neurological disorders3
INVESTOR PRESENTATION ROBOTIC ARM MOVEMENT SUPPORT TRAINING MMT 2 MMT 3 MMT 4 MMT 5 ARM WEIGHT SUPPORT TRAINING PATIENT NEEDS SELF-DIRECTED TRAINING PATIENT ABILITY (MMT) MMT 0 MMT 1 MMT: Manual Muscle Test for shoulder and/or elbow; MMT 2 for Armeo Senso =with arm weight support DELIVER INSPIRATION & HEALTH
PATIENT ABILITY (FAC) INVESTOR PRESENTATION FAC 0 FAC 1 FAC 2 FAC 3 FAC 4 FAC 5 MOBILIZATION AND VERTICALIZATION FAC: Functional Ambulation categories * Available only in the USA DELIVER INSPIRATION & HEALTH REPETITIVE, PHYSIOLOGICAL GAIT TRAINING OVERGROUND GAIT AND BALANCE TRAINING OVERGROUND BODY WEIGHT SUPPORT PATIENT NEEDS GAIT ADAPTABILITY TRAINING
DELIVER INSPIRATION & HEALTH INVESTOR PRESENTATION Page 13 Modular Gait Lab TARGETS ALL ASPECTS OF BALANCE AND LOCOMOTION. THE USE OF VIRTUAL REALITY ENABLES RESEARCHERS TO ASSESS THE SUBJECT’S BEHAVIOR AND INCLUDES SENSORY INPUTS LIKE VISUAL, AUDITORY AND VESTIBULAR. PROVIDES ANALYSIS AND THERAPY IN CHALLENGING CONDITIONS TO IMPROVE GAIT, WHILE REAL-TIME FEEDBACK ENABLES ANALYSIS AND TRAINING DURING THE SAME SESSION. ENABLES MULTIPLE SYSTEM ENHANCEMENTS FOR ADDED FUNCTIONALITY OF GAIT-LAB. INTENDED USE Gait Real-time Analysis Interactive Lab Computer Assisted Rehabilitation Environment Computer Assisted Rehabilitation Environment *Motek products are currently being sold by DIH through an exclusive relationship between Motek and DIH
INVESTOR PRESENTATION We provide guidelines and support customers in building their rehabilitation project. We find the right solution to match the organizations’ needs, space and budget. BUSINESS MODEL and PLANNING To help make the best use of our solutions, we offer clinical integration consulting and ongoing support, as well as education and training. CLINICAL SERVICES We provide technical support and regular maintenance after installation so customers can maintain clinical routines without disruption. TECHNICAL SERVICES Research drives us forward and our support and services help institutions initiate their own research programs. RESEARCH SERVICES Customers immediately stand out from other rehabilitation facilities. With our support we make sure they are seen and heard. MARKETING SERVICES DIH provides a broad portfolio of devices and an extensive range of services, to become a Total Solution partner for our customers DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION DIH collaborates with world renowned institutions in rehabilitation and research as reference centers and innovation partners DELIVER INSPIRATION & HEALTH
C-Mill 70* GRAIL & M-Gait 234* INVESTOR PRESENTATION 1The Knowledge Platform includes all research articles, conference proceedings, and theses available on our devices and can be accessed via knowledge.hocoma.com and knowledge.motekmedical.com 2 Reviewed and evaluated by a group of experts in the field before the article is published. *Motek Products are currently being sold by DIH through an exclusive relationship between Motek and DIH LOKOMAT 610 ARMEO LINE 217 ERIGO 60 CAREN 204* >1,000 publications in peer-reviewed2 journals 40+ ongoing studies DELIVER INSPIRATION & HEALTH
Early Entrants Emerging Players Industry Leader DIH is uniquely positioned as a leader in rehabilitation-tech and research markets INVESTOR PRESENTATION LFWD (NASDAQ) EKSO (NASDAQ) DVL (ASX) DHAI (NASDAQ) DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION Leading Technology Highly recognized premier brands and technologies in our industry, endorsed by leading rehabilitation institutes and opinion leaders Product Portfolio Broadest product portfolio in advanced robotics and sophisticated VR-enabled movement systems; most competitors operate in a single product category Commercial Reach Strong global market coverage with approx. 3-5x more sales volume than competitors Innovation Sustained innovation capabilities with decades of proven expertise and resources Tech Partnerships Platform and core technology (hardware and software) supported by strong partnerships with leading research groups Network Effect Strong supporting functions and operational infrastructure that establish a platform network effect which will be difficult to replicate Industry Experience Organizational breadth and depth with significant experience in acquisition integration; key to our growth strategy and differentiation from competitors that are early in their organizational life cycles DELIVER INSPIRATION & HEALTH
Global solution provider combining innovative robotic and VR technologies with clinical integration and proprietary insights. entire Transformative total solutions provider and consolidator in a fragmented and manual-labor-driven industry. Innovative and broad product portfolio, covering the continuum of care. INVESTOR PRESENTATION $14.9B1 Total global rehabilitation equipment market DELIVER INSPIRATION & HEALTH ~$590M1 Rehabilitation Robots Market ~27%1 Estimated market CAGR through 2027 1 “Rehabilitation Robots Market by Product, End user and Geography – Forecast and Analysis (2023 – 2027)” November 2022 Global Market
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH Way Forward - Investment Opportunity
High manual therapies costs are primed for disruption across care centers Robotic solutions provide value and save costs, creating flexibility within institutional budgets INVESTOR PRESENTATION Rehab Hospitals Long-Term Care & Skilled Nursing Facilities Outpatient Clinics Acute Rehab $50B in manual therapies costs1 DELIVER INSPIRATION & HEALTH 1 Grandview Research, October 14, 2022
Phase 3 Phase 2 Penetrate Markets Drive Market Standardization Develop Total Solutions Expand presence in US and EU Prioritize product innovation and integration efforts Enter new institutions Further penetrate existing accounts Leverage global platforms and infrastructure Realize economies of scale Execute strong M&A targeting Provide fully supported product ecosystems Create significant value and cost savings for providers Enhance the therapy business model Phase 1 INVESTOR PRESENTATION DELIVER INSPIRATION & HEALTH
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH Financial Highlights
13.0 13.1 19.0 19.4 17.0 18.2 15.1 $0 $5 $10 $15 $20 $25 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Dollars ($M) INVESTOR PRESENTATION Fiscal Year 2025 Revenue Guidance: $60.0M-$67.0M $15.1M Revenue, 21% YoY decline 77% devices 21% services 2% other ($3.4M) Net Income Before Taxes 47.9% Gross Margin Q3 2025 Results $50.2M Revenue, 11% YoY growth 80% devices 18% services 2% other ($2.8M) Net Income Before Taxes 52.3% Gross Margin DELIVER INSPIRATION & HEALTH 2025 Year to Date
INVESTOR PRESENTATION Jason Chen Chief Executive Officer and Chairman of the Board Lynden Bass Chief Financial Officer Dr. Patrick Bruno Chief Market Officer, Hospital & Clinic Dietmar Dold Chief Operating Officer DELIVER INSPIRATION & HEALTH
INVESTOR PRESENTATION CEO and Chairman of the Board Jason Chen Chief Financial Officer Lynden Bass Chief Market Officer, Hospital & Clinic Dr. Patrick Bruno Senior Vice President, Sales – EMEA Indirect Slavko Skafar Vice President, Global Operations Walther Geiger Vice President, FP&A and Commercial Operations Finance LaTonya Vincent Vice President, Research Frans Steenbrink DELIVER INSPIRATION & HEALTH Chief Operating Officer Dietmar Dold
DELIVER INSPIRATION & HEALTH DELIVER INSPIRATION & HEALTH THANK YOU For more information contact investor.relations@dih.com