CAESAREA, Israel, March 22, 2017 /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 three and twelve month period ended
December 31, 2016.
2016 Highlights
- Record revenues of $2.8 million,
increased 241% compared to the full year 2015
- Sequential quarterly revenue growth throughout the entire
year
- Direct-to-consumer model launched in U.S. with approximately
18,500 Dario™ Blood Glucose Monitoring System devices sold;
accelerated in 2nd half of year with approximately
14,000 sold
- Direct-to-consumer model launched in Australia and
Canada
- Nasdaq listing in March
- Commenced investment discussions with OurCrowd Qure, an Israeli
Digital Health Specialized Fund; subsequently closed in early
2017
Fourth Quarter Highlights
- Record revenues of $838,000,
increased 172% compared to the fourth quarter of 2015
- Sequential quarterly revenue growth of 15% over third quarter
of 2016
- 67% of quarterly revenues derived from test strips and other
consumables
- Record 8,500 Dario™ Blood Glucose Monitoring System devices
sold in the U.S.; 55% growth from third quarter of
2016
- Consumable strips growth of 67% over third quarter of
2016
- Nearly 95% of U.S. users have ordered test strips
2017 Outlook
In 2017, DarioHealth expects sales to accelerate while reducing
overall customer acquisition cost upon execution of insurance
reimbursement coverage options for U.S. consumers, an increase in
the percentage of higher-margin recurring consumable revenue, and
an expansion of the platform availability to include Android, which
has been submitted to the FDA.
Chairman and CEO of DarioHealth, Erez
Raphael, commented, "Our vision and focus allowed us to
achieve a great deal over the last year, and has placed us in an
advantageous position for further growth and market penetration for
our Dario all-in-one smart glucose monitor and data platform. Our
direct-to-consumer strategy in the U.S., launched mid-year, yielded
the majority of our sales in this region, and continued to
accelerate in the fourth quarter."
"We are encouraged by the fact we delivered on increased device
sales, significant monthly user growth and established a
predictable stream of high margin recurring subscription revenues
from new customers. Furthermore, we are excited by the positive
engagement we are achieving with our users, expect user growth to
accelerate in 2017, and see revenue growth to continue in each
sequential quarter, as it has grown until now."
Full Year 2016 Results Summary
For the twelve months ended December 31,
2016, revenues were $2.8
million, a 241% increase from $823,000 for the twelve months ended December 31, 2015.
Revenues generated during the year ended December 31, 2016 were derived mainly from the
sales of Dario's components, including the Smart Meter itself,
through direct sales to consumers located mainly in the U.S.
through the Company's on-line store and through distributors. The
increase in revenues is attributable to additional
commercialization and launch of sales in 2016.
Gross loss decreased by $25,000 to
a loss of $830,000 in the twelve
months ended December 31, 2016, as
compared to a $855,000 gross loss in
the twelve months ended December 31,
2015.
Gross loss includes onetime items amounting to $496,000, of which $376,000 derived mainly from the impairment of a
production line and related inventory in the U.S. due to its high
manufacturing costs, and $120,000
resulted from loss of inventory, due to weather conditions in one
of our U.S. warehouses, which we expect to be compensated for
during 2017.
Operating loss for the twelve months ended December 31, 2016 increased by $3.4 million to $11.1
million, as compared to a $7.7
million operating loss in the twelve months ended
December 31, 2015.
We recorded in our financial expenses, warrant revaluation
expenses of $1.4 million in the
fourth quarter of 2016, as a result of reclassifying warrants
issued to investors in March and August of 2016 as a "Liability
related to Warrants," due to its exercise price protection feature.
The exercise price protection feature expired on March 8, 2017, and as a result, the liability
related to these warrants will be reclassified back to
stockholders' equity in the first quarter of 2017, while recording
related financing income of $7.4
million in the first quarter of 2017.
Net loss attributable to holders of common stock increased by
$3.7 million to $10.9 million in the twelve months ended
December 31, 2016, as compared to
$7.1 million in the twelve months
ended December 31, 2015.
The increases in operating loss and net loss were mainly due to
the increase in expenses on digital marketing campaigns primarily
in the U.S. after the Company commenced sales in the U.S. in
March 2016.
Fourth Quarter 2016 Results Summary
Revenue for the fourth quarter ended December 31, 2016 was $838,000, a 172% increase from $308,000 in fourth quarter ended December 31, 2015, and a 15% increase
sequentially from the third quarter of 2016.
Revenues for the fourth quarter of 2016 included
direct-to-consumer sales in the U.S., as well as initial
direct-to-consumer and business partners sales in Australia, and product sales to distributors
in the U.S., Italy, Canada, and New
Zealand.
Gross loss of $647,000 was
recorded in the fourth quarter of 2016, an increase of $388,000 compared to a gross loss of $259,000 in the fourth quarter of 2015.
Gross loss includes onetime items amounting to $496,000 as detailed above.
Operating loss for the fourth quarter ended December 31, 2016 increased by $2.0 million to $3.8
million, as compared to a $1.8
million operating loss in the fourth quarter ended
December 31, 2015. This increase is
mainly due to our additional direct sales and marketing efforts in
the U.S.
Financial expenses of $1.4 million
were recorded in our financial expenses in the quarter as warrant
revaluation expenses as detailed above.
Net loss attributable to holders of common stock increased by
$3.5 million to $5.2 million in the fourth quarter of 2016, as
compared to $1.7 million in the
fourth quarter of 2015.
As of December 31, 2016, cash and
cash equivalents totaled $1.3
million. Subsequent to the end of the year, on January 17, 2017, the Company raised $5.1 million in a private placement offering.
DarioHealth will host a Fourth Quarter and Year End 2016
Conference Call tomorrow, March 23,
2017, at 9:00AM ET.
Conference Call Details:
Date:
Thursday, March 23,
2017
Time: 9:00AM ET
Dial-in Number: (866) 682-6100
International Dial-in Number: (862)
255-5401
Webcast:
http://www.investorcalendar.com/IC/CEPage.asp?ID=175764
About DarioHealth Corp.
DarioHealth Corp. is a leading global digital health company
serving tens of thousands of users with dynamic mobile health
solutions. We believe people deserve the best tools to manage their
treatment, and harnessing big data, we have developed a unique way
for our users to analyze and personalize their diabetes management.
With our smart diabetes solution, users have direct access to track
and monitor all facets of diabetes, without having the disease slow
them down. The acclaimed Dario™ Blood Glucose Monitoring System
all-in-one blood glucose meter and native smartphone app gives
users an unrivaled method for self-diabetes management. DarioHealth
is headquartered in Caesarea,
Israel with a regional office in Burlington, Massachusetts. 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
says that it expects similar sequential quarterly revenue growth in
Q1 2017, describes its 2017 outlook, describes its growth
prospects, says that it expects to be compensated for loss of
inventory, and says that it expects to record financing income in
the first quarter of 2017. 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
|
|
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,093
|
|
$
2,671
|
Short-term bank
deposits
|
|
225
|
|
80
|
Trade
Receivables
|
|
226
|
|
-
|
Inventories
|
|
888
|
|
601
|
Other accounts
receivable and prepaid expenses
|
|
504
|
|
935
|
|
|
|
|
|
Total current
assets
|
|
2,936
|
|
4,287
|
|
|
|
|
|
LEASE
DEPOSITS
|
|
35
|
|
41
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
901
|
|
749
|
|
|
|
|
|
Total assets
|
|
$
3,872
|
|
$
5,077
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
1,812
|
|
$
978
|
Deferred
revenues
|
|
-
|
|
31
|
Other accounts payable
and accrued expenses
|
|
1,113
|
|
681
|
|
|
|
|
|
Total current
liabilities
|
|
2,925
|
|
1,690
|
|
|
|
|
|
LIABILITY RELATED TO
WARRANTS
|
|
7,488
|
|
2,610
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE PREFERRED
SHARES:
|
|
|
|
|
Series A Preferred
Stock of $0.0001 par value - Authorized: 60,000 shares at December 31, 2016
and
2015; Issued and Outstanding: None and 1,984 shares
at December 31, 2016 and December 31, 2015,
respectively
|
|
-
|
|
2,357
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
(DEFICIENCY)
|
|
|
|
|
Common Stock of $0.0001
par value - Authorized:
160,000,000 shares at December 31, 2016 and
2015; Issued and Outstanding: 5,713,383 and 2,911,788
shares
at December 31, 2016 and 2015, respectively
|
|
6
|
|
5
|
Preferred Stock of
$0.0001 par value - Authorized:
5,000,000 shares at December 31, 2016 and
2015; Issued and Outstanding: None at December 31,
2016
and December 31, 2015
|
|
-
|
|
-
|
Additional paid-in
capital
|
|
48,413
|
|
41,769
|
Accumulated
deficit
|
|
(54,960)
|
|
(43,354)
|
|
|
|
|
|
Total stockholders'
equity (deficiency)
|
|
(6,541)
|
|
(1,580)
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficiency)
|
|
$
3,872
|
|
$
5,077
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
|
|
|
Year
ended
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
2,803
|
|
$
823
|
Cost of
revenues
|
|
|
|
3,364
|
|
1,678
|
Impairment of
production line
|
|
|
|
269
|
|
-
|
|
|
|
|
|
|
|
Gross loss
|
|
|
|
830
|
|
855
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
|
|
$
2,154
|
|
$
2,565
|
Sales and
marketing
|
|
|
|
4,739
|
|
1,330
|
General and
administrative
|
|
|
|
3,378
|
|
2,948
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
|
10,271
|
|
6,843
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
11,101
|
|
7,698
|
|
|
|
|
|
|
|
Financial expenses
(income), net:
|
|
|
|
|
|
|
Revaluation of
warrants
|
|
|
|
(260)
|
|
(571)
|
Other financial
expense, net
|
|
|
|
46
|
|
15
|
|
|
|
|
|
|
|
Total financial
expenses (income), net
|
|
|
|
(214)
|
|
(556)
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
10,887
|
|
$
7,142
|
|
|
|
|
|
|
|
Deemed dividend
related to May 2015 exchange agreement
|
|
|
|
-
|
|
154
|
Deemed dividend
related to Series A Preferred Stock
exchange agreement
|
|
|
|
455
|
|
-
|
Deemed dividend
related to extension of July 2015 Series A
warrants in July 2016
|
|
|
|
265
|
|
-
|
|
|
|
|
|
|
|
Net loss attributable
to holders of Common Stock
|
|
|
|
$
11,607
|
|
$
7,296
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
|
|
$
2.09
|
|
$
3.84
|
Weighted average number
of Common Stock used in computing
basic and diluted net loss per share
|
|
|
|
5,202,974
|
|
1,897,755
|
|
|
|
|
|
|
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
Year
ended
December
31,
|
|
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
(10,887)
|
|
$
(7,142)
|
|
Adjustments required
to reconcile net loss to
net cash used in operating activities:
|
|
|
|
|
|
Stock-based
compensation and Common
Stock to service providers
|
|
1,038
|
|
1,723
|
|
Depreciation
|
|
387
|
|
335
|
|
Write-off of a
production line
|
|
269
|
|
-
|
|
Increase in trade
receivables
|
|
(226)
|
|
-
|
|
Increase (decrease) in
deferred revenues
|
|
(31)
|
|
7
|
|
Decrease (increase) in
other accounts
receivable and prepaid expenses
|
|
406
|
|
(649)
|
|
Increase in
inventories
|
|
(287)
|
|
(366)
|
|
Increase in trade
payables
|
|
834
|
|
292
|
|
Increase in other
accounts payable and
accrued expenses
|
|
378
|
|
102
|
|
Change in the fair
value of warrants to
purchase shares of Common Stock
|
|
(260)
|
|
(571)
|
|
Loss from disposal of
fixed assets
|
|
-
|
|
(8)
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(8,379)
|
|
(6,277)
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Investment in
short-term bank deposits
|
|
(145)
|
|
(282)
|
|
Proceeds of maturities
of short-term bank
deposit
|
|
-
|
|
285
|
|
Investment in lease
deposit, net
|
|
6
|
|
(6)
|
|
Purchase of property
and equipment
|
|
(808)
|
|
(110)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(947)
|
|
(113)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from issuance
of Common Stocks
and warrants, net of issuance cost
|
|
7,538
|
|
7,075
|
|
Proceeds from exercise
of options and
warrants
|
|
210
|
|
533
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
7,748
|
|
7,608
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash
equivalents
|
|
(1,578)
|
|
1,218
|
|
Cash and cash
equivalents at beginning of year
|
|
2,671
|
|
1,453
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
$
1,093
|
|
$
2,671
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
$
-
|
|
$
27
|
|
|
|
|
|
|
|
Classification of
liability related to warrants as a
result of September 2014 round replacement
agreement
|
|
$
-
|
|
$
822
|
|
|
|
|
|
|
|
Conversion of Series A
Preferred Stock to
Common stock
|
|
$
2,277
|
|
$
400
|
|
|
|
|
|
|
|
Payment for executives
and directors under
Salary Program
|
|
$
154
|
|
$
304
|
|
Public
Relations
|
Investor
Relations
|
|
|
Shmuel
Herschberg
DarioHealth
Corp.
|
Rob Fink/Brett
Mass
Hayden IR
|
1 800 896
9062
|
646-415-8972/646-536-7331
|
shmuel@mydario.com
|
DRIO@HaydenIR.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dariohealth-reports-fourth-quarter-and-year-end-2016-results-300428002.html
SOURCE DarioHealth Corp.