Company Announcements

DARIOHEALTH CORP. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 U.S. dollars in thousands

December 31, 

December 31, 

2025

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

21,803

$

27,764

Short-term bank deposits

4,214

697

Short-term restricted bank deposits

229

175

Trade receivables, net

2,144

4,804

Inventories

4,316

4,753

Other accounts receivable and prepaid expenses

2,361

2,336

Total current assets

35,067

40,529

NON-CURRENT ASSETS:

Deposits

80

79

Operating lease right of use assets

717

1,065

Long-term assets

304

313

Property and equipment, net

549

709

Intangible assets, net

15,931

18,762

Goodwill

57,427

57,427

Total non-current assets

75,008

78,355

Total assets

$

110,075

$

118,884

DARIOHEALTH CORP. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

December 31, 

December 31, 

2025

2024

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

$

2,928

$

3,045

Deferred revenues

714

1,583

Operating lease liabilities

430

504

Other accounts payable and accrued expenses

5,251

6,052

Current maturity of long-term loan

—

5,451

Total current liabilities

9,323

16,635

NON-CURRENT LIABILITIES

Operating lease liabilities

571

765

Long-term loan

30,747

23,472

Warrant liability

1,466

5,968

Other long-term liabilities

46

25

Total non-current liabilities

32,830

30,230

STOCKHOLDERS' EQUITY

Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and
outstanding: 6,905,948 and 1,919,422 shares on December 31, 2025 and
December 31, 2024, respectively

4

4

Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and
outstanding: 0 and 49,585 shares on December 31, 2025 and December 31, 2024,
respectively

*) -

*) -

Additional paid-in capital

519,996

462,358

Accumulated deficit

(452,078)

(390,343)

Total stockholders' equity

67,922

72,019

Total liabilities and stockholders' equity

$

110,075

$

118,884

*) Represents an amount lower than $1.

DARIOHEALTH CORP. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

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

Year ended

December 31,

2025

2024

Revenues:

Services

$

14,929

$

20,197

Consumer hardware

7,430

6,843

Total revenues

22,359

27,040

Cost of revenues:

Services

2,900

3,606

Consumer hardware

5,124

5,139

Amortization of acquired intangible assets

1,670

5,028

Total cost of revenues

9,694

13,773

Gross profit

12,665

13,267

Operating expenses:

Research and development

$

13,791

$

24,179

Sales and marketing

20,338

26,350

General and administrative

15,191

20,482

Total operating expenses

49,320

71,011

Operating loss

36,655

57,744

Interest expenses

3,020

—

Other financial expenses (income), net

1,934

(13,145)

Total financial expenses (income), net

4,954

(13,145)

Loss before taxes

41,609

44,599

Income taxes (benefit)

105

(1,852)

Net loss

$

41,714

$

42,747

Deemed dividend (contribution)

$

20,021

$

(1,765)

Net loss attributable to common shareholders

$

61,735

$

40,982

Net loss per share:

Basic and diluted loss per share of common stock

$

10.12

$

12.27

Weighted average number of common stock used in computing
basic and diluted net loss per share**

3,982,956

2,451,971

DARIOHEALTH CORP. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Year ended

December 31,

2025

2024

Cash flows from operating activities:

Net loss

$

(41,714)

$

(42,747)

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

Stock-based compensation

9,365

15,796

Change in operating lease right of use assets

421

907

Amortization of acquired intangible assets

2,831

6,100

Changes in operating assets and liabilities, net of effects of businesses acquired:

Depreciation and impairment

307

1,327

Decrease in trade receivables, net

2,660

1,680

Increase in other accounts receivable, prepaid expense and long-term assets 

(16)

(80)

Decrease in inventories

437

308

Decrease in trade payables

(122)

(496)

Decrease in other accounts payable and accrued expenses

(780)

(3,483)

Decrease in deferred revenues

(869)

(156)

Change in operating lease liabilities

(341)

(1,150)

Change in fair value of warrant liability

(1,681)

(16,504)

Accrued interest on short term bank deposits

(14)

—

Non-cash financial expenses

2,933

516

Other

642

(580)

Net cash used in operating activities

(25,941)

(38,562)

Cash flows from investing activities:

Purchase of property and equipment, net

(142)

(138)

Investments in short-term bank deposits

(4,200)

—

Payments for business acquisitions, net of cash acquired

—

(8,796)

Net cash used in investing activities

(4,342)

(8,934)

Cash flows from financing activities:

Proceeds from issuance of common stock and prefunded warrants, net of issuance costs

17,374

—

Proceeds from issuance of preferred stock, net of issuance costs

6,754

38,531

Proceeds from borrowings on credit agreement, net

31,700

—

Repayment of long-term loan

(31,515)

—

Net cash provided by financing activities

24,313

38,531

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

(5,970)

(8,965)

Effect of exchange rate differences on cash, cash equivalents and restricted cash and
cash equivalents

9

(68)

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

27,764

36,797

Cash, cash equivalents and restricted cash and cash equivalents at end of period

$

21,803

$

27,764

Supplemental disclosure of cash flow information:

Cash paid during the period for interest on long-term loan

$

3,493

$

3,927

Non-cash activities:

Right-of-use assets obtained in exchange for lease liabilities

$

73

$

428

Purchase of property and equipment on credit

5

—

Exercise of pre-funded warrants to common stock upon acquisition

$

2,821

$

2,225

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted

Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)

U.S. dollars in thousands

Three months ended December 31, 2025

GAAP

Stock-Based
Compensation
Expenses

Amortization of
acquisition
related expenses
and depreciation
of fixed assets

Non-GAAP

Cost of Revenues

$

2,427

(4)

(184)

2,239

Gross Profit

2,804

4

184

2,992

Research and development

2,634

(267)

(31)

2,336

Sales and Marketing

4,630

(300)

(308)

4,022

General and Administrative

4,102

(1,467)

(10)

2,625

Total Operating Expenses

11,366

(2,034)

(349)

8,983

Operating Loss

$

(8,562)

2,038

533

(5,991)

Financing expenses

386

-

-

386

Income Tax

83

-

-

83

Net Loss

$

(9,031)

2,038

538

(6,460)

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted

Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)

U.S. dollars in thousands

Three months ended December 31, 2024

GAAP

Stock-Based
Compensation
Expenses

Amortization of
acquisition
related expenses
and depreciation
of fixed assets

Non-GAAP

Cost of Revenues

$

3,402

(8)

(1,302)

2,092

Gross Profit

4,202

(8)

1,302

5,512

Research and development

5,281

(985)

(51)

4,245

Sales and Marketing

5,575

(536)

(325)

4,714

General and Administrative

5,014

(1,061)

(474)

3,479

Total Operating Expenses

15,870

(2,582)

(850)

12,438

Operating Loss

$

(11,668)

2,590

2,152

(6,926)

Financing expenses

(2,191)

-

-

(2,191)

Income Tax

155

-

-

155

Net Loss

$

(9,632)

2,590

2,152

(4,890)

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted

Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)

U.S. dollars in thousands

Twelve months ended December 31, 2025

GAAP

Stock-Based
Compensation
Expenses

Amortization of
acquisition
related expenses
and depreciation
of fixed assets

Non-GAAP

Cost of Revenues

$

9,694

(26)

(1,713)

7,955

Gross Profit

12,665

26

1,713

14,404

Research and development

(13,791)

(1,623)

(135)

(12,033)

Sales and Marketing

(20,338)

(2,253)

(1,234)

(16,851)

General and Administrative

(15,191)

(5,463)

(56)

(9,672)

Total Operating Expenses

(49,320)

(9,339)

(1,425)

(38,556)

Operating Loss

$

(36,655)

9,365

3,138

(24,152)

Financing expenses

4,954

-

-

4,954

Income Tax

105

-

-

105

Net Loss

$

(41,714)

9,365

3,138

(29,211)

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted

Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)

U.S. dollars in thousands

Twelve months ended December 31, 2024

GAAP

Stock-Based
Compensation
Expenses

Amortization of
acquisition
related expenses
and depreciation
of fixed assets

Non -GAAP

Cost of Revenues

$

13,773

(13)

(5,086)

8,674

Gross Profit

13,267

13

5,086

18,366

Research and development

24,179

(3,296)

(238)

20,645

Sales and Marketing

26,350

(4,890)

(1,183)

20,277

General and Administrative

20,482

(7,597)

(1,649)

11,236

Total Operating Expenses

71,011

(15,783)

(3,070)

52,158

Operating Loss

$

(57,744)

15,796

8,156

(33,792)

Financing expenses

(13,145)

-

-

(13,145)

Income Tax

(1,852)

-

-

(1,852)

Net Loss

$

(42,747)

15,796

8,156

(18,795)