DIH Holding US Reports 34.5% Revenue Growth, Net Loss Reduction in Latest Quarter

DIH Holding US, Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, a global provider of advanced robotic devices for physical rehabilitation, experienced a notable increase in revenue, with total revenue for the six months reaching $35.1 million, up 34.5% from $26.1 million in the same period of 2023. For the three months ended September 30, 2024, revenue was $18.2 million, a 39.1% increase from $13.1 million in the prior year.

The growth in revenue was primarily driven by a substantial rise in sales of devices, which contributed $28.6 million for the six months, reflecting a 39.0% increase year-over-year. The gross profit for the six months also saw a significant rise, totaling $19.0 million, up 76.0% from $10.8 million in the previous year. Operating income turned positive, with $4.4 million reported for the six months, compared to an operating loss of $4.4 million in the same period of 2023.

Despite these improvements, DIH reported a net loss of $0.5 million for the six months ended September 30, 2024, a substantial reduction from a net loss of $5.4 million in the same period of the previous year. The company attributed this improvement to an increase in gross profit of $8.2 million, offset by higher operating expenses.

Total assets increased to $38.2 million as of September 30, 2024, up from $35.7 million as of March 31, 2024. Current assets also rose to $29.8 million, driven by increases in accounts receivable and inventories. However, total current liabilities increased to $49.4 million, leading to a rise in the accumulated deficit to $35.8 million.

Strategically, DIH completed a business combination with Aurora Technology Acquisition Corp on February 7, 2024, which resulted in the company owning 100% of DIH Nevada and its subsidiaries. The company also issued $3.3 million in convertible debt in June 2024, with net proceeds of approximately $2.8 million, to support its operations.

The company continues to face challenges, including elevated professional service costs and increased personnel expenses due to its public company status. Additionally, DIH is navigating global supply chain issues that have led to increased costs for logistics and raw materials. Despite these challenges, the company has not observed a material impact on its business outlook or operating results.