NORWELL, Mass., Oct. 20, 2025 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. ("DIH" or the "Company") $(DHAI)$, 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, today announced financial results for the fiscal 2025 fourth quarter and fiscal year ended March 31, 2025.
Recent Highlights
-- Revenue of $62.9 million for the fiscal year ended March 31, 2025,
representing a decrease of 2.5% over the prior year
-- Device revenue of $49.7 million and service revenue of $12.0 million for
the fiscal year ended March 31, 2025, representing a decrease of 2.8% and
an increase of 8.4%, respectively over the prior year
-- Negative operating cash flow of $4.1 million for the year ended March 31,
2025
"DIH remains committed to driving innovation and delivering value for patients and healthcare providers," said Jason Chen, Chairman and CEO of DIH. "During this year, we made meaningful progress across our key strategic initiatives while maintaining our focus on operational discipline. As we look forward to the results of the NASDAQ hearing panel regarding our listing status held on October 16, 2025, our team is committed to positioning DIH for long-term success."
Financial Results for the Fiscal Year Ended March 31, 2025
The overall decrease in revenue was primarily due to a change in product mix, where many customers purchased a similar number of devices but with a lower average sales price than the prior year mix. This change in mix was offset by a price increase implemented during fiscal year 2024, and effective for devices sold in fiscal year 2025. Services revenues increased slightly during the year, as the Company continues to focus on expanding its service department in established regions. Overall, as the product mix shifted to smaller and lower priced products, the revenues decreased slightly, year over year.
Changes in foreign currency exchange rates had an unfavorable impact on our net sales for the year ended March 31, 2025, resulting in a decrease of approximately $0.2 million. This was mainly driven by fluctuations in Euro valuations throughout the period.
Gross profit for the fiscal year ended March 31, 2025, was $32.2 million, an increase of 8.2% compared to the prior period. The increase was driven by a cost of goods decrease of $4.1 million, of which $5.3 million was due to the change in product mix, as the devices produced for delivery to customers had a lesser cost basis, and the impact of a lesser inventory reserve recorded in the current fiscal year, as compared to the prior year. The decreased reserve in the current year is the result of a stabilized current inventory on hand, with significantly less identified materials where excess inventory was identified. The decrease in devices costs was offset by an increase cost of services for providing routine and on demand service requests of $1.2 million between periods.
Selling, general and administrative expense for the year ended March 31, 2025 increased by $4.2 million, or 16.3%, to $30.0 million. The increase was driven by a $1.9 million increase in personnel expenses related to compensation including an increase in performance-based compensation, merit increases to salaries, and additions in headcount as well as a $0.5 million increase in stock compensation. In addition, there was a $1.1 million in impairment of related party receivable in the year ended March 31, 2025 due to a settlement of related party balances. The provision for credit losses reflected a $0.3 million release in fiscal 2025 compared to a $1.0 million release in fiscal 2024, resulting in a $0.7 million increase in total expense in the year ended March 31, 2025.
Research and development costs for the year ended March 31, 2025 increased by $0.5 million, or 7.4%, to $7.1 million primarily due to increase in software costs.
During the fourth quarter of fiscal year 2025, we discontinued the development and commercialization of the SafeGait product, resulting in an impairment loss of $0.6 million. We also ceased further development of capitalized software related to the HocoNet platform, resulting in an additional impairment loss of $1.5 million. There were no such impairments recognized during fiscal year 2024
Cash and cash equivalents at March 31, 2025 totaled $1.9 million.
Financial Results for the Fourth Quarter Ended March 31, 2025
Revenue for the three months ended March 31, 2025 was $12.6 million, a decrease of 34.7% compared to the prior year period. 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.
Changes in foreign currency exchange rates had a minor unfavorable impact on our net sales in the three months ended March 31, 2025, resulting in a decrease of approximately $0.3 million.
Gross profit for the three months ended March 31, 2025 was $6.0 million, a 30.4% decrease compared to the prior period which directly correlated to the product mix changes.
Selling, general and administrative expenses were $7.4 million for the three months ended March 31, 2025, a decrease of 8.7% compared to the prior-year period. The decrease was primarily due to $1.4 million of transaction costs incurred during the three months ended March 31, 2024 in connection with the business combination that did not recur, as well as $0.7 million of cost reductions from efficiency initiatives. These decreases were partially offset by a $1.1 million increase due to the impairment on related party receivables and a $0.5 million increase in performance-based compensation, merit increases to salaries, and additions in headcount.
Research and development expenses were $1.8 million for the three months ended March 31, 2025, consistent with $1.9 million in the prior-year period. The slight decrease was due to lower personnel expenses related to salary and benefit partially offset by higher depreciation and amortization expenses.
During the fourth quarter of fiscal year 2025, we discontinued the development and commercialization of the SafeGait product, resulting in an impairment loss of $0.6 million. We also ceased further development of capitalized software related to the HocoNet platform, resulting in an additional impairment loss of $1.5 million.
Subsequent Events
After March 31, 2025, the Company paid the April 2025 scheduled redemption of the Original Debentures. On May 29, 2025, the Company and Five Narrow Lane amended the Securities Purchase Agreement. Under the amendment, the deferred May 1, 2025 redemption was settled through the issuance of 1,540,277 shares of Class A common stock, and the June 2025 redemption was settled in shares as provided in the Original Debentures. The amendment permits future monthly redemptions and interest to be settled in cash or in shares, and the holder waived the default related to the deferred May payment. Separately, the Company made a partial redemption in July 2025 and deferred later scheduled redemptions while finalizing its Annual Report on Form 10-K.
On August 7, 2025, the Company entered into a Securities Purchase Agreement pursuant to which it issued, in a private placement, senior secured convertible debentures with an aggregate principal amount of $2.2 million on an original-issue-discount basis, resulting in expected net proceeds of $1.9 million after estimated offering expenses. The debentures were structured to be funded in four tranches of gross proceeds. As of the date of these financial statements, $1.4 million has been funded under the first three tranches, and the remaining $0.5 million is expected to fund upon (a) the filing of this Annual Report on Form 10-K, (b) delivery of a substantially complete draft Form 10-Q for the quarter ended June 30, 2025, and (c) appointment of one additional independent director.
The debentures mature on September 21, 2026. No interest accrues during the first year; beginning the first day of the month after the first anniversary, interest is 8% per annum, payable monthly. The Company may extend the maturity by six months if specified conditions are met and six months of interest is prepaid and credited against future interest. The debentures are initially convertible at $0.25 per share, subject to adjustment and a 9.99% beneficial-ownership cap. Beginning October 1, 2025, monthly redemptions of $171 thousand are required; each monthly redemption may be satisfied in cash or, if conditions are met, in shares priced at the lesser of the then-current conversion price and 90% of the average of the five lowest VWAPs for the 10 consecutive trading days prior to the applicable monthly redemption date. The debentures are secured under the Company's existing June 6, 2024 security arrangements. In connection with the financing, the Company issued warrants to purchase 8,888,888 shares of common stock at an initial exercise price of $0.25 per share, exercisable beginning February 1, 2026 and expiring February 1, 2030.
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