DarioHealth Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DarioHealth Corp. filed its 2023 10-K, detailing financial activities and corporate history, including recent preferred stock purchase agreements.</b>

AI Summary

DarioHealth Corp. (DRIO) filed a Annual Report (10-K) with the SEC on March 28, 2024. DarioHealth Corp. filed its 2023 Form 10-K on March 28, 2024. The company was formerly known as LabStyle Innovations Corp. and changed its name on November 1, 2011. Key financing events include Series B, B1, B2, B3 Preferred Stock purchase agreements in May 2023. Subsequent events include a Series C and C1 Preferred Stock purchase agreement on February 15, 2024. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking DarioHealth Corp., this filing contains several important signals. The filing provides a comprehensive overview of DarioHealth's financial performance and strategic initiatives for the fiscal year 2023. Recent financing activities, such as the Series C and C1 Preferred Stock purchase agreements in February 2024, indicate ongoing efforts to secure capital for operations and growth.

Risk Assessment

Risk Level: medium — DarioHealth Corp. shows moderate risk based on this filing. The company has a history of name changes and multiple preferred stock issuances, suggesting potential financial restructuring or ongoing capital needs that could impact future stability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's financial health and future prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-03-28 — Filing Date (Date of 10-K submission)
• 2023-05-01 — Series B Preferred Stock Agreement (Securities Purchase Agreements)
• 2024-02-15 — Series C Preferred Stock Agreement (Subsequent Event)

Key Players & Entities

• DarioHealth Corp. (company) — Filer of the 10-K
• LabStyle Innovations Corp. (company) — Former name of DarioHealth Corp.
• New York (location) — Business and mailing address
• Series B Preferred Stock (dollar_amount) — Securities Purchase Agreements in May 2023
• Series C Preferred Stock (dollar_amount) — Subsequent event purchase agreement on February 15, 2024

FAQ

Industry Context

DarioHealth Corp. operates in the medical instruments and apparatus industry, focusing on digital health solutions.

Regulatory Implications

The company is subject to standard SEC regulations for public filings, including the requirement to submit Form 10-K annually.

What Investors Should Do

1. Analyze the revenue and net income trends from the financial statements.
2. Evaluate the impact of recent financing activities on the company's capital structure.
3. Review the risk factors section for potential challenges and uncertainties.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-03-28: 10-K Filing Date — Official submission date of the annual report
• 2024-02-15: Series C Preferred Stock Purchase Agreement — Significant subsequent financing event
• 2023-05-01: Series B Preferred Stock Purchase Agreements — Key financing events during the fiscal year

Year-Over-Year Comparison

This 10-K filing provides the annual financial overview for 2023, superseding previous quarterly and annual reports.

Key Financial Figures

• $0.0001 — ch registered: Common Stock, par value $0.0001 per share DRIO The Nasdaq Stock Mar

Filing Documents

• drio-20231231x10k.htm (10-K) — 3576KB
• drio-20231231xex10d23.htm (EX-10.23) — 25KB
• drio-20231231xex10d24.htm (EX-10.24) — 77KB
• drio-20231231xex10d34.htm (EX-10.34) — 68KB
• drio-20231231xex10d35.htm (EX-10.35) — 116KB
• drio-20231231xex21d1.htm (EX-21.1) — 2KB
• drio-20231231xex23d1.htm (EX-23.1) — 5KB
• drio-20231231xex31d1.htm (EX-31.1) — 10KB
• drio-20231231xex31d2.htm (EX-31.2) — 11KB
• drio-20231231xex32d1.htm (EX-32.1) — 8KB
• drio-20231231xex97d1.htm (EX-97.1) — 52KB
• drio-20231231x10k001.jpg (GRAPHIC) — 2KB
• drio-20231231x10k002.jpg (GRAPHIC) — 5KB
• drio-20231231x10k003.jpg (GRAPHIC) — 6KB
• drio-20231231x10k011.jpg (GRAPHIC) — 4KB
• drio-20231231xex10d35001.jpg (GRAPHIC) — 168KB
• 0001558370-24-004151.txt (&nbsp;) — 14597KB
• drio-20231231.xsd (EX-101.SCH) — 96KB
• drio-20231231_cal.xml (EX-101.CAL) — 64KB
• drio-20231231_def.xml (EX-101.DEF) — 344KB
• drio-20231231_lab.xml (EX-101.LAB) — 761KB
• drio-20231231_pre.xml (EX-101.PRE) — 567KB
• drio-20231231x10k_htm.xml (XML) — 2480KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 56 Item 1B. Unresolved Staff Comments 81 Item 1C. Cybersecurity 82 Item 2.

Properties

Properties 82 Item 3.

Legal Proceedings

Legal Proceedings 82 Item 4. Mine Safety Disclosures 82 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 83 Item 6. [Reserved] 86 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 86 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 97 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 98 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98 Item 9A.

Controls and Procedures

Controls and Procedures 98 Item 9B. Other Information 99 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 99 PART III Item 10. Directors, Executive Officers and Corporate Governance 99 Item 11.

Executive Compensation

Executive Compensation 105 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110 Item 13. Certain Relationships and Related Transactions, and Director Independence 112 Item 14. Principal Accounting Fees and Services 113 PART IV Item 15. Exhibits and Financial Statement Schedules 114 Item 16. Form 10-K Summary 117

Signatures

Signatures 118 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND SUMMARY RISK FACTORS This Annual Report on Form 10-K, or the Annual Report, contains "forward-looking statements," which includes information relating to future events, future financial performance, financial projections, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information we have when those statements are made or management's good faith belief as of that time with respect to future events, and are subject to significant risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: our current and future capital requirements and our ability to satisfy our capital needs through financing transactions or otherwise; our ability to meet the requirements of our existing debt facility; our product launches and market penetration plans; the execution of agreements with various providers for our solution; our ability to maintain our relationships with key partners, including Sanofi U.S. Services Inc. ("Sanofi"); our ability to complete required clinical trials of our product and obtain clearance or approval from the United States Food and Drug Administration (the "FDA"), or other regulatory agencies in different jurisdictions; our ability to maintain or protect the validity of o

Business

Item 1. Business Dario is revolutionizing how people with chronic conditions manage their health through the innovation of a new category of digital health: Digital Therapeutics as a Service ("DTaaS"). We believe that our innovative approach to digital therapeutics disrupts the traditional provider-centered system of healthcare delivery by offering user-centric care that is continuous, customized supportive of better overall health. Our solutions combine the power of technologies and behavior science to make better health accessible, affordable, and easy for all by solving for what people need, when and where they want it, with hyper-personalized care that is always connected – to services, devices, and people – and delivered continuously. Our solutions are proven to drive savings for health plans and employers by improving the health of their populations. Twill, a company which we recently acquired, is a global, digital-first solution with a mission to improve the mental and physical health of people everywhere. Through Twill, we provide personalized and connected care that accelerates access to mental health and well-being through highly engaging evidence-based programs, supportive communities, human-led coaching and therapy. Twill's solution is used by enterprises, health plans, pharmaceutical companies, and individuals around the world, and is available globally in 10 languages, covering more than 18 million lives. During the last few years, our strategy has been to evolve from point solution to a comprehensive multi condition platform. We have pursed this strategy since 2021, resulting in various acquisitions and the recent acquisition of Twill. We believe that digital health is undergoing a massive transformation, as innovators evolve from offering point solutions to more integrated approaches. We believe that we are uniquely poised to answer that call and usher in the next generation of digital health. Twill Acquisition 5 Table of Contents With t

View Full Filing

View this 10-K filing on SEC EDGAR