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Aurora Technology Acquisition (ATAK) - 2024 Q3 - Quarterly Report
ATAKAurora Technology Acquisition (ATAK)2024-11-15 21:40

Financial Performance - DIH generated revenue of 35.1millionforthesixmonthsendedSeptember30,2024,a34.535.1 million for the six months ended September 30, 2024, a 34.5% increase compared to 26.1 million for the same period in 2023[108]. - Revenue for the three months ended September 30, 2024 increased by 5.1million,or39.15.1 million, or 39.1%, to 18.2 million from 13.1millionforthesameperiodin2023,primarilydrivenbya13.1 million for the same period in 2023, primarily driven by a 4.9 million increase in device sales[128]. - Devices revenue for the six months ended September 30, 2024 increased by 8.0million,or39.08.0 million, or 39.0%, to 28.6 million compared to 20.6millionforthesameperiodin2023[130].−GrossprofitforthethreemonthsendedSeptember30,2024was20.6 million for the same period in 2023[130]. - Gross profit for the three months ended September 30, 2024 was 9.6 million, representing a 76.7% increase from 5.4millioninthesameperiodin2023[127].−OperatingincomeforthethreemonthsendedSeptember30,2024was5.4 million in the same period in 2023[127]. - Operating income for the three months ended September 30, 2024 was 1.9 million, a significant improvement from an operating loss of 2.5millioninthesameperiodin2023[127].−NetlossforthethreemonthsendedSeptember30,2024was2.5 million in the same period in 2023[127]. - Net loss for the three months ended September 30, 2024 was 234,000, a 90.6% improvement from a net loss of 2.5millioninthesameperiodin2023[127].−ThenetlossforthesixmonthsendedSeptember30,2024,was2.5 million in the same period in 2023[127]. - The net loss for the six months ended September 30, 2024, was 0.5 million, significantly improved from a net loss of 5.4millionintheprioryear,reflectinga5.4 million in the prior year, reflecting a 4.9 million improvement driven by an 8.2millionincreaseingrossprofit[109].ExpensesandCosts−Selling,generalandadministrativeexpensesareexpectedtoriseasthecompanyscalesitsworkforceandenhancessupportfunctionstomeetpubliccompanydemands[122].−ResearchanddevelopmentcostsareprojectedtoincreaseasDIHinvestsinproductdesignandtechnologytodrivebusinessgrowth[123].−Selling,general,andadministrativeexpensesforthethreemonthsendedSeptember30,2024decreasedby8.2 million increase in gross profit[109]. Expenses and Costs - Selling, general and administrative expenses are expected to rise as the company scales its workforce and enhances support functions to meet public company demands[122]. - Research and development costs are projected to increase as DIH invests in product design and technology to drive business growth[123]. - Selling, general, and administrative expenses for the three months ended September 30, 2024 decreased by 0.6 million, or 9.6%, to 5.8millionfrom5.8 million from 6.4 million in the same period in 2023[135]. - Research and development costs for the three months ended September 30, 2024 increased by 0.3million,or20.60.3 million, or 20.6%, to 1.9 million compared to 1.6millioninthesameperiodin2023[137].−TotaloperatingexpensesforthethreemonthsendedSeptember30,2024decreasedby1.6 million in the same period in 2023[137]. - Total operating expenses for the three months ended September 30, 2024 decreased by 287,000, or 3.6%, to 7.7millioncomparedto7.7 million compared to 8.0 million in the same period in 2023[127]. Cash Flow and Financing - The company had cash and cash equivalents of 1.8millionasofSeptember30,2024,downfrom1.8 million as of September 30, 2024, down from 3.2 million as of March 31, 2024[143]. - The company experienced negative cash flows from operating activities of (1.5)millionduringthesixmonthsendedSeptember30,2024[143].−Netcashusedinoperatingactivitiesincreasedby(1.5) million during the six months ended September 30, 2024[143]. - Net cash used in operating activities increased by 3.3 million to (1.5)millionforthesixmonthsendedSeptember30,2024,comparedto(1.5) million for the six months ended September 30, 2024, compared to 1.8 million for the same period in 2023[150]. - Net cash provided by financing activities increased by 4.5millionto4.5 million to 0.8 million for the six months ended September 30, 2024, compared to (3.7)millionforthesameperiodin2023,primarilydueto(3.7) million for the same period in 2023, primarily due to 2.8 million proceeds from convertible debt financing[151]. - Company continues to explore financing alternatives in debt or equity to fund ongoing operations and fulfill current obligations[146]. - Company expects to fund future cash flows used in investing activities with cash flow generated by operations[150]. - Company anticipates sources of liquidity to include cash on hand and cash flow from operations[146]. Business Developments - The company completed a business combination on February 7, 2024, which included Hocoma Medical, enhancing its asset base and operational capabilities[110]. - DIH issued 3.3millioninprincipalamountofconvertibledebenturesonJune6,2024,withaconversionpriceof3.3 million in principal amount of convertible debentures on June 6, 2024, with a conversion price of 5.00 per share, resulting in net proceeds of approximately 2.8million[113].−Thecompanyexpectstoincuradditionalannualexpensesasapubliccompany,includingincreasedcostsfordirectors′andofficers′liabilityinsuranceandcompliance−relatedexpenses[111].MarketOutlook−DIHanticipatesrevenuegrowthinfutureperiodsduetoexpandingdemandforitsrehabilitationproductsinrepresentedmarkets[119].−Costofsalesisexpectedtoincreaseinabsolutedollarsasordersgrow,whilecostperunitisprojectedtodecreaseduetoimprovedleverage[120].−Thecompanyfacesongoingchallengesfromglobalmacroeconomicfactors,includingsupplychaindisruptionsandinflationarypressures,whichcouldimpactfutureoperations[118].WorkingCapital−Netdecreaseof2.8 million[113]. - The company expects to incur additional annual expenses as a public company, including increased costs for directors' and officers' liability insurance and compliance-related expenses[111]. Market Outlook - DIH anticipates revenue growth in future periods due to expanding demand for its rehabilitation products in represented markets[119]. - Cost of sales is expected to increase in absolute dollars as orders grow, while cost per unit is projected to decrease due to improved leverage[120]. - The company faces ongoing challenges from global macroeconomic factors, including supply chain disruptions and inflationary pressures, which could impact future operations[118]. Working Capital - Net decrease of 8.0 million in working capital was driven by a decrease of 4.3millioninadvancedpaymentsfromcustomersforthesixmonthsendedSeptember30,2024,comparedtothesameperiodin2023[154].−Theremainingbalanceonrelatedpartynotespayableis4.3 million in advanced payments from customers for the six months ended September 30, 2024, compared to the same period in 2023[154]. - The remaining balance on related party notes payable is 9.4 million and 11.5millionasofSeptember30,2024,andMarch31,2024,respectively[144].−CompanyincurredthreerelatedpartynotespayabletoHocomaAGtotaling11.5 million as of September 30, 2024, and March 31, 2024, respectively[144]. - Company incurred three related party notes payable to Hocoma AG totaling 19.84 million, due on June 30, 2026, with an interest rate of 1.25%[144]. - Non-cash charges decreased by $0.1 million for the six months ended September 30, 2024, compared to the same period in 2023[153].