$DRIO

LabStyle Innovations Corp.

CIK:0001533998|SEC Filings

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenues	$ 5,177	$ 5,369	$ 10,760	$ 12,121
Total cost of revenues	1,985	2,405	4,366	5,275
Gross profit	3,192	2,964	6,394	6,846
Operating expenses:
Research and development	2,100	3,721	4,485	7,829
Sales and marketing	4,971	5,231	9,870	11,104
General and administrative	2,600	3,212	5,826	6,522
Total operating expenses	9,671	12,164	20,181	25,455
Operating loss	6,479	9,200	13,787	18,609
Interest expenses	1,123		2,273
Other financial expenses (income), net	(6)	3,790	(271)	3,586
Total financial expenses, net	1,117	3,790	2,002	3,586
Loss before taxes	7,596	12,990	15,789	22,195
Income tax	328	0	384	22
Net loss	7,924	12,990	16,173	22,217
Deemed dividend		5,572		10,411
Net loss attributable to common shareholders	$ 7,924	$ 18,562	$ 16,173	$ 32,628
Net loss per share:
Basic net loss per share of common stock (in dollars per share)	$ 0.85	$ 3.54	$ 1.75	$ 6.5
Diluted net loss per share of common stock (in dollars per share)	$ 0.85	$ 3.54	$ 1.75	$ 6.5
Weighted average number of common stock used in computing basic net loss per share (in shares)	9,343,618	2,481,548	9,238,133	2,425,039
Weighted average number of common stock used in computing diluted net loss per share (in shares)	9,343,618	2,481,548	9,238,133	2,425,039
Services
Total revenues	$ 2,585	$ 3,661	$ 5,410	$ 8,536
Total cost of revenues	440	821	1,002	1,686
Consumer hardware
Total revenues	2,592	1,708	5,350	3,585
Total cost of revenues	1,367	1,151	3,010	2,281
Amortization of acquired intangible assets
Total cost of revenues	$ 178	$ 433	$ 354	$ 1,308

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (16,173)	$ (22,217)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation	2,073	4,377
Change in operating lease right of use assets	237	204
Amortization of acquired intangible assets	931	1,884
Depreciation and impairment	108	174
Change in fair value of warrant liability	(185)	(825)
Accrued interest on short term bank deposits	(63)
Non-cash financial expenses	265	2,665
Decrease in trade receivables, net	595	2,248
Increase in other accounts receivable, prepaid expense and long-term assets	(364)	(484)
Decrease in inventories	597	143
Increase in trade payables	232	334
Increase (decrease) in other accounts payable and accrued expenses	83	(858)
Decrease in deferred revenues	(193)	(856)
Decrease in operating lease liabilities	(201)	(147)
Other	(50)	654
Net cash used in operating activities	(12,108)	(12,704)
Cash flows from investing activities:
Investment in short term bank deposit	(9,250)
Proceeds from maturity of short-term bank deposit	6,200
Purchase of property and equipment	(69)	(75)
Disposals of property and equipment	6
Net cash used in investing activities	(3,113)	(75)
Cash flows from financing activities:
Proceeds from ATM Equity Offerings	104
Issuance costs related to ATM Equity Offerings	(104)
Proceeds from issuance of common stock and preferred stock, net of issuance costs		6,754
Proceeds from borrowings on credit agreement		31,700
Repayment of long-term loan		(31,515)
Net cash provided by financing activities		6,939
Decrease in cash, cash equivalents and restricted cash and cash equivalents	(15,221)	(5,840)
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents	52	30
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	21,803	27,764
Cash, cash equivalents and restricted cash and cash equivalents at end of period	6,634	21,954
Supplemental disclosure of cash flow information:
Cash paid during the period for interest on long-term loan	1,930	1,250
Non-cash activities:
Exercise of pre-funded warrants to common stock	1,266	$ 1,750
Right-of-use assets obtained in exchange for lease liabilities	549
Purchase of property and equipment on credit	$ 13

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 6,634	$ 21,803
Short-term bank deposits	7,327	4,214
Short-term restricted bank deposits	293	229
Trade receivables, net	1,549	2,144
Inventories	3,719	4,316
Other accounts receivable and prepaid expenses	2,604	2,361
Total current assets	22,126	35,067
NON-CURRENT ASSETS:
Deposits	119	80
Operating lease right of use assets	1,029	717
Long-term assets	386	304
Property and equipment, net	503	549
Intangible assets, net	15,000	15,931
Goodwill	57,427	57,427
Total non-current assets	74,464	75,008
Total assets	96,590	110,075
CURRENT LIABILITIES:
Trade payables	3,173	2,928
Deferred revenues	521	714
Operating lease liabilities	572	430
Other accounts payable and accrued expenses	5,312	5,251
Total current liabilities	9,578	9,323
NON-CURRENT LIABILITIES
Operating lease liabilities	777	571
Long-term loan	31,064	30,747
Warrant liability	15	1,466
Other long-term liabilities	68	46
Total non-current liabilities	31,924	32,830
STOCKHOLDERS' EQUITY **
Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 7,341,866 and 6,905,948 shares on June 30, 2026 and December 31, 2025, respectively	4	4
Additional paid-in capital	523,335	519,996
Accumulated deficit	(468,251)	(452,078)
Total stockholders' equity	55,088	67,922
Total liabilities and stockholders' equity	$ 96,590	$ 110,075