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In a recent development, DarioHealth Corp., a medical device company with a market capitalization of $29.72 million and impressive revenue growth of 32.86% over the last twelve months, has been granted an additional 180 days to meet Nasdaq’s minimum bid price requirement and avoid delisting. The company, which specializes in surgical and medical instruments and apparatus, received a letter from Nasdaq on Monday, March 18, 2025, confirming the extension.
Previously, on September 16, 2024, DarioHealth was notified that its stock price had fallen below the $1.00 per share threshold required for continued listing on the Nasdaq Capital Market. The original period to regain compliance was set to expire on Sunday, March 17, 2025. However, with the extension, the company now has until September 15, 2025, to maintain a minimum closing bid price of $1.00 per share for at least ten consecutive trading days. According to InvestingPro data, the stock has shown recent momentum with a 7.9% gain over the past week, though it remains significantly below its 52-week high of $1.93.
DarioHealth’s stock, trading under the ticker (NASDAQ:DRIO), will continue to be listed and traded on the Nasdaq Capital Market during this additional compliance period. The company is considering various options to address the bid price deficiency, including a potential stock split. InvestingPro analysis indicates that while the company maintains strong liquidity with a current ratio of 2.44, it faces challenges with cash burn - one of several key insights available in the comprehensive Pro Research Report covering this stock. However, it is uncertain whether these measures will enable DarioHealth to satisfy the Nasdaq’s requirements within the extended timeframe.
The company’s management cautions that forward-looking statements regarding its efforts to regain compliance with Nasdaq’s listing standards are subject to various risks and uncertainties. These include the company’s ability to take necessary actions for continued listing and its current financial position, which may necessitate additional funding to support ongoing operations.
This announcement is based on a press release statement and reflects DarioHealth’s current plans to address the compliance issue with Nasdaq. The company has emphasized that it will continue to monitor its stock’s closing bid price and explore all available options to resolve the deficiency and regain compliance with the minimum bid price requirement.
In other recent news, DarioHealth Corp reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of -$0.08, compared to the forecast of -$0.2267. The company also exceeded revenue forecasts, reporting $7.6 million against the anticipated $7.51 million, marking a 110% year-over-year revenue growth. Stifel analysts adjusted DarioHealth’s stock target to $2.00 from $3.50, maintaining a Buy rating despite the price target reduction. They noted the company’s modest sequential revenue growth and the impact of transitions in Twill’s customer base, which DarioHealth acquired in 2024. Additionally, DarioHealth is negotiating two substantial contracts, including a behavioral health deal with a national health plan, expected to contribute to revenue in the second half of 2025. The company aims for operational cash flow breakeven by the end of 2025, supported by a projected operating expense reduction of over 20%. DarioHealth’s CEO emphasized the company’s focus on profitability and the role of AI in healthcare, noting the company’s strong position in the digital health transformation.
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