DarioHealth stockholders approve board proposals at annual meeting

Published 23/07/2025, 23:08
© Aviv Kurt, DarioHealth PR

DarioHealth Corp. (NASDAQ:DRIO), a digital therapeutics company with a current market capitalization of approximately $31 million, held its 2025 Annual Meeting of Stockholders on Wednesday, where shareholders voted on five proposals, according to a press release statement and a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company faces significant financial challenges, with rapid cash burn and no profitability expected this year.

All nominated directors were elected to serve until the next annual meeting. The directors elected were Hila Karah, Dennis Matheis, Dennis M. McGrath, Erez Raphael, Yoav Shaked, Lawrence Leisure, and Adam K. Stern (AS:PBHP). Votes in favor for each director ranged from approximately 28.7 million to 30.6 million, with votes against ranging from about 167,000 to 2 million. Abstentions for each candidate were under 150,000, and broker non-votes totaled about 9.6 million for each nominee. These directors will oversee a company that has shown strong revenue growth of 47.2% over the last twelve months, despite challenging market conditions.

Shareholders also ratified the appointment of Kesselman & Kesselman, a member of PricewaterhouseCoopers International Limited, as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. The vote count was 40,147,602 for, 146,189 against, and 98,226 abstentions.

An amendment to the 2020 Equity Compensation Plan was approved. This amendment increases the number of shares available under the plan by an additional 6% of shares outstanding on a fully diluted basis for each year from 2026 through 2030, and authorizes the grant of restricted stock units. The proposal received 27,495,788 votes for, 3,282,935 against, and 31,738 abstentions, with 9,581,556 broker non-votes.

Stockholders authorized the board to implement a reverse stock split at a ratio between 2-to-1 and 25-to-1, to be enacted no later than September 15, 2025, at the board’s discretion. The vote was 38,540,911 for, 1,734,131 against, and 116,874 abstentions.

Finally, stockholders approved an amendment to increase the number of authorized shares of common stock from 160 million to 400 million. As a single class, the vote was 35,418,547 for, 4,873,635 against, and 99,731 abstentions. When voting by common stock as a separate class, there were 26,141,733 for, 4,833,835 against, and 87,331 abstentions. With a current debt-to-equity ratio of 0.41 and analysts setting price targets ranging from $1 to $4, investors seeking comprehensive analysis can access detailed financial metrics and expert insights through InvestingPro’s extensive research reports.

All information is based on a press release statement and the company’s SEC filing.

In other recent news, DarioHealth Corp reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.14, significantly surpassing the forecasted loss of $0.10. However, the company’s revenue of $6.75 million did not meet the expected $7.47 million. In a strategic move, DarioHealth has formed a partnership with GreenKey Health to develop an integrated care solution for obstructive sleep apnea, a condition affecting millions of Americans. Additionally, DarioHealth has amended its preferred stock terms, extending the mandatory conversion period and introducing a new dividend policy. The company has extended the conversion period for its Series C, C-1, and C-2 Preferred Stock from 15 to 24 months and will offer a 15% dividend on Common Stock shares issuable upon conversion. Meanwhile, Stifel analysts have lowered the price target for DarioHealth from $2.00 to $1.50, maintaining a Buy rating despite challenges in the first quarter. Stifel anticipates significant contract awards in the latter part of 2025 into 2026, with a projection for the company to reach free cash flow breakeven between late 2026 and early 2027. Lastly, DarioHealth has appointed Steven M. Nelson as the new president and chief commercial officer, effective immediately.

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