# EDGAR Filing Document

**Accession Number:** 0001533998
**File Stem:** 0001104659-23-010935
**Filing Date:** 2023-2
**Character Count:** 31239
**Document Hash:** 044b0eb9bd6ed4d92fb662b3a355b44d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-010935.hdr.sgml**: 20230206

**ACCESSION NUMBER**: 0001104659-23-010935

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 40

**CONFORMED PERIOD OF REPORT**: 20230131

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230206

**DATE AS OF CHANGE**: 20230206

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DarioHealth Corp.
- **CENTRAL INDEX KEY:** 0001533998
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **IRS NUMBER:** 452973162
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37704
- **FILM NUMBER:** 23588773

**BUSINESS ADDRESS:**
- **STREET 1:** 18 W 18TH ST., 5TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10011
- **BUSINESS PHONE:** 646.665.4667

**MAIL ADDRESS:**
- **STREET 1:** 18 W 18TH ST., 5TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10011

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LabStyle Innovations Corp.
- **DATE OF NAME CHANGE:** 20111101

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of Earliest Event Reported): January 31, 2023

**DARIOHEALTH CORP.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-37704** | **45-2973162** |
| (State or other jurisdiction <br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**18 W. 18th St, 5th Floor**

**New York** **, New York 10019**

(Address of Principal Executive Offices)

**972- 4-770-4055** 

(Issuer's telephone number)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br> Symbol(s)** | **Name of exchange on which <br> registered** |
| Common Stock, par value $0.0001 per share | DRIO | The Nasdaq Capital Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operation and Financial Condition.** |

---

On February 6, 2023, DarioHealth Corp. (the "Company") issued a press released which provided certain preliminary results of operations for the quarter and fiscal year ended December 31, 2022 based on currently available information. The preliminary results presented reflect the Company's estimates based solely upon information available, and the Company's final results could differ from these estimates due to the completion of the Company's financial closing procedures, final adjustments and other developments that may arise between now and the time such audited consolidated financial statements for the year ended December 31, 2022 are issued. The Company expects to announce its full results for the twelve months ended December 31, 2022 on or before March 31, 2023.

A copy of the press release issued by the Company announcing the preliminary unaudited financial information for its fiscal quarter ended December 31, 2022 is filed as Exhibit 99.1 hereto.

---

| | |
|:---|:---|
| **Item 2.04** | **Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.** |

---

The Company, as borrower, previously entered into its Credit Agreement (the "Credit Agreement") with OrbiMed Royalty and Credit Opportunities III, LP, as the lender (the "Lender"). The Credit Agreement provides for a five-year senior secured credit facility in an aggregate principal amount of up to $50 million (the "Loan Facility"), of which $25 million was made available on June 9, 2022 and up to $25 million will be made available on or prior to June 30, 2023, subject to certain revenue requirements.

Pursuant to the terms of the Credit Agreement, and the preliminary results of operations for the fiscal year ended December 31, 2022 as described above in Item 2.02, the Company started repayment of the outstanding principal amount of the initial tranche of $25 million issued as part of the Loan Facility, together with a repayment premium and other fees in monthly installments of up to $518,500 beginning as of January 31, 2023, and continuing through the maturity date, or June 9, 2027.

---

| | |
|:---|:---|
| **Item 7.01.** | **Regulation FD Disclosure.** |

---

The information set forth in Item 2.02 is incorporated by reference into this Item 7.01.

In addition, on February 6, 2023, the Company posted to its website an investor presentation, a copy of which is attached hereto as Exhibit 99.2.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d) Exhibits

---

| | |
|:---|:---|
| [99.1](tm235559d1_ex99-1.htm) | [Press release dated February 6, 2023.](tm235559d1_ex99-1.htm) |
| [99.2](tm235559d1_ex99-2.htm) | [Investor Presentation dated February 6, 2023 (furnished herewith).](tm235559d1_ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: February 6, 2023 | **DARIOHEALTH CORP.** | **DARIOHEALTH CORP.** |
|  | By: | /s/ Zvi Ben David |
|  | Name: | Zvi Ben-David |
|  | Title: | Chief Financial Officer, Treasurer and Secretary |

---

## Exhibit 99.1

**Exhibit 99.1**

**DarioHealth Announces Preliminary Fourth Quarter and Full Year 2022 Operating Results**

*Preliminary Results demonstrate success in B2C to B2B transformation*

*Total revenue for the year is expected to be $27.5 million compared to $20.5 million in 2021.*

*B2B expected to represent approximately 60% of revenue in 2022 versus 4% in 2021*

*Continued improvement of Company's financial profile, reducing its operating loss by more than 50% compared to the fourth quarter of 2021.*

NEW YORK, Feb. 6, 2023 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the global digital therapeutics (DTx) market, today announced preliminary unaudited revenue results for the fourth quarter and full year 2022 of approximately $6.7 million and approximately $27.5 million, respectively. Expected fourth quarter revenue shows a consecutive quarter increase relative to the third quarter of 2022 ($6.6 million) which in turn was higher than the second quarter of 2022 ($6.2 million). Fourth quarter revenues were driven by Business-to-Business (B2B) channel growth that surpassed the managed decline of the Business-to-Consumer (B2C) channel due to the Company's strategic shift in resources.

In addition, the Company showed continued improvement of its financial profile, reducing its operating loss by more than 30% compared to the third quarter ended September 30, 2022, and by more than 50% compared to the fourth quarter of 2021.

Erez Raphael, CEO of Dario, said, "Based on our expected preliminary results, we delivered higher revenues on lower spend, demonstrating that our strategy of moving from B2C to B2B sales channels is working and is the value maximizing path for the Company. We believe that the expected 2022 results are especially exciting because B2B revenue represents the majority of our revenue for the first time. The growth of the B2B business has resulted in an overall significant improvement in the financial profile of the Company. In 2023, we anticipate the continued growth of our B2B revenue as we execute on our strategic plan."

DarioHealth had $49.3 of cash and cash equivalents at the end of 2022. As part of the Company's credit facility with Orbimed, scheduled monthly amortization payments in the amount of $1.5 million a quarter began in January 2023.

The above information reflects preliminary unaudited estimates with respect to certain results of Dario for the full year ended December 31, 2022, based on currently available information. Because the audit for 2022 is not yet complete, Dario's final results may vary from the preliminary estimates provided herein.

**About DarioHealth Corp.**

DarioHealth Corp. (Nasdaq: DRIO) is a leading digital therapeutics (DTx) company revolutionizing how people with chronic conditions manage their health through a user-centric multi-chronic condition platform. Our platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health.

Our user-centric platform offers people continuous and customized care for health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention, and results. Making the right thing to do the easy thing to do.

Dario provides its highly user rated solutions globally to health plans and other payors, self-insured employers, providers of care and directly to consumers. To learn more about DarioHealth and its digital health solutions, or for more information, visit http://dariohealth.com.

**Cautionary Note Regarding Forward-Looking Statements**

This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses its expected preliminary results, the reason for the growth in revenues, the Company's strategy, that the increase in B2B revenues results in the overall significant improvement in its financial profile, that the preliminary results demonstrate success in its B2C to B2B transformation and that it expects continued B2B revenue growth in 2023. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

**DarioHealth Corporate Contact**

Mary Mooney

VP Marketing

mary@dariohealth.com

+1-312-593-4280

**Media Contact:**

Scott Stachowiak

Scott.Stachowiak@russopartnersllc.com

+1-646-942-5630

## Exhibit 99.2

**Exhibit 99.2**

![](image_001.jpg)

1 DARIOHEALTH CORP. Nasdaq \| DRIO February 2023 A Comprehensive, User - Centric Digital Health Platform

![](image_002.jpg)

01 Forward Looking Statement This presentation of DarioHealth Corp. (the Company ") and statements of our management or agents related thereto contain or may contain forward - looking statements within the meanin g of the Private Securities Litigation Reform Act of 1995 (the " Act "). Statements which are not historical reflect our current expectations and projections about our future results, performance, l iq uidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their int erpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events. For example, when we discuss our growth potential and return on in vestment, the potential market opportunity, potential increase in revenue based on multi - condition accounts, the potential benefits to be realized by the strategic agreement with Sanofi and the expected contract value and potential 2022 revenues and product offering, we are using forward - looking statements. Words such as " seek, " " intend, " " believe, " " plan, " " estimate, " " expect, " " anticipate, " " will, " " would, " and other similar expressions all denote forward - looking statements within the meaning of the Act. This presentation includes preliminary results which reflect the Company ' s estimates based solely upon information available, and the Company ' s final results could differ from these estimates due to the completion of the Company ' s financial closing procedures, final adjustments and other developments that may arise between now and the time such audited co nsolidated financial statements for the year ended December 31 , 2022 are issued. The Company expects to announce its full results for the twelve months ended December 31 , 2022 on or before March 31 , 2023 Readers are cautioned that actual results, performance, liquidity, financial condition and results of operations, prospects a nd opportunities could differ materially and perhaps substantially from those expressed in, or implied by, these forward - looking statements as a result of various risks, uncertainties and other factors. Fac tors that could cause or contribute to such differences include, but are not limited to our compliance with regulatory requirements, the impact of current and any future competition, our current and fut ure capital requirements and our ability to satisfy our capital needs through financing transactions or otherwise, our ability to manufacture, market and generate sales of our Dario® diabetes management sol ution, as well as other factors and risks discussed in the Company ' s filings (including the results of the company ' s commercial and regulatory plans for Dario®) with the U.S. Securities and Exchange Commission. We undertake no obligation to publicly update any forward - looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. In addition, readers are cautioned that any estimates, forecasts or projections contained in this presentation or as may be d isc ussed by our management or agents have been prepared by our management in good faith on a basis believed to be reasonable. However, such estimates, forecasts and projections involve sig nif icant elements of subjective judgment and analysis and no representation can be made as to their attainability. No representation or warranty (express or implied) is made or is to be rel ied upon as a promise or representation as to our future performance. Readers are cautioned that such estimates, forecasts or projections have not been audited and have not been prepared in confo rma nce with generally accepted accounting principles. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall ther e b e any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

![](image_003.jpg)

3 OUR MISSION We make it easy for people to care for their health, with continuous and connected support that anticipates needs, understands motivation, and simplifies behavior change to put better health and outcomes in everyone's reach. 3 OUR VALUE Dario is a leader in the global digital Health market managing the most common chronic conditions for payers and employers, saving them money and improving clinical outcomes.

![](image_004.jpg)

Clinical Outcomes Significant TAM Total Addressable Market; M etabolic $108 B, MSK $90 B Behavior Health $9 B (\*) Product Excellence $207 B With over 20 K reviews on Appstore. DTx Multi condition 4.9/5 Powerful Business Model Value - Based, Simple & Transparent, high Gross margin PEMPM business model – $60 - $110 PEMPM\* Fast Growing Demonstrated successful transition from B 2 C with ~ 60 % of total Revenue coming from B 2 B ~ 34 % consolidated revenues annual growth ~ 1800 % B 2 B Annual Revenue Growth (2022 vs. 2021) Significant Growth Opportunity 37 real - world data Clinical Studies Reduction: • 1.4 % in A 1 C • 54 % in severe pain • 48 % in Anxiety • 59 % in Depression 3.4 X ROI \* Per Engaged Member Per Month diabetesresearch.org \|. sciencedaily.com \|. who.int \|. heart.org \|. medscape.com \*

![](image_005.jpg)

5 5 https://onlinelibrary.wiley.com/doi/abs/ 10.1111 /j. 1746 - 1561.2006.00093 .x https://www.cdc.gov/chronicdisease/pdf/ 2009 - power - of - prevention.pdf https://www.rand.org/content/dam/rand/pubs/tools/TL 200 /TL 221 /RAND_TL 221 .pdf https://www.ncbi.nlm.nih.gov/pmc/articles/PMC 5876976 / 147 M+ People in the U.S. have chronic conditions 1 in 4 Adults in the U.S. have two or more chronic conditions $3 of $4 Spent on healthcare from chronic diseases $3.7 T Annual total cost to the U.S. economy Chronic Conditions Remain Unsolved

![](image_006.jpg)

6 \* Calculated as $60 PMPM for diabetes, $30 PMPM for Hypertension and $50 PMPM for MSK diabetesresearch.org \|. sciencedaily.com \|. who.int \|. heart.org \|. medscape.com TAM – Exceptional and Untapped $171 B opportunity in the U.S. alone. Of which less than 2 % is already penetrated.

![](image_007.jpg)

7 Superior Economics High - Value Partnerships Profitable Growth Differentiated Solution Market Necessity Our B 2 B transformation has driven Dario ' s profitable growth and has already demonstrated demand for an integrated solution with self - insured employers and health plans Business Model Evolution: DTC\* to B 2 B Dario can provide one platform, backed by clinical evidence, that supports 5 different conditions (enabling fewer vendors for more conditions) Dario is the only consumer - centric integrated multi - condition platform Key Success Drivers: Challenging business conditions have driven consumerization and consolidation for employers who require solutions to save money and better manage patients ' health On average, employers have 16 different vendors for 16 different solutions B 2 B transformation immediately enhanced Dario ' s financial profile across all key parameters: Gross Margins : 2022 - 50 % (2021 - 39 %); B 2 B - reached + 70 %; Net Loss : Q 3 - 22 - 30 % reduction YoY and 13 % QoQ ; Q 4 - 22 estimated Operating Loss to decrease more than 50 % YoY and more than 30 % QoQ Strategic partnerships = immediate and significant expansion of user base 11 partnerships Access to: 15,000 employers 50 health plans + Pipeline partnerships to mature through 2024 Best - of - suite strategy positions Dario for profitability at $60 M - $80 M ARR Scale + technology + efficiency solidifies leadership in digital health SaaS Vast market share capture potential \* Direct - to - consumer

![](image_008.jpg)

8 2016 2017 2018 2019 2020 2021 Diabetes Offering Hypertension Weight Management Launch Direct - to - Consumer Musculoskeletal Behavioral Health Total 100 Clients Expansion to B 2 B 2 C and Multi - Conditions Drives Exponential Growth Launch Business - to - Business First B 2 B client win 65,000 users 50,000 users 20,000 users 248,000 users 40,000 users Customers seek integrated rather than point solutions, resulting in increased average revenue per customer and accelerated growth of user base Product Suite – Organic Expansion Product Suite – Expansion through M&A MSK Computer Vision Scanning

![](image_009.jpg)

9 Give your people better health outcomes, with engaging solutions that motivate lasting change. ONE POWERFUL EXPERIENCE

![](image_010.jpg)

10 One journey One coaching program Metabolic Musculoskeletal Behavioral Health Fully Integrated Holistic User Centric Member has ONE Consolidated Experience

![](image_011.jpg)

11 Dynamic and Adaptive Journeys

![](image_012.jpg)

12 12 ROI ROI 3.4 X $2,376 PMPY Outcomes User Centric 1.4 % reduction in A 1 c 54% reduction in severe pain 248,000 users consumer DNA, D 2 C self - pay space 60 % reduction in hyperglycemic events Engagement 80 % retention year - over - year 4.9 / 5 Stars app store rating Validation Supported by Outcomes Scalable / Sustainable 48 %, 59 % reduction in Depression and Anxiety Symptoms (Respectively) 8.4 mmHg reduction in systolic blood pressure for 70% of members Dario's Hyper - personalized Approach Leads to better Outcomes 37 real - world data Clinical Studies 38,800 Users per single study with 2 - year sustained results

![](image_013.jpg)

13 Behavioral health Diabetes Financial well - being Nutrition / weight management Physical activity Cardiovascular health Musculoskeletal Cancer Family planning and support Social determinants of health Senior care None of the above 74% 49 % 48 % 40 % 39 % 28 % 26 % 23 % 14% 8 % 4 % 9 % And transforms their experience from vendor - complexity to vendor simplicity, reducing costs and ensuring engagement 2020 Mercer National Survey of Employer - Sponsored Health Plans (Employers with 500 + employees) Dario covers the conditions that matter most to our customers Dario Covers 6 of Employers Top Priorities in a Single Solution As the market consolidates and rewards multi - condition solutions and customers seek to reduce the number of vendors, Dario is positioned as the only single - experience multi - condition solution that addresses their top priorities.

![](image_014.jpg)

14 Good commercial momentum by Dario evidenced by 2022 doubling of contracts from 50 to 100 (\*) K ey Employee survey findings The Dario Advantage Demand for digital health remains high with most employers planning on adding more solutions Dario covers all top digital health products employers are planning to purchase Digital health solutions are a top priority for employee benefits and the e nd of the pandemic does not appear to be slowing growth in digital health (\*) Cowen EQUITY RESEARCH 4Q22 EMPLOYER BENEFITS SURVEY published on January 24, 2023 Among competitors, Dario alone is consumer - first with best - in - class user satisfaction Employee satisfaction and clinical outcomes are two of the biggest drivers for selecting among digital health solutions Cowen calls out white labelling as a winning approach Dario ' s open architecture strategy and partnerships are unique and a key to scale Many employers are planning to purchase solutions through their health plan or direct + through health plan This speaks to our partnership strategy as the benefit to HP is quality and ease of buying, as well as the triple go - to - market strategy Dario ' s product excellence, key differentiators and performance position the company to replace and win over the competition — a phenomenon that has already been seen in wins - to - date. Only 6% intend to keep current solutions -- changes are desired. Eliminations are due to poor ROI and underutilization Cowen Employer Survey Findings A 4 Q 2022 survey of 250 HR decision - makers supports the thesis that what employers plan to purchase aligns with Dario's unique offerings.

![](image_015.jpg)

15 15 Basic / No integration Technology / Scalable / Open - Partnership driven architecture Service Driven Full Best - of - suite/ consumer driven Number of Conditions Covered 5 or more 3 - 4 2 or less • Less than 2 % total market penetration • Most players try to solve single problem • None of the players are consumer first • Dario positioned for market leadership role Dario is Well Positioned To Win

![](image_016.jpg)

16 16 Strategic approach to partnership accelerates commercial adoption and enhances competitiveness Mature Partners Select Dario to Accelerate Digitalization

![](image_017.jpg)

17 17 + 78 Clients Fully insured Partner with self insured employers 3 Clients Medicare Reimbursement Accelerates provider revenue and value delivery 8 Clients Self insured Employers Consumer satisfaction and cost reduction 11 Clients Channel Partners Strategic Partners Employers Health Plans / Insurers Health Providers Partnerships Demand across key channels Validation of platform from multiple market segments Total of +100 signed accounts, doubled in 12 months.

![](image_018.jpg)

18 • Multi - year , $30 million - dollar agreement, will help accelerate commercial adoption of Dario's full suite of digital therapeutics and drive the expansion of digital health solutions on the Dario platform. • Sanofi selected Dario to leverage its broad suite of digital therapeutics and its ability to engage patients for favorable clinical and financial outcomes, as the solution of choice for its U.S. commercial clients. Dario's single platform helps patients manage diabetes, hypertension, weight management, musculoskeletal and behavioral health, offering Sanofi managed care clients an attractive, easily scalable digital health solution that creates immediate access across a wide range of needs. • 2 main areas of collaboration : • Commercial : Dario and Sanofi will collaborate on promoting the Dario multi - condition digital therapeutics solution, significantly increasing Dario's sales reach in the health plan market and selectively in the employer channel. • Research and development : develop new or enhanced solutions leveraging the Dario platform, and for the parties to generate robust evidence to support future commercialization in the health plan channel. Strategic Partnerships - Sanofi

![](image_019.jpg)

19 Single Condition Account Multi condition Account Example of an Employer with 10,000 Employees 8 % Eligible Enrollment Rate 35 % Up to ϰϬй Eligible $60 PEMPM $0.2 M per account per year Potential 6 X revenue on similar sales effort $89 PEMPM $1.2 M per account per year More Members per account on the platform Higher ARPU (average revenue per user) 40 % Eligible Population 35 % Enrollment Rate $89 PEMPM 80 % Engagment Dario's Multi Condition Compounding Economics

![](image_020.jpg)

20 20 0 10 20 30 40 50 60 70 80 90 100 2020 2021 2022 15 % 50 % 0 % Sign more Full suite accounts Single Vs. Multi Condition – on winning accounts

![](image_021.jpg)

21 21 $0 $5,000 $10,000 $15 M $20 M $25 M $30 M $35 M $40 M $45 M Contracts to Revenue and Gross Margin Trend 2020 2021 2022 $3 M Contract value (ARR) $35 M Contract value (ARR) $6 5 M Contract value (ARR) B 2 C Revenue B 2 B Revenue 33 % Gross Margins \* 39 % Gross Margins \*\*~ 50 % Gross Margins \*\*$70 % Gross Margins $2 7 M $2 0.5 M $7.6 M Note: B 2 C business is being deprioritized going - forward \* Excluding acquisition - related amortizations \*\* Third Quarter 2022 Results Conference Call, November 15 , 2022

![](image_022.jpg)

22 22 Accounts to Users to Revenue Signed accounts Partners network with access to accounts 2020 2021 2022 0 20 40 60 80 100 120 250 5,000 15,000 100 Accounts 54 Accounts 5 $3 M Contract value (ARR) $35 M Contract value (ARR) $6 5 M Contract value (ARR) Accounts Accounts Accounts

![](image_023.jpg)

23 23 Stock Price $5.82 Shares Outstanding 25,761K Market Cap $150M Capital Structure Balance Sheet & Capitalization Snapshot Shares Outstanding 25,761K Preferred Shares 1,292K Prefunded Warrants 1,770K Warrants (Exercise Price: $4.05 - $12.00) 1,186K Warrants (Exercise Price: $5.20 - $25.00) 814K Stock Options 4,292K Fully Diluted Equity 35,115K Balances as of December 31 , 2022 : Cash: $49.3 M Debt: $26.9 M\* As of January 20 , 2023 As of January 20 , 2023 \*On June 19 , 2022 . the Company entered into a credit agreement with OrbiMed for a five - year in which $25 M was made available upon closing. December 31 , 2022 balance includes early prepayment fees.

![](image_024.jpg)

24 Rick Anderson President Erez Raphael CEO, Board Member Zvi Ben - David CFO Galya Gorodinsky SVP R&D and Delivery Solutions Omar Manejwala , M.D. Chief Medical Officer Experienced Executive Management Team Katy Guilfoile VP Client Success Josh Fischer SVP Operations and Compliance David Auslander VP Data Ariel Rubashkin VP Business Economics Brian Harrigan SVP Employer Sales Matt Alberico SVP Growth Mary Mooney VP Marketing Limor Drezner VP HR & Chief of Staff

![](image_025.jpg)

25 25 Dennis M. McGrath Chair of Audit - Board Member Adam Stern Board Member Yoav Shaked Chairman of the Board Hila Karah Board Member Yadin Shemer Advisory Board Allen Kamer Advisory Board Dennis Matheis Board Member Eric Milledge Chairman of the Scientific Advisory Board Marilyn Ritholz , PHD Scientific Advisory Board Dr. David A. Horwitz, MD. Scientific Advisory Board Board of Directors and Advisors Dror Bacher Advisory Board Lisa Marie Giacinti Strategic Partnerships

![](image_026.jpg)

26 Thank You! 26