DarioHealth Corp (DRIO) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the DarioHealth first quarter 2025 results conference call. (Operator Instructions) I would not like to turn the conference over to Kat Parrella, Investor Relations Manager at Dario. Kat, please go ahead.

Thank you, operator, and good morning everyone. Thank you for joining us today for a discussion of Dario Health's first quarter 2025 financial results.

Leading the call today will be Eres Rafael, Chief Executive Officer of Dario Health. He'll be joined by Lara Dodo, our acting Chief Operating Officer. Lara's remarks have been prepared by our Chief Commercial Officer, Stephen Nelson, who is unable to attend today due to an injury requiring medical attention. Fortunately, he's expected to recover quickly, and we're grateful to Lara for joining us today on his behalf.

An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call.

For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Wednesday, May 14, 2025. This morning, we issued a press release announcing our financial results for the first quarter of 2025. A copy of the release can be found on the investor relations page of Dario Health's website.

Actual events or results may differ materially from those projected as a result of changing market trends, reduced demand, or the competitive nature of Dario's industry. Such forward-looking statements and their invocations may involve known and unknown risks, uncertainties, and other factors that may cause actual results or performance that differ materially from those projected.

The forward-looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the risk factor section and elsewhere in the company's first quarter 2025 quarterly report on Form 10K.

Additional information concerning factors that could cause results to differ materially from our forward-looking statements are described in greater detail in the company's press release issued this morning and, in the company's, other filings with the SEC.

In addition, certain non-gap financial measures may be discussed during this call. These non-gap measures are used by management to make strategic decisions, forecast future results, and evaluate the company's current performance.

Management believes the presentation of these non-gap financial measures is useful for investors' understanding and assessment of the company's ongoing core operations and prospects for the future. The reconciliation of these non-gap measures to the most comparable GAAP measures is included in this morning's press release. With that, I'll hand it over to Eros Rafael, CEO of Dario Health.

Good morning everyone and thanks for joining our call today. Over the past few years, Dalio Health has undergone a transformational shift, evolving into a leading healthcare technology company operating under a satellite model.

This evolution has solidified Dario's position as a premier platform in the BBC market, expanding sales to employers, health plans, and strategic partners while continuously enhancing our technology product offering and AI powered capabilities.

In the first quarter of 2025, we signed 14 new clients. We achieved 17.5% non-gap gross margins and maintained over 81% gross margins in our core B2B2C business. Our operating expenses declined 35% year over year, demonstrating our continued progress toward a linear, more scalable model.

The acquisition and the seamless integration of Twi value most significant to date. Strengthen our leadership in the industry, creating one of the most comprehensive clinically integrated digital health platforms.

Now supporting five chronic conditions under a single unified brand, we are uniquely positioned to meet the growing demand for consumer centric person care in an increasingly value driven healthcare environment. We are focused on execution, turning this vision into measurable results. In Q1, we continue to build momentum cost client acquisition, operational efficiency, platform integration and strategic realignment.

I would like to elaborate on the broader market context, whole person multi-condition leadership. The market continues to shift decisively to whole person, digital health and platform consolidation.

Employers and health plans are moving away from (yogue) point solutions and looking for trusted partners that can deliver multi-condition care at scale with the proven outcomes, stimulus integrations, and measurable ROI.

Positioned ahead of this shift. With the integration of Twilio, we now offer one of the most comprehensive and clinically integrated product portfolios in the industry, enabling a unified platform that supports metabolic, behavioral, and master skeletal health.

Our power platform now manages five different chronic conditions under a single brand, making value a true leader in the multi-conditions care. The breath is more than just clinical, it's commercial. It allows us to engage multiple populations, expand within accounts, and deliver value across diverse benefits, structures, and risk sharing models.

And we are not doing it alone. Our strategic partnership with leading virtual providers like RULA in behavioral health and Mediobis in GLP-one prescribing and chronic care allows us to deliver deeper, more personalized care while enabling scalability and cost effectiveness.

This is not theoretical. It's embedded into our crime law, our platform strategy, and our day-to-day execution. I would like to provide some strategic and operational update. We delivered $6.75 million in revenue this quarter, a 17% increase year over year, driven by recurring revenue growth from our B2B2C channels.

Sequential revenue was low compared to Q4 family due to the shift in scope with large national health client. What began as an initial implementation for the narrow population segment was in source. We are now in a broader evaluation process, including an active RFP coverings platform.

Additionally, we experience timeline extension in other projects due to tariff-related pressure. Which impacts both outsourcing and partners side execution. Despite these external factors, we continue to execute against focus strategies centered on platform differentiation, plan quality, and commercial scalability.

On the commercial side, we are seeing a meaningful action across our commercial business. 140 new clients signed year-to-date, one national health plan, one regional health plan, 12 employers. Total client base now 97, up from 83 at the end of 2024 80% plus of the new contracts are multi-conditioned.

Average account agreement is three years with the renewal rate remains above 90%. Pipeline retirement underway prioritizing high-quality long-term deals and phasing out lower value transactional opportunities. Gross margin on a non-gap base expanded to 70.5%, up from 62.4% in the first quarter of 2024.

The core business is sustainable at above 81% gross margins on a non-gap basis for the last four quarters in the world. Non-gap operating loss improved from $9.1 million to $5.8 million a year by year, representing 36% reduction, continue to focus on narrowing the GAAP toward profitability.

The commercial strategy supports a more predictable recurring revenue model and aligns with our long-term growth objectives. The transformation AI continues to be a major driver in Dario's competitive advantage. Our approach, what we call AI cubed or AI in third power, leverages artificial intelligence in three key ways.

One, operational efficiency, AI powered automation, health engagements work through and significantly reduces cost to serve. Two member engagement. AI driven hyper personalized delivers precise, proactive and data informed interventions to improve users' outcomes, satisfaction, and retention.

Three customer value. AI-based analytics provide employers, health plans and pharma clients with predictive insights and ROI visibility enabling smarter, cost-effective healthcare decisions. With 25 years of user data, 5 million patients' records, and billions of engagement data points, (WIub's) strategy is driving the measurable. Yeah. In how we operate in the live.

This quarter we continue enabling AI into care navigation, outreach, internal operations, and reporting, reducing manual overheads and accelerating time to value for our clients. We expect this efficiencies to contribute to a further 15% to 20% reduction in operating expenses over the next 12 months to 18 months, supporting skeletal and profitable models.

On the leadership side, the company executive leadership team significantly strengthened over the past year, continues to focus on improving execution, forecasting, and cost functional alignment. Since June 2024, Dall has added a new Chief Commercial Officer, a Chief Operating Officer, Human resource officer and most recently a new Chief Financial Officer forming a unified and execution focused team.

This leadership group brings deep experience across healthcare technology and operations and has already begun executing key transformation priorities across commercial strategy, cost structure and platform evolution.

With this team now in place, Dario is well positioned to deliver on its strategic priorities, operating leverage, and support the company next phase, of course. On the capital and cash flow in Q1, we completed an equity and refinanced our debt.

With a new structure, debt amortization is deferred from the end of 2025 to 2028, creating a financial flexibility and supporting our multi-year goal of achieving cash flow positive from operations. We remain on track to achieve operational cash flow break even run rate by the end of 2025. Supported by existing account extension, new contracts wings, and the pipeline of near term opportunities.

In summary, we are scanning intentionally operating with discipline. And deepening our platform values across partners. We have the right team, the right strategy, and the right momentum.

With that, I'll turn over the call to la.

Thank you, Eris, and good morning everyone. Over the past 12 months, we've accelerated client growth, deepened our strategic partnerships, refined our go to market execution, and expanded our platform capabilities.

Year one 2025 marks another step forward in our evolution into a fully integrated AI powered digital health platform purpose-built to drive long term value for our clients and sustainable growth for Dario.

We signed 14 clients here to date, including a national health plan, a regional plan, and 12 employer partners. More than 80% of those contracts are multi-condition, and our clients renewal rate remains strong above 90%, reinforcing satisfaction and long-term platform value.

That's not just a reflection of product performance. It's an indicator of our ongoing capability and strategic value. The employer market continues to consolidate around solutions that deliver measurable ROI, cost containment and better outcomes.

Employees are telling us that they no longer want disconnected point solutions. Instead, they're looking for unified, clinically integrated platforms that address multiple conditions through a consistent consumer-centric experience.

Dario's GLP one companion solution remains a key entry point, uniquely supporting the full treatment journey from onboarding to behavioral reinforcement to structured off-boarding. It's more than content. It's an AI informed experience, integrated with prescribing, behavioral health, and outcomes monitoring.

We stand apart in this space while other offers behavioral overlays. Dario offers a prescriber-backed remote monitoring enabled experience through our MIDI-orbit partnership. Making a GOP one solution clinically complete and highly effective to self-insured employers.

Our new product packaging and outcomes-based pricing models are resonating. We've simplified adoption through claims-based billing and smarter employee targeting using AI-driven stratification. This lowers the barrier to entry and aligns our incentives with client success.

Our recent integration with Rula further strengthens our behavioral health capabilities, offering employers access to one of the largest therapy networks in the US. This combination allows us to provide a full continuum of behavioral support at a time when mental health remains a top priority for HR and benefit leaders.

Looking ahead to the back half of 2025, we expect expanded uptake of our GLP-1 and cardio metabolic bundles among mid-sized employers. Our modular packaging, combined with our ability to bundle physical and mental health services, is giving us an edge in the competitive RFP environment.

We are actively tracking over three dozen employer opportunities for 2026 with expectations that some of these will be won and launched within 2025. Worth noting, of the 12 signs thus far for the year, five of those will begin in the second half of 2025.

On the payer side, demand continues to rise for scalable, flexible, and proven multi-condition platforms. Health plans are under pressure to reduce costs, improve outcomes, and better engage their members, especially across Medicare Advantage and Medicaid. A platform is purposeful to support this transition.

We're delivering value in two keyways. First, through condition-specific bundles that embed into existing health plan care models, and secondly, through platform as a service arrangement that allows for deeper integration into payer infrastructure.

We are actively engaged with multiple national and regional payers in high value long-term discussions. Two top tier health plans are currently evaluating our full platform for deployment in 2026. This is a strong validation of the direction we're taking.

And several others have initiated multi-conditioned pilots that we expect to mature into expanded relationships. With Rula as our behavioral health partner, we now offer in-network clinical integration for mental health, completing and complementing our AI powered digital interventions.

This is particularly meaningful for Medicaid and Medicare Advantage populations where a access gaps remain prominent. Our new pale winds expected to go live in Q3 and Q4 will begin contributing revenue in late 2025 and scale into 2026.

Our pipe plan also includes three platform-wide proposals with large plans under NDA targeting a 2026 implementation horizon. If one of these are converted, it will represent a seven-figure annual recurring revenue opportunity and will position Dario as a core infrastructure partner for multiple years.

The pharma channel continues to evolve into a high margin recurring revenue stream for us. We are seeing increased interest in Daria's platform as a service model, which integrates prescribing. Digital interventions and real-world evidence. Our collaboration with Sanofi is now fully commercial and expanding.

Pharma companies are embedding Dario into their patient support strategies, recognizing our ability to increase adherence, improve outcomes, and provide data-rich engagement insights. Five of the Top 25 farmer and medical device manufacturers are in pilot or contracting phases with Dario today.

With MEDI orbits, we can now offer prescribing and remote monitoring, enabling farmers to build integrated, scalable care models around their therapeutics. This has become a differentiator in a crowded digital health landscape. We're no longer just enabling engagement, we're enabling care pathways.

The 2026 Pharma pipeline is maturing. We currently have two advanced stage platform opportunities, including multiple large market chronic indications where Dario is positioned to be the digital backbone of next generation therapy support programming.

These programs not only represent revenue expansion, they also serve as validation of our strategic positioning. As we observe competitors moving towards public markets, it's important to reflect on how Daria stands out. Some of these competitors are scaling fast, but with generic solutions. Dario is scaling smart.

Deepening high value relationships by enabling clinical continuity across multi-conditions and delivering on sustainable financial and health outcomes. Unlike companies that offer GLP1 support in a silo, Daria provides a prescriptive end to end model. Our outcomes-based pricing ensures clients are only paying when we deliver value, and with claims-based integrations, we are easier to implement at scale.

Finally, our platform isn't just clinically sound, it's evidence backed. With a growing base of peer-reviewed publications, third party validation, and regulatory aligned design, Dario is raising the bar for clinical credibility in digital health.

We believe that credibility will be the difference maker as more payers and employers scrutinize long-term outcomes and return on investment. We're also investing in scalability.

We've strengthened our operating model, we structured our go to market teams, and deployed AI throughout internal and client facing workflows. These changes are already improving forecast visibility and accelerating time to value. A commercial pipeline is the strongest and most qualified it's ever been.

We're prioritizing recurring high-quality revenue and de-emphasizing lower value transactional deals. As a result, we're building a more durable, predictable business. Looking ahead further, 2026 is shaping up to be a breakout year. We have a robust pipeline of employer expansions, health plan launches, and farmer programs that will begin implementation in late 2025 and scale throughout 2026.

Our ability to capture, convert, and grow these opportunities is directly tied to the infrastructure investments and commercial strategy we've put in place during 2025. We're not chasing volume. We're building the infrastructure of tomorrow's digital care delivery.

Today, one that works for employers, plans, and life science companies, and above all, for the people they are designed to serve. In short, we are focused, differentiated, and executing against a clear strategy. As we scale deeper into 2025 and gear up for 2026, we're confident in our ability to drive sustained commercial growth, deliver measurable impact, and lead the industry forward.

With that, I'll turn it back to Erez.

Thank you, Laura. As we close today's call, it's clear that 2025 is off to a focused and disciplined start for value health. We are executing on our strategy, gaining our B2B2C business, spending platform adoption across employers, health plans, and pharma and driving measurable operational improvements.

We have built one of the most comprehensive and high-powered platforms in digital health, supporting five chronic conditions across metabolic, behavioral, and musculoskeletal care. Our core business has now sustained non-ga gross margins above 81% for four consecutive quarters, while operating expenses declined 35% year over year.

We remain on our track to achieve operational cash flow by even run rate by the end of the year. At the same time, we are seeing early signs of broader research in the digital health market. One of the sustainable outcomes driven business models. With mothers one filed another hinge and sold, reportedly preparing to go public.

Investor interest in returning to companies that can demonstrate scale retention and real impact. The new wave gives us reason to optimism. We believe this next chapter will elevate the value of companies that combine clinical credibility, platform debt and financial discipline. And we are confident that that is one of them.

We have scaled with precision, not burn. We have built for integration, not fragmentation, and we are delivering both operational performance and long-term strategic value. Looking ahead, our priorities are clear.

First, accelerating strategic commercial growth. Deepen presence across employers, health plans, benefit administrators, and life science with high value recurring partnerships. Second, Lead the market shift to whole person AI. Deliver scalable personalized care that costs five chronic conditions with measurable impact.

Third drive to profitability with precision. Continue to expand margins, optimize cost structure, and deliver long term operating leverage. This isn't just a rebound for digital health, it's a reset, a return to fundamentals, and Dario is built for this moment.

On behalf of our leadership team, I want to thank our employees, clients, and investors for your continued trust and partnership. We are energized by the momentum we have built, and we look forward to sharing our continued progress throughout 2025.

With that, I want to hand over the call to the operator for Q&A session.

Thank you, ladies and gentlemen. (Operator Instructions ) One moment please, for your first question. Your first question comes from Charlesye from TD Securities. Please go ahead.

Yeah, thanks for taking the questions. Hey, at the beginning, you kind of made mention, right, some of the timelines were, there's some timeline delays, related, I think you said related tariffs, can you explain that a little bit more, what, what's happening there?

Yes, absolutely I'm. So. Yeah, so, we mentioned it in the script and also in the press release, there is one large account that that we had last year that is transforming and it's transforming from a certain offering that we had on the mental health side into something that hopefully is going to be larger for the full suite. And we are now in the process of changing it, so this is something that created a decline of revenue that was in the previous quarter but didn't show up in this quarter.

So, this is one thing the other thing, it's not like something big on the tariff, but there are some couple of delays with a couple of accounts that were somehow related to tariff issues, it's not employers or health plans. It's like mainly specific partnership that we had, and this is also something that created some unexpected changes in the revenues of this quarter.

The expectation was that we would grow sequentially, but it didn't happen due to these two reasons that we believe that it's going to be recovering in the next few quarters moving forward.

Then maybe sticking with that, if we think about on the partnership side, obviously, both Twila and Dario had partnerships with pharma. Pharma companies are facing potential tariffs coming possibly soon. I am that, is that kind of, are you having any discussions with it there as they look to deal with you know those and obviously some other things that are going on in terms of Trump's efforts and maybe drug price controls, etc.

Has that changed any of the discussions, maybe caused them to kind of pause activities as a result as they try to tackle some other issues?

Yes, but just to remind you, the majority of the revenue that we have on the B2B side is coming from employers and health plans. So yes, there is some discussions there and there are some slowdowns there that are related to that, but from the first place, the pharma channel is contributing this year somewhere between 5% to 10% of the revenues. So, it's not going to be meaningful even if Pharma is going to go slower than what we anticipated.

The other issue that I mentioned at the beginning of my answer was a large client that is actually a health plan that was on the mental side and is like transforming the account. It's like a town that was running for three years and in the renewal, we got into a discussion about how it's going to be renewed, and we got into another three courses that hopefully going to end up with renewing on the full suite.

So, this is like, the main reason why sequentially it didn't go up like it was supposed to go because the business, the new business, that the new business that that got in. Is a new business that that came into this quarter and started to grow, and we believe that the new business is going to continue to grow in Q2.

So, the new business came, the retention of the users and so on is still very strong. Also, the retention of the accounts, one of the things that we disclosed in the in the in the press release and in the script that the renewal rate is 90%.

So, it's a single account that relatively was big that came together with the two acquisitions. That, the start of posters for renewal is getting into something larger under the RFP and it created a kind of a hole into this quarter.

Got it. I understand that. Okay, that, that's helpful. And maybe, can you, I know you guys talked last quarter about, the partnership now with Rula Health. Can you talk about how that's that, how that's rolling out and what percentage of your clients now have access to that and, maybe any update there would be helpful.

Hi, it's Laura speaking. Thanks for the question of Q1, we start to introduce that relationship in a systematic way, beginning with our existing, book of business. We've already seen, the adoption by right now I think we li with about three or four and a road map of others to go onto it for the initial integration with Rula so that works underway and been well accepted and then we are looking at border-based campaigns on to also leverage that relationship in our direct to consumer as well.

So more to follow, we spoke about some of the national plans where we're looking for deeper integration. sixth year ruler integration will be part of that conversation as well, so I'm also to follow in the next queue.

Great. And maybe one last question for me, if we think about sort of the path to cash flow break even by year end, can you just give us a sense then in terms of how we should think of, which lever should we really be thinking that's going to be coming from? Is it, would you say it's a revenue-driven or should we see expenses from current levels come down further, just maybe help us bridge a little bit on getting there?

Thank you.

Yes, absolutely. It's a combination of the two, Charles. It's, as we stated also in the press release, we took down the OECs down drastically between Q1 2024 when we acquired twill into today and non-GAAP, I think it was like (10.7), going to keep going down to some of that is in the ranges of like $9 million by the end of the year.

That alone will not take us to peso positive. In order to get to peso positive, we need to generate between $40million to $45 million yearly heart rate. So, it's more about getting the growth than keep walking on the OECs in order to get to this to this finish line.

We are very excited about the gross margins of the B2B2C business because for four quarters in a row, it's about 81%. And if we're going to keep getting more revenues coming from employers and health plans, the total merge of B2B2C versus B2C is going to be larger and the gross margins are going to be higher, and that's also something that will contribute to this projection that eventually want to get to operational cash flow run rate by the end of the year.

So that's it's more like revenue. It's also gross margins and it's also OpEx. It's a combination of the three.

And I'm sorry, just to clarify, when you say, operational cash flow by year end, are we talking like what we the run rate as we're exiting December versus what the actual revenue and just see if that might be for the fourth quarter itself?

It's more like December to January. That's the most accurate estimation that we can give. Yes, this is why we are saying that this is how we see it.

Perfect, thanks.

Thank you, sir.

Thank you for the question, Charles (Operator Instructions) And for our second question, we have here is David Grossman from Stifel. Please go ahead.

Good morning. Thank you. Maybe I think in your prepared remarks you talked about the activity with large pharma, and I know there's been some transitions, as a result of the tool acquisitions, so perhaps you could give us an update or a little more detailed update on what's going on with large pharma. I know you said it's only going to be 5% to 10% of this year's revenue, but perhaps you could talk about what's in the pipeline, the types of deals and the scale of those deals.

Yes, absolutely. So, let's start with the one that we had in the past, which is Sanofi. Sanofi was on a certain strategic deal, and we moved into a commercial deal. This one was up and running from November into this year, and we started to see revenue again after it was like zero for a while. We started to see again revenue in Q1.

So this is one relationship. We had another two wins with, I would say, top, pharma global companies, big names that at the moment we cannot disclose the names, but very large companies that were signing up on what we are calling the Dario Connect, which is former known as TWIL. And this one is these two will start contribute revenue from Q2 or Q3 and forward.

The accounts are signed and the launch and how exactly it's going to contribute to the revenue. This is something that is not clear yet. We have some framework that we know what we are supposed to do and what is the potential revenue, but the launch didn't happen yet, and one of them is in the ranges of like a half million to a million, and another one over the next two years to three years should get $2million of dollars because it's a full platform including GLP-1 and other elements.

So I would say that if I'm looking into the farmer kind of channel. The revenue, if we're looking into this year, the majority of the revenue is going to come from three accounts. The three of them are very large companies. One of them is Sanofi, and the other two is in the size of Sanofi as well.

Once it's going to be launched, probably we'll be able to disclose the names, but at the moment it's not doable. So. If I'm looking into the entire revenue, I think that like 10% is a very reasonable estimation for how much it's going to contribute to the revenue of this year.

Okay, and just to be clear, are the vast majority of the deals just extending the twill platform under the new terms and conditions that you had outlined previously or, is the character of the new relationships, you mentioned GLP ones I assume that that's front and center for a lot of these companies, but anything else to add in terms of what these contracts may look like versus what they've looked like historically?

Yes, so historically the deal that we had with Sanofi was for cardio metabolic, and when we are looking into the deals that we have now, so there are two ways to contact with the pharma companies with the product that we have now, one of them is that we are selling the direct connect and connect is allowing us to help pharma companies build communities and top of and get users to the platform.

So, this is one the second one is integrating into their care support for their users and mental health kind of management and support. So, these are the two things that we are marketing to them. And the way that we are contacting is that usually it's going to be, and this is why we made the changes in the business model. The way that we are contacting with them is that we are charging for a platform fee.

So, there is a level of setup fee which is one time, and then there is a platform fee that should contribute on a recurring basis to our revenue. So these are the two products. Both of them are kind of twir based products that are very consumer centric and are helping the farmer either manage the population on the mental side or help them get on different therapeutic areas, use those to the platform and help them get closer to to eventually to a prescription. That's the nature of the solutions.

Got it. And I think you mentioned both in the press release and your prepared remarks about, perhaps, cleaning up some of the contracts that weren't really advantageous to longer term. Can you mention the headwind that you're experiencing from that this year?

Yeah, so. Most of our contracts and more than 90% of them eventually are being renewed, and if we are looking into the book of business, the level of satisfaction is high.

The headwind is mainly on the, launching the product and growing them up in the velocity that we wanted it to go. We also had the kind of issues with the and the way that the book of business is distributed between certain accounts.

So, despite a 90% renewal rate, if you have one account that is moving from Model A to Model B, that's something that creates a headwind. And if I'm looking into the retention of the account, the retention of the users, our ability to ramp up users and to execute, I don't see a headwind there, so that's on high level.

Oh okay, so you're, when you say transitioning, they're just transitioning to a different revenue model and there's some disruption to revenue you're not actually losing the client is that correct?

Yes, in most of the cases we are not losing the clients and moving to a different model and different offering. That specific account is the account that we inherited together with the tool acquisition, and now we are in a very deep discussion about enrolling on the embarking on the full platform, including what we have on the metabolic side.

It's a very large insurance company. And that's it is one that creates a difference in the revenues. If you look into the total business, the accounts that we signed last year, the enrollment of the launch of these accounts and the enrollment of these accounts, this is something that is working more or less according to the plan.

Got it. And then in terms of the health plan, that is kind of going from a behavioral, a small sliver of their behavioral book to a a full platform RFP. What do you think the timing of that award may be?

Yes, it's, we think that it's going to contribute to the revenues, of, once it's fixed, it's going to be probably Q3 revenues. Other than that, I just want to want to put things in perspective. We also disclosed, without disclosing the names, we did disclose that we want another very large national health plan that is also going to launch on seven one.

So, between this one that is going to be restructured and the one that we are launching in seven one to the two large farmers that I'm talking about, there is like four or five gigantic accounts that are all of them are going to contribute to the revenues of this year.

So if we look into the big picture, we are confident that the company is going to move into the next level of revenue with the implementation of all of them. Specifically, the answer to your question about this account, it's probably going to be like a queue 3 getting back to this revenue. That we had lost and we're going to get it back in.

And just in the context of those comments and I think to Charles's question you talked about. Achieving break even. It was that the month of December or was that for the fourth quarter? I didn't quite get that.

It's more like the month of December into January. It's a bit hard to predict accurately, but that's where we sit, yeah.

And then just again back to the, these new clients that you just talked about how much visibility do you have on achieving the revenue rate you need to achieve break even by the end of the year.

From perspective, and that's I mentioned these four accounts, the one that we are restructuring, the huge national health plan that we already know that we are launching on seven one, and there is the Pharma, and there is another one which is a very large regional health plan that that we also kind of in a very late stage of contracting, but that's another large one. It will probably also expand into a full insured business.

If all those are going to launch, we're going to get there. If something is going to be delayed with the launch and so on, it's going to be, it's going to create a delay achieving this milestone, but we are confident that we're going to launch it.

I mean, with all of them we know exactly we have like things that are very well defined, so that's something that we have the business. It needs to be launched and we're going to get there. We're also trying to hedge.

By being very disciplined on our ops, so when we acquired Twi and we communicated with the market, how our financial profile is going to look like, we were talking about getting to positive somewhere between $50 million to $55 million, and we're talking about OEC of $10 million to $11 million.

These guys were looking into an OpEx of run rate of $36 million by Q4 this year. And we implemented a lot of AI capabilities. We are making our our operation much more efficient, and looking on other digital health companies and what they are doing, we have a very healthy financial profile when it comes to gross mountains, when it comes to OPECs, and when it comes to efficiency. So I think that.

We created some margin of safety by optimizing efficiencies and give the company more flexibility in the timeline of getting these revenues. So, to make long story short, we are hedging, the of the revenue that is going to come from these accounts by being very disciplined also on the ops so that's the story on how we are planning to get to operational test of positive run rate by the end of the year.

But yeah, thank you for that and just one last thing there is, with the recent financing, can you give us a sense of what the fully diluted share account would look like once you turn profitable?

So, we did like an equity raise between December to January and we also, refinanced our debt like two weeks ago. So, with these two activities, we are very well funded, to get to this point, because we funded the company with the preferred shares.

And if you go to Finance, you're going to see only the common shares, but including the preferred converted, you're looking into $99 million. Actually, the company is going to load today our corporate presentation, and in the corporate presentation you can see a very accurate picture of our cup. But to make a long story short, you're looking into $99 million.

Okay, great, that's it for me thanks very much.

Thank you so much.

Thank you so much for the question, David, and since there are no further questions at this time, this also concludes today's call. Thank you for participating. Everyone we now disconnect. Thank you so much.

Thank you.