Good morning, ladies and gentlemen, and welcome to the DarioHealth First Quarter 2025 Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. This call is being recorded on Wednesday, May 14, 2025. I would now 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 DarioHealth's first quarter 2025 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He'll be joined by Lara Dodo, our Acting Chief Operating Officer. Lara's remarks have been prepared by our Chief Commercial Officer, Steven Nelson, who is unable to attend today due to an injury requiring medical attention. Fortunately, he is expected to recover quickly, and we are 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. The copy of the release can be found on the Investor Relations page of DarioHealth'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 DarioHealth's industry. Such forward-looking statements and their implications may involve known and unknown risks, uncertainties, and other factors that may cause actual results or performance to 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 factors section and elsewhere in the company's first quarter 2025 quarterly report on Form 10-K. 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-GAAP financial measures may be discussed during this call. These non-GAAP 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-GAAP financial measures is useful for investors’ understanding and assessment of the company’s ongoing core operations and prospects for the future. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is included in this morning’s press release. With that, I’ll hand it over to Erez Raphael, CEO of Dario Health.

Good morning, everyone, and thanks for joining our call today. Over the past few years, DarioHealth has undergone a transformational shift, evolving into a leading healthcare technology company operating under a SaaS-like model. This evolution has solidified Dario’s position as a premier platform in the B2B2C market, expanding SaaS 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-GAAP 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 seamless integration of Twill, Dario’s most significant to date, has strengthened 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 whole-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 across client acquisition, operational efficiency, platform integration, and strategic realignment. I would like to elaborate on the broader market context of whole-person multi-condition leadership. The market continues to shift decisively toward whole-person digital health and platform consolidation. Employers and health plans are moving away from siloed point solutions and looking for trusted partners that can deliver multi-condition care at scale with proven outcomes, seamless integrations, and measurable ROI. Dario is positioned ahead of this shift. With the integration of Twill, 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 musculoskeletal health. Our AI-powered platform now manages five different chronic conditions under a single brand, making Dario a true leader in multi-condition whole-person care. The brief 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 MediOrbis in GLP-1 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 client goal, our platform strategy, and our day-to-day execution. I would like to provide some strategic and operational updates. 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, probably due to the shift in scope with large national health plan clients. What began as an initial implementation for a narrow population segment was insourced. We are now in a broader evaluation process, including an active RFP covering Dario’s full platform. Additionally, we experienced timeline extensions in other projects due to tariff-related pressure, which impacts both hardware sourcing and partner-side execution. Despite these external factors, we continue to execute against a focused strategy centered on platform differentiation, client quality, and commercial scalability. On the commercial side, we are seeing meaningful traction across our commercial business. Fourteen new clients signed year-to-date, one national health plan, one regional health plan, and 12 employers. Our total client base is now 97, up from 83 at the end of 2024. Over 80% of the new contracts are multi-condition. The average account agreement is three years, with the renewal rate remaining above 90%. Pipeline requirements are underway, prioritizing high-quality long-term deals and phasing out lower-value transactional opportunities. Gross margin on a non-GAAP basis expanded to 70.5%, up from 62.4% in the first quarter of 2024. The core B2B2C business is sustainable at above 81% gross margins on a non-GAAP basis for the last four quarters in a row. Non-GAAP operating loss improved from $9.1 million to $5.8 million year-over-year, representing a 36% reduction. We continue to focus on narrowing the gap toward profitability. The commercial strategy supports a more predictable recurring revenue model and aligns with our long-term growth objectives. AI transformation, AI continues to be a major driver in Dario’s competitive advantage. Our approach, what we call AI-cubed, or AI in the third power, leverages artificial intelligence in three key ways. One, operational efficiency, AI-powered automation, health engagement, streamlining workflow, and significantly reducing the cost to serve. Two, member engagement, AI-driven, hyper-personalized interventions that improve user 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 patient records, and billions of engagement data points, Dario’s AI-cubed strategy is driving a measurable shift in how we operate and deliver value. This quarter, we continue enabling AI into care navigation, behavioral outreach, internal operations, and reporting, reducing manual overhead and accelerating return to value for our clients. We expect these efficiencies to contribute to a further 15% to 20% reduction in operating expenses over the next 12 to 18 months, supporting scalable and profitable models. On the leadership side, the executive leadership team has significantly strengthened over the past year and continues to focus on improving execution, forecasting, and cost-functional alignment. Since June 2024, Dario has added a new chief commercial officer, a chief operating officer, a 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, drive operating leverage, and support the company’s next phase of growth. On capital and cash flow, in Q1, we completed an equity raise and refinanced our debt. With a new structure, debt amortization is deferred from the end of 2025 to 2028, creating financial flexibility and supporting our multi-year goal of achieving cash flow positive operations. We remain on track to achieve operational cash flow break-even run rate by the end of 2025 supported by existing account extensions, new contract swings, and a deep 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 Lara.

Thank you, Erez, 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've signed 14 clients 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 client 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 model continues to consolidate around solutions that deliver measurable ROI, cost containment, and better outcomes. Employers 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-1 companion solution remains a key entry point, uniquely supporting the full treatment journey from onboarding to behavioral reinforcement to structured offboarding. 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 MediOrbis partnership, making our GLP-1 solution clinically complete and highly effective for 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 U.S. 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 second half of 2025, we expect expanded uptake of our GLP-1 and cardiometabolic 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 signed 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 best engage their members, especially across Medicare Advantage and Medicaid. A platform is purposeful to support this transition. We're delivering value in two key ways. First, through condition-specific bundles that embed into existing health plan care models; and secondly, through platform-as-a-service arrangements that allow 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 suite platform for deployment in 2026. This is a strong validation of the direction we're taking. And several others have initiated multi-condition 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 access gaps remain prominent. Our new payer wins expected to go live in Q3 and Q4 will begin contributing revenue in late 2025 and scale into 2026. Our 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 Dario'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 pharma and medical device manufacturers are in pilot or contracting phases with Dario today. With MediOrbis, we can now offer prescribing and remote monitoring, enabling pharma 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 but also serve as validation of our strategic positioning. As we observe competitors moving towards public markets, it's important to reflect on how Dario 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 GLP-1 support in a silo, Dario 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, restructured 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, 2026 is shaping up to be a breakout year. We have a robust pipeline of employer expansions, health plan launches, and pharma 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, Lara. As we close today's call, it's clear that 2025 is off to a focused and disciplined start for DarioHealth. We are executing on our strategy, scaling our B2B2C business, expanding platform adoption across employers, health plans, and pharma, and driving measurable operational improvements. We have built one of the most comprehensive AI-powered platforms in digital health, supporting chronic conditions across metabolic, behavioral, and musculoskeletal care. Our core business has now sustained non-GAAP 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 break-even run rate by the end of the year. At the same time, we are seeing early signs of a broader reset in the digital health market, one of the federal sustainable outcomes-driven business models. With OMADA S-1 filed and under the light hinge and sold, reportedly preparing to go public, investor interest in returning to companies that can demonstrate scale, retention, and reward impact provides us with reason for optimism. We believe this next chapter will elevate the value of companies that combine clinical credibility, platform depth, and financial discipline. And we are confident that Dario 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-powered care. Deliver scalable personalized care across five chronic conditions with measurable impact. Third, drive toward 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 the Q&A session.

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Your first question comes from Charles Yi from TD Securities. Please go ahead.

Oh, yes. Thanks for taking the questions. Hey, Erez, at the beginning, you mentioned that there were some timeline delays related to tariffs. Can you explain that a little more about what's happening there?

Yes, absolutely. So, we mentioned it in the script and also in the press release. There is one large account 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. We are now in the process of changing it. So, this is something that created a decline or 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 many specific partnerships that we had. And this is also something that created some unexpected changes in the revenues of this quarter. The expectations were 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.

If we focus on the partnership aspect, both Twill and Dario have collaborations with pharmaceutical companies, which are currently facing potential tariffs. Are you engaged in discussions with them as they work to address these challenges, along with other factors like price controls? Has this situation influenced your conversations, perhaps causing any delays in their activities as they navigate through these issues?

Partially, 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 are some discussions there and there are some slowdowns related to that. But on 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 transforming the account. It's like an account that was running for three years. In the renewal, we got into a discussion about how it's going to be renewed. Then we got into another process that hopefully is 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 new business that is starting is a new business 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 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 Twill acquisition that a sort of process for renewal is getting into something larger under RFP. And it created a kind of a hole in this quarter.

I understand. That's helpful. Can you provide an update on the partnership with Rula Health? Specifically, how it is being implemented and what percentage of your clients currently have access to it? Any additional information would be appreciated.

Hello, it’s Lara speaking. Thanks for the question. Over Q1, we started 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 are live with about three or four in a roadmap of others to go on to it for the initial integration with Rula. So, that was underway and well accepted. And then, we are looking at broader-based campaigns to leverage that relationship in our direct-to-consumer market as well. So, more to follow. Erez spoke about some of the national plans where we're looking for deeper integration. The Rula integration will be part of that conversation as well. So, I’m going to follow this up in the next quarter.

Great. And maybe one last question for me. If we think about sort of the path to cash flow breakeven 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 considering? Would you say it's a revenue-driven strategy, 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 there also in the press release, we took down the OpEx down drastically between Q1 2024 when we acquired Twill into today. Non-GAAP, I think it was like 10.7%. Going to keep going down to somewhere that is in the ranges of $9 million by the end of the year. That alone will not take us to positive cash flow. In order to get to positive cash flow, we need to generate between $40 million to $45 million yearly run rate. So, it's more about getting the growth than keeping walk on the OpEx in order to get 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 above 81%. And if we keep getting more revenues 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, 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 about what we will see as the run rate as we exit December versus what the actual revenue and just EBITDA 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 what we are saying, given that this is how we see it.

Okay, perfect. Thanks.

Thank you, Charles.

Thank you for the question, Charles. And for our second question, we have David Grossman from Stifel. Please go ahead.

Good morning. Thank you. Maybe, Erez, 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 Twill acquisition. 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 in revenue, but perhaps you could talk about what's in the pipeline, the types of deals, and the scale of those deals?

Yes, certainly. Let’s begin with our previous relationship with Sanofi. Sanofi was involved in a strategic deal, which has since transitioned into a commercial agreement. This partnership became operational from November last year, and we've begun to see revenue again after a period of stagnation. We recorded revenue in the first quarter. This marks one relationship we have. Additionally, we have secured two more agreements with notable global pharmaceutical companies, whose names we cannot disclose at this time. These are significant firms signing up for what we are now calling Dario Connect, previously known as Twill Care. These two partnerships are expected to start contributing to our revenue by the second or third quarter. Although the accounts are signed, details on how exactly they will impact revenue are still being determined. We have some guidelines regarding our responsibilities and the potential revenue, but the launches are pending. One of these accounts could generate around a million dollars, while the other is projected to yield $2 million over the next two to three years, as it involves a full platform that includes GLP-1 and other elements. In terms of our projections for the pharmaceutical channel this year, most of the revenue is anticipated to come from three accounts, all of which are substantial companies. One of these is Sanofi, with the other two being comparable in size. Once the launches occur, we will likely be able to share the names of these partners, but for now, that’s not possible. Overall, I believe it’s reasonable to estimate that around 10% of our total revenue this year will come from these efforts.

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-1, so 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. Historically, our agreement with Sanofi focused on Cardiometabolic. Now, we have two approaches for engaging with pharmaceutical companies regarding our current products. One approach is selling Dario Connect, which enables pharma companies to build communities and attract users to the platform. The second approach involves integrating our services into their care support for users and mental health management. These are the two offerings we are promoting. Our contracting process includes a platform fee structure, which consists of a one-time setup fee and an ongoing platform fee that will contribute to our revenue. Both products are based on the Twill technology, designed with a consumer-centric approach. They assist pharmaceutical companies either in managing mental health populations or in guiding users towards various therapeutic areas and ultimately achieving prescriptions. This outlines the essence of our 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 you longer term. Can you dimension the headwind that you're experiencing from that this year?

Yes. Most of our contracts, over 90%, are being renewed, and overall satisfaction with our business is high. The main challenge lies in launching products and achieving the growth rates we expected. We have also encountered some issues with how business is distributed among certain accounts. Even with a 90% renewal rate, changes like one account transitioning from model A to model B can create difficulties. However, when I look at account retention, user retention, and our ability to ramp up users and execute, I don't see any significant challenges there. That's the situation at a high level.

Okay. So, when you say transition, 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’re not losing the clients. They’re moving to a different model and different offering. That specific account is an account that we inherited together with the Twill acquisition. And now, we are in a very good discussion about embarking on the full platform, including what we have on the metabolic side. It’s a very large insurance company. It is one account that creates a difference in the revenues. If you look into the total business, the accounts that we signed last year, 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. In regards to the health plan transitioning from a small portion of their behavioral growth to a full platform RFP, what do you think the timing of that award might be?

Yes.

Just in the context of those comments, and just I think to Charles’ question, you talked about achieving breakeven. 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 see it.

Could you clarify how much visibility you have on reaching the revenue rate needed to achieve breakeven by the end of the year, particularly regarding the new clients you mentioned?

From the account perspective, I mentioned four accounts: one that we are restructuring, a large national health plan launching on July 1, two pharmaceutical accounts, and a significant regional health plan that is in the late stages of contracting. If all these launches proceed as planned, we are confident we can reach our goals. However, any delays could impact our ability to achieve this milestone. We have clearly defined plans for all these accounts, and we are committed to launching them. We are also being very disciplined with our operating expenses. When we acquired Twill, we indicated that we aim to reach cash flow positivity with revenues between $50 million to $55 million and operating expenses of $10 million to $11 million. Currently, we expect our operating expenses to be around $36 million by the fourth quarter of this year. We have implemented many AI capabilities to enhance our operational efficiency. Compared to other digital health companies, we maintain a healthy financial profile regarding gross margins and operational costs, which provides us with a margin of safety and flexibility in our revenue timeline. In summary, we are mitigating the revenue risk from these accounts through disciplined management of our operating expenses, and this is our strategy for achieving a positive operational run rate by year-end.

Right. Thank you for that. And just one last thing, Erez, with the recent financing, can you give us a sense of what the fully diluted share count would look like once you become profitable?

So, we did 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 Yahoo Finance, you’re going to see only the common shares. But including the preferred as converted, you’re looking at 99 million. Actually, the company is going to upload today our corporate presentation. In the corporate presentation, you can see a very accurate picture of our top table. But to make long story short, you’re looking at 99 million.

Okay, great. That’s it for me. Thanks very much.

Thank you so much.

Thank you 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 may now disconnect. Thank you so much.

Thank you.