SCHEDULE: Nantahala Capital Discloses 9.99% Stake in DarioHealth

Nantahala Capital Management, along with Wilmot B. Harkey and Daniel Mack, has disclosed a 9.99% beneficial ownership stake in DarioHealth Corp. as of December 31, 2025.

Summary

• Nantahala Capital Management, LLC, Wilmot B. Harkey, and Daniel Mack (the "Reporting Persons") collectively beneficially own 688,673 shares of DarioHealth Corp. Common Stock.
• This ownership represents 9.99% of the total class of securities outstanding.
• The 688,673 shares include 125,441 shares that may be acquired within sixty days through the exercise of warrants.
• The Reporting Persons hold shared voting power and shared dispositive power over all 688,673 shares.
• BLACKWELL PARTNERS LLC SERIES A, a fund advised by Nantahala, has the right to receive or direct proceeds from the sale of more than five percent of the outstanding shares beneficially owned by Nantahala.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of DarioHealth Corp.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive disclosure, as a significant institutional stake (9.99%) by Nantahala Capital Management suggests a strong belief in DarioHealth Corp.'s value proposition and future potential, without indicating any intent to influence control.

Positives

• A significant institutional investor, Nantahala Capital Management, holds a substantial 9.99% stake, indicating confidence in DarioHealth Corp.'s long-term prospects.
• The inclusion of 125,441 shares from warrant exercises suggests potential future capital infusion or increased commitment from the Reporting Persons.

Negatives

• The filing does not contain any explicit negative information regarding DarioHealth Corp.'s operations or financial health.

Risks

• The filing does not explicitly mention specific risks related to DarioHealth Corp. beyond the inherent risks associated with holding common stock.

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance regarding DarioHealth Corp.'s future performance.

Industry Context

StockSavvy.ai notes that a significant stake by an investment adviser like Nantahala Capital Management can signal institutional confidence in a company, particularly in the digital health sector where growth potential is high but competition is fierce. Such disclosures are often watched by other institutional investors as a potential indicator of value.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a nearly 10% stake may be viewed positively, potentially increasing investor confidence and market liquidity.
• Company Management: Awareness of a large, passive institutional holder may influence strategic decisions, though the filing explicitly states no intent to influence control.

Key Dates

Recommendation

The filing indicates a significant institutional stake, which is generally a positive signal. However, as a Schedule 13G, it is a passive ownership disclosure and does not provide new operational or financial performance data. Therefore, it primarily reinforces a 'hold' position for existing investors, while new investors might consider it a positive data point for further due diligence.

Keywords

DarioHealth Corp, Nantahala Capital Management, Wilmot B. Harkey, Daniel Mack, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, Warrants, Healthcare Technology