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DISA Limited: FY2025 Financial Results and Business Outlook · Investor Exchange

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  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
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  Welcome to the Deep Dive. We're the place where we try to putt through the noise
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  of complex reports and give you the real story. That's the goal.
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  And today we're diving into Disalimited.
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  Now, this is a company with, well, quite a mix, digital security,
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  anti-theft stuff, even semiconductor trading, and now healthcare tools too.
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  It's a very diverse portfolio. Exactly.
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  So our mission today, let's unpack their latest financial report. This is for FY 2025.
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  We want to get past just the numbers, you know, understand how they actually
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  performed, maybe why things happened the way they did and what direction they
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  seem to be heading in. And that's so important because these financial reports,
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  they're not just spreadsheets.
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  They really do tell a story, a story about strategy, about the challenges they
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  face, how they're adapting.
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  And what's fascinating here is this particular DISA report, it really shows
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  a company, well, in a major state of flux, facing some real headwinds,
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  but also trying out some, frankly, quite bold new strategies.
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  Okay, let's get into those headwinds first, then.
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  The headline figures, they definitely grab your attention.
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  Revenue for FY 2025, $6,095,000.
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  Now that's down 19.2% from the year before, which is about $7.5 million.
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  Which is already significant. Right. But then you look at the second half of
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  the year, 2H FY 2025, revenue just, well, it plunged, down 50.4% compared to
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  the same period last year, fell all the way to $1,956,000.
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  Wow. I mean, imagine your own income dropping by half in just six months.
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  That's a big deal, right? It's a huge deal. And when you see a drop that sharp,
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  that fast, you immediately start looking for, well, big external factors.
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  In Diss's case, the report points pretty directly to the impact of U.S.
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  Tariffs and, you know, those ongoing trade restrictions.
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  Ah, okay. For a company dealing internationally, especially in semiconductors,
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  that kind of global economic policy stuff, it just creates massive uncertainty in the market.
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  And that translates directly into, well, fewer sales. Right.
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  It shows how vulnerable companies can be to these bigger trends.
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  Exactly. Connects the dots, really. These macro policies hit the bottom line
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  hard. So revenue down sharply. The obvious next question.
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  What did that do to their profitability? Were they still making money?
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  Well, unfortunately, no. The hit to profitability was pretty severe.
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  Their loss before tax actually got bigger in FY 2025. It went up to about $2,861,000.
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  Compared to what? Compared to $2,074,000 the year before. So that's a 37.9%
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  increase in their losses.
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  Ouch. So losing more money. Yes. And if you look at the total comprehensive
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  loss, which includes everything like currency shifts and other bits that widened
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  even more by 49.5 percent, actually, up to $2,881,000 for the year.
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  So what does this all mean? It means things got tougher, financially speaking.
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  They lost more money than the previous year? In simple terms, yes.
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  The financial bleeding, you could say, accelerated. Okay, that sets a pretty challenging scene.
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  Let's dig a bit deeper now beyond just revenue and the final loss figure.
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  There were some really interesting, maybe surprising changes in other income.
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  Yes, that category. Yeah, this bit saw a massive drop.
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  It went from nearly $700,000 in FY 2024 down to just $59,000 in FY 2025.
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  That's huge. Almost vanished.
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  Right. And a lot of that seems to be because several one-off income items they
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  had in FY 2024 just weren't there this year. Things like what?
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  Well, things like recovering old bad debts, getting back a deposit they'd previously
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  written off, even a gain from an accounting adjustment on their subsidiary DLL.
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  You know, sort of financial good luck that didn't repeat.
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  And that's a really key point. Those one-offs, they can make the previous year
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  look healthier than the underlying business really was.
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  It highlights the need for steady, predictable income, not just these lucky breaks. Definitely.
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  And it also raises that question, with revenue falling and these other income
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  boosts gone, how did they manage costs? Right.
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  This raises an important question about cost control.
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  And looking at the expenses, It's a bit of a mixed bag. How so?
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  Well, on the one hand, the cost of inventories, basically, the cost of the goods
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  they sold that did decrease, which you'd expect, right?
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  Lower sales should mean lower cost of goods. That shows some basic alignment. Okay, that makes sense.
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  Other costs went up. Subcontractor expenses, for instance, increased slightly
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  by $15,000. Why was that?
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  Seems it was mainly down to royalty payments for that AVIAT, the ITES thing.
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  And interestingly, they also had minimum royalty obligations for a COVID-19
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  test technology agreement.
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  But here's the thing. That COVID agreement was actually terminated back in February
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  2025. So they were still paying royalties even after the deal ended.
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  Shows how those contractual things can linger. Ah, those long tails on contracts.
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  Got it. What else? Oh, the big one was staff costs. They jumped by 30.2% for the full year. 30%!
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  Wow. Why such a big increase when revenue was falling? Two main reasons given.
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  First, increased share option expenses.
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  Basically, the accounting costs of stock compensation for employees,
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  that went up quite a bit in the second half. And second, remember,
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  they acquired that subsidiary, DLL.
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  This year includes a full year of DLL staff costs, whereas last year only had
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  about three months' worth after the acquisition. So that consolidation bumped up the total.
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  Right, that makes sense. An accounting effect, partly. Partly, yes.
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  Also, legal and professional expenses were up. Things like patent filing costs
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  for AV Man, and again, the full-year impact of DLL's consultancy fees. Hmm.
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  Any other movers? Foreign currency exchange. That flipped from a small gain
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  last year to a loss of $30,000 in the second half of this year.
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  Mostly blamed on the U.S.
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  Dollar weakening against the Singapore dollar. Okay. Were there any costs going down?
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  Yes. A few offsets, lower depreciation because they moved their Shenzhen office,
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  and also reduced director's fees and R&D spending.
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  So summarizing the cost side, it's complex.
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  Some control like on inventories, but then increases in strategic areas like
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  staff, patents, and dealing with acquisitions. Exactly.
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  You see cost discipline in some operational areas, But then you see investment
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  or maybe just unavoidable increases in personnel, legal, and those ongoing contractual things.
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  It paints a picture of a company trying to manage costs while still investing
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  in, well, what they hope is the future. Here's where it gets really interesting.
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  How does this all look when you step back and look at their overall financial
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  health? Let's shift to the balance sheet.
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  Okay. The snapshot of assets and liabilities. Right.
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  And surprisingly, maybe total assets actually increased up by $593,000 or about
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  21.7% to $3.3 million. Hmm. Interesting.
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  Where did that increase come from? Mostly in current assets, the short-term stuff.
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  Those rose by over a million dollars, mainly because of higher cash balances,
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  which we'll come back to, and also an increase in trade receivables.
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  That's money owed to them by customers, likely for sales made right near the
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  end of June. So money expected soon. Yeah.
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  Though that was offset a bit because they didn't have a big advance payment
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  for semiconductors this year like they did last year.
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  And non-current assets, the longer-term stuff. Those actually decreased quite a bit,
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  down by $469,000 or 66%, mainly because they sold off an investment they had
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  in a company called iCreate Group, and also just the usual depreciation on equipment,
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  plus the effect of ending that Shenzhen office lease early. Okay.
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  So shifts within assets, what about the other side of the balance sheet liabilities
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  and equity? What's fascinating here is how these pieces moved.
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  Total liabilities actually decreased, down by $269,000, or about 21.6%, landing at $976,000.
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  And why was that? The main reason was lower lease liabilities because of that Shenzhen office move.
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  Fewer rental commitments. That helps reduce fixed costs. Good move.
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  Although that was partly offset by increased trade payables,
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  money they owe suppliers, some related to that rights-come-warrants issue they
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  did. Ah, the capital raise.
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  Which brings us to equity. Exactly.
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  Total equity saw a big jump. It increased by $862,000, or nearly 58%,
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  reaching $2.35 million.
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  And the driver there was? The critical driver was that rights-come-warrants issue.
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  They issued new shares, raised cash. That injection of capital was big enough
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  to more than cancel out the loss they made during the year.
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  So the capital raise was absolutely crucial for shoring up the balance sheet.
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  Without it, equity would have fallen significantly due to the losses. Absolutely vital.
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  Okay, so assets up slightly, liabilities down, equity up significantly thanks
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  to new cash. But how did the cash actually flow? Let's hit the cash flow statement.
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  And the story from operating activities, the day-to-day business, isn't great.
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  They used more cash in operations this year. Net cash used was $2,029,000.
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  Up from about $1 million used last year. Right.
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  So the core business is still burning through cash and faster than before.
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  Key challenge. But then investing activities generated a bit of cash,
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  $122,000, mainly from selling that iCreate investment we mentioned.
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  Okay, a small inflow there. And here's the big one.
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  Financing activities. This generated a lot of cash, $3,154,000,
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  a massive swing from using cash and financing last year.
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  And that's primarily the rights issue money coming in. Exactly.
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  About $3.1 million from the rights come warrants issue, plus another $178,000
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  from non-controlling interest chipping in capital.
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  So operationally burning cash, but bringing in significant cash through financing.
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  Which meant overall their cash and cash equivalents actually increased over
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  the year, up by $1.3 million to end at $2.7 million.
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  So even though they're losing money from operations, their cash reserves actually grew.
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  What does that tell you about their strategy? It tells you they executed a successful
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  and probably very necessary financing operation.
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  They tapped the markets to get the cash they needed to survive the operational
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  burn and, crucially, to fund the strategic shifts they're planning.
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  Buying time and runway. Precisely. Without that financing, the cash picture
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  would look drastically different and much more worrying.
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  It gives them breathing room. Okay, so they have some breathing room.
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  Let's talk about how they plan to use it.
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  Shifting to the future now, here's where it gets really interesting.
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  How does DISA plan to turn things around?
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  Well, the report signals a very clear strategic pivot.
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  They're really focusing hard on the U.S. market now. How so?
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  They're looking to deepen their work with a major U.S.
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  Retailer, specifically using their tech to combat return fraud.
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  Return fraud. Is that a big problem? Oh, it's enormous. The report estimates it cost U.S.
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  Retailers something like U.S. $103 billion in 2024, a staggering number. Wow.
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  And Dysus Tech helps with that. That's the plan. They have this proprietary
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  3S serialization tech combined with RFID tags.
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  The idea is to uniquely identify products to prevent fraudulent returns,
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  and they claim it's already proven effective, saying it's saved clients over U.S.
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  $201 million since 2017. Okay, that's a track record.
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  And they have, apparently, 1.5 billion RFID tags ready for this serialization.
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  They're pushing something called a shared savings program, or SSP. Meaning.
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  A pay-as-you-save model. So DISA basically gets paid based on how effective
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  the system is at reducing fraud for the retailer.
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  Ties their success to the client's savings.
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  Smart. Very. And to speed things up, they've partnered with RFID printers to
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  provide these serialized tags to the retailer's vendors at no extra cost,
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  trying to remove friction for adoption.
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  That sounds like a major strategic bet, the anti-fraud tech in the U.S.
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  It absolutely is. And it raises an important question.
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  About their existing businesses. What happens to them?
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  Good point. Well, the report mentions they are considering discontinuing the
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  semiconductor devices trading business, calling it less profitable.
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  Ah, so cutting the cord there. Potentially.
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  To reallocate those resources, presumably towards this SSP anti-fraud push,
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  it's a clear sign of prioritizing.
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  Okay, so focus on anti-fraud, potentially exit semiconductors.
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  What about the healthcare side?
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  That's the other major pillar of their future strategy, it seems.
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  Through their subsidiary, Digital Lifeline, DLL. Right.
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  What's happening there? Progress on a couple of fronts. That automated visual acuity test, AVAT.
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  It's actually been deployed in a Singapore public hospital now.
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  And it's also been approved for clinical use in Hong Kong. So moving from lab
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  to real world use. Exactly.
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  Tangible steps. And then there's Midas, the mobile imaging device for interior
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  segment. It's an AI tool for cataract screening. Okay.
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  That's now on a strategic clinical trial partnership here in Singapore.
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  And they expect development to wrap up in early 2026.
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  So building out that healthcare tech portfolio.
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  Definitely. And they're not just developing tech. They're also acquiring through
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  another entity, advanced digital healthcare, ADH.
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  Just recently, in July 2025, they completed the purchase of 50% of rheumatology
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  associates, PT, LTD, or RA.
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  That costs $5.5 million. What does RA do? Yeah.
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  They're described as Singapore's only heartland-based, integrated specialist
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  medical and therapy center that focuses specifically on arthritis and rheumatism. A niche focus.
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  A very specific niche. And ADH isn't stopping there.
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  They have plans, subject to
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  shareholder approval, to expand into osteoarthritis clinics in Singapore.
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  Why osteoarthritis? They're targeting the growing demand from Singapore's Super 8 Society.
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  A clear demographic play. So, anti-fraud tech, healthcare tech development,
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  and acquiring specialist clinics. That's a lot of moving parts.
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  It's ambitious, no doubt, especially for a company that's currently losing money
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  operationally. And it all relies heavily on that cash they raised.
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  You mentioned they raised about $3.15 million from that rights come warrants
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  issue back in June. That's right.
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  Have they said how they've used it so far? Yes, the report breaks it down.
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  About $1 million, $1,036,000 went to general working capital.
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  You know, salaries, paying bills.
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  Another $500,000 was allocated for business growth, acquisition,
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  and expansion, likely covering costs related to these new ventures.
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  Okay, so about $1.5 million used.
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  Leaving a balance of roughly $1.5 million, $1,511,000, still unutilized as of the report date.
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  So they still have some firepower left from that raise for future moves?
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  Correct. A remaining war chest to fuel these strategic shifts.
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  Okay, let's try and wrap this up then. Disillimited, clearly facing some serious
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  headwinds, revenue down, losses up in the core business, external factors playing a big role there.
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  Definitely a tough operational picture. But at the same time,
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  they are absolutely not sitting still.
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  They've secured vital funding, and they're making really bold,
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  decisive moves into new areas that anti-fraud tech focus in the U.S.,
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  plus a multi-pronged push into healthcare, both tech and clinics.
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  It's a company undergoing a significant, and I'd say high-risk, transformation.
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  They're betting that these new ventures can grow fast enough to offset the decline
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  or potential discontinuation of older business lines.
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  And relying heavily on that newly raised capital to bridge the gap. Exactly.
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  Which brings us to, I think, the critical closing thought. This raises an important
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  question for you listening.
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  How quickly can these new bets, the anti-fraud, SSP, the healthcare tech,
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  the clinics, realistically start generating not just revenue,
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  but profitable growth, especially given that ongoing cash burn from operations.
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  What are the signs, the key milestones you'd watch for over the next,
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  say, 12 to 24 months to really judge if the strategic pivot is working?
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  Is it new U.S. retail contracts? Is it hitting clinical trial goals?
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  Is it profitability in the acquired clinics? That's the multi-million dollar question.
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  Excellent points to consider. A company truly at a crossroads.
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  While this has been a fascinating deep dive into Disunlimited's financial story,
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  thanks for joining us. We hope this gives you a much clearer picture and maybe
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  sparks some further digging of your own.
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  Until next time on The Deep Dive.