DarioHealth Corp. Announces Departure of President & Chief Commercial Officer

What Happened
DarioHealth Corp. (DRIO) filed an 8-K reporting that Steven Nelson, the Company’s President and Chief Commercial Officer, and the company entered a Separation Agreement on August 20, 2026. Mr. Nelson will stop serving in his executive role effective September 1, 2026, and his employment will terminate on September 30, 2026. The agreement continues his health insurance through September 30, 2026, and provides up to three months of COBRA reimbursement at $2,600 per month. Mr. Nelson will cooperate with the company on the transition through December 31, 2026.

Key Details

• Separation effective dates: cease serving as President/CCO on Sept. 1, 2026; employment termination on Sept. 30, 2026.
• Health and benefits: current coverage through Sept. 30, 2026; COBRA reimbursement up to 3 months at $2,600/month (or until eligible for comparable benefits).
• Equity and release: outstanding equity awards remain governed by plan terms; any outstanding unvested awards will expire upon termination; separation includes a general release and restrictive covenants (confidentiality, non-solicit, non-compete).
• Consulting arrangement: effective Oct. 1, 2026 through Dec. 31, 2027 (unless earlier terminated). Compensation is 30,000 restricted common shares (subject to Compensation Committee approval) vesting on the first anniversary or earlier upon a Change in Control; if the company terminates the consulting agreement, 15,000 shares vest immediately. Consulting agreement contains customary confidentiality, IP and restrictive covenants.

Why It Matters
This is a material executive change affecting DarioHealth’s commercial leadership: the company is losing its President and Chief Commercial Officer as an employee at month-end, but has arranged transitional support through year-end and a longer-term advisory consulting agreement through 2027. Investors should note there is no disclosed cash severance beyond earned wages and benefit continuation; equity treatment may reduce future incentive alignment since unvested employee awards expire on termination, while the consulting arrangement provides equity-based retention for advisory services.