Inspira™ Technologies Announces First Quarter 2022 Financial Results

0

From March 31, 2022the company had $21.7 million in liquid

RA’ANANA, Israel, May 19, 2022 /PRNewswire/ — Inspira Technologies OXY BHN Ltd. (Nasdaq: IINN) (NASDAQ: IINNW) (the “Company” or “Inspira Technologies”), a breakthrough respiratory support technology company, today announced its financial results for the first quarter ended March 31, 2022.

Dagi Ben-Noon, CEO of Inspira Technologies, said: “The company continues to focus on meeting schedules in 2022 for its key milestones, which include the reveal of new technology designed for use in the ART™ system. Inspira will also continue to seek strategic agreements and achieve advanced verification and validation (V&V) milestones for the United States Food and Drug Administration (the “FDA”) Class II submission for the ECLS system during the first half of 2023. The company is working with suppliers and manufacturers to meet deadlines and manage risks encountered in the global supply chain.”

Strong points:

  • January 9, 2022 – Teacher Daniel Brodiepresident-elect of the International Extracorporeal Organization (ELSO) and director of intensive care at New York Columbia – Presbyterian Hospital, has joined the advisory board of Inspira Technologies.
  • January 28, 2022 – Inspira Technologies has listed an FDA Class I 510(k) exempt component of the ART system.
  • January 31, 2022 – Inspira Technologies has signed a strategic agreement in the United States to target $212 million for Inspira Technologies over a period of 7 years, subject to regulatory approvals. The agreement is with the American company Glo-Med Networks for the potential deployment of 2,121 ART systems in 6 states of the United States.
  • February 3, 2022 – Inspira Technologies has appointed an expert in the field of artificial lung as its new chief technical officer (CTO) –Daniella Yeheskely-Hayon, Ph.D.
  • February 27, 2022 – Inspira Technologies announced that it received the Frost & Sullivan Best Practices Technology Innovation Leadership Award 2021.
  • April 6, 2022 – Inspira Technologies has announced an agreement to roll out to the Israeli market to potentially target $15 million. The agreement is for 7 years and is subject to regulatory approval.

Financial results for the three months ended March 31, 2022

Research and development expenses for the three months ended March 31, 2022 were $1.5 millioncompared to $0.6 million for the corresponding period in 2021. The increase results from the recruitment of specialized labor by the Company and the further development of its activities and operations.

Marketing expenses for the three months ended March 31, 2022have been $472,000compared to $130,000 for the corresponding period in 2021. The increase is due to the increase in the Company’s marketing expenses due to an increase in payroll and stock-based compensation expenses. Marketing activities began in the first quarter of 2021 and became more intensive with the company’s need to build brand awareness and explore go-to-market capabilities.

General and administrative (G&A) expenses for the three months ended March 31, 2022 were $1.5 millioncompared to $0.8 million for the corresponding period in 2021. The increase is mainly due to an increase in payroll and related expenses, as well as an increase in costs associated with the Company’s status as a public company, following its initial public offering (IPO) on the Nasdaq in July 2021the increase in existing and new expenses included professional fees, directors’ fees and directors’ and officers’ insurance costs.

Financial income for the three months ended March 31, 2022been $2.1 million compared to expenses amounting to $5.6 million for the corresponding period in 2021. The increase in financial expense or income is due to the calculation of the fair value of the Company’s financial liabilities to pre-IPO and IPO investors.

The net loss for the three months ended March 31, 2022 was $1.3 millioncompared to a net loss of $7.2 million for the three months ended March 31, 2021.

Balance Sheet Highlights

Cash, cash equivalents and short-term bank deposits were $21.7 million as of March 31, 2022, versus $23.7 million from December 31, 2022.

Financial liabilities at fair value total $1.4 million from March 31, 2022compared to $3.2 million from December 31, 2021. Financial liabilities represent the fair value of the Company’s equity liabilities to pre-IPO and IPO investors.

From March 31, 2022equity rises $19.8 millioncompared to shareholders’ equity totaling $20.3 million from December 31, 2021.

Inspira Technologies OXY BHN Ltd.

Inspira Technologies is an innovative medical technology company in the field of respiratory treatment. The company has developed a revolutionary Augmented Breathing Technology (ART), designed to rebalance patients’ oxygen saturation levels. The company’s ART technology potentially allows patients to stay awake during treatment while minimizing the need for highly invasive, risky and expensive mechanical ventilation systems that require intubation and medically induced coma. The Company’s product has not yet been tested or used in humans and has not been approved by any regulatory entity.

For more information, please visit our corporate website:

https://inspira-technologies.com/

Disclaimer of Forward-Looking Statements

This press release contains express or implied forward-looking statements pursuant to United States federal securities laws. These forward-looking statements and their implications are based on the current expectations of the Company’s management only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. . For example, the Company uses forward-looking statements when discussing the achievement of milestones in 2022 and the timing of those milestones, the ART system submission in the second quarter of 2023, a strategic agreement in the United States for the potential deployment of 2,121 ART Systems in 6 states of United States and the targeted amount that can be derived under the agreement over a 7-year period, subject to regulatory approvals, and a roll-out agreement for a 7-year period in the Israeli market and the targeted amount to be derived in under the agreement, subject to regulatory approval. These forward-looking statements and their implications are based solely on the current expectations of the Company’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. . Except as otherwise required by law, the Company undertakes no obligation to issue revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events. More detailed information about the risks and uncertainties affecting the Company can be found under the heading “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended. December 31, 2021 filed with the SEC, which is available on the SEC’s website, www.sec.gov.

For more details:

Miri Segal
Investor Relations
MS-IR LLC
+917-607-8654
[email protected]
MRK-ARS-025
Copyright © 2018-2022 Inspira Technologies OXY BHN LTD., All Rights Reserved.

UNAUDITED INTERIM CONDENSED STATEMENTS OF FINANCIAL POSITION

(USD in thousands)



March, 31st,

The 31st of December,


2022

2021




ASSETS



Current assets:



Cash and cash equivalents

21,756

23,749

Other accounts receivable

433

639

Restricted cash

78

120

Total current assets

22,267

24,508




Non-current assets :



Rights of use, net

1,169

1,160

Property, plant and equipment, net

227

202

Total non-current assets

1,396

1,362

Total assets

23,663

25,870







March, 31st,

The 31st of December,


2022

2021




LIABILITIES AND EQUITY



Current liabilities:



Payables

137

93

Other accounts payable

794

725

Rental debts

323

281

Financial liabilities at fair value

1,426

3,215

Total current liabilities

2,680

4,314




Non-current liabilities:



Rental debts

871

900

Loan from the Israel Innovation Authority

309

302

Total non-current liabilities

1,180

1,202




Equity:



Share capital and premium

50 189

48,935

Foreign exchange reserve

(215)

210

Accumulated deficit

(30,171)

(28,791)

Total equity

19,803

20,354

Total Liabilities and Equity

23,663

25,870



UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

(USD in thousands)



For the Three-
month period
Finished
March 30,

For the
Year
Finished
The 31st of December,


2022

2021

2021





Research and development costs

1,560

667

3,909

Marketing costs

472

130

1,951

General and administrative expenses

1,544

821

7,572

Operating loss

3,576

1,618

13,432

Finance charges (income)

(2,196)

5,673

3,523

Loss (profit) before tax

1,380

7,291

16,955

Income taxes




Loss (profit) for the period

1,380

7,291

16,955

Other items of comprehensive income net of tax:




Items that will not be reclassified as income:




Foreign exchange gains (losses) resulting from the conversion into the reporting currency

(425)

(215)

845

Total comprehensive loss for the period

1,805

7,506

(16,110)

SUMMARY INTERIM STATEMENTS OF CHANGES IN EQUITY


(USD in thousands)

For the three-month period ended March 31, 2022 (unaudited):



Share
Capital city
and
prime

Adjustments
resulting from
Translating
financial
operation

Accumulated
deficit

Total

Balance as of January 1, 2022





Changes during the period:

48,935

210

(28,791)

20,354

Loss for the period

(1,380)

(1,380)

Other comprehensive loss

(425)

(425)

Total comprehensive loss

(425)

(1,380)

(1,805)

Stock-based compensation

1,254

1,254

Balance as of March 31, 2022

50 189

(215)

(30,171)

19,803

SOURCEInspira Technologies

Share.

Comments are closed.