Inspira Technologies Announces 2021 Third Quarter Financial Results

RA'ANANA, Israel, Nov. 23, 2021 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd. IINN IINNW))) (the "Company" or "Inspira Technologies"), a groundbreaking respiratory support technology company, announced today its financial results for the third quarter ended September 30, 2021.

"We believe that the exclusive agreement signed with WAAS Group for the potential deployment of more than 1,000 ART systems in Spain and Portugal led our investors to express their support by exercising most of the warrants issued in our IPO at an exercise price of $5.50 per share. Due to the exercise of these warrants, the number of our outstanding ordinary shares has increased. This additional capital provides greater financial resources to support the Company's navigation of research and development, regulatory approval and the go-to-market pathway," stated Dagi Ben-Noon, Inspira Technologies' Chief Executive Officer.

Financial Results for the Nine Months Ended September 30, 2021

 

  • Research and development expenses for the nine months ended September 30, 2021 were $1.7 million, compared to $2.6 million for the corresponding period in 2020. The decrease is a result of lower share-based compensation expenses, partially offset by the coverage of certain development expenses by a grant from the Israeli Innovation Authority.

 

  • Marketing expenses for the nine months ended September 30, 2021, were $391,000, as compared to none for the corresponding period in 2020. In 2021, the Company focused on marketing, brand awareness and exploring go-to-market capabilities.

 

  • General and administrative (G&A) expenses for the nine months ended September 30, 2021 were $3.4 million, compared to $1.3 million for the corresponding period in 2020. Expenses mainly consisted of $1 million in IPO expenses and related IPO fees and $1.8 million in ongoing G&A operating and share-based compensation expenses.  

 

  • The net loss for the nine months ended September 30, 2021, was $6 million, compared to a net loss of $4 million for the nine months ended September 30, 2020.

 

Financial Results for the Three Months Ended September 30, 2021

 

  • Research and development expenses for the three months ended September 30, 2021 were $581,000 compared to $1.1 million for the corresponding period in 2020. The decrease is a result of lower share-based compensation expenses, partially offset by the coverage of certain development expenses by a grant from the Israeli Innovation Authority.

 

  • Marketing expenses for the three months ended September 30, 2021, were $147,000. As opposed to 2020 In 2021, the Company focused on marketing, brand awareness and exploring go-to-market capabilities.

 

  • G&A expenses for the three months ended September 30, 2021 were $2.2 million, compared to $488,000 for the corresponding period in 2020. The reason for the increase was due to IPO expenses and related IPO fees.

 

  • Finance income for the three months ended September 30, 2021, was $5.1 million compared to $2 million for the corresponding period in 2020. The increase in finance income was due to measurement at fair value of the Company's financial equity liabilities to pre-IPO and IPO investors.

 

  • The Company's net profit for the three months ended September 30, 2021 was $2.2 million, compared to a net profit of $348,000 for the three months ended September 30, 2020.

 

Balance Sheet highlights

 

  • Cash, cash equivalents and short-term bank deposits were $17 million as of September 30, 2021, compared to $496,000 as of December 31, 2020. The increase mainly reflects the IPO proceeds, less cash used in operations, during the nine months ended September 30, 2021.

 

  • Financial liabilities at fair value totaled $3.4 million as of September 30,2021, compared to $1.5 million as of December 31, 2020. The financial liabilities represent the fair value of the Company's equity liabilities to pre-IPO and IPO investors.

 

  • As of September 30, 2021, shareholders' equity totaled $13.3 million, compared to deficit totaled $1.7 million as of December 31, 2020.

 

Inspira Technologies OXY B.H.N. Ltd.

Inspira Technologies is an innovative medical technology company in the respiratory treatment arena. The Company has developed a breakthrough Augmented Respiration Technology (ART), designed to rebalance patient oxygen saturation levels. The Company's ART technology potentially allows patients to remain awake during treatment while minimizing the need for highly invasive, risky and costly 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/

Forward-Looking Statement Disclaimer

This press release contains express or implied forward-looking statements pursuant to U.S. Federal securities laws. These forward-looking statements and their implications are based on the current expectations of the management of the Company 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 is using forward-looking statements when it discusses the potential deployment of more than 1,000 ART systems in Spain and Portugal and its belief that the agreement with WAAS Group led its investors to exercise their warrants. Except as otherwise required by law, the Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Registration Statement on Form F-1 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 msegal@ms-ir.com

 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

(US dollars in thousands)




September 30,



December 31,





2021



2020











ASSETS










Current Assets:










Cash and cash equivalents



17,042




496



Other accounts receivable



725




188



Restricted cash



75




-



Total current assets



17,842




684













Non-Current Assets:










Right of use assets, net



220




258



Property, plant and equipment, net



83




45



Total non-current assets



303




303



Total Assets



18,145




987

















 

 

 












September30,


December 31,






2021


2020











LIABILITIES AND SHAREHOLDERS' EQUITY











Current Liabilities:











Trade accounts payables





90




3


Other accounts payable





590




549


Lease liabilities





170




180


Financial Liabilities at Fair Value





3,491




219


Total current liabilities





4,341




951













Non-Current Liabilities:











Lease liabilities





53




95


Financial Liabilities at Fair Value





-




1,273


Loan from the Israeli Innovation Authority





450




372


Total non- current liabilities





503




1,740













Shareholders' Equity:











Share capital and premium





28,351




8,053


Foreign exchange reserve





(380)




(635)


Share-based compensation





3,240




2,714


Accumulated deficit





(17,910)




(11,836)


Total equity





13,301




(1,704)


Total Liabilities and Shareholders' Equity





18,145




987
















 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

(US dollars in thousands)




For the Nine-Month
Period
Ended
September 30,


For the Three-Month
Period
Ended
September 30,



2021


2020


2021


2020










Research and development expenses

1,685


2,599


581


1,143









Marketing expenses

391


-


147


-

General and administrative expenses

3,425


1,328


2,215


488

Operating loss

5,501


3,927


2,943


1,631

Finance expenses (income)

573


73


(5,159)


(1,979)

Loss (profit) before tax

6,074


4,000


(2,216)


(348)

Taxes on income

-


-


-


-

Loss (profit) for the period

 

6,074


4,000


(2,216)


(348)

Other comprehensive loss (profit), net of tax:








Items that will not be reclassified to
 profit or loss:








Exchange profits(losses) arising on translation
 to presentation currency

255


(652)


 

288


(637)

Total comprehensive loss for the period

5,819


4,652


(2,504)


289










 

 

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(US dollars in thousands)


For the Nine-Month Period Ended September 30, 2021 (Unaudited):




Share
capital



Adjustments
arising from
translating
financial
operation



Grant
options



Accumulated
deficit



Total


Balance at January 1, 2021



8,053




(635)




2,714




(11,836)




(1,704)


Changes during the period:





















Loss for the year



-








-




(6,074)




(6,074)



Other comprehensive profit







255












255



Total comprehensive loss







255








(6,074)




(5,819)



Financial liability conversion



10,041




-




-




-




10,041



Initial public offering



10,219




-




-




-




10,219



Options Exercise



38




-




(38)




-




-



Share-based compensation



-




-




564








564



Balance on September 30, 2021



28,351




(380)




3,240




(17,910)




13,301



 

 

For the Three-Month Period Ended September 30, 2021 (Unaudited):




Share
capital



Adjustments
arising from
translating
financial
operation



Grant
options



Accumulated
deficit



Total


Balance at July 1, 2021



8,091




(668)




3,138




(20,126)




(9,565)


Changes during the period:





















Profit for the period



-




-




-




2,216




2,216


Other comprehensive profit



-




288




-




-




288


Total comprehensive profit



-




288




-




2,216




2,504


Financial liability conversion



10,041




-




-




-




10,041


Initial public offering



10,219




-




-




-




10,219


Share-based compensation



-




-




102








102


Balance on September 30, 2021



28,351




(380)




3,240




(17,910)




13,301


 

 

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SOURCE Inspira Technologies

Posted In: EarningsPress Releases