Inspira Technologies Announces 2021 Third Quarter Financial Results

Rhea-AI Summary

Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: IINN) reported its Q3 2021 financial results, showcasing significant progress following an exclusive agreement with WAAS Group for over 1,000 ART systems deployment in Spain and Portugal. The Company raised capital after most IPO warrants were exercised at $5.50 per share. R&D expenses decreased to $1.7 million while net loss increased to $6 million. Notably, Q3 net profit surged to $2.2 million. Cash reserves rose to $17 million, significantly up from $496,000 at year-end 2020, reflecting positive IPO proceeds.

Positive

• Net profit in Q3 2021 increased to $2.2 million from $348,000 in Q3 2020.
• Cash reserves grew to $17 million from $496,000 as of December 31, 2020.
• An exclusive agreement expected to deploy over 1,000 ART systems boosts market position and investor confidence.

Negative

• Net loss for the nine months ended September 30, 2021, rose to $6 million from $4 million in 2020.
• G&A expenses increased to $3.4 million largely due to IPO-related costs from $1.3 million in 2020.
• The ART technology has not yet received regulatory approval or undergone human testing.

RA'ANANA, Israel, Nov. 23, 2021 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: 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