Inspira Technologies Announces First Half 2021 Financial Results and Provides Business Update

Rhea-AI Summary

Inspira Technologies OXY B.H.N. Ltd (Nasdaq: IINN) reported financial results for the six months ending June 30, 2021. The company raised $16 million through its IPO and has $4.36 million in cash. R&D expenses decreased to $1.10 million, while marketing expenses were $244,000. The net loss increased to $8.29 million compared to $4.35 million in 2020, attributed to higher finance expenses. The company aims to target a $25 billion market with its Augmented Respiration Technology (ART) and plans to double its workforce to support development efforts.

Positive

• Raised $16 million through IPO.
• Increased cash reserves to $4.36 million.
• Decreased R&D expenses from $1.46 million in H1 2020 to $1.10 million in H1 2021.
• Plans to double workforce to support growth and development.

Negative

• Net loss increased to $8.29 million from $4.35 million in the prior year.
• Finance expenses surged to $5.73 million, up from $2.05 million in H1 2020.

RA'ANANA, Israel, Aug. 13, 2021 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd (Nasdaq: IINN) (Nasdaq: IINNW) (the "Company" or "Inspira"), a specialty medical device company engaged in the research, development, manufacturing and marketing of proprietary respiratory support technologies, announced today its financial results as of and for the six months ended June 30, 2021. The Company has also released a corporate update.

 

 

"In order to achieve our Go-To-Market objective, we are exploring potential possibilities for partnerships with leading medical device companies, manufacturers, and distributors," said Dagi Ben-Noon, Inspira's CEO and one of its Co-Founders. "We estimate that our Augmented Respiration Technology (ART) system has a total potential addressable market of $25 billion. We plan to target the 20 million patients admitted to Intensive Care Units (ICUs) each year who are being placed on mechanical ventilation. We have developed a "razor, razor blade" business model, under which we expect disposable sales to grow with the future mass deployment of our ART system," Mr. Ben-Noon added.

First Half 2021 and Subsequent Corporate Highlights

• Completed a successful initial public offering (the "IPO") on the Nasdaq Capital Market of the Company's ordinary shares and certain warrants under the ticker symbols "IINN" and "IINNW", respectively, raising gross proceeds of $16 million. 
• The Company introduced an innovative microbubbles platform with the potential to extend oxygenation and prevent blood clotting when integrated into the ART system. This new technology is being developed through collaborative research with Ben-Gurion University of the Negev.
• The Company announced the expansion of its Medical Advisory Board with the appointment of Dr. Dekel Stavi, M.D., an intensive care physician and thought leader in blood oxygenation technology. Dr. Stavi is currently on staff at the Interdepartmental Division of Critical Care, University of Toronto.
• By the year end, the Company plans to increase its workforce by up to 100%. New employees will be recruited to support the expansion and further development of the Company's activities and capabilities.

Financial Results for the Six Months Ended June 30, 2021

• Cash, cash equivalents, and short-term bank deposits were $4,355,000 as of June 30, 2021, compared to $496,000 as of December 31, 2020. The increase mainly reflects proceeds received from certain investments through the convertible loan agreements (the "CLAs") and simple agreements for future equity (the "SAFEs").
• Research and development expenses for the six months ended June 30, 2021 were $1,104,000, compared to $1,456,000 for the corresponding period in 2020. The decrease is a result of lower share-based compensation expenses, partially offset by the Israeli Innovation Authority's coverage of certain development expenses.
• Marketing expenses for the six months ended June 30, 2021 were $244,000. As opposed to 2020, in 2021, the Company focused on marketing, brand awareness and exploring Go-To-Market capabilities.
• General and administrative expenses for the six months ended June 30, 2021 were $1,210,000, compared to $840,000 for the corresponding period in 2020. The increase is attributed to corporate expenses, legal and professional fees in preparation for the IPO as well as capital raising fees for the CLA and SAFE agreements.
• Finance expense for the six months ended June 30, 2021 was $5,732,000, compared to $2,052,000 for the corresponding period in 2020. The increase is attributed to change of $5,471,000 in the fair value of the convertible notes and warrants.
• Net loss for the six months ended June 30, 2021 was $8,290,000, compared to a net loss of $4,348,000 for the six months ending June 30, 2020.
• As of June 30, 2021, shareholders equity totaled $9,565,000, compared to $1,704 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), which it believes will elevate and stabilize patient oxygen saturation levels. The Company's ART technology potentially allows patients to remain awake during treatment while minimizing the use of the highly invasive, risky and costly mechanical ventilation systems that require medically induced coma. The Company's product has not yet been tested or used in humans and has not been approved by the U.S. Food and Drug Administration (FDA).

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. For example, the Company is using forward-looking statements when it discusses that Inspira is exploring potential possibilities for partnerships with leading medical device companies, manufacturers, and distributors, that Inspira is planning to target the 20 million patients admitted to ICUs each year who are being placed on mechanical ventilation, that the Company's disposable sales are expected to grow with mass deployment of its ART system, and that the Company plans to increase its workforce by up to 100%. 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. 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)
		June 30,				December 31,
		2021				2020
		Unaudited
ASSETS
Current Assets:
Cash and cash equivalents			4,355				496
Other accounts receivable			1,228				188
Total current assets			5,583				684
Non-Current Assets:
Right of use assets, net			232				258
Property, plant and equipment, net			79				45
Total non-current assets			311				303
Total Assets			5,894				987
		June 30,				December 31,
		2021				2020
		Unaudited
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Trade accounts payables			9				3
Other accounts payable			467				549
Lease liabilities			206				180
Warrants and convertible note			14,282				219
Total current liabilities			14,964				951
Non-Current Liabilities:
Lease liabilities			37				95
Convertible note			-				1,273
Loan from the Israeli Innovation Authority			458				372
Total non- current liabilities			495				1,740
Deficit:
Share capital and premium			8,091				8,053
Foreign exchange reserve			(668)				(635)
share base compensation			3,138				2,714
Accumulated deficit			(20,126)				(11,836)
Total deficit			(9,565)				(1,704)
Total Liabilities And Deficit			5,894				987

 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(US dollars in thousands)
		Six month period ended June 30,		Six month period ended June 30,
		2021		2020
		Unaudited		Unaudited
Research and development expenses		1,104		1,456
Marketing expenses		244		-
General and administrative expenses		1,210		840
Operating loss		2,558		2,296
Finance expense		5,732		2,052
Loss before tax		8,290		4,348
Taxes on income		-		-
Loss for the period		8,290		4,348
Other comprehensive loss, net of tax:
Items that will not be reclassified to profit or loss:
Exchange losses arising on translation to presentation currency		33		15
Total comprehensive loss for the period		8,323		4,363

 

 

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US dollars in thousands)
For the six month period ended June 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			-				-				-				(8,290)				(8,290)
Other comprehensive loss			-				(33)				-				-				(33)
Total comprehensive loss			-				(33)								(8,290)				(8,323)
Options Exercise			38				-				(38)				-				-
Share base compensation			-				-				462				-				462
Balance at June 30, 2021			8,091				(668)				3,138				(20,126)				(9,565)

 

 

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SOURCE Inspira Technologies

FAQ

What are the financial results for Inspira Technologies (IINN) for the first half of 2021?

Inspira reported a net loss of $8.29 million for H1 2021, an increase from $4.35 million in H1 2020.

How much did Inspira Technologies raise during its IPO?

Inspira raised $16 million through its IPO on the Nasdaq.

What is the cash position of Inspira Technologies as of June 30, 2021?

Inspira Technologies reported cash and equivalents of $4.36 million as of June 30, 2021.

What is the target market for Inspira's Augmented Respiration Technology?

Inspira estimates a $25 billion addressable market aimed at 20 million ICU patients annually.

What are the company's plans following its financial results announcement?

Inspira plans to explore partnerships and double its workforce to support development of its ART system.