Inspira™ Technologies Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: IINN) reported its Q2 2022 financial results, highlighting a net loss of $3.5 million, down from $8.2 million a year earlier. Cash reserves stood at $19.2 million as of June 30, 2022. The company's R&D expenses rose to $2.7 million, driven by increased projects and share-based compensation. Inspira introduced the HYLA™ non-invasive blood sensor and revealed the ALICE™ Device for cardiopulmonary bypass, targeting respective markets of $2.5 billion and significant deployment agreements in Israel and the U.S.

Positive

• Net loss improved to $3.5 million from $8.2 million YoY.
• Cash balance of $19.2 million supports ongoing projects.
• Successful introduction of HYLA™ with potential in $2.5 billion ABG market.
• Revealed ALICE™ Device targeting the cardiopulmonary bypass market.

Negative

• R&D expenses increased to $2.7 million, indicating higher ongoing costs.
• Shareholders' equity decreased to $17.8 million from $20.3 million.

As of June 30, 2022, the Company had $19.2 million in cash

RA'ANANA, Israel, Aug. 11, 2022 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: IINN) (Nasdaq: IINNW) (the "Company" or "Inspira Technologies"), a groundbreaking respiratory support technology company, announced today its financial results for the second quarter ended June 30, 2022.

 

 

Dagi Ben-Noon, Chief Executive Officer of Inspira Technologies, stated: "The Company continues to meet its scheduled major objectives and improve its position within the target market of direct blood oxygenation. Our focus on contributing to medical advancement within this space is exemplified by the introduction of our new HYLA™, a non-invasive blood sensor being designed to perform real-time and continuous blood measurements. The HYLA™ is being designed to assist physicians in the monitoring of a patient's clinical condition, alerting of a sudden change in the patient's vital signs, which may require immediate medical attention and potentially save lives.

"Planned as a technically advanced component for the InspiraTM ART system, the HYLA™ will also have its own distinct target market and business model. Recently, Inspira also revealed the first public pictures of the ALICE™ Device, designed as a cardiopulmonary bypass (CPB) or heart-lung bypass device. We continue to strategically enhance our presence within the market as we prepare to enter the verification and validation (V&V) process with the U.S. Food and Drug Administration (FDA) approval of our technologies."  

Highlights:

• April 6, 2022 - Inspira Technologies announced a deployment agreement for the InspiraTM ART system in the Israeli market to potentially target $15 million. The agreement is for a 7-year period and subject to regulatory approval. 
• July 6, 2022 - Inspira Technologies announced the development of the HYLA™ Non-Invasive Blood Sensor designed to assist physicians in monitoring a patient's clinical condition, potentially targeting the $2.5 billion arterial blood gas (ABG) market.
• July 7, 2022 - Inspira Technologies announced a strategic agreement in the U.S. with a potential value of $59 million for the deployment of 3,889 HYLA™ Blood Sensors. The agreement is for a three-year period and is subject to regulatory clearance.
• July 11, 2022 - Inspira Technologies revealed the ALICE™ Device, designed as a cardiopulmonary bypass (CPB) or heart-lung bypass device, designed to oxygenate and circulate blood for up to 6 hours during cardiac surgery.

Financial Results for the Six Months Ended June 30, 2022

Research and development expenses for the six months ended June 30, 2022, were $4.3 million, compared to $1.1 million for the corresponding period in 2021. The increase is a result of the Company's recruitment of specialized manpower and the expanded development of its new technologies and operations.

Marketing expenses for the six months ended June 30, 2022, were $777,000, compared to $244,000 for the corresponding period in 2021. The increase is attributed to rises in marketing, payroll,and share-based compensation expenses. Marketing activities commenced in the first quarter of 2021 and became more intensive with the Company's need to create brand awareness and explore go-to-market capabilities.

General and administrative (G&A) expenses for the six months ended June 30, 2022, were $2.9 million, compared to $1.2 million for the corresponding period in 2021. The increase stemmed primarily from an uptick in payroll and related expenses, as well as costs associated with the Company's status as a publicly traded company following its initial public offering (IPO) on Nasdaq in July 2021, the increase in existing and new expenses included professional fees, director fees, and directors' and officers' insurance costs.

Finance income for the six months ended June 30, 2022, was $4.5 million, compared to expenses in the amount of $5.7 million for the corresponding period in 2021. The increase in finance income derived from the calculation of the fair value of the Company's financial equity liabilities to pre-IPO and IPO investors in addition to the fluctuation in the USD exchange rate during the first half of 2022.

Net loss for the six months ended June 30, 2022, was $3.5 million, compared to a net loss of $8.2 million for the six months ended June 30, 2021.

Financial highlights for the quarter ended June 30, 2022

Research and development expenses for the three months ended June 30, 2022, were $2.7 million, an increase of $1.2 million compared to the first quarter of 2022. The increase was attributed to share-based compensation expenses in addition to expected R&D expenditures on new technologies and new projects.

General and administrative expenses for the three months ended June 30, 2022, were $1.4 million, a non-material decrease of $0.2 million compared to the first quarter of 2022.

Sales and Marketing expenses for the three months ended June 30, 2022, were $0.3 million, a decrease of approximately $0.17 million compared to the first quarter of 2022.

Balance Sheet highlights

Cash, cash equivalents, and short-term bank deposits were $19.2 million as of June 30, 2022, compared to $23.7 million as of December 31, 2022.

Financial liabilities at fair value totaled $0.4 million as of June 30, 2022, compared to $3.2 million on December 31, 2021. The financial liabilities represent the fair value of the Company's equity liabilities to pre-IPO and IPO investors.

As of June 30, 2022, shareholders' equity totaled $17.8 million, compared to shareholders' equity totaling $20.3 million as of December 31, 2021.

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 (Inspira™ART), designed to rebalance patient oxygen saturation levels. The Company's 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 meeting milestones in 2022 and the timing for such milestones, its various products in development and the benefits that such products may provide, its various strategic agreements and the potential amounts that may be derived under such agreements, all 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 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 annual report on Form 20-F for the fiscal year ended December 31, 2021 filed with the SEC, which is available on the SEC's website, www.sec.gov.

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For more details: 
Investor Relations, MS-IR LLC
Miri Segal,
+917-607-8654
msegal@ms-ir.com

US Public Relations 
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
IINN@redchip.com

MRK-ARS-033 Copyright © 2018-2022 Inspira Technologies OXY B.H.N. LTD., All rights reserved.

UNAUDITED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
(US dollars in thousands)

		June 30,				December 31,
		2022				2021
ASSETS
Current Assets:
Cash and cash equivalents			14,154				23,749
Cash deposits			5,020				-
Other accounts receivable			195				639
Restricted cash			67				120
Total current assets			19,436				24,508
Non-Current Assets:
Right of use assets, net			1,101				1,160
Property, plant and equipment, net			208				202
Total non-current assets			1,309				1,362
Total Assets			20,745				25,870

 

			June 30,							December 31,
			2022								2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payables				50									93
Other accounts payable				1,114									725
Lease liabilities				309									281
Financial Liabilities at Fair Value				439									3,215
Total current liabilities				1,912									4,314
Non-Current Liabilities:
Lease liabilities				787									900
Loan from the Israeli Innovation Authority				293									302
Total non- current liabilities				1,080									1,202
Shareholders' Equity:
Share capital and premium				52,042									48,935
Foreign exchange reserve				(2,025)									210
Accumulated deficit				(32,264)									(28,791)
Total equity				17,753									20,354
Total Liabilities and Shareholders' Equity				20,745									25,870

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME 
(US dollars in thousands)

							For the Three Months Ended June 30,													For the Six Months Ended June 30,
						2022											2021			2022			2021
Research and development expenses						2,734											437			4,294			1,104
Marketing expenses						305											114			777				244
General and administrative expenses						1,392											389			2,936				1,210
Operating loss						4,431											940			8,007				2,558
Finance expenses (income)						(2,338)											59			(4,534)				5,732
Loss (profit) before tax						2,093											999			3,473				8,290
Taxes on income
Loss (profit) for the period						2,093											999			3,473				8,290
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						(1,810)											182			(2,235)				(33)
Total comprehensive loss for the period						3,903											817			5,708				8,323

 

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 
(US dollars in thousands) 
For the Three-Month Period Ended June 30, 2022 (Unaudited):

		Share capital and premium				Adjustments arising from translating financial operation				Accumulated deficit						Total
Balance on March 31, 2022
Changes during the period:			50,189				(215)					(30,171)						19,803
Loss for the period			-				-					(2,093)						(2,093)
Other comprehensive loss			-				(1,810)					-						(1,810)
Total comprehensive loss			-				(1,810)					(2,093)						(3,903)
Share-based compensation			1,853				-					-						1,853
Balance on June 30, 2022			52,042				(2,025)					(32,264)						17,753

 

For the Six-Month Period Ended June 30, 2022 (Unaudited):

		Share capital and premium				Adjustments arising from translating financial operation				Accumulated deficit						Total
Balance on January 01, 2022
Changes during the period:			48,935				210					(28,791)						20,354
Loss for the period			-				-					(3,473)						(3,473)
Other comprehensive loss			-				(2,235)					-						(2,235)
Total comprehensive loss			-				(2,235)					(3,473)						(5,708)
Share-based compensation			3,107				-					-						3,107
Balance on June 30, 2022			52,042				(2,025)					(32,264)						17,753

 

 

 

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SOURCE Inspira Technologies

FAQ

What are the key financial results for Inspira Technologies for Q2 2022?

Inspira Technologies reported a net loss of $3.5 million for Q2 2022, down from $8.2 million a year earlier. Cash reserves were $19.2 million.

What new products did Inspira Technologies announce in 2022?

Inspira Technologies announced the HYLA™ non-invasive blood sensor and the ALICE™ Device for cardiopulmonary bypass in 2022.

How have Inspira Technologies' research and development expenses changed?

R&D expenses increased to $2.7 million for Q2 2022, up from the previous quarter, driven by new projects.

What markets is Inspira Technologies targeting with its new products?

Inspira is targeting the $2.5 billion arterial blood gas market with HYLA™ and significant deployment agreements in the Israeli and U.S. markets.

How does Inspira Technologies' cash position affect its operations?

With $19.2 million in cash as of June 30, 2022, Inspira Technologies is well-positioned to support ongoing projects and product developments.