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Inspira™ Technologies Reports Second Quarter 2023 Financial Results

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Inspira Technologies OXY B.H.N. Ltd. announces financial results for Q2 2023. The company had $8.9 million in cash, cash equivalents, and short-term bank deposits as of June 30, 2023. The INSPIRA ART100 is planned for submission to the FDA for clearance. The INSPIRA ART500 is being developed with integrated AI and blood sensor technology. The net loss for the six months ended June 30, 2023, was $5.9 million.
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As of June 30, 2023, the Company had $8.9 million in cash, cash equivalents and short-term bank deposits.

RA'ANANA, Israel, Aug. 10, 2023 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: IINN) (Nasdaq: IINNW) (the "Company" or "Inspira"), a company aiming to revolutionize acute respiratory care, announced today its financial results for the second quarter ended June 30, 2023.

 

Inspira Technologies Logo

 

Outlook:

INSPIRA™ ART100 - We are focused on the final stages of the development of the INSPIRA ART100, which is planned to be submitted to the U.S. Food and Drug Administration (the "FDA") clearance via the 510(k) pathway. We believe that the potential completion of the INSPIRA ART100 illustrates and validates our capability to take a product from research to a full regulatory submission and illustrates the potential of our intellectual property. The INSPIRA ART100 is designed for life support, providing pulmonary and cardiac support. The Company is preparing for the unveiling of the INSPIRA ART100 at the world's largest Extracorporeal Life Support Organization (ELSO) conference, the 34th Annual ELSO Conference in Seattle, Washington, which will be held between September 28 and October 1, 2023.

INSPIRA™ ART500 – We continue to expend company resources towards the development of the INSPIRA ART500 and integrated artificial intelligence ("AI") and blood sensor technology. The Company is awaiting potential future grants of patents in the U.S. for the INSPIRA ART500 technologies.

The INSPIRA ART500 is a potentially disruptive, paradigm-shifting solution, offering a potentially new treatment category that uniquely utilizes small volumes of blood to increase oxygen saturation levels in minutes. To empower awake patients to breathe without lungs, the Company intends to integrate advanced hemodynamic sensor technologies with AI-powered real-time analytics to support significantly improving patient outcomes. In today's fast-paced healthcare environment, limited patient interaction time and a lack of real-time data can lead to overlooking subtle changes in the patient's condition, which could negatively impact clinical outcomes. INSPIRA AI will usher in a new era of hyper-personalization acute respiratory care, delivering real-time insights and alerts to support physician decision-making to support timely clinical intervention and enhance the quality of care.

"We are extremely pleased with our progress in the second quarter of 2023," said Dagi Ben-Noon, Chief Executive Officer of Inspira. "We are dedicated to delivering value to both patients who potentially may need our future products and our shareholders alike. We remain committed to driving innovation, expanding our technological and product development to bring new needed technologies to the medical device market."

Financial Results for the six months ended June 30, 2023

Research and development expenses for the six months ended June 30, 2023 were $3.8 million, compared to $4.3 million for the corresponding period in 2022. The reason for the decrease in research and development expenses was primarily the result of a decrease in share-based compensation expenses, which was more significant than the increase in the salary and related expenses as a result of the Company's recruitment of employees, as well as the expansion of its research and development department.

Sales and marketing expenses for the six months ended June 30, 2023, were $401,000 compared to $777,000 for the corresponding period in 2022. The decrease is attributable to decreases in share-based compensation expenses and a reduction in marketing activities. The marketing department increased its efforts in the first half of 2022 with respect to brand awareness and exploring go-to-market capabilities.

General and administrative expenses for the six months ended June 30, 2023 were $2.1 million, compared to $2.9 million for the corresponding period in 2022. The decrease resulted primarily from a decrease in share-based compensation expenses and a lower cost of director and officer insurance.

Finance income for the six months ended June 30, 2023, was $652,000, compared to $4.5 million for the corresponding period in 2022. The decrease in finance income resulted primarily from the calculation of the fair market value of the Company's financial equity liabilities relating to its pre-initial public offering (IPO) and IPO investors, in addition to the fluctuation in the U.S. dollar – New Israeli Shekel exchange rate during the first half of 2023.

Finance expenses for the six months ended June 30, 2023 were $172,000, compared to $24,000 for the corresponding period in 2022.  The increase in finance expenses resulted primarily from the calculation of the fair market value of the Company's financial equity liabilities relating to its pre-IPO and IPO investors.

The net loss for the six months ended June 30, 2023 was $5.9 million, compared to a net loss of $3.5 million for the six months ended June 30, 2022.

Financial highlights for the three months ended June 30, 2023

Research and development expenses for the three months ended June 30, 2023 were $1.8 million, a decrease of $1 million compared to the second quarter of 2022. The decrease was attributed to a decrease in share-based compensation expenses.

Sales and marketing expenses for the three months ended June 30, 2023 were $233,000, a decrease of approximately $72,000 compared to the second quarter of 2022.

General and administrative expenses for the three months ended June 30, 2023, were $1 million, a decrease of $400,000 compared to the second quarter of 2022. The decrease resulted primarily from a decrease in share-based compensation expenses and a lower cost of director and officer insurance.

Finance income for the three months ended June 30,2023 was $284,000, compared to $2.4 million for the corresponding period in 2022. The decrease in finance income resulted primarily from the calculation of the fair market value of the Company's financial equity liabilities relating to its pre-IPO and IPO investors, in addition to the fluctuation in the U.S. dollar – New Israeli Shekel exchange rate during the first half of 2023.

Finance expenses for the three months ended June 30,2023 were $60,000, compared to $14,000 for the corresponding period in 2022.

Balance Sheet Highlights

Cash, cash equivalents and short-term bank deposits were $8.9 million as of June 30, 2023, compared to $13.9 million as of December 31, 2022.

Financial liabilities at fair market value totaled $438,000 as of June 30, 2023, compared to $368,000 as of December 31, 2022. The financial liabilities represent the fair market value of the Company's equity liabilities to pre-IPO and IPO investors.

As of June 30, 2023, the Company's shareholders' equity totaled $7.5 million, compared to shareholders' equity totaling $12.8 million as of December 31, 2022.

Inspira Technologies OXY B.H.N. Ltd.

Inspira Technologies has a clear mission to revolutionize acute respiratory care through innovation. Our aim is to develop medical technologies and products that prevent the need for mechanical ventilation. Empowering breathing without lungs, the flagship INSPIRATM ART500 is designed to boost blood oxygen saturation levels in a matter of minutes, even as the patient remains awake. We strive to deliver blood circulation technology alongside AI driven monitoring and analytics to create patient-centric and data-driven solutions that enhance patient outcome and improve hospital efficiency. Through our continuous efforts, we aim to reshape the future of extracorporeal treatments to create a better healthcare experience for patients around the world. The Company's products have not yet been tested or used in humans and have 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 its belief that the third quarter is pivotal for the Company, the regulatory submission of the INSPIRATM ART100 to the FDA via the 510(k) pathway, the timing thereof and expected clearance during the second half of 2023. 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, 2022 filed with the SEC, which is available on the SEC's website, www.sec.gov.

Copyright © 2018-2023 Inspira Technologies OXY B.H.N. LTD., All rights reserved.

 

 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
(U.S. dollars in thousands)











June 30,



December 31,






2023



2022













ASSETS











Current Assets:











Cash and cash equivalents



3,324




6,783




Cash deposits



5,643




7,120




Other current assets



356




591




Total current assets



9,323




14,494















Non-Current Assets:











Right of use assets, net



967




1,107




Property, plant and equipment, net



550




411




Total non-current assets



1,517




1,518




Total Assets



10,840




16,012




















 

 

 




June 30,

 December 31,





2023



2022












LIABILITIES AND SHAREHOLDERS' EQUITY











Current Liabilities:











Trade accounts payables




149




150



Other accounts payable




1,372




1,217



Lease liabilities




309




329



Financial liabilities at fair value




438




368



Total current liabilities




2,268




2,064














Non-Current Liabilities:











Lease liabilities




588




728



Loan from the Israeli Innovation Authority




432




398



Total non- current liabilities




1,020




1,126














Shareholders' Equity:











Share capital and additional paid-in capital




54,831




53,814



Foreign exchange reserve




(2,360)




(1,928)



Accumulated deficit




(44,919)




(39,064)



Total equity




7,552




12,822



Total liabilities and shareholders' equity




10,840




16,012























 

 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(U.S. dollars in thousands)


















For the Three Months
Ended June 30,

 



For the Six Months
Ended June 30,

 





 

 

2023




2022



 

 

2023


2022


















Research and development
expenses




1,776




2,734



 

3,830


 

4,294


Marketing expenses





233




305



401


777


General and administrative
expenses





1,039




1,392



 

2,104


 

2,936


Operating loss





3,048




4,431



6,335


8,007


Finance income





(284)




(2,352)



(652)


(4,558)


Finance expenses





60




14



172


24


Loss (profit) before tax





2,824




2,093



5,855


3,473


Taxes on income
















Loss (profit) for the period




2,824




2,093



 

5,855


 

3,473


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



(138)




1,810



 

 

(432)


 

 

(2,235)


Total comprehensive loss for the period



(2,962)




3,903



 

(6,287)


 

5,708
































 

 

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(U.S. dollars in thousands)

 

For the Three-Month Period Ended June 30, 2023 (Unaudited):



Share
capital
and
additional
paid-in
capital



Adjustments
arising from
translating
financial
operation



Accumulated
deficit



Total


Balance on March 31, 2023


















Changes during the period:



54,397




(2,222)





(42,095)




10,080


Loss for the period



-




-





(2,824)




(2,824)


Other comprehensive loss



-




(138)





-




(138)


Total comprehensive loss



-




(138)





(2,824)




(2,962)


Share-based compensation



434




-





-




434


Balance on June 30, 2023



54,831




(2,360)





(44,919)




7,552


 

 

 

For the six-month Period Ended June 30, 2023 (Unaudited):



Share
capital
and
additional
paid-in
capital



Adjustments
arising from
translating
financial
operation



Accumulated
deficit



Total


Balance on January 1, 2023


















Changes during the period:



53,814




(1,928)





(39,064)




12,822


Loss for the period



-




-





(5,855)




(5,855)


Other comprehensive loss



-




(432)





-




(432)


Total comprehensive loss



-




(432)





(5,855)




(6,287)


Share-based compensation



1,017




-





-




1,017


Balance on June 30, 2023



54,831




(2,360)





(44,919)




7,552


 

 

 

Logo - https://mma.prnewswire.com/media/1941810/Inspira_Technologies_Logo.jpg

For more details:
Adi Shmueli
Public Relations Manager
Inspira Technologies
info@inspirao2.com
+972-9-966448

Cision View original content:https://www.prnewswire.com/news-releases/inspira-technologies-reports-second-quarter-2023-financial-results-301897898.html

SOURCE Inspira Technologies

FAQ

What is the cash position of Inspira Technologies as of June 30, 2023?

Inspira Technologies had $8.9 million in cash, cash equivalents, and short-term bank deposits.

What is the INSPIRA ART100?

The INSPIRA ART100 is a product designed for life support, providing pulmonary and cardiac support. It is planned for submission to the FDA for clearance.

What is the INSPIRA ART500?

The INSPIRA ART500 is a potentially disruptive solution that utilizes small volumes of blood to increase oxygen saturation levels in minutes. It integrates AI and blood sensor technology.

What were the financial results for the six months ended June 30, 2023?

The net loss for the six months ended June 30, 2023, was $5.9 million.

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