Inspira™ Technologies Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

Inspira Technologies OXY B.H.N. Ltd. (IINN) reported financial results for Q3 2022, with cash reserves of $16.2 million. The company is focused on developing the HYLA blood sensor for cardiopulmonary bypass surgery, aiming to enhance patient monitoring.

Research and development expenses surged to $6.2 million for the nine months ending September 30, 2022, while net loss reached $7.1 million. Inspira secured strategic agreements in Europe and the U.S. for the deployment of HYLA sensors, potentially valued at $26.1 million and $59 million, respectively.

Positive

• Secured agreements in Europe and the U.S. valued at $85.1 million for HYLA Blood Sensors.
• Cash reserves of $16.2 million as of September 30, 2022, provide a solid financial foundation.

Negative

• Net loss increased to $7.1 million for the nine months ended September 30, 2022, compared to $6 million in the prior year.
• Research and development expenses significantly rose to $6.2 million for the nine months, indicating higher operational costs.

As of September 30, 2022, the Company had $16.2 million in cash, cash equivalents, and short-term bank deposits

RA'ANANA, Israel, Nov. 23, 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 third quarter ended September 30, 2022.

 

Dagi Ben-Noon, Chief Executive Officer of Inspira Technologies, stated: 
"Our research and development programs continue to progress towards meeting our strategic targets. In the first quarter of 2023 we plan to see an important component of the INSPIRA™ ART system, our HYLA™ blood sensor, commence a clinical study to be performed alongside patients undergoing cardiopulmonary bypass surgery. The study is designed to integrate clinical research into the product development cycle. The HYLA blood sensor is being designed as a non-invasive blood sensor to perform continuous blood parameter measurements in real-time, assisting physicians in the monitoring of a patient's clinical condition and alerting of a sudden change in the patient's vital signs, which may require immediate medical attention, and which may potentially save lives.   

"The Company is well funded to achieve its immediate goals, as it strategically advances towards the preparation for entering the verification and validation (V&V) process, a pre-requisite for, and to be followed by, the planned submission for the U.S. Food and Drug Administration (FDA) clearance of our ALICE™ Device."

Highlights:

• November 22, 2022 - Inspira Technologies announced a strategic agreement in Europe, with a potential value of $26.1 million for the deployment of 1,364 HYLA Blood Sensors. The agreement is for a five-year period and is subject to regulatory approvals.
• November 10, 2022 - Inspira™ Technologies announced the grant of a patent by the Israeli Patent Office for a key safety component for the INSPIRA ART system.
• September 7, 2022 - Inspira™ Technologies announced the performance of an HYLA blood sensor in-vivo study, in preparation for a planned clinical study. The in-vivo study team included leading ICU and respiratory specialists from the Company's Scientific Advisory Board.
• July 11, 2022 - Inspira Technologies announced the ALICE Device, designed as a cardiopulmonary bypass (CPB) or heart-lung bypass device, designed to oxygenate and circulate blood for up to six hours during cardiac surgery.
• 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 approvals.
• July 6, 2022 - Inspira Technologies announced the research and 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.

Financial Results for the Nine Months Ended September 30, 2022

Research and development expenses for the nine months ended September 30, 2022, were $6.2 million, compared to $1.7 million for the corresponding period in 2021. The increase is a result of the Company's recruitment of specialized manpower and the expanded research and development of its new technologies and operations.

Marketing expenses for the nine months ended September 30, 2022, were $1.0 million compared to $391,000 for the corresponding period in 2021. The increase is attributable to increases 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 nine months ended September 30, 2022, were $4.3 million, compared to $3.4 million for the corresponding period in 2021. The increase resulted primarily from an increase in payroll and related expenses, as well as to 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 nine months ended September 30, 2022, was $4.5 million, compared to finance expenses in the amount of $573,000 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 nine months ended September 30, 2022, was $7.1 million, compared to a net loss of $6 million for the nine months ended September 30, 2021.

Financial Highlights for the Quarter ended September 30, 2022

Research and development expenses for the three months ended September 30, 2022, were $1.95 million, an increase of $1.37 million compared to $581,000 in research and development expenses for the corresponding period in 2021. The increase was attributable to the Company's stage and progress of the research and development process.  

General and administrative expenses for the three months ended September 30, 2022, were $1.4 million, compared to $2.2 million for the corresponding period in 2021. The decrease is attributed to professionals' fees, finders' fees and IPO related expenses throughout the period when the Company went public in the third quarter of 2021.

Sales and marketing expenses for the three months ended September 30, 2022, were $301,000, compared to $147,000 for the corresponding period in 2021.

Balance Sheet Highlights

Cash, cash equivalents, and short-term bank deposits were $16.2 million as of September 30, 2022, compared to $23.7 million as of December 31, 2021.

Financial liabilities at fair value totaled $491,000 as of September 30, 2022, compared to $3.2 million as of December 31, 2021. The financial liabilities represent the fair value of the Company's equity liabilities to pre-IPO and IPO investors.

As of September 30, 2022, the Company's shareholders' equity totaled $14.9 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 is researching and developing 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 the progress of its research and development programs, the timing, and design, of its clinical studies, the benefits to be derived from its products, that it is well funded to achieve its immediate goals and the expectation of the submission of its products for FDA clearance. 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.

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-041 Copyright © 2018-2022 Inspira Technologies OXY B.H.N. LTD., All rights reserved.

UNAUDITED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (US dollars in thousands)
		September 30,				December 31,
		2022				2021
ASSETS
Current Assets:
Cash and cash equivalents			6,134				23,749
Cash deposits			10,082				-
Other accounts receivable			578				639
Restricted cash			53				120
Total current assets			16,847				24,508
Non-Current Assets:
Right of use assets, net			1,140				1,160
Property, plant and equipment, net			283				202
Total non-current assets			1,423				1,362
Total Assets			18,270				25,870

 

 

			September 30,								December 31,
			2022									2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payables				121									93
Other accounts payable				1,310									725
Lease liabilities				330									281
Financial Liabilities at Fair Value				491									3,215
Total current liabilities				2,252									4,314
Non-Current Liabilities:
Lease liabilities				777									900
Loan from the Israeli Innovation Authority				302									302
Total non- current liabilities				1,079									1,202
Shareholders' Equity:
Share capital and premium				52,958									48,935
Foreign exchange reserve				(2,083)									210
Accumulated deficit				(35,936)									(28,791)
Total equity				14,939									20,354
Total Liabilities and Shareholders' Equity				18,270									25,870

 

UNAUDITED CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(US dollars in thousands)
						For the Three Months Ended September 30,															For the Nine Months Ended September 30,
						2022											2021				2022				2021
Research and development expenses						1,948											581				6,242				1,685
Marketing expenses						301											147				1,078					391
General and administrative expenses						1,357											2,215				4,293					3,425
Operating loss						3,606											2,943				11,613					5,501
Finance (income)						(69)											(5,529)				(4,508)					(24)
Finance expenses						135											370				40					597
Loss (profit) before tax						3,672											(2,216)				7,145					6,074
Taxes on income
Loss (profit) for the period						3,672											(2,216)				7,145					6,074
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						(58)											288				(2,293)					255
Total comprehensive loss for the period						3,730											(2,504)				9,438					5,819

 

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US dollars in thousands)
For the Three-Month Period Ended September 30, 2022 (Unaudited):
		Share capital and premium				Adjustments arising from translating financial operation				Accumulated deficit						Total
Balance on June 30, 2022
Changes during the period:			52,042				(2,025)					(32,264)						17,753
Loss for the period			-				-					(3,672)						(3,672)
Other comprehensive loss			-				(58)					-						(58)
Total comprehensive loss			-				(58(					(3,672)						(3,730)
Share-based compensation			916				-					-						916
Balance on September 30, 2022			52,958				(2,083)					(35,936)						14,939

 

For the Nine-Month Period Ended September 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			-				-					(7,145)						(7,145)
Other comprehensive loss			-				(2,293)					-						(2,293)
Total comprehensive loss			-				(2,293)					(7,145)						(9,438)
Share-based compensation			4,023				-					-						4,023
Balance on September 30, 2022			52,958				(2,083)					(35,936)						14,939

 

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SOURCE Inspira Technologies

FAQ

What are the financial results of Inspira Technologies for Q3 2022?

Inspira Technologies reported a net loss of $7.1 million and cash reserves of $16.2 million as of September 30, 2022.

What is the strategic value of the agreements announced by Inspira Technologies?

Inspira Technologies announced agreements valued at $85.1 million for the deployment of HYLA Blood Sensors in Europe and the U.S.

How much did Inspira Technologies spend on research and development in Q3 2022?

Inspira Technologies spent $1.95 million on research and development in Q3 2022, a significant increase from $581,000 in Q3 2021.

What is the purpose of the HYLA blood sensor developed by Inspira Technologies?

The HYLA blood sensor is designed for real-time monitoring of blood parameters during cardiopulmonary bypass surgery.