Home News Inspira Technologies Announces 2021 Third Quarter Financial Results

Inspira Technologies Announces 2021 Third Quarter Financial Results

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In October 2021, Company increases cash balance by $9.4 Million due to investors Exercising Warrants; As of November 1, the company has $26 million in cash

– $16 million raised in the initial public offering (the “IPO”) of 2,909,091 units at a price of $5.51 on July 16, 2021

– $17 million in cash and cash equivalent as of September 30, 2021 (not including warrant exercises)

– $26 million in cash as of November 1, 2021, including $9,377,500 via the exercise of 1,705,000 warrants at $5.50 per share.

– Potential $66 million distribution agreement for ART in Europe: The Company has signed an agreement with the WAAS Group for the deployment of ART Systems in Spain and Portugal over a 7-year period, subject to regulatory approval

RA’ANANA, IsraelNov. 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.

Inspira Technologies Logo
Inspira Technologies Logo

“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
Cision
Cision

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SOURCE Inspira Technologies

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