RA'ANANA, Israel, Nov. 16,
2023 /PRNewswire/ -- Inspira Technologies OXY
B.H.N. Ltd. (Nasdaq: IINN) (Nasdaq: IINNW) (the "Company"
or "Inspira"), a pioneer in acute respiratory care, today announced
its financial results for the third quarter ended September
30, 2023. This quarter, Inspira continued to progress in the
development of its novel technology for oxygenating blood, an
alternative to traditional mechanical ventilation for respiratory
patients. This patented technology, recently bolstered by a grant
from the Israeli Innovation Authority and new U.S. patents, is at
the heart of Inspira's strategy.
Key business developments include the Company's preparation for
U.S. Food and Drug Administration (FDA) approval of Inspira's
ART100 device and its securing of potentially significant
distribution agreements in Europe
and Central America. These steps
align with Inspira's goal to disrupt the $20
billion respiratory ventilator market.
"We are incredibly pleased with our progress over the last
quarter," remarked Dagi Ben-Noon, Chief Executive Officer of
Inspira. "This period has been marked by significant achievements
in both our business strategy and our intellectual property
portfolio. Our innovative approach to respiratory care, which we
believe is at the forefront of medical technology, has not only
received recognition in the form of patents and grants but is also
steadily moving toward commercial realization."
Financial Results for the nine months ended September 30, 2023
Research and development expenses for the nine months ended
September 30, 2023, were $5.37 million, compared to $6.24 million for the corresponding period in
2022. The reason for the decrease in research and development
expenses was primarily the result of the decrease in share-based
compensation expenses, which was more significant than the increase
in the salary and related expenses from the Company's recruitment
of employees and the expansion of its research and development
department.
Sales and marketing expenses for the nine months ended
September 30, 2023, were $0.59 million compared to $1.08 million for the corresponding period in
2022. The decrease is attributable to a decrease 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 nine months ended
September 30,2023 were $3.01 million, compared to $4.29 million for the corresponding period in
2022. The decrease is primarily due to the decrease in share-based
compensation expenses and a lower cost of director and officer
insurance.
Finance income for the nine months ended September 30, 2023, was $0.86 million, compared to $4.51 million for the corresponding period in
2022. The decrease in finance income is primarily due to the
calculation of the fair market value of the Company's warrants
issued to investors in its pre-initial public offering and initial
public offering (IPO) as financial equity liabilities and the
fluctuation in the U.S. Dollar – New Israeli Shekel exchange rate
during the first half of 2023.
Finance expenses for the nine months ended September 30, 2023 were $0.16 million, compared to $0.04 million for the corresponding period in
2022. The increase in finance expenses is primarily due to the
calculation of the fair market value of the Company's warrants
issued to investors in its pre-IPO and IPO as financial equity
liabilities.
The net loss for the nine months ended September 30, 2023, was $8.28 million, compared to a net loss of
$7.15 million for the nine months
ended September 30, 2022.
Financial highlights for the three months ended September 30, 2023
Research and development expenses for the three months ended
September 30, 2023, were $1.54 million, compared to $1.95 million for the corresponding period in
2022. The decrease is due to the decrease in share-based
compensation expenses and a decrease in expenses related to
projects initiated in the third quarter of 2022.
Sales and marketing expenses for the three months ended
September 30, 2023, were $0.19 million, compared to $0.3 million for the corresponding period in
2022. The reason for the decrease in sales and marketing expenses
was due to the decrease in share-based compensation expenses.
General and administrative expenses for the three months ended
September 30, 2023, were $0.91 million, compared to $1.36 million for the corresponding period in
2022. The decrease is due primarily to a decrease in share-based
compensation expenses and a lower cost of director and officer
insurance.
Finance income for the three months ended September 30, 2023 was $0.22 million, compared to $0.07 million for the corresponding period in
2022. The decrease in finance income is due primarily to the
calculation of the fair market value of the Company's warrants
issued to investors in its pre-IPO and IPO as financial equity
liabilities, in addition to the fluctuation in the U.S. Dollar –
New Israeli Shekel exchange rate during the first half of 2023.
There were no finance expenses for the three months ended
September 30,2023, compared to
$0.14 million for the corresponding
period in 2022.
Balance Sheet Highlights
Cash, cash equivalents and short-term bank deposits were
$6.39 million as of September 30, 2023, compared to $13.9 million as of December 31, 2022.
Financial liabilities at fair market value totaled $0.36 million as of September 30, 2023, compared to $0.37 million as of December 31, 2022. The financial liabilities
represent the fair market value of the Company's warrants being
accounted for as equity liabilities issued to pre-IPO and IPO
investors.
As of September 30, 2023, the
Company's shareholders' equity totaled $5.17
million, compared to shareholders' equity totaling
$12.82 million as of December 31, 2022.
Inspira Technologies OXY B.H.N. Ltd.
Inspira Technologies is at the forefront of revolutionizing
acute respiratory care by introducing groundbreaking medical
technologies. Central to its mission is the development of
innovative solutions that enable direct blood oxygenation,
bypassing the lungs. This pioneering approach sets Inspira apart by
potentially eliminating the reliance on traditional mechanical
ventilation, which is often associated with higher risks and
complexities. Beyond this, the Company is committed to advancing
blood circulation technology and incorporating AI-driven monitoring
systems. These advancements are part of its strategy to offer more
patient-focused, data-informed care. The integration of these
technologies signifies the potential to enhancing patient outcomes
and streamlining hospital operations, marking a new era in
respiratory care.
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 Company's goal to
disrupt the respiratory ventilator market and the Company's move
toward commercial realization of its medical technology. 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)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December 31,
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
3,327
|
|
|
|
6,783
|
|
|
|
Cash
deposits
|
|
|
3,061
|
|
|
|
7,120
|
|
|
|
Other current
assets
|
|
|
431
|
|
|
|
591
|
|
|
|
Total current
assets
|
|
|
6,819
|
|
|
|
14,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
Right of use assets,
net
|
|
|
862
|
|
|
|
1,107
|
|
|
|
Property, plant and
equipment, net
|
|
|
482
|
|
|
|
411
|
|
|
|
Total non-current
assets
|
|
|
1,344
|
|
|
|
1,518
|
|
|
|
Total Assets
|
|
|
8,163
|
|
|
|
16,012
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
Trade accounts
payables
|
|
|
307
|
|
|
|
150
|
|
|
Other accounts
payable
|
|
|
1,083
|
|
|
|
1,217
|
|
|
Lease
liabilities
|
|
|
287
|
|
|
|
329
|
|
|
Financial liabilities
at fair value
|
|
|
363
|
|
|
|
368
|
|
|
Total current
liabilities
|
|
|
2,040
|
|
|
|
2,064
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
Lease
liabilities
|
|
|
502
|
|
|
|
728
|
|
|
Loan from the Israeli
Innovation Authority
|
|
|
452
|
|
|
|
398
|
|
|
Total non- current
liabilities
|
|
|
954
|
|
|
|
1,126
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
Share capital and
additional paid-in capital
|
|
|
55,131
|
|
|
|
53,814
|
|
|
Foreign exchange
reserve
|
|
|
(2,620)
|
|
|
|
(1,928)
|
|
|
Accumulated
deficit
|
|
|
(47,342)
|
|
|
|
(39,064)
|
|
|
Total equity
|
|
|
5,169
|
|
|
|
12,822
|
|
|
Total liabilities and
shareholders' equity
|
|
|
8,163
|
|
|
|
16,012
|
|
|
UNAUDITED CONDENSED
INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Nine
Months
|
|
|
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
|
|
|
2023
|
|
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
|
1,542
|
|
|
|
1,948
|
|
|
5,372
|
|
6, 242
|
Marketing
expenses
|
|
|
|
|
193
|
|
|
|
301
|
|
|
594
|
|
1,078
|
|
General and
administrative expenses
|
|
|
|
|
907
|
|
|
|
1,357
|
|
|
3,011
|
|
4,293
|
|
Operating
loss
|
|
|
|
|
2,642
|
|
|
|
3,606
|
|
|
8,977
|
|
11,613
|
|
Finance
income
|
|
|
|
|
(219)
|
|
|
|
(69)
|
|
|
(856)
|
|
(4,508)
|
|
Finance
expenses
|
|
|
|
|
-
|
|
|
|
135
|
|
|
157
|
|
40
|
|
Loss (profit) before
tax
|
|
|
|
|
2,423
|
|
|
|
3,672
|
|
|
8,278
|
|
7,145
|
|
Taxes on
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (profit) for the
period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
260
|
|
|
|
(58)
|
|
|
692
|
|
(2,293)
|
|
Total comprehensive
loss for the period
|
|
|
2,683
|
|
|
|
3,730
|
|
|
8,970
|
|
9,438
|
|
UNAUDITED CONDENSED
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month
Period Ended September 30, 2023 (Unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
and
additional
paid-in capital
|
|
|
Adjustments
arising from
translating
financial
operation
|
|
|
Accumulated
deficit
|
|
|
Total
|
|
Balance on
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes during the
period:
|
|
54,831
|
|
|
(2,360)
|
|
|
(44,919)
|
|
7,552
|
|
Loss for the
period
|
|
-
|
|
|
-
|
|
|
(2,423)
|
|
(2,423)
|
|
Other comprehensive
loss
|
|
-
|
|
|
(260)
|
|
|
-
|
|
(260)
|
|
Total comprehensive
loss
|
|
-
|
|
|
(260)
|
|
|
(2,423)
|
|
(2,683)
|
|
Share-based
compensation
|
|
300
|
|
|
-
|
|
|
-
|
|
300
|
|
Balance on September
30, 2023
|
|
55,131
|
|
|
(2,620)
|
|
|
(47,342)
|
|
5,169
|
|
For the nine-month
Period Ended September 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
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(8,278)
|
|
|
|
(8,278)
|
|
Other comprehensive
loss
|
|
|
-
|
|
|
|
(692)
|
|
|
|
|
-
|
|
|
|
(692)
|
|
Total comprehensive
loss
|
|
|
-
|
|
|
|
(692)
|
|
|
|
|
(8,278)
|
|
|
|
(8,970)
|
|
Share-based
compensation
|
|
|
1,317
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
1,317
|
|
Balance on September
30, 2023
|
|
|
55,131
|
|
|
|
(2,620)
|
|
|
|
|
(47,342)
|
|
|
|
5,169
|
|
For more details:
Public Relations Manager
Adi Shmueli
Inspira Technologies
info@inspirao2.com
+972-9-9664485
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SOURCE Inspira Technologies