Inspira Technologies Announces 2021 Third Quarter Financial Results

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, Israel, Nov. 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

“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 [email protected]

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