Full Press Release Details
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED FINANCIAL STATEMENTS
_______________________
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
| Page | ||
| Interim condensed statements of financial position | 1-2 | |
| Interim condensed statements of comprehensive loss | 3 | |
| Interim condensed statements of changes in shareholders' deficiency | 4 | |
| Interim condensed statements of cash flows | 5 | |
| Notes to the unaudited Interim condensed financial statements | 6-11 |
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF FINANCIAL
(US dollars in thousands)
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | 4,355 | 496 | ||||||
| Restricted cash | 857 | - | ||||||
| Other accounts receivable | 371 | 188 | ||||||
| Total current assets | 5,583 | 684 | ||||||
| Non-Current Assets: | ||||||||
| Right of use assets, net | 232 | 258 | ||||||
| Property, plant and equipment, net | 79 | 45 | ||||||
| Total non-current assets | 311 | 303 | ||||||
| Total Assets | 5,894 | 987 |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF FINANCIAL
(US dollars in thousands)
| June 30, | December 31, | |||||||||
| Note | 2021 | 2020 | ||||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||
| Current Liabilities: | ||||||||||
| Trade accounts payables | 9 | 3 | ||||||||
| Other accounts payable | 467 | 549 | ||||||||
| Lease liabilities | 206 | 180 | ||||||||
| Financial Liabilities at Fair Value | 4 | 14,282 | 219 | |||||||
| Total current liabilities | 14,964 | 951 | ||||||||
| Non-Current Liabilities: | ||||||||||
| Lease liabilities | 37 | 95 | ||||||||
| Financial Liabilities at Fair Value | 4 | - | 1,273 | |||||||
| Loan from the Israeli Innovation Authority | 458 | 372 | ||||||||
| Total non- current liabilities | 495 | 1,740 | ||||||||
| Deficit: | ||||||||||
| Share capital and premium | 3 | 8,091 | 8,053 | |||||||
| Foreign exchange reserve | ( 668 | ) | ( 635 | ) | ||||||
| share base compensation | 3,138 | 2,714 | ||||||||
| Accumulated deficit | ( 20,126 | ) | ( 11,836 | ) | ||||||
| Total deficit | ( 9,565 | ) | ( 1,704 | ) | ||||||
| Total Liabilities And Deficit | 5,894 | 987 |
| October 13, 2021 | ||||
| Joe Hayon Chief Financial Officer | Dagi Ben-Noon Chief Executive Officer | Date of approval of financial statements |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES
UNAUDITED INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE
(US dollars in thousands)
| Six months ended June 30, | Six months ended June 30, | |||||||
| 2021 | 2020 | |||||||
| Research and development expenses | 1,104 | 1,456 | ||||||
| Sales and marketing expenses | 244 | - | ||||||
| General and administrative expenses | 1,210 | 840 | ||||||
| Operating loss | 2,558 | 2,296 | ||||||
| Finance expense | 5,732 | 2,052 | ||||||
| Loss before tax | 8,290 | 4,348 | ||||||
| Taxes on income | - | - | ||||||
| Total net loss | 8,290 | 4,348 | ||||||
| Other comprehensive loss, net of tax: | ||||||||
| Items that will not be reclassified to profit or loss: | ||||||||
| Exchange losses arising on translation to presentation currency | 33 | 15 | ||||||
| Total comprehensive loss | 8,323 | 4,363 | ||||||
| Basic and diluted loss per share (*) | ( 3.11 | ) | ( 2.28 | ) |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES
UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES
IN SHAREHOLDERS' DEFICIENCY
(US dollars in thousands)
For the six months ended June 30, 2021:
| Share capital | Premium | Adjustments arising from translating financial operation | Share-based payment reserve | Accumulated deficit | Total | |||||||||||||||||||
| Balance at January 1, 2021: | 304 | 7,749 | ( 635 | ) | 2,714 | ( 11,836 | ) | ( 1,704 | ) | |||||||||||||||
| Changes during the period: | ||||||||||||||||||||||||
| Net loss | - | - | - | - | ( 8,290 | ) | ( 8,290 | ) | ||||||||||||||||
| Other comprehensive loss | - | - | ( 33 | ) | - | - | ( 33 | ) | ||||||||||||||||
| Total comprehensive loss | - | - | ( 33 | ) | - | ( 8,290 | ) | ( 8,323 | ) | |||||||||||||||
| Per value cancellation | ( 304 | ) | 304 | - | - | - | - | |||||||||||||||||
| Options exercise | - | 38 | - | ( 38 | ) | - | - | |||||||||||||||||
| Share base compensation | - | - | - | 462 | - | 462 | ||||||||||||||||||
| Balance at June 30, 2021 | - | 8,091 | ( 668 | ) | 3,138 | ( 20,126 | ) | ( 9,565 | ) |
For the six months ended June 30, 2020:
| Share capital | Adjustments arising from translating financial operation | Share-based payment reserve | Accumulated deficit | Total | ||||||||||||||||
| Balance at January 1, 2020: | 3 | ( 36 | ) | - | ( 4,608 | ) | ( 4,641 | ) | ||||||||||||
| Changes during the period: | ||||||||||||||||||||
| Net loss | - | - | - | ( 4,348 | ) | ( 4,348 | ) | |||||||||||||
| Other comprehensive loss | - | ( 15 | ) | - | - | ( 15 | ) | |||||||||||||
| Total comprehensive loss | - | ( 15 | ) | - | ( 4,348 | ) | ( 4,363 | ) | ||||||||||||
| Share base compensation | - | - | 1,299 | - | 1,299 | |||||||||||||||
| Balance at June 30, 2020 | 3 | ( 51 | ) | 1,299 | ( 8,956 | ) | ( 7,705 | ) |
The accompanying notes are an integral part
of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH
(US dollars in thousands)
| Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | ( 8,290 | ) | ( 4,348 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation | 93 | 79 | ||||||
| Increase in other accounts receivable | ( 180 | ) | ( 1 | ) | ||||
| Increase in trade accounts payables | 6 | 5 | ||||||
| Increase (decrease) in other accounts payable | ( 77 | ) | 88 | |||||
| Share based compensation | 462 | 1,283 | ||||||
| Change in fair value of Financial Liabilities at Fair Value | 5,549 | 2,039 | ||||||
| Financial expenses | 107 | 19 | ||||||
| Net cash used in operating activities | ( 2,330 | ) | ( 836 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property, plant and equipment | ( 41 | ) | ( 12 | ) | ||||
| Payment of deposit | ( 857 | ) | ( 39 | ) | ||||
| Net cash provided investing activities | ( 898 | ) | ( 51 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Principal paid on lease liabilities | ( 106 | ) | ( 88 | ) | ||||
| Receipt SAFE | 4,112 | 857 | ||||||
| Receipt convertible loan | 3,484 | - | ||||||
| Payment of convertible loan | ( 431 | ) | - | |||||
| Loan from the Israeli Innovation Authority | 55 | 197 | ||||||
| Net cash provided financing activities | 7,114 | 966 | ||||||
| Net increase in cash and cash equivalents | 3,886 | 79 | ||||||
| Cash and cash equivalents at the beginning of the period | 496 | 96 | ||||||
| Effects of exchange rate changes on cash and cash equivalents | ( 27 | ) | 1 | |||||
| Cash and cash equivalents at the end of the period | 4,355 | 176 |
APPENDIX A - AMOUNT PAID DURING THE PERIOD:
| Six-months ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Interest paid | - | 8 |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL
(US dollars in thousands)
The Company operates in the medical technology
industry and is developing a proprietary respiratory support device calles "ART system". The ART system is a cost effective
early extracorporeal respiratory support system with an intent to function as an "artificial lung" for deteriorating respiratory
The ART system is designed to utilize a hemo-protective flow approach aimed to rebalance saturation levels while patients are awake and
breathing, potentially minimizing the patient's need for mechanical ventilation.
The Company's product has not yet
been tested or used in humans and has not been approved by the U.S. Food and Drug Administration (FDA).
On July 16, 2021, the Company
completed its initial public offering ("IPO") on Nasdaq Capital Market whereby he company
sold 2,909,091 Ordinary Shares (the "Ordinary Shares") and 3,345,455 tradable warrants (inclusive of 436,364 tradable warrants
pursuant to the exercise of an overallotment option granted to the underwriters). The aggregate proceeds received by the Company from
the IPO were $14,500, after deducting underwriting discounts and commissions and additional offering costs.
On July 16, 2021, following the IPO, the Company issues 2,113,905 ordinary shares and 1,149,582 warrants to investors in connection with
the conversion of Company's previously issued financial liabilities at fair value.
The management of the Company intends to seek additional
funding through public offerings, which will be utilized to fund product development and continue operations. The Company does not have
any material financial obligations as of the balance date.
This may raise substantial
doubts about the company ability to continue as a going concern. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL
(US dollars in thousands)
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of preparation
These interim condensed financial statements have been prepared in
accordance with the International Accounting Standards (the "IAS") 34 Interim Financial Reporting, as issued by the International
Accounting Standards Board (IASB). They do not include all disclosures that would otherwise be required in a complete set of financial
statements and should be read in conjunction with the 2020 annual financial statements filed with the Company's registration statement
on Form F-1 (file no. 333-253920) declared effective by the U.S. Securities and Exchange Commission on July 13, 2021. The Company has
applied the same accounting policies and methods of computation in its interim financial statements as in its 2020 annual financial statements.
Impact of accounting standards to be applied in future periods
There are a number of standards and interpretations which have been
issued by the IAS Board that are effective for periods beginning subsequent to December 31, 2021 (the date on which the Company's
next annual financial statements will be prepared up to) that the Company has decided not to adopt early. The Company does not believe
these standards and interpretations will have a material impact on the financial statements once adopted.
NOTE 3 - SIGNIFICANT EVENTS AND TRANSACTIONS IN THE
Following the share splits and the cancellation
of the par value, all Ordinary Shares, options, financial liabilities at fair value, warrants, exercise prices and per share data have
been adjusted retroactively for all periods presented in these financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL
(US dollars in thousands)
NOTE 4 - FINACIAL LIABILITIES VALUE:
| June 30, 2021 | December 31, 2020 | |||||||
| Warrants | ( 330 | ) | ( 219 | ) | ||||
| SAFE | ( 9,370 | ) | ( 1,273 | ) | ||||
| Convertible loan | ( 4,582 | ) | - | |||||
| Total | ( 14,282 | ) | ( 1,492 | ) |
In December 2020 through March 2021, the Company entered into certain equity investment agreements, which known as simple agreements
for future equity, ("SAFEs"), for aggregate proceeds of 5,415.
Out of the amounts the company received under
the SAFEs, 2,804 was to be converted into the Company's Ordinary Shares, at a conversion rate equal to the lower of (i) Company
valuation cap of 35,000, or (ii) a discount of 30% from the per share price of the Company's Ordinary Share in the event of an initial
public offering, merger, acquisition or other liquidity event.
In addition, if the subscription amounts under the SAFEs is converted
to Ordinary Shares in connection with an initial public offering, then the company will issue the SAFE investors warrants to purchase
the Company's Ordinary Shares with an exercise price equal to the public offering price in such offering, as follows: (i) investors
representing an aggregate of 1,426 of the SAFEs were to receive 75% warrant coverage, such that each investor will receive warrants to
purchase 3 additional ordinary shares for every 4 shares issued upon conversion of the SAFE, which were to be exercisable for 4 years
after the initial public offering, and (ii) investors representing an aggregate of 1,378 of the SAFEs shall receive 50% warrant coverage
such that each investor will receive warrants to purchase 2 additional Ordinary Shares for every four shares issued upon conversion of
the SAFE, which were to be exercisable for three years after the initial public offering. If an initial public offering, merger and acquisition