InspireMD Reports First Quarter 2023 Financial Results and Provides Business Update - Completed transformational private placement for up to $113.6 million, including $42.2 million upfront - - Generated Q1 2023 CGuard EP

Reports First Quarter 2023 Financial Results and Provides

Completed transformational private placement for up to $113.6 million, including $42.2 million upfront -

Generated Q1 2023 CGuard EPS revenue of $1.2 million, an increase of 6.7% over Q1 2022 despite the temporary expiration of the Company's

CE Mark certification until mid-March -

Resumed shipments of CGuard EPS to CE Mark territories under the pre-existing Medical Device Directive (MDD) regulatory framework; Anticipates

re-certification under new Medical Device Regulation (MRD) framework in coming weeks -

Continued enrollment in the C-Guardian US IDE trial; on track to complete enrollment by end of Q2 2023 -

to host investor conference call today, May 16th, at 8:30am ET

Aviv, Israel, and MIAMI - May 16, 2023 - InspireMD, Inc. (Nasdaq: NSPR), developer of the CGuard Embolic

Prevention System (EPS) for treatment of carotid artery disease (CAD) and prevention of stroke today announced financial and operating

results for the first quarter ended March 31, 2023.

Quarter 2023 and Recent Developments:

Slosman, CEO of InspireMD, commented: "The clear highlight since our last quarterly update was the truly transformational financing

that we successfully completed, with participation from leading fundamental healthcare investors. This significant transaction allows

us to advance our business towards several very meaningful milestones, including potential FDA approval and launch of CGuard EPS in the

U.S., initiation of new regulatory pathways for advanced applications of our CGuard stent platform, and development of new products,

while at the same time continuing to grow our business outside of the United States. It also provides invaluable validation of our Company's

strategy to lead the carotid revascularization market globally with a stent-focused, clinical outcomes-based approach.

the first quarter, we were able to generate year-over-year growth in CGuard EPS revenue and units shipped even as the temporary lapse

of our CE Mark certification prevented us from selling into our key markets until approximately the second half of the quarter, when

we were permitted to resume sales under the pre-existing MDD framework as we await final recertification under MDR. We believe this speaks

to growing awareness of CGuard's superior short- and long-term clinical outcomes, demonstrated across numerous clinical studies,

that differentiate it from competing stent systems and make it a compelling alternative to far more invasive surgery.

parallel, our critical U.S. IDE trial continues to progress, with the recent completion of the first-in-human stenting procedure using

the CGuard Prime CAS delivery system. We anticipate completing enrollment by approximately the end of this quarter. Obtaining U.S. marketing

approval of CGuard EPS remains a top priority and would represent a watershed opportunity in the direction for our company.

the planned introduction of a new stent delivery system in CGuard Prime, along with our SwitchGuard TCAR neuro protection system, we

believe we are well positioned to accelerate the ongoing conversion of carotid surgical procedures to endovascular stent-based interventions,

where carotid artery disease significantly lags other endovascular procedure categories. At the same time, with the likely recertification

of our CE Mark under MDR occurring imminently, we plan to continue to grow market share in our approved served markets. We are incredibly

encouraged by the potential of these transformational milestones for our company and look forward to our focus on growth and market leadership,"

Mr. Slosman concluded.

Results for the First Quarter ended March 31, 2023

the three months ended March 31, 2023, revenue increased by $56,000, or 4.7%, to $1,239,000, from $1,183,000 during the three months

ended March 31, 2022. This increase was predominantly driven by a 6.7% increase in sales of CGuard EPS from $1,161,000 during the three

months ended March 31, 2022, to $1,239,000 during the three months ended March 31, 2023.

the second half of the quarter, the company's CE mark was reinstated under the MDD directive allowing the company to resume sales

and shipments to the EU countries. The Company worked through the remainder of the quarter shipping product to reduce the backlog of

orders that accumulated over the past few months. InspireMD believes the quarter-over-quarter increase in revenue during the first quarter

of 2023 is not representative of the real underlying market demand for CGuard EPS, due to the Company's inability to ship product

for the first half of the quarter. The Company continues to work to expedite the review process for recertification under the MDR.

the three months ended March 31, 2023, gross profit (revenue less cost of revenues) increased by $251,000, or 205.6%, to $373,000, from

$122,000 during the three months ended March 31, 2022. This increase in gross profit resulted from a decrease in write-offs of $184,000

and a $71,000 increase in revenues (as mentioned above), less the associated related material and labor. Gross margin (gross profits

as a percentage of revenue) increased to 30.1% during the three months ended March 31, 2023, from 10.3% during the three months ended

March 31, 2022, driven by the factors mentioned above.

operating expenses for the first quarter of 2023, were $4,754,000, an increase of $146,000 or 3.2% compared to $4,608,000 for the first

quarter of 2022. This increase was primarily due to increases in expenses related to C-Guardians FDA study, sales and marketing expenses,

and regulatory expenses.

loss for the first quarter of 2023 totaled $4,256,000 or $0.53 per basic and diluted share, compared to a net loss of $4,481,000, or

$0.57 per basic and diluted share, for the same period in 2022.

of March 31, 2023, cash, cash equivalents and short-term bank deposits were $12.9 million compared to $17.8 million as of December 31,

2022. As noted, subsequent to the end of the first quarter 2023, the Company completed a private placement that resulted in upfront gross

proceeds of $42.2 million.

Call and Webcast Details

will host a conference call today, Tuesday, May 16th, at 8:30 AM ET, to review financial results and provide an update on

corporate developments. Following management's formal remarks, there will be a question-and-answer session.

May 16th, at 8:30 a.m. ET

seeks to utilize its proprietary MicroNet technology to make its products the industry standard for carotid stenting by providing

outstanding acute results and durable, stroke-free, long-term outcomes. InspireMD's common stock is quoted on the Nasdaq under

the ticker symbol NSPR.

routinely post information that may be important to investors on our website. For more information, please visit www.inspiremd.com.

press release contains "forward-looking statements." Forward-looking statements include, but are not limited to, statements

regarding InspireMD or its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Such

statements may be preceded by the words "intends," "may," "will," "plans," "expects,"

"anticipates," "projects," "predicts," "estimates," "aims," "believes,"

"hopes," "potential", "scheduled" or similar words. Forward-looking statements are not guarantees

of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of

which are beyond the company's control, and cannot be predicted or quantified and consequently, actual results may differ materially

from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and

uncertainties associated with our history of recurring losses and negative cash flows from operating activities, significant future commitments

and the uncertainty regarding the adequacy of our liquidity to pursue our complete business objectives, and substantial doubt regarding

our ability to continue as a going concern; our need to raise additional capital to meet our business requirements in the future and

such capital raising may be costly or difficult to obtain and could dilute out stockholders' ownership interests; market acceptance

of our products; an inability to secure and maintain regulatory approvals for the sale of our products; negative clinical trial results

or lengthy product delays in key markets; our ability to maintain compliance with the Nasdaq listing standards; our ability to generate

revenues from our products and obtain and maintain regulatory approvals for our products; our ability to adequately protect our intellectual

property; our dependence on a single manufacturing facility and our ability to comply with stringent manufacturing quality standards

and to increase production as necessary; the risk that the data collected from our current and planned clinical trials may not be sufficient

to demonstrate that our technology is an attractive alternative to other procedures and products; intense competition in our industry,

with competitors having substantially greater financial, technological, research and development, regulatory and clinical, manufacturing,

marketing and sales, distribution and personnel resources than we do; entry of new competitors and products and potential technological

obsolescence of our products; inability to carry out research, development and commercialization plans; loss of a key customer or supplier;

technical problems with our research and products and potential product liability claims; product malfunctions; price increases for supplies

and components; insufficient or inadequate reimbursement by governmental and other third-party payers for our products; our efforts to

successfully obtain and maintain intellectual property protection covering our products, which may not be successful; adverse federal,

state and local government regulation, in the United States, Europe or Israel and other foreign jurisdictions; the fact that we conduct

business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications

challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction; the escalation

of hostilities in Israel, which could impair our ability to manufacture our products; and current or future unfavorable economic and

market conditions and adverse developments with respect to financial institutions and associated liquidity risk. More detailed information

about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's

filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly

Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at

http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new

information, future events or otherwise.