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 | 6-13 |
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF FINANCIAL
(U.S. dollars in thousands)
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | 14,154 | 23,749 | ||||||
| Deposits | 5,020 | - | ||||||
| Other accounts receivable | 195 | 639 | ||||||
| Restricted cash | 67 | 120 | ||||||
| Total current assets | 19,436 | 24,508 | ||||||
| Non-Current Assets: | ||||||||
| Right of use assets, net | 1,101 | 1,160 | ||||||
| Property, plant and equipment, net | 208 | 202 | ||||||
| Total non-current assets | 1,309 | 1,362 | ||||||
| Total Assets | 20,745 | 25,870 |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF FINANCIAL
(U.S. dollars in thousands)
| June 30, | December 31, | |||||||||
| Note | 2022 | 2021 | ||||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||
| Current Liabilities: | ||||||||||
| Trade accounts payables | 50 | 93 | ||||||||
| Other accounts payable | 3 | 1,114 | 725 | |||||||
| Lease liabilities | 309 | 281 | ||||||||
| Financial Liabilities at fair value | 4 | 439 | 3,215 | |||||||
| Total current liabilities | 1,912 | 4,314 | ||||||||
| Non-Current Liabilities: | ||||||||||
| Lease liabilities | 787 | 900 | ||||||||
| Loan from the Israeli Innovation Authority | 293 | 302 | ||||||||
| Total non- current liabilities | 1,080 | 1,202 | ||||||||
| Shareholders' Equity: | ||||||||||
| Share capital and additional paid-in capital | 2 | 52,042 | 48,935 | |||||||
| Foreign exchange reserve | ( 2,025 | ) | 210 | |||||||
| Accumulated deficit | ( 32,264 | ) | ( 28,791 | ) | ||||||
| Total deficit | 17,753 | 20,354 | ||||||||
| Total Liabilities and Shareholders' Equity | 20,745 | 25,870 |
| September 28, 2022 | ||||
| Yafit Tehila 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 OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE
(U.S. dollars in thousands)
| Six months ended June 30, | Six months ended June 30, | |||||||
| 2022 | 2021 | |||||||
| Research and development expenses | 4,294 | 1,104 | ||||||
| Sales and marketing expenses | 777 | 244 | ||||||
| General and administrative expenses | 2,936 | 1,210 | ||||||
| Operating loss | 8,007 | 2,558 | ||||||
| Finance expense (income) | ( 4,534 | ) | 5,732 | |||||
| Loss before tax | 3,473 | 8,290 | ||||||
| Taxes on income | - | - | ||||||
| Total net loss | 3,473 | 8,290 | ||||||
| Other comprehensive loss, net of tax: | ||||||||
| Items that will not be reclassified to profit or loss: | ||||||||
| Exchange losses arising on translation to presentation currency | ( 2,235 | ) | 33 | |||||
| Total comprehensive loss | 5,708 | 8,323 | ||||||
| Weighted average number of ordinary shares | 10,475,392 | 2,667,207 | ||||||
| Basic and diluted loss per share | ( 0.54 | ) | ( 3.11 | ) |
The accompanying notes are an integral part of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES
IN SHAREHOLDERS' DEFICIENCY
(U.S. dollars in thousands)
For the six months ended June 30, 2022:
| Share Capital | Additional paid-in capital | Adjustments arising from translating financial operation | Accumulated deficit | Total | ||||||||||||||||
| Balance at January 1, 2022: | - | 48,935 | 210 | ( 28,791 | ) | 20,354 | ||||||||||||||
| Changes during the period: | ||||||||||||||||||||
| Net loss | - | - | - | ( 3,473 | ) | ( 3,473 | ) | |||||||||||||
| Other comprehensive loss | - | - | ( 2,235 | ) | - | ( 2,235 | ) | |||||||||||||
| Total comprehensive loss | - | - | ( 2,235 | ) | ( 3,473 | ) | ( 5,708 | ) | ||||||||||||
| Share base compensation | - | 3,107 | - | - | 3,107 | |||||||||||||||
| Balance at June 30, 2022 | - | 52,042 | ( 2,025 | ) | ( 32,264 | ) | 17,753 |
For the six months ended June 30, 2021:
| Share Capital | Additional paid-in capital | Adjustments arising from translating financial operation | Accumulated deficit | Total | ||||||||||||||||
| Balance at January 1, 2021: | 304 | 10,463 | ( 635 | ) | ( 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 | - | - | - | - | - | |||||||||||||||
| Share base compensation | - | 462 | - | - | 462 | |||||||||||||||
| Balance at June 30, 2021 | - | 11,229 | ( 668 | ) | ( 20,126 | ) | ( 9,565 | ) |
The accompanying notes are an integral part
of the financial statements.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH
(U.S. dollars in thousands)
| Six months ended June 30, 2022 | Six months ended June 30, 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | ( 3,473 | ) | ( 8,290 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation | 98 | 93 | ||||||
| Increase (decrease) in other accounts receivable | 400 | ( 180 | ) | |||||
| Increase (decrease) in trade accounts payables | ( 35 | ) | 6 | |||||
| Increase (decrease) in other accounts payable | 503 | ( 77 | ) | |||||
| Share based compensation | 3,107 | 462 | ||||||
| Change in fair value of Financial Liabilities at fair value | ( 2,586 | ) | 5,549 | |||||
| Financial income | ( 27 | ) | - | |||||
| Financial expenses | 51 | 107 | ||||||
| Net cash used in operating activities | ( 1,962 | ) | ( 2,330 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property, plant and equipment | ( 55 | ) | ( 41 | ) | ||||
| Deposits | ( 4,994 | ) | - | |||||
| Payment of deposit | 42 | ( 857 | ) | |||||
| Net cash provided investing activities | ( 5,007 | ) | ( 898 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Principal paid on lease liabilities | ( 155 | ) | ( 106 | ) | ||||
| Receipt of SAFE proceeds | - | 4,112 | ||||||
| Receipt convertible loan | - | 3,484 | ||||||
| Payment of convertible loan | - | ( 431 | ) | |||||
| Loan from the Israeli Innovation Authority | - | 55 | ||||||
| Net cash provided financing activities | ( 155 | ) | 7,114 | |||||
| Net increase in cash and cash equivalents | ( 7,124 | ) | 3,886 | |||||
| Cash and cash equivalents at the beginning of the period | 23,749 | 496 | ||||||
| Effects of exchange rate changes on cash and cash equivalents | ( 2,471 | ) | ( 27 | ) | ||||
| Cash and cash equivalents at the end of the period | 14,154 | 4,355 |
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
(U.S. dollars in thousands)
The Company operates in the medical technology
industry and is developing a proprietary respiratory support device called the "Inspira ART system". The Inspira ART system
is a cost effective, early extracorporeal respiratory support system with an intent to function as an "artificial lung" for
deteriorating respiratory patients.
The Inspira 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
On July 16, 2021, the Company completed
its initial public offering ("IPO") on Nasdaq Capital Market whereby the Company sold
2,909,091 of its 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 issued 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 Company has also the ability to decrease its expenses
in order to meet its existing cash flow streams. Management believes that the proceeds of the fundings agreements, combined with its cash
on hand and the Company plans, are sufficient to meet the Company's obligations as they come due in the foreseeable future. There are
no assurances, however, that the Company will be able to obtain an adequate level of financial resources that are required for the long-term
development and commercialization of its product offering.
The Company does not have any material financial
obligations as of the balance date.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL
(U.S. dollars in thousands)
NOTE 1 - GENERAL (Cont):
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
The principal accounting policies adopted in the preparation of the
financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.
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 2021 annual financial statements filed with the Company's annual report on
Form 20-F filed with the U.S. Securities and Exchange Commission on March 31, 2022. The Company has applied the same accounting policies
and methods of computation in its interim financial statements as in its 2022 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, 2022 (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.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED
FINANCIAL STATEMENTS
(U.S. dollars in thousands)
NOTE 3 - OTHER ACCOUNTS PAYABLE:
| June 30, 2022 | December 31, 2021 | |||||||
| Employees' salaries and related liabilities | 545 | 614 | ||||||
| Accrued expenses | 546 | 82 | ||||||
| Other | 23 | 29 | ||||||
| Total | 1,114 | 725 |
NOTE 4 - FINACIAL LIABILITIES VALUE:
| June 30, 2022 | December 31, 2021 | |||||||
| Non-tradable warrants (1) | 5 | 196 | ||||||
| Non-tradable warrants of SAFE and Convertible Loan investors (2) | 56 | 1,393 | ||||||
| Tradable warrants (3) | 357 | 1,493 | ||||||
| Financial liability (4) | 21 | 133 | ||||||
| Total | 439 | 3,215 |
As part of an agreement signed in
2019, the investors of certain convertibles loan received, upon conversion to shares 756,333 Ordinary Shares to investors and promoters,
non-tradable warrants to purchase an additional 169,019 Ordinary Shares upon consummation of an IPO on the Nasdaq. The warrants are exercisable
into Ordinary Shares of the Company at an exercise price equal to the initial public offering price and are exercisable for three years
The warrants were designated to be
measured at fair value through profit or loss.
On July 2021, as part of the IPO,
the investors received the specified warrants. As of June 30, 2022, the fair value of the warrants were $5.
INSPIRA TECHNOLOGIES OXY B.H.N. LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL
(U.S. dollars in thousands)
NOTE 4 - FINACIAL LIABILITIES VALUE (Cont):
On July 16, 2021, following the IPO, the Company issued 2,113,905 Ordinary Shares and 1,149,582 non-tradable warrants to investors in