Full Press Release Details
Inspira Technologies Reports First
Quarter 2023 Financial Results
As of March 31, 2023, the Company had $11.5
million in cash, cash equivalents, and short-term bank deposits.
Ra'anana, Israel- Inspira Technologies
OXY B.H.N. Ltd. (Nasdaq: IINN, IINNW) (the "Company" or "Inspira Technologies"), a company aiming to revolutionize
acute respiratory care, announced today its financial results for the first quarter ended March 31, 2023.
Dagi Ben-Noon, Chief
Executive Officer of Inspira Technologies, stated:
"We believe that this is a very important period for the Company,
as we continue to progress towards the regulatory submission of the New ALICETM Device with the U.S. Food and Drug Administration
(FDA) in the coming months. This is in addition to the ongoing clinical studies of the HYLATM non-invasive blood sensor currently
underway at Sheba Medical Centre in Israel. The progress of these devices represents important building blocks of our flagship INSPIRATM
ART system, which is advancing in the development process."
Financial Results for the Three Months
Ended March 31, 2023
Research and development expenses for the
three months ended March 31, 2023, were $2.0 million, compared to $1.5 million for the corresponding period in 2022. The
increase is a result of the Company's recruitment of employees and the expanded research and development of its new technologies
Marketing expenses for the three months ended March
31, 2023, were $168 thousand compared to $472 thousand for the corresponding period in 2022. The decrease is attributable to decreases
in share-based compensation expenses and a reduction in marketing activities. The marketing department increase its efforts in the first
quarter of 2022 with respect to brand awareness and exploring go-to-market capabilities.
General and administrative expenses for the
three months ended March 31, 2023, were $1.0 million, compared to $1.5 million for the corresponding period in 2022. The
decrease resulted primarily from a decrease in share-based compensation expenses.
Finance income for the three months ended March
31, 2023, was $368 thousand, compared to $2.2 million for the corresponding period in 2022. The change in finance income resulted
primarily from the calculation of the fair value of the Company's financial equity liabilities to pre-initial public offering (IPO)
and IPO investors, in addition to the fluctuation in the U.S. dollar - New Israeli Shekel exchange rate during the first quarter
Finance expenses for the three months ended March
31, 2023, were $112 thousand, compared to $25 thousand for the corresponding period in 2022.
Net loss for the three months ended March
31, 2023, was $3.0 million, compared to a net loss of $1.3 million for the three months ended March 31, 2022.
Balance Sheet Highlights
Cash, cash equivalents and short-term bank
deposits were $11.5 million as of March 31, 2023, compared to $13.9 million as of December 31, 2022.
Financial liabilities at fair value totalled $431 thousand as of March
31, 2023, compared to $368 thousand as of December 31, 2022. The financial liabilities represent the fair value of the Company's
equity liabilities to pre-IPO and IPO investors.
As of March 31, 2023, the Company's shareholders' equity
totalled $10 million, compared to shareholders' equity totalling $12.8 million as of December 31, 2022.
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 (INSPIRA
ART), designed to rebalance patient oxygen saturation levels. This technology potentially allows patients to remain awake during treatment
while preventing the need for highly invasive, risky, and costly mechanical ventilation systems that require intubation and medically
induced coma. The Company's products have not yet been tested or used in humans and has not been approved by any regulatory entity.
For more information, please visit our corporate
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 its regulatory strategy, the continuation of its progress towards the regulatory submission of the ALICE Device with the FDA,
the progress of its clinical studies, and its believe that the progress of its devices represents important building blocks of its INSPIRA
ART system. These forward-looking statements and their implications are based solely on the current expectations of the Company's
management 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. 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.
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
MRK-ARS-057 Copyright 2018-2023 Inspira
UNAUDITED CONDENSED INTERIM STATEMENTS OF
(US dollars in thousands)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | 6,362 | 6,783 | ||||||
| Cash deposits | 5,136 | 7,120 | ||||||
| Other accounts receivable | 371 | 591 | ||||||
| Total current assets | 11,869 | 14,494 | ||||||
| Non-Current Assets: | ||||||||
| Right of use assets, net | 1,004 | 1,107 | ||||||
| Property, plant and equipment, net | 535 | 411 | ||||||
| Total non-current assets | 1,539 | 1,518 | ||||||
| Total Assets | 13,408 | 16,012 |
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Trade accounts payables | 191 | 150 | ||||||
| Other accounts payable | 1,350 | 1,217 | ||||||
| Lease liabilities | 307 | 329 | ||||||
| Financial Liabilities at Fair Value | 431 | 368 | ||||||
| Total current liabilities | 2,279 | 2,064 | ||||||
| Non-Current Liabilities: | ||||||||
| Lease liabilities | 637 | 728 | ||||||
| Loan from the Israeli Innovation Authority | 412 | 398 | ||||||
| Total non- current liabilities | 1,049 | 1,126 | ||||||
| Shareholders' Equity: | ||||||||
| Share capital and premium | 54,397 | 53,814 | ||||||
| Foreign exchange reserve | (2,222 | ) | (1,928 | ) | ||||
| Accumulated deficit | (42,095 | ) | (39,064 | ) | ||||
| Total equity | 10,080 | 12,822 | ||||||
| Total Liabilities and Shareholders' Equity | 13,408 | 16,012 |
UNAUDITED CONDENSED INTERIM STATEMENTS OF
COMPREHENSIVE INCOME
(US dollars in thousands)
| For the Three Months Ended | For the Year Ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| Research and development expenses | 2,054 | 1,560 | 8,054 | |||||||||
| Marketing expenses | 168 | 472 | 1,325 | |||||||||
| General and administrative expenses | 1,065 | 1,544 | 5,391 | |||||||||
| Operating loss | 3,287 | 3,576 | 14,770 | |||||||||
| Finance (income) | (368 | ) | (2,196 | ) | (4,678 | ) | ||||||
| Finance expenses | 112 | 181 | ||||||||||
| Loss (profit) before tax | 3,031 | 1,380 | 10,273 | |||||||||
| Taxes on income | ||||||||||||
| Loss (profit) for the period | 3,031 | 1,380 | 10,273 | |||||||||
| 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 | (294 | ) | (425 | ) | (2,138 | ) | ||||||
| Total comprehensive loss for the period | 3,325 | 1,805 | 12,411 |
CONDENSED INTERIM STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
(US dollars in thousands)
For the Three-Month Period Ended March 31,
| Share capital and premium | 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 | - | - | (3,031 | ) | (3,031 | ) | ||||||||||
| Other comprehensive loss | - | (294 | ) | - | (294 | ) | ||||||||||
| Total comprehensive loss | - | (294 | ) | (3,031 | ) | (3,325 | ) | |||||||||
| Share-based compensation | 583 | - | - | 583 | ||||||||||||
| Balance on March 31, 2023 | 54,397 | (2,222 | ) | (42,095 | ) | 10,080 |