Inspira Technologies Reports Fourth Quarter 2022 and Full Year Financial Results As of

Inspira Technologies Reports Fourth

Quarter 2022 and Full Year Financial Results

As of December 31, 2022, the Company had $13.9

million in cash, cash equivalents, and 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 its financial results for the fourth quarter and year ended December 31, 2022.

Dagi Ben-Noon, Chief

Executive Officer of Inspira Technologies, stated:

the Company is well funded to achieve its immediate goals, advancing the building blocks of the INSPIRATM ART system.

This includes the HYLATM blood sensor clinical studies currently underway and our ALICETM device, with

the U.S. Food and Drug Administration (FDA) submission planned to occur in the second half of this year."

strategic targets continue to be met as we aim to revolutionize the acute respiratory care market. We continue to develop disruptive

technologies and a disruptive product pipeline that are the building blocks of the INSPIRA ART system, which is being

designed to prevent the need for invasive mechanical ventilation. The grant of a patent by the U.S. Patent and Trademark Office

(USPTO) for the INSPIRA ART convertible dual lumen cannula device is further evidence of this. The patent grant included its Method

of Use, with all 20 claims found to be novel, with inventive step and industrial applicability. This year, we also expect

additional patent grants by the USPTO for INSPIRA ART technologies, as well as for its Method of Use, to use low-flow

direct blood oxygenation to prevent the need for Invasive Mechanical Ventilation (IMV). Continuing to gain traction, we signed a

strategic OEM agreement with a division of a significant global medical-device corporation for the manufacture of a flow mechanism

for the blood oxygenation process in our disruptive products."

sensor, based on the INSPIRA ART sensor technology, has started a first in human clinical study at Sheba Medical Center in Israel

alongside patients undergoing open-heart surgery. We plan to provide the market updates as it progresses."

is currently undergoing verification and validation (V&V) testing towards its 510(k) FDA submission planned for the second half of

2023, with a decision expected in 2024.

continue to aim to revolutionize the acute respiratory care market."

Financial results for the twelve months

ended December 31, 2022

Research and development expenses for the

twelve months ended December 31, 2022, were $8 million, compared to $3.9 million in the year ended December 31, 2021. The

increase is a result of the Company's recruitment of specialized manpower and the expanded research and development of its new technologies

Marketing expenses for the twelve months ended

December 31, 2022, were $1.3 million compared to $1.9 million for the year ended December 31, 2021. The decrease is attributable

to decreases of $685,000 in share-based compensation expenses.

General and administrative (G&A) expenses

for the twelve months ended December 31, 2022, were $5.4 million, compared to $7.6 million for the year ended December 31, 2021.

The decrease was primarily attributed to a decrease in employee share-based compensation expenses and expenses related to the Company's

initial public offering (IPO) on Nasdaq in July 2021.

the twelve months ended December 31, 2022, was $4.7 million, compared to finance income in the amount of $1,000 for the

corresponding period in 2021. The increase was attributed primarily to the revaluation of the Company's financial equity

liabilities to pre-IPO and IPO investors, the fluctuation in the U.S. dollar exchange rate, and interest on cash deposits.

for the twelve months ended December 31, 2022, was $181,000, compared to $3.5 million for the corresponding period in 2021. The

decrease was attributed primarily to revaluation of the Company's financial equity liabilities to pre-IPO and IPO investors

and to the fluctuation in the U.S. dollar exchange rate.

Net loss for the twelve months ended December

31, 2022, was $10.3 million, compared to a net loss of $17.0 million for the year ended December 31, 2021.

Financial results for the three months

ended December 31, 2022

Research and development expenses for the

three months ended December 31, 2022, were $1.8 million, a decrease of $0.4 million compared to $2.2 million in research and

development expenses for the corresponding period in 2021. The decrease was attributable to the share-based compensation expenses.

General and administrative expenses for the

three months ended December 31, 2022, were $1 million, compared to $4.1 million for the corresponding period in 2021. The decrease

was attributable to the share-based compensation expenses to employees, management and directors.

Sales and marketing expenses for the three

months ended December 31, 2022, were $247,000, compared to $1.5 million for the corresponding period in 2021. The decrease was

attributable to the share-based compensation expenses.

Balance Sheet Highlights

Cash, cash equivalents, and deposits were

$13.9 million as of December 31, 2022, compared to $23.7 million as of December 31, 2021.

Financial liabilities at fair value totalled

$368,000 as of December 31, 2022, compared to $3.2 million as of December 31, 2021. The financial liabilities represent the fair value

of the Company's equity liabilities to pre-IPO and IPO investors.

As of December 31, 2022, the Company's

shareholders' equity totalled $12.8 million, compared to shareholders' equity totalling $20.3 million as of December 31, 2021.

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 reducing 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

For more information, please visit our corporate website: https://inspira-technologies.com

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STATEMENTS OF FINANCIAL POSITION

(US dollars in thousands)

STATEMENTS OF COMPREHENSIVE INCOME

(US dollars in thousands)

CONDENSED INTERIM STATEMENTS OF CHANGES IN

SHAREHOLDERS' EQUITY

(US dollars in thousands)

For the Three-Month Period Ended December

For the year Ended December 31, 2022: