Inspira Technologies Reports Third Quarter 2022 Financial Results As of

Inspira Technologies Reports Third

Quarter 2022 Financial Results

As of September 30, 2022, the Company had

$16.2 million in cash, cash equivalents, and short-term bank deposits.

Israel - Inspira Technologies OXY B.H.N. Ltd. (Nasdaq: IINN, IINNW) (the "Company" or "Inspira

Technologies"), a groundbreaking respiratory support technology company, announced today its financial results for the third

quarter ended September 30, 2022.

Dagi Ben-Noon, Chief

Executive Officer of Inspira Technologies, stated:

and development programs continue to progress towards meeting our strategic targets. In the first quarter of 2023 we plan to see an

important component of the INSPIRATM ART system, our HYLATM blood sensor, commence a clinical study to be

performed alongside patients undergoing cardio-pulmonary bypass surgery. The study is designed to integrate clinical research into

the product development cycle. The HYLATM blood sensor is being designed as a non-invasive blood sensor to perform

continuous blood parameter measurements in real-time, assisting physicians in the monitoring of a patient's clinical condition

and alerting of a sudden change in the patient's vital signs, which may require immediate medical attention, and which may

potentially save lives.

The Company is well funded

to achieve its immediate goals, as it strategically advances towards the preparation for entering the verification and validation (V&V)

process, a pre-requisite for, and to be followed by, the planned submission for U.S. Food and Drug Administration (FDA) clearance

of our ALICETM Device."

Financial Results for the Nine Months Ended September

Research and development expenses for the

nine months ended September 30, 2022, were $6.2 million, compared to $1.7 million for the corresponding period in 2021.

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

technologies and operations.

Marketing expenses for

the nine months ended September 30, 2022, were $1.0 million compared to $391,000 for the corresponding period in 2021. The increase

is attributable to increases in marketing, payroll, and share-based compensation expenses. Marketing activities commenced in the first

quarter of 2021 and became more intensive with the Company's need to create brand awareness and explore go-to-market capabilities.

General and administrative

(G&A) expenses for the nine months ended September 30, 2022, were $4.3 million, compared to $3.4 million for the corresponding

period in 2021. The increase resulted primarily from an increase in payroll and related expenses, as well as to costs associated

with the Company's status as a publicly traded company following its initial public offering (IPO) on Nasdaq in July 2021. The increase

in existing and new expenses included professional fees, director fees, and directors' and officers' insurance costs.

the nine months ended September 30, 2022, was $4.5 million, compared to finance expenses in the amount of $573,000 for the

corresponding period in 2021. The increase in finance income derived from the calculation of the fair value of the

Company's financial equity liabilities to pre-IPO and IPO investors, in addition to the fluctuation in the USD exchange rate

during the first half of 2022.

Net loss for the nine months ended September

30, 2022, was $7.1 million, compared to a net loss of $6 million for the nine months ended September 30, 2021.

Financial Highlights for the Quarter ended September

Research and development

expenses for the three months ended September 30, 2022, were $1.95 million, an increase of $1.37 million compared to $581,000

in research and development expenses for the corresponding period in 2021. The increase was attributable to the Company's stage

and progress of the research and development process.

General and administrative expenses for the

three months ended September 30, 2022, were $1.4 million, compared to $2.2 million for the corresponding period in 2021. The

decrease is attributed to professionals' fees, finders' fees and IPO related expenses throughout the period when the Company

went public in the third quarter of 2021.

Sales and marketing expenses for the three

months ended September 30, 2022, were $301,000, compared to $147,000 for the corresponding period in 2021.

Balance Sheet Highlights

Cash, cash equivalents, and short-term bank

deposits were $16.2 million as of September 30, 2022, compared to $23.7 million as of December 31, 2021.

Financial liabilities at fair value totaled

$491,000 as of September 30, 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 September 30, 2022, the Company's

shareholders' equity totaled $14.9 million, compared to shareholders' equity totaling $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 is researching and developing a breakthrough

Augmented Respiration Technology (INSPIRA ART), designed to rebalance patient oxygen saturation levels. The Company's technology

potentially allows patients to remain awake during treatment while minimizing the need for highly invasive, risky, and costly mechanical

ventilation systems that require intubation and medically induced coma. The Company's product has not yet been tested or used in

humans and has not been approved by any regulatory entity.

For more information,

please visit our corporate website: https://inspira-technologies.com/.

Forward-Looking Statement Disclaimer

Investor Relations, MS-IR LLC

+917-607-8654 msegal@ms-ir.com

RedChip Companies Inc.

1-800-RED-CHIP (733-2447)

MRK-ARS-041 Copyright 2018-2022 Inspira

UNAUDITED CONDENSED INTERIM STATEMENTS OF

(US dollars in thousands)

UNAUDITED CONDENSED INTERIM 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 September

30, 2022 (Unaudited):

For the Nine-Month Period Ended September

30, 2022 (Unaudited):