
Part I Financial Statements The unaudited consolidated financial statements present Inogen's financial position as of March 31, 2025, and its results of operations and cash flows for the three months then ended, showing increased assets, decreased liabilities, and a narrowed net loss Consolidated Balance Sheets As of March 31, 2025, total assets increased to $308.4 million from $296.2 million, while total liabilities decreased to $110.5 million from $122.3 million, with stockholders' equity rising to $198.0 million due to a private placement Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $118,893 | $113,795 | | Accounts receivable, net | $36,623 | $29,563 | | Inventories, net | $26,273 | $24,812 | | Total current assets | $200,708 | $185,451 | | Total assets | $308,412 | $296,185 | | Liabilities & Equity | | | | Accounts payable and accrued expenses | $35,925 | $27,153 | | Earnout liability | $0 | $13,000 | | Total current liabilities | $65,451 | $76,686 | | Total liabilities | $110,460 | $122,325 | | Total stockholders' equity | $197,952 | $173,860 | Consolidated Statements of Comprehensive Loss For Q1 2025, total revenue increased to $82.3 million from $78.0 million in the prior-year period, resulting in a narrowed net loss of $6.2 million or ($0.25) per share, significantly improving from a $14.6 million loss Statement of Comprehensive Loss Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $82,280 | $78,025 | | Gross profit | $36,372 | $34,371 | | Total operating expense | $44,028 | $50,645 | | Loss from operations | $(7,656) | $(16,274) | | Net loss | $(6,174) | $(14,578) | | Basic and Diluted net loss per share | $(0.25) | $(0.62) | Consolidated Statements of Cash Flows Net cash used in operating activities increased to $16.8 million in Q1 2025, primarily due to an earnout payment, while financing activities provided $24.0 million from a stock issuance, leading to a $5.1 million net increase in cash Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(16,790) | $(4,749) | | Net cash used in investing activities | $(2,038) | $(13,444) | | Net cash provided by financing activities | $23,951 | $285 | | Net increase (decrease) in cash | $5,124 | $(18,048) | - Financing activities in Q1 2025 included $27.2 million in proceeds from the issuance of common stock from a securities purchase agreement and a $3.2 million payment of an accrued earnout21139 Condensed Notes to the Consolidated Financial Statements The notes detail accounting policies and key events, including a strategic collaboration and $27.2 million private placement with Yuwell, the full payment of a $13.0 million earnout liability, and the company's single reportable segment in respiratory care - On January 25, 2025, the Company entered into a Strategic Collaboration Agreement with Yuwell to broaden its product portfolio, enhance R&D, and enter the Chinese market27 - The company paid off the $13.0 million earnout liability related to the Physio-Assist acquisition during the first quarter of 202536 - The company determined it operates and reports in a single operating and reportable segment focused on oxygen therapy and respiratory care85 - On February 21, 2025, an investor, a subsidiary of Yuwell, purchased 2,626,425 shares of common stock for an aggregate price of approximately $27.2 million69 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial results, highlighting a 5.5% revenue increase to $82.3 million, a significant reduction in operating loss to $7.7 million, and strengthened liquidity from a $27.2 million private placement Overview and Strategy Inogen, a medical technology company, focuses on expanding its respiratory product offerings, growing B2B networks, optimizing direct-to-consumer sales, and investing in R&D, notably through a collaboration with Yuwell - Strategic goals include expanding product offerings, growing domestic and international B2B channels, improving direct-to-consumer productivity, and optimizing rental revenues106 - The company obtained 510(k) clearance for its Simeox airway clearance device in December 2024 and plans to leverage its commercial infrastructure for a U.S. launch in 2025107 - A collaboration with Yuwell, initiated in January 2025, is expected to broaden the product portfolio, enhance innovation, and accelerate entry into the Chinese market108 Results of Operations For Q1 2025, total revenue rose 5.5% to $82.3 million, driven by strong B2B sales growth, while operating expenses significantly decreased, leading to a narrowed operating loss Revenue by Category (in thousands) | Revenue Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Business-to-business domestic sales | $21,454 | $16,519 | 29.9% | | Business-to-business international sales | $31,985 | $26,035 | 22.9% | | Direct-to-consumer domestic sales | $15,031 | $20,541 | -26.8% | | Direct-to-consumer domestic rentals | $13,810 | $14,930 | -7.5% | | Total revenue | $82,280 | $78,025 | 5.5% | Operating Expenses (in thousands) | Expense Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Research and development | $4,034 | $6,578 | -38.7% | | Sales and marketing | $23,757 | $26,936 | -11.8% | | General and administrative | $16,237 | $17,131 | -5.2% | - Net loss decreased by $8.4 million (57.6%) year-over-year, primarily due to increased sales revenue and lower operating expenses126 Liquidity and Capital Resources As of March 31, 2025, the company had $118.9 million in cash, bolstered by a $27.2 million private placement, and management believes current resources are sufficient for future operating and investing needs - As of March 31, 2025, the company had cash and cash equivalents of $118.9 million127 - The company received $27.2 million from the Yuwell private placement and paid out a $13.0 million earnout liability in Q1 2025127 Summary of Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(16,790) | $(4,749) | | Cash used in investing activities | $(2,038) | $(13,444) | | Cash provided by financing activities | $23,951 | $285 | - Management believes current capital resources are sufficient to meet projected operating and investing requirements for at least the next 12 months129 Non-GAAP Financial Measures The company uses non-GAAP measures EBITDA and Adjusted EBITDA to assess operating performance, with Adjusted EBITDA significantly improving to positive $36,000 in Q1 2025 from a $7.6 million loss in Q1 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(6,174) | $(14,578) | | EBITDA (non-GAAP) | $(2,111) | $(10,866) | | Stock-based compensation | $2,147 | $2,416 | | Acquisition-related expenses | $0 | $238 | | Change in fair value of earnout liability | $0 | $570 | | Adjusted EBITDA (non-GAAP) | $36 | $(7,642) | Quantitative and Qualitative Disclosures about Market Risk The company's primary market risks are foreign currency exchange risk, particularly from Euro-denominated sales, which are hedged with forward contracts, and minimal interest rate risk due to highly liquid investments - The principal market risk is foreign currency exchange risk, as the majority of European sales are in Euros while revenue is reported in U.S. dollars151 - The company has begun using foreign exchange forward contracts to hedge its forecasted U.S. dollar-equivalent earnings from adverse currency rate changes152 - Interest rate risk is considered low, as cash and cash equivalents of $122.5 million as of March 31, 2025, are held in highly liquid investments with maturities of three months or less153 Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level154 - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls155 Part II – Other Information Legal Proceedings The company is involved in various legal proceedings arising in the normal course of business but does not anticipate any of these will have a material adverse effect on its operations - The company is party to various legal proceedings from the normal course of business and does not expect them to have a material adverse effect158 Risk Factors There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - As of the date of this report, there have been no material changes from the risk factors previously disclosed in the 2024 Annual Report on Form 10-K159 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities and made no repurchases of its common stock during the three months ended March 31, 2025 - The company did not repurchase any shares of its common stock during the three months ended March 31, 2025161 Other Information During the first quarter of 2025, none of the company's directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter164 Exhibits The report includes key exhibits such as the Collaboration Agreement with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., CEO and CFO certifications, and XBRL data files - Key exhibits filed include the Collaboration Agreement with Yuwell, a Registration Rights Agreement, and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906167