Inspira Technologies Oxy B.H.N. .(IINN) - 2025 Q2 - Quarterly Report

Financial Performance - As of June 30, 2025, total assets decreased to $4,452,000 from $8,070,000 as of December 31, 2024, representing a decline of approximately 44%[5] - The company reported revenues of $289,000 for the six months ended June 30, 2025, compared to $0 for the same period in 2024, indicating a significant growth in revenue[10] - The total comprehensive and net loss for the six months ended June 30, 2025, was $6,398,000, slightly higher than the loss of $6,240,000 for the same period in 2024[10] - Cash and cash equivalents decreased to $2,126,000 as of June 30, 2025, down from $5,111,000 as of December 31, 2024, a reduction of approximately 58%[5] - The company incurred accumulated losses of $72,972,000 as of June 30, 2025, compared to $66,574,000 as of December 31, 2024, reflecting ongoing financial challenges[8] - The loss for the period ending June 30, 2025, was $6,398, with a basic and diluted loss per share of $(0.24), compared to a loss of $6,240 and $(0.38) per share for the same period in 2024[59] Revenue and Sales - As of June 30, 2025, the Company recorded revenues of $289,000 from sales of the INSPIRA ART100 systems and carts[34] - The cost of revenues for the six months ended June 30, 2025, totaled $287,000, with materials and subcontractors accounting for $235,000[48] - The Company has received binding purchase orders totaling $49.5 million for its FDA-cleared INSPIRA ART100 system and carts, with $22.5 million on July 2, 2025, and $27 million on August 19, 2025[84] Research and Development - Research and development expenses increased to $3,638,000 for the six months ended June 30, 2025, from $3,270,000 in the same period of 2024, indicating a focus on product development[10] - The Company received total funds of approximately $809 from the IIA for upgrading manufacturing capabilities, which were deducted from R&D expenses[72] - The Company received a total of NIS 1,300,171 (approximately $351) from the IIA as part of a development project, which is 40% of the approved budget of NIS 3,850,869 (approximately $1,062) for the period from January 2024 to March 2025[73] Shareholder Activities - The company issued 2,575,753 ordinary shares under an at-the-market facility, generating gross proceeds of approximately $1,621,000 before costs[21] - The weighted average number of ordinary shares increased to 26,782,603 for the six months ended June 30, 2025, compared to 16,628,582 for the same period in 2024, reflecting increased capital raising activities[10] - The Company sold 2,575,753 Ordinary Shares under the ATM facility, generating gross proceeds of approximately $1,621, after deducting offering costs of approximately $113[53] Regulatory and Compliance - The INSPIRA ART100 system received FDA 510(k) regulatory clearance, marking a significant milestone for the company's product offerings[21] - The Company expects new accounting standards to impact only its disclosures, with no effect on its results of operations or financial condition[27] Liabilities and Obligations - The company reported a financial liability of $69,000 as of June 30, 2025, related to commissions on proceeds from exercises of 2024 Private Warrants[41] - The Company has recorded a liability of $9 against cost of sales expenses as of June 30, 2025, related to the grants received from the IIA, with a maximum obligation of $1,161 plus SOFR interest contingent upon future sales[76] - The Company is obligated to pay royalties of 3% of sales up to the amount equal to the accumulated grant received, linked to the U.S. dollar and bearing interest at an annual rate of SOFR[74] Management and Governance - Salaries and related expenses for officers and directors for the six months ended June 30, 2025, amounted to $1,043,000, compared to $881,000 for the same period in 2024[49] - Share-based payment expenses for officers and directors increased to $1,625,000 for the six months ended June 30, 2025, from $652,000 in the prior year[49] - The Company's board of directors approved a grant of 1,200,000 RSUs to officers, vesting over three years, with a future grant of 300,000 RSUs contingent on achieving a revenue-based milestone[84] Inventory and Assets - The total inventory as of June 30, 2025, was $711,000, which includes $219,000 in raw materials, $478,000 in work in progress, and $14,000 in finished goods[40] - As of June 30, 2025, the Company had a total of 7,070,239 outstanding warrants with a weighted average exercise price of $4.14 and a remaining contractual term of 1.14 years[57] - The fair value of the 2023 Private Warrants decreased from $1,506,000 as of December 31, 2024, to $817,000 as of June 30, 2025[45] Legal and Risk Factors - The Company believes that ongoing legal claims will not result in any material adverse effect on its financial condition as of June 30, 2025[78] - The company’s operations were not materially impacted by recent geopolitical conflicts, although there are potential risks to supply chains and future growth prospects[23]