Inspira Technologies Oxy (IINN) Stock: Why The Price Jumped Today

By Amit Chowdhry ● Nov 24, 2021
  • The stock price of Inspira Technologies Oxy BHN Ltd (NASDAQ: IINN) increased by over 25% pre-market today. This is why it happened.

The stock price of Inspira Technologies Oxy BHN Ltd (NASDAQ: IINN) increased by over 25% pre-market today. Investors are responding positively to the company’s third quarter financial results.

These are the highlights from the quarter:

— In October 2021, Company increases cash balance by $9.4 Million due to investors Exercising Warrants; As of November 1, the company has $26 million in cash

— $16 million raised in the initial public offering of 2,909,091 units at a price of $5.51 on July 16, 2021

— $17 million in cash and cash equivalent as of September 30, 2021 (not including warrant exercises)

— $26 million in cash as of November 1, 2021, including $9,377,500 via the exercise of 1,705,000 warrants at $5.50 per share.

— Potential $66 million distribution agreement for ART in Europe: The company signed an agreement with the WAAS Group for the deployment of ART Systems in Spain and Portugal over a 7-year period, subject to regulatory approval

Financial Results for the 9 Months Ended September 30, 2021

— Research and development expenses for the nine months ended September 30, 2021 were $1.7 million, compared to $2.6 million for the corresponding period in 2020. The decrease is a result of lower share-based compensation expenses, partially offset by the coverage of certain development expenses by a grant from the Israeli Innovation Authority.

— Marketing expenses for the nine months ended September 30, 2021, were $391,000, as compared to none for the corresponding period in 2020. In 2021, the Company focused on marketing, brand awareness and exploring go-to-market capabilities.

— General and administrative (G&A) expenses for the nine months ended September 30, 2021 were $3.4 million, compared to $1.3 million for the corresponding period in 2020. Expenses mainly consisted of $1 million in IPO expenses and related IPO fees and $1.8 million in ongoing G&A operating and share-based compensation expenses.

— The net loss for the nine months ended September 30, 2021, was $6 million, compared to a net loss of $4 million for the nine months ended September 30, 2020.

Financial Results for the Three Months Ended September 30, 2021

— R&D expenses for the 3 months ended September 30, 2021 were $581,000 compared to $1.1 million for the corresponding period in 2020. The decrease is a result of lower share-based compensation expenses, partially offset by the coverage of certain development expenses by a grant from the Israeli Innovation Authority.

— Marketing expenses for the 3 months ended September 30, 2021, were $147,000. As opposed to 2020 In 2021, the Company focused on marketing, brand awareness and exploring go-to-market capabilities.

— G&A expenses for the 3 months ended September 30, 2021 were $2.2 million, compared to $488,000 for the corresponding period in 2020. The reason for the increase was due to IPO expenses and related IPO fees.

— Finance income for the 3 months ended September 30, 2021, was $5.1 million compared to $2 million for the corresponding period in 2020. The increase in finance income was due to measurement at fair value of the Company’s financial equity liabilities to pre-IPO and IPO investors.

— The company’s net profit for the 3 months ended September 30, 2021 was $2.2 million, compared to a net profit of $348,000 for the three months ended September 30, 2020.

KEY QUOTE:

“We believe that the exclusive agreement signed with WAAS Group for the potential deployment of more than 1,000 ART systems in Spain and Portugal led our investors to express their support by exercising most of the warrants issued in our IPO at an exercise price of $5.50 per share. Due to the exercise of these warrants, the number of our outstanding ordinary shares has increased. This additional capital provides greater financial resources to support the Company’s navigation of research and development, regulatory approval and the go-to-market pathway.”

— Dagi Ben-Noon, Inspira Technologies’ Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.