UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 2023
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 2, 2023, Inari Medical, Inc. (the “Company”) issued a press release announcing financial results for the second quarter ended June 30, 2023. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| INARI MEDICAL, INC. | |||||||||||
| Date: | August 2, 2023 | By: | /s/ Mitchell Hill | ||||||||
| Mitchell Hill Chief Financial Officer | |||||||||||
Exhibit 99.1
Inari Medical Reports Second Quarter 2023 Financial Results
IRVINE, CALIFORNIA – August 2, 2023 (GLOBE NEWSWIRE) – Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today reported financial results for its second quarter ended June 30, 2023.
Second Quarter Financial and Recent Business Highlights
•Generated revenue of $119.0 million in Q2 of 2023, up 28.3% over the same quarter last year.
•Delivered net income of $2.1 million in Q2 of 2023, compared to a $10.2 million net loss in Q2 of 2022.
•Announced commitment to PEERLESS II, a randomized controlled trial enrolling up to 1,200 patients, comparing mechanical thrombectomy with FlowTriever versus anti-coagulation alone for the treatment of pulmonary embolism.
•Launched two new products, RevCore and T16 Curve, both purpose-built tools designed to address unmet needs in venous thromboembolism (“VTE”) patients.
“Our strong financial performance in the second quarter reflected consistent execution across all our growth drivers,” said Drew Hykes, CEO of Inari Medical. “We saw meaningful growth contributions from new product launches as well as international geographies, adding confidence to our 2023 outlook. We announced PEERLESS II, our third randomized controlled trial. These pivotal studies will elevate our therapies to the standard of care and reflect our unwavering commitment to VTE patients.”
Second Quarter 2023 Financial Results
Revenue was $119.0 million for the second quarter of 2023, compared to $92.7 million for the second quarter of 2022 and $116.2 million for the prior quarter. The increase over the prior year quarter was driven primarily by global commercial expansion, increased adoption of our procedures, and introduction of new products.
Gross profit was $105.2 million for the second quarter of 2023, compared to $82.4 million for the same period of 2022. Gross margin was 88.4% for the second quarter of 2023, compared to 88.8% for the same period in the prior year.
Operating expenses for the second quarter of 2023 were $106.7 million, compared to $91.7 million for the second quarter of 2022. The increase was mainly driven by personnel-related expenses, including stock-based compensation, as we increased headcount to fund the expansion of the commercial, research and development, clinical, and support organizations.
Net income was $2.1 million for the second quarter of 2023 and net income per share was $0.04 on a weighted-average basic share count of 57.2 million and $0.04 on a weighted-average diluted share count of 58.5 million, respectively, compared to a net loss of $10.2 million and a net loss per share of $0.19 on a weighted-average basic and diluted share count of 53.2 million, in the same period of the prior year.
Full-Year 2023 Revenue Guidance
For the full year 2023, we are raising our revenue guidance to a range of $482 million to $492 million, an increase of $4 million from our prior guidance range of $478 million to $488 million.
Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the second quarter 2023 financial results after market close on Wednesday, August 2, 2023 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live by dialing (844) 825-9789 for domestic callers or (412) 317-5180 for international callers. The live webinar may be accessed by visiting the Events Section of the Inari investor relations website at ir.inarimedical.com.
About Inari Medical, Inc.
Patients first. No small plans. Take care of each other. These are the guiding principles that form the ethos of Inari Medical. We are committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underrecognized health needs. In addition to our purpose-built products, we leverage our capabilities in education, clinical research, and program development to improve patient outcomes. We are passionate about our mission to establish our treatments as the standard of care for venous thromboembolism and beyond. We are just getting started.
Forward Looking Statements
Statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include estimated full year 2023 revenue and utility of clinical data results, and are based on Inari’s current expectations, forecasts, and assumptions, are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2022, and in its other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.
Investor Contact:
John Hsu, CFA
VP, Investor Relations
949-658-3889
IR@inarimedical.com
INARI MEDICAL, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
| Revenue | $ | 119,005 | $ | 92,744 | $ | 235,172 | $ | 179,496 | ||||||||||||||||||
| Cost of goods sold | 13,844 | 10,347 | 27,585 | 20,314 | ||||||||||||||||||||||
| Gross profit | 105,161 | 82,397 | 207,587 | 159,182 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Research and development | 21,085 | 18,569 | 43,149 | 34,704 | ||||||||||||||||||||||
| Selling, general and administrative | 85,586 | 73,156 | 171,286 | 136,888 | ||||||||||||||||||||||
| Total operating expenses | 106,671 | 91,725 | 214,435 | 171,592 | ||||||||||||||||||||||
| Loss from operations | (1,510) | (9,328) | (6,848) | (12,410) | ||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||
| Interest income | 4,552 | 214 | 8,697 | 264 | ||||||||||||||||||||||
| Interest expense | (44) | (73) | (84) | (146) | ||||||||||||||||||||||
| Other income | 26 | 252 | 65 | 228 | ||||||||||||||||||||||
| Total other income | 4,534 | 393 | 8,678 | 346 | ||||||||||||||||||||||
| Income (loss) before income taxes | 3,024 | (8,935) | 1,830 | (12,064) | ||||||||||||||||||||||
| Provision for income taxes | 939 | 1,252 | 1,963 | 1,252 | ||||||||||||||||||||||
| Net income (loss) | $ | 2,085 | $ | (10,187) | $ | (133) | $ | (13,316) | ||||||||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | (79) | (291) | (70) | (408) | ||||||||||||||||||||||
| Unrealized loss on available-for-sale debt securities | (1,095) | (125) | (1,960) | (373) | ||||||||||||||||||||||
| Total other comprehensive loss | (1,174) | (416) | (2,030) | (781) | ||||||||||||||||||||||
| Comprehensive income (loss) | $ | 911 | $ | (10,603) | $ | (2,163) | $ | (14,097) | ||||||||||||||||||
| Net income (loss) per share | ||||||||||||||||||||||||||
| Basic | $ | 0.04 | $ | (0.19) | $ | (0.00) | $ | (0.26) | ||||||||||||||||||
| Diluted | $ | 0.04 | $ | (0.19) | $ | (0.00) | $ | (0.26) | ||||||||||||||||||
| Weighted average common shares used to compute net income (loss) per share | ||||||||||||||||||||||||||
| Basic | 57,207,902 | 53,183,767 | 55,988,736 | 52,075,399 | ||||||||||||||||||||||
| Diluted | 58,496,350 | 53,183,767 | 55,988,736 | 52,075,399 | ||||||||||||||||||||||
INARI MEDICAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
| June 30, 2023 | December 31, 2022 | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 57,837 | $ | 60,222 | ||||||||||
| Short-term investments in debt securities | 279,696 | 266,179 | ||||||||||||
| Accounts receivable, net | 63,128 | 58,611 | ||||||||||||
| Inventories, net | 38,984 | 32,581 | ||||||||||||
| Prepaid expenses and other current assets | 4,972 | 5,312 | ||||||||||||
| Total current assets | 444,617 | 422,905 | ||||||||||||
| Property and equipment, net | 21,063 | 21,655 | ||||||||||||
| Operating lease right-of-use assets | 49,857 | 50,703 | ||||||||||||
| Deposits and other assets | 9,431 | 8,889 | ||||||||||||
| Total assets | $ | 524,968 | $ | 504,152 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 7,240 | $ | 7,659 | ||||||||||
| Payroll-related accruals | 38,290 | 38,955 | ||||||||||||
| Accrued expenses and other current liabilities | 11,125 | 8,249 | ||||||||||||
| Operating lease liabilities, current portion | 1,583 | 1,311 | ||||||||||||
| Total current liabilities | 58,238 | 56,174 | ||||||||||||
| Operating lease liabilities, noncurrent portion | 31,085 | 30,976 | ||||||||||||
| Total liabilities | 89,323 | 87,150 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Stockholders' equity | ||||||||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | — | — | ||||||||||||
| Common stock, $0.001 par value, 300,000,000 shares authorized as of June 30, 2023, and December 31, 2022; 57,266,455 and 54,021,656 shares issued and outstanding as of June 30, 2023 and December 31, 2021, respectively | 57 | 54 | ||||||||||||
| Additional paid in capital | 483,752 | 462,949 | ||||||||||||
| Accumulated other comprehensive (loss) income | (1,181) | 849 | ||||||||||||
| Accumulated deficit | (46,983) | (46,850) | ||||||||||||
| Total stockholders' equity | 435,645 | 417,002 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 524,968 | $ | 504,152 | ||||||||||