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OTC:IRME
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IR-MED (OTC:IRME) reported 3rd quarter financial results on November 14, 2023 which were broadly in line with our expectations. The company’s products are still in development stage and no revenues were recorded.
Research and development expenses in the 3rd quarter of 2023 were $469,000 which was similar to R&D expenses in the 3rd quarter of 2022 of $468,000. R&D expenses include the use of third-party contractors for further R&D activities, the performance of usability studies for the PressureSafe device, and non-cash expenses relating to stock-based compensation.
Marketing expenses increased to $297,000 in the quarter from $24,000 in the 3rd quarter of 2022. The increase in marketing expenses was primarily driven by non-cash expenses related to stock-based compensation to service providers and the use of third-party consultants. This increase was partially offset by a reduction in corporate payroll expenses.
General and administrative expenses increased to $431,000 in the 3rd quarter of 2023 compared to $384,000 in the prior year period. The increase in G&A expenses was primarily due to non-cash expenses related to stock-based compensation to company directors, officers, and service providers.
The net loss in the 3rd quarter was ($1.18) million, or ($0.02) per share. Operating cash flow for the first nine months of 2023 was a use of cash of ($2.5) million. Capital expenditures were de minimis in that time period. Cash on the balance sheet as of September 30, 2023 was $1.5 million and working capital was $1.0 million. The company has no traditional debt at this time.
New Chief Executive Officer
On October 15, 2023, the company hired a new CEO, Mr. Tzur Di-Cori. During 20+ years of success in the medical device industry, Mr. Di-Cori has demonstrated exceptional leadership skills in start-ups and publicly-traded companies. Mr. Di-Cori served as the CEO of several well-known companies including Dusmit Ltd., Motorika Ltd., and EZSurgical Ltd Israel, where he also was President of its US-based subsidiary, EZSurgical Inc. At LifeWatch Technologies Ltd, Mr. Di-Cori served as President, leading the company to $130 million in annual sales in the Medical Telemonitoring Solutions sector. Mr. Di-Cori’s educational background includes a B.A in Practical Engineering in Electronic & Computers from Singalovski College Tel Aviv, and an MBA from the University of Derby.
Other News
On September 26, 2023, the company announced that it had signed a Clinical Trial Agreement with the Methodist Healthcare System of San Antonio to conduct a useability study titled “Safety and Efficacy of the PressureSafe Device for Early Detection of Pressure Injury in People with Various Skin Tones, Including Dark Skin Tones."