FALSE000153104800015310482024-07-302024-07-30

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): July 30, 2024
InariMedical_Logo_R small.jpg
Inari Medical, Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware001-3929345-2902923
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
  
6001 Oak Canyon, Suite 100
Irvine, California
92618
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (877) 923-4747
(Former Name or Former Address, if Changed Since Last Report)
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:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading
Symbol(s)

Name of each exchange on which registered
Common stock, $0.001 par valueNARINASDAQ Global Select Market
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 July 30, 2024, Inari Medical, Inc. (the “Company”) issued a press release announcing financial results for the second quarter ended June 30, 2024. 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
104Cover 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:
July 30, 2024
By: /s/ Mitchell Hill
Mitchell Hill
Chief Financial Officer

Exhibit 99.1

img169044987_0a.jpg
Inari Medical Reports Second Quarter 2024 Financial Results

IRVINE, CALIFORNIA – July 30, 2024 (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, 2024.

Second Quarter Financial and Recent Business Highlights
•Generated revenue of $146 million in Q2 of 2024, up 23% over the same quarter last year.
•Commenced full commercial launch of VenaCore, Inari’s latest purpose-built device for the treatment of acute and chronic DVT.
•Cash, cash equivalents and short-term investments were $110 million as of Q2 of 2024.

“Our second quarter performance was driven by strong adoption of our market leading solutions across our VTE, Emerging Therapies and international businesses,” said Drew Hykes, CEO of Inari Medical. “Our field team is making meaningful progress supporting our hospital customers in building VTE programs, allowing more patients to benefit from our solutions. We are also pleased with the progress of our new products, including the recent launch of VenaCore, as well as positive reimbursement updates benefiting LimFlow. Looking ahead to the second half of the year, we are confident in continued momentum across all three of our growth drivers and look forward to our PEERLESS data release.”

Second Quarter 2024 Financial Results
Revenue was $145.8 million for the second quarter of 2024, up 22.5% compared to $119.0 million for the second quarter of 2023. The increase over the prior year quarter was driven primarily by an expansion in our sales territories, opening of new accounts, increase in adoption of our procedures, and global commercial expansion.

Gross profit was $125.8 million for the second quarter of 2024, compared to $105.2 million for the second quarter of 2023. Gross margin was 86.3% for the second quarter of 2024, compared to 88.4% for the second quarter of 2023. The year-over-year change was primarily due to product mix, the ramp up costs associated with new products, and increasing internationalization of the business.



Operating expenses for the second quarter of 2024 were $148.3 million, compared to $106.7 million for the second quarter of 2023. The increase was mainly driven by personnel-related expenses, including commissions and share-based compensation associated with increased headcount to fund the expansion of the commercial, research and development, clinical, and support organizations; professional fees including legal fees; change in fair value of the contingent consideration liability; amortization expense related to an intangible asset acquired in the LimFlow acquisition, and acquisition-related expenses.

GAAP operating loss was $22.4 million in the second quarter of 2024, compared with a $1.5 million GAAP operating loss for the second quarter of 2023.

Non-GAAP operating loss was $13.2 million in the second quarter of 2024. The following items were excluded from the non-GAAP operating loss: change in fair value of contingent consideration liability of $5.7 million, acquired intangible asset amortization of $2.4 million, and acquisition-related expenses of $1.0 million. There were no non-GAAP adjustments related to the company’s operating loss for the second quarter of 2023.

Net loss was $31.3 million for the second quarter of 2024 and net loss per share was $0.54 on a weighted-average basic and diluted share count of 58.1 million, compared to a net income of $2.1 million and a net income per share of $0.04 on a weighted-average basic count of 57.2 million and $0.04 on a weighted-average diluted share count of 58.5 million, respectively, in the same period of the prior year.

Full Year 2024 Revenue Guidance and Operating Income Outlook
•Inari raises full year 2024 revenue guidance to $594.5 million to $604.5 million, an increase of $2 million at the midpoint from our prior guidance range of $592.5 million to $602.5 million, reflecting growth of approximately 20.5% to 22.5% over 2023.
•The company continues to expect to reach sustained operating profitability in the first half of 2025.

Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the second quarter 2024 financial results after market close on July 30, 2024 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 and presentation may be accessed by visiting the Events Section of the Inari investor relations website at ir.inarimedical.com.

Use of Non-GAAP Financial Measures
This press release contains references to non-GAAP operating income (loss), which is considered a non-GAAP financial measure. This means that non-GAAP operating income (loss) is determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). As used by Inari, non-GAAP operating income (loss) excludes from GAAP operating income (loss) the following items: amortization of acquired intangible assets, acquisition-related costs and fair value adjustment to our contingent consideration liability. We present the non-GAAP operating income (loss) to exclude these charges because we believe these charges are significantly impacted by the timing and valuation of acquisitions, such as our LimFlow acquisition completed in the fourth quarter of 2023. Our management believes the presentation of non-GAAP operating income (loss) is useful because it provides meaningful comparisons to prior periods and provides visibility to our underlying operating performance and an additional means to evaluate the cost and expense trends excluding the impact of these acquisition-related items, which are not related to our core business operations.

Our definition of non-GAAP operating income (loss) may differ from similarly titled measures used by others. Non-GAAP operating income (loss) should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. We encourage investors to review the reconciliation of non-GAAP operating income (loss) to GAAP operating income (loss), which has been provided in the financial statement tables included in this press release.

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 underserved health needs. In addition to our purpose-built solutions, 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 four other targeted disease states. We are just getting started. Learn more at www.inarimedical.com and connect with us on LinkedIn, X (Twitter), and Instagram.

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 expectations regarding Inari’s core business, plans for its current and future products, anticipated product launches, its ability to integrate and related expectations for the LimFlow acquisition, expectations regarding future growth, Inari's ability to meet customers' needs, and timing for achieving sustained operating profitability, and are based on Inari’s current expectations, forecasts, and assumptions. Forward-looking statements 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, 2023, and in Inari’s 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:
Marissa Bych
Gilmartin Group LLC
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,
2024202320242023
Revenue$145,820 $119,005 $289,014 $235,172 
Cost of goods sold19,993 13,844 38,886 27,585 
Gross profit125,827 105,161 250,128 207,587 
Operating expenses
Research and development24,905 21,085 51,785 43,149 
Selling, general and administrative114,153 85,586 217,208 171,286 
Change in fair value of contingent consideration
5,728 — 12,031 — 
Amortization of intangible asset
2,449 — 4,910 — 
Acquisition-related expenses
1,036 — 3,815 — 
Total operating expenses148,271 106,671 289,749 214,435 
Loss from operations
(22,444)(1,510)(39,621)(6,848)
Other income (expense)
Interest income1,076 4,552 2,267 8,697 
Interest expense(77)(44)(155)(84)
Other income
23 26 — 65 
Total other income1,022 4,534 2,112 8,678 
(Loss) income before income taxes
(21,422)3,024 (37,509)1,830 
Provision for income taxes9,926 939 18,041 1,963 
Net (loss) income
$(31,348)$2,085 $(55,550)$(133)
Other comprehensive income (loss)
Foreign currency translation adjustments(2,359)(79)(9,718)(70)
Unrealized loss on available-for-sale debt securities
— (1,095)(4)(1,960)
Total other comprehensive loss
(2,359)(1,174)(9,722)(2,030)
Comprehensive (loss) income
$(33,707)$911 $(65,272)$(2,163)
Net (loss) income per share
Basic$(0.54)$0.04 $(0.96)$(0.00)
Diluted$(0.54)$0.04 $(0.96)$(0.00)
Weighted average common shares used to compute net (loss) income per share
Basic58,142,45457,207,90258,040,06955,988,736
Diluted58,142,45458,496,35058,040,06955,988,736


INARI MEDICAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data and par value)
(unaudited)
June 30,
2024		December 31,
2023
Assets
Current assets
Cash and cash equivalents$70,125 $38,597 
Restricted cash
67 611 
Short-term investments in debt securities39,547 76,855 
Accounts receivable, net81,631 70,119 
Inventories, net49,359 42,900 
Prepaid expenses and other current assets8,623 6,481 
Total current assets249,352 235,563 
Property and equipment, net23,005 20,929 
Operating lease right-of-use assets48,824 48,407 
Goodwill204,401 214,335 
Intangible assets143,106 150,884 
Deposits and other assets4,242 4,117 
Total assets$672,930 $674,235 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$16,375 $10,577 
Payroll-related accruals54,363 48,706 
Accrued expenses and other current liabilities65,605 15,364 
Operating lease liabilities, current portion1,918 1,692 
Total current liabilities138,261 76,339 
Operating lease liabilities, noncurrent portion31,231 30,355 
Deferred tax liability35,126 36,231 
Other long-term liability44,503 66,400 
Total liabilities$249,121 $209,325 
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023
— — 
Common stock, $0.001 par value, 300,000,000 shares authorized as of June 30, 2024, and December 31, 2023; 58,166,309 and 57,762,414 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
58 58 
Additional paid in capital528,624 504,453 
Accumulated other comprehensive (loss) income
(837)8,885 
Accumulated deficit(104,036)(48,486)
Total stockholders' equity423,809 464,910 
Total liabilities and stockholders' equity$672,930 $674,235 




INARI MEDICAL, INC.
Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss
(in thousands)
(Unaudited)

Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GAAP Operating loss$(22,444)$(1,510)$(39,621)$(6,848)
Non-GAAP Adjustments:
Change in fair value of contingent consideration
5,728 — 12,031 — 
Amortization of acquired intangible asset
2,449 — 4,910 — 
Acquisition-related expenses (a)
1,036 — 3,812 — 
Non-GAAP Operating loss$(13,231)$(1,510)$(18,868)$(6,848)
________________
(a) The acquisition-related expenses primarily include integration, severance and retention related expenses.

Revenue Disaggregation
The following tables present the amount of revenue in VTE and Emerging Therapies recognized for the periods presented (in thousands, unaudited):

Three Months Ended June 30,
20242023
% Growth
VTE$137,674 $114,086 20.7 %
Emerging Therapies8,146 4,919 65.6 %
Total Revenue$145,820 $119,005 22.5 %

Six Months Ended June 30,
20242023
% Growth
VTE$274,867 $228,144 20.5 %
Emerging Therapies14,147 7,028 101.3 %
Total Revenue$289,014 $235,172 22.9 %

v3.24.2
Cover
Jul. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 30, 2024
Entity Registrant Name Inari Medical, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-39293
Entity Tax Identification Number 45-2902923
Entity Address, Address Line One 6001 Oak Canyon
Entity Address, Address Line Two Suite 100
Entity Address, City or Town Irvine
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92618
City Area Code 877
Local Phone Number 923-4747
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $0.001 par value
Trading Symbol NARI
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001531048
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