FALSE000153104800015310482024-10-282024-10-28

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): October 28, 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 October 28, 2024, Inari Medical, Inc. (the “Company”) issued a press release announcing financial results for the third quarter ended September 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:
October 28, 2024
By: /s/ Kevin Strange
Kevin Strange
Chief Financial Officer

Exhibit 99.1

img169044987_0a.jpg
Inari Medical Reports Third Quarter 2024 Financial Results

IRVINE, CALIFORNIA – October 28, 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 third quarter ended September 30, 2024.

Third Quarter Financial and Recent Business Highlights
•Generated revenue of $153 million in Q3 of 2024, up 21% over the same quarter of last year.
•GAAP operating loss was $13.6 million in Q3 of 2024, compared to a $2.1 million operating income in the same quarter of last year.
•Non-GAAP operating loss was $0.4 million in Q3 of 2024, compared to a $4.8 million non-GAAP operating income in the same quarter of last year.
•Cash, cash equivalents and short-term investments were $112 million as of Q3 of 2024.
•Received acceptance for the PEERLESS study to be presented as a late-breaking clinical trial at the 2024 Transcatheter Cardiovascular Therapeutics (TCT) Annual Scientific Symposium on October 29th.

“We continue to drive strong performance across the entire Inari portfolio as we advance our leading position in large, underserved vascular markets,” said Drew Hykes, CEO of Inari Medical. “Our products are performing well, and looking ahead, we have several important catalysts on the horizon. On that note, we look forward to the presentation of our PEERLESS data at the Transcatheter Cardiovascular Therapeutics (TCT) Symposium tomorrow, our upcoming full market release of Artix following FDA clearance earlier this month, and our plans to offer Inari solutions in Japan and China. We’ve never been more committed to our mission of addressing unmet patient needs with purpose-built solutions.”



Third Quarter 2024 Financial Results
Revenue was $153.4 million for the third quarter of 2024, up 21.4% compared to $126.4 million for the third 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, global commercial expansion, and introduction of new products.

Gross profit was $133.5 million for the third quarter of 2024, compared to $111.9 million for the third quarter of 2023. Gross margin was 87.1% for the third quarter of 2024, compared to 88.5% for the third 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 third quarter of 2024 were $147.1 million, compared to $109.8 million for the third 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; change in fair value of the contingent consideration liability; capitalized software impairment and related costs; professional fees including legal expenses; amortization expense related to an intangible asset acquired in the LimFlow acquisition, and travel related costs.

GAAP operating loss was $13.6 million in the third quarter of 2024, compared to a $2.1 million GAAP operating income for the third quarter of 2023. Sequentially, GAAP operating loss improved by $8.8 million.

Non-GAAP operating loss was $0.4 million in the third quarter of 2024. Non-GAAP operating income was $4.8 million in the third quarter of 2023. Sequentially, non-GAAP operating loss improved by $12.8 million. The following items were excluded from the non-GAAP operating loss in the third quarter of 2024: change in fair value of contingent consideration liability of $6.6 million, capitalized software impairment and related costs of $3.8 million, acquired intangible asset amortization of $2.5 million, and acquisition-related expenses of $0.3 million. The following items were excluded from the non-GAAP operating income in the third quarter of 2023: acquisition-related expenses of $2.7 million.

Net loss was $18.4 million for the third quarter of 2024 and net loss per share was $0.31 on a weighted-average basic and diluted share count of 58.4 million, compared to net income of $3.2 million and net income per share of $0.06 on a weighted-average basic share count of 57.4 million and $0.05 on a weighted-average diluted share count of 58.6 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 $601.5 million to $604.5 million, an increase of $3.5 million at the midpoint from our prior guidance range of $594.5 million to $604.5 million, reflecting growth of approximately 21.9% 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 third quarter 2024 financial results after market close on October 28, 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, fair value adjustment to our contingent consideration liability and capitalized software impairment and related costs. 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, as well as other non-recurring factors such as wind down of certain projects. 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 and other non-recurring transactions, 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 September 30,Nine Months Ended September 30,
2024202320242023
Revenue$153,390 $126,366 $442,404 $361,538 
Cost of goods sold19,846 14,477 58,732 42,062 
Gross profit133,544 111,889 383,672 319,476 
Operating expenses
Research and development29,431 21,492 81,216 64,641 
Selling, general and administrative108,271 85,603 325,479 256,889 
Change in fair value of contingent consideration
6,578 — 18,609 — 
Amortization of intangible asset
2,504 — 7,414 — 
Acquisition-related expenses
328 2,681 4,143 2,681 
Total operating expenses147,112 109,776 436,861 324,211 
(Loss) income from operations
(13,568)2,113 (53,189)(4,735)
Other income (expense)
Interest income1,104 4,202 3,371 12,899 
Interest expense(78)(43)(233)(127)
Other expense
(130)(682)(130)(617)
Total other income896 3,477 3,008 12,155 
(Loss) income before income taxes
(12,672)5,590 (50,181)7,420 
Provision for income taxes5,695 2,428 23,736 4,391 
Net (loss) income
$(18,367)$3,162 $(73,917)$3,029 
Other comprehensive income (loss)
Foreign currency translation adjustments13,918 (68)4,200 (138)
Unrealized gain (loss) on available-for-sale debt securities
64 91 60 (1,869)
Total other comprehensive income (loss)
13,982 23 4,260 (2,007)
Comprehensive income (loss)
$(4,385)$3,185 $(69,657)$1,022 
Net (loss) income per share
Basic$(0.31)$0.06 $(1.27)$0.05 
Diluted$(0.31)$0.05 $(1.27)$0.05 
Weighted average common shares used to compute net (loss) income per share
Basic58,366,36457,384,88458,149,29656,478,317
Diluted58,366,36458,588,45258,149,29658,495,921


INARI MEDICAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data and par value)
(unaudited)
September 30,
2024		December 31,
2023
Assets
Current assets
Cash and cash equivalents$41,141 $38,597 
Restricted cash
67 611 
Short-term investments in debt securities70,397 76,855 
Accounts receivable, net84,403 70,119 
Inventories, net55,210 42,900 
Prepaid expenses and other current assets12,168 6,481 
Total current assets263,386 235,563 
Property and equipment, net24,098 20,929 
Operating lease right-of-use assets48,301 48,407 
Goodwill213,345 214,335 
Intangible assets143,808 150,884 
Deposits and other assets4,301 4,117 
Total assets$697,239 $674,235 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$15,523 $10,577 
Payroll-related accruals54,797 48,706 
Accrued expenses and other current liabilities76,881 15,364 
Operating lease liabilities, current portion1,579 1,692 
Total current liabilities148,780 76,339 
Operating lease liabilities, noncurrent portion31,145 30,355 
Deferred tax liability36,748 36,231 
Other long-term liability45,805 66,400 
Total liabilities$262,478 $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 September 30, 2024 and December 31, 2023
— — 
Common stock, $0.001 par value, 300,000,000 shares authorized as of September 30, 2024, and December 31, 2023; 58,435,576 and 57,762,414 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
58 58 
Additional paid in capital543,961 504,453 
Accumulated other comprehensive income
13,145 8,885 
Accumulated deficit(122,403)(48,486)
Total stockholders' equity434,761 464,910 
Total liabilities and stockholders' equity$697,239 $674,235 




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

Reconciliation of GAAP Operating (Loss) Income to Non-GAAP Operating (Loss) Income:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
GAAP Operating (loss) income
$(13,568)$2,113 $(53,189)$(4,735)
Non-GAAP Adjustments:
Change in fair value of contingent consideration
6,578 — 18,609 — 
Amortization of acquired intangible asset
2,504 — 7,412 — 
Acquisition-related expenses (a)
328 2,681 4,142 2,681 
Capitalized software impairment and related costs (b)
3,789 — 3,789 — 
Non-GAAP Operating (loss) income
$(369)$4,794 $(19,237)$(2,054)
________________
(a) The acquisition-related expenses primarily include integration, severance and retention related expenses.
(b) The capitalized software impairment and related costs primarily include the write-off of capitalized software and related wind down costs, which were recorded within the research and development expense within the condensed consolidated statements of operations.

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 September 30,
20242023
% Growth
VTE$145,346 $121,460 19.7 %
Emerging Therapies8,044 4,906 64.0 %
Total Revenue$153,390 $126,366 21.4 %

Nine Months Ended September 30,
20242023
% Growth
VTE$420,213 $349,604 20.2 %
Emerging Therapies22,191 11,934 85.9 %
Total Revenue$442,404 $361,538 22.4 %

v3.24.3
Cover
Oct. 28, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 28, 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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