Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 96

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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, property, plant, and equipment, and other operating costs. Our sources of capital include sales of our Inspire system and registered offerings of our common stock. 

As of March 31, 2025, we had cash, cash equivalents, and available-for-sale debt securities of $414.0 million, a decrease of $102.5 million from $516.5 million as of December 31, 2024. Working capital totaled $508.2 million as of March 31, 2025, a decrease of $34.1 million from December 31, 2024. We define working capital as current assets less current liabilities. The decrease in working capital was primarily due to the following factors:

•a $96.3 million decrease in cash and cash equivalents primarily due to the share repurchases made during the first quarter under our share repurchase program, as well as inventory purchases and the payment of taxes on net share settlements of equity awards, partially offset by proceeds from sales of the Inspire system, proceeds from the exercise of stock options, and interest and dividend income;

•a $1.9 million decrease in prepaid expense and other current assets; and

•a $0.4 million decrease in accounts receivable.

The decrease in working capital was partially offset by the following factors:

•a $19.9 million increase in short-term available-for-sale investments which increased as some long-term available for sale investment moved into the short-term category due to the passage of time;

•a $19.6 million increase in inventory balances, as we increased inventory levels to support higher sales and the anticipated 2025 launch of our next generation Inspire system;

•a $15.5 million decrease in accrued expenses which decreased primarily due to the payment of year-end bonuses and commissions; and

•a $9.6 million decrease in accounts payable due to the timing of vendor invoices.

The primary objective of our investment activities is to preserve our capital for the purpose of funding operations while at the same time maximizing the income we receive from our investments without significantly increasing risk or decreasing availability. To achieve these objectives, our investment policy allows us to maintain a portfolio of certain types of debt securities issued by the U.S. government and its agencies, corporations with investment-grade credit ratings, or commercial paper and money market funds issued by the highest quality financial and non-financial companies. At March 31, 2025, we had $268.0 million in U.S. government securities, $75.6 million in corporate